Finance Today
Finance is a huge aspect in today's business world. Finance has everything to do with the managing of money. It is different than accounting since accounting focuses on how money was spent. Finance focuses more on the present and especially future. Budgeting, allocating of resources, stock brokerage and understanding trends in spending are a few of the areas of expertise in finance. A business cannot thrive without an understanding and respect for finance.
Finance Careers
1. Financial Analyst- A financial analyst researches macroeconomic and microeconomic conditions along with company fundamentals to make business, sector and industry recommendations. They also often recommend a course of action, such as to buy or sell a company's stock based upon its overall current and predicted strength. An analyst must be aware of current developments in the field in which he or she specializes as well as in preparing financial models to predict future economic conditions for any number of variables.
2. Financial Advisor- A financial advisor is a professional who provides blended financial services to individuals, businesses, and governments. This can involve investment advice, which may include pension planning, and/or advice on life insurance and other insurances such as income protection insurance, critical illness insurance etc., and/or advice on mortgages.
3. Financial Planner- Financial planners are responsible for assessing your financial situation and putting a plan in place that will meet your financial goals. This involves much more than investment advice, and, indeed, investment advice is often the least valuable thing a financial planner provides. A good financial planner will want to know your entire financial situation, not just how much money happens to be in your retirement account.
2. Financial Advisor- A financial advisor is a professional who provides blended financial services to individuals, businesses, and governments. This can involve investment advice, which may include pension planning, and/or advice on life insurance and other insurances such as income protection insurance, critical illness insurance etc., and/or advice on mortgages.
3. Financial Planner- Financial planners are responsible for assessing your financial situation and putting a plan in place that will meet your financial goals. This involves much more than investment advice, and, indeed, investment advice is often the least valuable thing a financial planner provides. A good financial planner will want to know your entire financial situation, not just how much money happens to be in your retirement account.
Finance Mentor: Mike Link
OBJECTIVES
I grew up knowing Mike as he was one of my youth leaders and also one of my employers as he moved on to running his own business. I only recently found out that he worked in finance for Jack In the Box for 25 years prior to starting his own pizza chain. I was curious to know more about his background and the positives and negatives of finance.
MARKETPLACE
PROJECTIONS FOR THE INDUSTRY
Mike thinks that the economy is effecting jobs in the finance industry. He mentioned that economically things tend to be improving
KEY ISSUES/NEW DEVELOPMENTS/KEY CHALLENGES
Mike says that the biggest challenge is dealing with the unexpected. New laws, changes in the economy and money being lost through negligence or theft are some of the biggest issues that he personally had to deal with.
OPPORTUNITIES
There are opportunities where ever money it being spent. Virtually every business is a potential opportunity.
SALARIES/CAREER GROWTH
By today's standards, Mike says that the starting salary for somebody going into finance would be around $50,000 per year. But he says that there is a lot of room for growth in different financial departments. He says that a CFO will make at least 6 figures.
ENTRY INTO POSITION
HOW THEY GOT INVOLVED
Mike just walked into Jack In the Box one day looking for a job.
TRAINING AND BACKGROUND
Mike got a pre-med degree and worked at a local restaurant in Buffalo, NY. Eventually he moved out west and applied at Jack In the Box. He said that back the 80's a degree meant a lot because fewer people took the initiative in getting a college education. Having extra education and prior experience in the food industry put him out above the rest and he received on the job training. By the time he retired from Jack In the Box, he was financially managing a whole region of restaurants in Washington state.
IMPORTANCE OF SPECIFIC CREDENTIALS
Now to get a job that is worth making a career out of, Mike says that an education is a must. Simply showing up with an education which is not compatible with the sought after field will not work nowadays. An education involving finance is imperative.
JOB SPECIFICS
TYPICAL WORK DAY
In the finance aspect of things, Mike talked about how he will analyze where the money is going and how its spending needs to be modified. Also he analyzes where the money is coming from so profits can be maximized. This part of things is really important as it is one of the only things that he does not have direct control over. Being the owner of his own business also involves Mike doing a lot of paper work and managing other aspects of his business.
BEST PART OF WORK
Being able to control where the money is going and making decisions based on research and experience is Mikes favorite part about managing finances. He especially enjoyed it when he ran his own business since it was his own money.
WORST PART OF WORK
Taking a hit from the economy is what he said was the worst part of the financial aspects of things.
CRUCIAL TALENTS AND SKILLS
Being organized, understanding laws involving finance... the overall impression that I got from Mike was that you have to be good with money. Also he mentioned that being proactive and always filling your time with things that help you learn will lead to a successful career.
IMPORTANT VALUES AND ATTITUDES
Mike being a member of the Church of Jesus Christ of Latter-Day Saints just basically said that the important values for this type of work are the basic teachings of the church. Having a genuine interest in the welfare of all people, being honest and living as Christ would are the key attitudes and values that lead to success.
WHO DOESN'T DO WELL IN THIS TYPE OF WORK
Disorganized people who also aren't self motivated.
I grew up knowing Mike as he was one of my youth leaders and also one of my employers as he moved on to running his own business. I only recently found out that he worked in finance for Jack In the Box for 25 years prior to starting his own pizza chain. I was curious to know more about his background and the positives and negatives of finance.
MARKETPLACE
PROJECTIONS FOR THE INDUSTRY
Mike thinks that the economy is effecting jobs in the finance industry. He mentioned that economically things tend to be improving
KEY ISSUES/NEW DEVELOPMENTS/KEY CHALLENGES
Mike says that the biggest challenge is dealing with the unexpected. New laws, changes in the economy and money being lost through negligence or theft are some of the biggest issues that he personally had to deal with.
OPPORTUNITIES
There are opportunities where ever money it being spent. Virtually every business is a potential opportunity.
SALARIES/CAREER GROWTH
By today's standards, Mike says that the starting salary for somebody going into finance would be around $50,000 per year. But he says that there is a lot of room for growth in different financial departments. He says that a CFO will make at least 6 figures.
ENTRY INTO POSITION
HOW THEY GOT INVOLVED
Mike just walked into Jack In the Box one day looking for a job.
TRAINING AND BACKGROUND
Mike got a pre-med degree and worked at a local restaurant in Buffalo, NY. Eventually he moved out west and applied at Jack In the Box. He said that back the 80's a degree meant a lot because fewer people took the initiative in getting a college education. Having extra education and prior experience in the food industry put him out above the rest and he received on the job training. By the time he retired from Jack In the Box, he was financially managing a whole region of restaurants in Washington state.
IMPORTANCE OF SPECIFIC CREDENTIALS
Now to get a job that is worth making a career out of, Mike says that an education is a must. Simply showing up with an education which is not compatible with the sought after field will not work nowadays. An education involving finance is imperative.
JOB SPECIFICS
TYPICAL WORK DAY
In the finance aspect of things, Mike talked about how he will analyze where the money is going and how its spending needs to be modified. Also he analyzes where the money is coming from so profits can be maximized. This part of things is really important as it is one of the only things that he does not have direct control over. Being the owner of his own business also involves Mike doing a lot of paper work and managing other aspects of his business.
BEST PART OF WORK
Being able to control where the money is going and making decisions based on research and experience is Mikes favorite part about managing finances. He especially enjoyed it when he ran his own business since it was his own money.
WORST PART OF WORK
Taking a hit from the economy is what he said was the worst part of the financial aspects of things.
CRUCIAL TALENTS AND SKILLS
Being organized, understanding laws involving finance... the overall impression that I got from Mike was that you have to be good with money. Also he mentioned that being proactive and always filling your time with things that help you learn will lead to a successful career.
IMPORTANT VALUES AND ATTITUDES
Mike being a member of the Church of Jesus Christ of Latter-Day Saints just basically said that the important values for this type of work are the basic teachings of the church. Having a genuine interest in the welfare of all people, being honest and living as Christ would are the key attitudes and values that lead to success.
WHO DOESN'T DO WELL IN THIS TYPE OF WORK
Disorganized people who also aren't self motivated.
Finance Key Terms
ROI- A performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of
an investment is divided by the cost of the investment; the result is expressed
as a percentage or a ratio.
Net Present Value- The difference between the present value of cash inflows and the present value
of cash outflows. NPV is used in capital budgeting to analyze the profitability
of an investment or project. NPV analysis is sensitive to the
reliability of future cash inflows that an investment or project will yield.
Stocks- The goods or merchandise kept on the premises of a business or warehouse and
available for sale or distribution.
Bonds- A debt investment in which an investor loans money to an entity (corporate or
governmental) that borrows the funds for a defined period of time at a fixed
interest rate. Bonds are used by companies,
municipalities, states and U.S. and foreign governments to finance a variety of
projects and activities.
Stockholders- One who owns shares of stock in a corporation or mutual fund. For corporations,
along with the ownership comes a right to declared dividends and the right to vote on certain
company matters, including the board of directors. also called shareholder.
Government Securities- a security issued by United States government agencies or the Farm Credit System
Mutual Fund- An investment program funded by shareholders that trades in diversified
holdings and is professionally managed.
SEC- A government commission created by Congress to regulate the securities markets
and protect investors. In addition to regulation and protection, it also
monitors the corporate takeovers in the U.S. The SEC is composed of five
commissioners appointed by the U.S. President and approved by the Senate. The
statutes administered by the SEC are designed to promote full public disclosure
and to protect the investing public against fraudulent and manipulative
practices in the securities markets. Generally, most issues of securities
offered in interstate commerce, through the mail or on the internet must be
registered with the SEC.
Stock Markets- A government commission created by Congress to regulate the securities markets
and protect investors. In addition to regulation and protection, it also
monitors the corporate takeovers in the U.S. The SEC is composed of five
commissioners appointed by the U.S. President and approved by the Senate. The
statutes administered by the SEC are designed to promote full public disclosure
and to protect the investing public against fraudulent and manipulative
practices in the securities markets. Generally, most issues of securities
offered in interstate commerce, through the mail or on the internet must be
registered with the SEC.
Intial Public Offering (IPO)- The first sale of stock by a private company to the public. IPOs are often
issued by smaller, younger companies
seeking the capital to expand, but can also be done by large privately owned
companies looking to become publicly traded. In an IPO, the issuer
obtains the assistance of an underwriting firm, which helps it determine what
type of security to issue (common or preferred), the best offering price and
the time to bring it to market.
Venture Capital- Adventure Capital is a term usually associated with providing venture capital in
the context of humanitarian aid and development. A common component is the
investment in funds that use microfinance or microcredit to provide development
assistance to the poor.
Interest Rate- The rate at which interest is accumulated.
Dow Jones Industrial Average-The Dow Jones Industrial Average is a price-weighted average of 30 significant
stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896
compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of
an investment is divided by the cost of the investment; the result is expressed
as a percentage or a ratio.
Net Present Value- The difference between the present value of cash inflows and the present value
of cash outflows. NPV is used in capital budgeting to analyze the profitability
of an investment or project. NPV analysis is sensitive to the
reliability of future cash inflows that an investment or project will yield.
Stocks- The goods or merchandise kept on the premises of a business or warehouse and
available for sale or distribution.
Bonds- A debt investment in which an investor loans money to an entity (corporate or
governmental) that borrows the funds for a defined period of time at a fixed
interest rate. Bonds are used by companies,
municipalities, states and U.S. and foreign governments to finance a variety of
projects and activities.
Stockholders- One who owns shares of stock in a corporation or mutual fund. For corporations,
along with the ownership comes a right to declared dividends and the right to vote on certain
company matters, including the board of directors. also called shareholder.
Government Securities- a security issued by United States government agencies or the Farm Credit System
Mutual Fund- An investment program funded by shareholders that trades in diversified
holdings and is professionally managed.
SEC- A government commission created by Congress to regulate the securities markets
and protect investors. In addition to regulation and protection, it also
monitors the corporate takeovers in the U.S. The SEC is composed of five
commissioners appointed by the U.S. President and approved by the Senate. The
statutes administered by the SEC are designed to promote full public disclosure
and to protect the investing public against fraudulent and manipulative
practices in the securities markets. Generally, most issues of securities
offered in interstate commerce, through the mail or on the internet must be
registered with the SEC.
Stock Markets- A government commission created by Congress to regulate the securities markets
and protect investors. In addition to regulation and protection, it also
monitors the corporate takeovers in the U.S. The SEC is composed of five
commissioners appointed by the U.S. President and approved by the Senate. The
statutes administered by the SEC are designed to promote full public disclosure
and to protect the investing public against fraudulent and manipulative
practices in the securities markets. Generally, most issues of securities
offered in interstate commerce, through the mail or on the internet must be
registered with the SEC.
Intial Public Offering (IPO)- The first sale of stock by a private company to the public. IPOs are often
issued by smaller, younger companies
seeking the capital to expand, but can also be done by large privately owned
companies looking to become publicly traded. In an IPO, the issuer
obtains the assistance of an underwriting firm, which helps it determine what
type of security to issue (common or preferred), the best offering price and
the time to bring it to market.
Venture Capital- Adventure Capital is a term usually associated with providing venture capital in
the context of humanitarian aid and development. A common component is the
investment in funds that use microfinance or microcredit to provide development
assistance to the poor.
Interest Rate- The rate at which interest is accumulated.
Dow Jones Industrial Average-The Dow Jones Industrial Average is a price-weighted average of 30 significant
stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896