Investment Banker (PowerPoint)

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					Investment Banker



        By: Wendy De Los
        Palos
Annual Salary    $93,000.00

Monthly Salary    $7,750.00



Savings          10%           $775.00

House            30%          $2,325.00

Car              15%          $1,162.50

Miscellaneous    40%          $3,100.00

Retirement        5%           $387.50

                 100%         $7,750.00
Job Description

$   If you talk to business students at college, a lot of
    them will tell you that they are interested in
    investment banking.
$   Some are attracted by the high salaries.
$   Others are attracted by the glamour.
$   However, for most people, investment banking is still
    a mysterious profession.
$   Few understand what investment bankers actually
    do.
Job Description

$   Investment bankers act as middlemen and deal-
    makers for large companies, providing advice and
    guidance on high-level financial transactions.
$   For instance, some bankers specialize in helping
    companies raise money.
$   For example, suppose a company approaches an
    investment banker with a proposal to raise $100
    million to finance the development of a new mine.
Job Description

$   The investment banker first looks for people or companies willing
    to invest in the project.
$   Then he or she structures the deal, balancing the interests of both
    the company and the potential investors.
$   Once the company and the investors agree to the terms of the
    deal, the investment banker will monitor the transaction.
$   If all of the money is not raised initially, the banker will try to raise
    the remainder of the $100 million through his or her company’s
    sales force.
$   These bankers are sometimes referred to as corporate finance
    specialists.
Job Description

$   As deal-makers, some investment bankers advise companies
    that are seeking to merge with or acquire other companies.
$   If a computer manufacturer wanted to buy a software company
    to expand its business, an investment banker would find a
    suitable candidate, determine the price, and provide a structure
    for the deal.
$   Bankers also generate their own creative financial ideas to help
    their clients.
$   These bankers are sometimes called merger and acquisitions
    specialists.
Job Description

$   Dealing with top-level executives and large
    sums of money lends a certain aura of
    glamour to the investment banking
    profession.
$   However, the long, stressful hours and
    sacrifice of personal time can take their toll in
    the long run.
Working Conditions

$   Investment bankers are typically employed
    by banks and investment dealers.
$   They work in clean, comfortable office
    environments.
$   The bulk of their time is spent working on a
    computer or in meetings with co-workers and
    clients.
Working Conditions

$   While investment bankers make a lot of money, they
    pay a heavy price in terms of workload.
$   In a normal week, they work at least 50 to 60 hours.
$   During busy periods, the number of hours per week
    can increase to as much as 100.
$   Most of these hours are also stressful.
$   Mistakes in a spreadsheet or presentation can cost
    their employers or clients enormous sums of money
    and ruin an individual’s reputation.
Working Conditions

$   Entry-level investment bankers can expect to receive
    2 to 3 weeks of vacation.
$   More senior investment bankers receive up to 5
    weeks of vacation.
$   However, all investment bankers must be prepared
    to cancel their vacation plans at the last minute or
    return to work during the middle of a vacation if an
    emergency occurs.
Working Conditions

$   The high number of hours and unpredictable
    vacation schedules make it difficult for
    investment bankers to balance their work
    lives with their family obligations.
Working Conditions

$   Investment bankers are often required to
    spend a great deal of time traveling to meet
    clients.
Earnings

$   Investment bankers’ earnings vary depending on
    education, experience, geographic location, and
    employer.
$   The highest incomes are earned by bankers
    employed at the leading firms, such as Goldman
    Sachs or Merrill Lynch.
$   Bankers with graduate degrees generally earn more
    than those with only bachelor’s degrees.
Earnings

$   Investment bankers receive both an annual salary
    and a bonus based on their performance.
$   Entry-level analysts at small to medium-sized firms
    can earn anywhere from $35,000 to more than
    $70,000 a year, including bonuses.
$   Analysts at the top-tier firms can make more than
    $110,000 a year.
$   Bonuses for entry-level analysts typically range from
    10% to 50% of their base salary.
Earnings

$   As they gain experience, the base salary levels off
    and the bonuses increase.
$   Experienced investment bankers at small to medium
    firms make between $75,000 and $600,000 a year,
    including bonuses.
$   Top-level bankers at the leading firms can earn
    millions of dollars of year.
$   At these higher levels, bonuses are at least one to
    three times the base salary.
Earnings

$   The bonus that investment bankers are paid
    depends on two factors: their performance and the
    overall profitability of their companies.
$   If an investment banker is responsible for bringing in
    $5 million of business, he or she can expect to be
    well-rewarded at the end of the year.
$   As well, if the company as a whole has done well
    and the banker has been working hard, he or she
    can expect to receive a generous bonus.
Education

$   High school students interested in this career
    should take courses in math, science,
    English, and business.
Education

$   For an entry-level position as an analyst, a
    college degree in any discipline or field is the
    minimum requirement.
$   Analysts most often have a bachelor’s
    degree in business, accounting, economics,
    or finance.
$   Bachelor’s degrees usually take 4 years to
    complete.
Education

$   To reach a higher level of responsibility as an
    investment banker, you generally need more
    education.
$   Most companies require applicants to have a
    Master of Business Administration (MBA)
    degree.
$   MBAs usually take about 2 years to
    complete.
Education
$ Earning a voluntary professional designation can provide
  young investment bankers with a competitive advantage.
$ For example, the CFA Institute offers a program leading
  to the designation of Chartered Financial Analyst (CFA).
$ Applicants are required to have a bachelor’s degree or 4
  years of full-time professional work experience.
 (This experience does not have to be investment-related.)
$ To be awarded the designation, they must pass three
  different exams, and have at least 4 years of experience
  working in the investment industry.
$ See the Other Resources section for links to more
  information about the CFA designation.
Education

$   You should like working in a high-stress
    environment where there are serious
    demands on you to perform your best every
    day.
$   A high level of motivation is essential, and
    you must be prepared to work hard.
Education

$   You should enjoy working with money and be
    skilled at financial figure work.
$   You must also be able to keep up-to-date on
    current events, including business news and
    world politics.
Education

$   Strong analytical skills are important, and
    you should also be a good communicator.
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              $   Highway: 25 MPG - 26
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Chevrolet Suburban 2500

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Chevrolet Malibu

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                   $   City: 17MPG-22MPG
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