Everyone coming across this title will eventual ask – what exactly does a money manager do every day? What does his or her day look like? What does he or she handle and how does one become a “money manager?”
Well, the answer isn’t as simple as you might think – for example, some people might consider hiring a money manager for those areas they feel unsure about. One must have rather thick skin and a lot of discipline to do what is basically a proper and efficient way of handling money.
Persuasion and intelligence are two major tools of the trade – not to mention that a decent education in finance would also help settle the bets. Working with numbers, having a high mathematics understand will also make a difference. But enough about this in particular, let’s focus a little on the meaning of a money manager.
One of the most notable money managers is Ken Fisher, Fisher Investments. Not only is he a guru in the money management sector, but he stepped right in his father’s shoes (Philip Fisher) and eventually started his own company. He is, at the moment, one of the twenty five most influential figures in the finance world and a familiar face on the investment news circuit. How did he get there? A good financial education, a little bit of interest, and being truly focused have helped Ken become what he is today (it doesn’t hurt that his father is Philip Fisher though!). If you’re interested in a similar career, here are a couple of steps you might want to consider in order to get a great start.
· Educate Yourself – A strong financial education is a pre-requisite for any money manager – that should be obvious. Training yourself in income analysis and strategies is also incredibly relevant. Analyzing bonds and stocks will probably one of your first jobs along the way (more on that in the next bullet). It might feel boring at first but if you learn to look at it the right way you’re sure to learn a lot, and advance sooner than you think. Education is paramount.
· Breaking In – Money management is a hard business to break into because it’s extreme competitive. Many individuals try, but very few succeed – starting at a commercial bank is one solution. Finding a place of employment at a state-run pension fund is another. And although it’s more of a secondary option, insurance companies might also be an interesting place to start. You will need to start at an entry level position and work your way up the chain.
· Understanding Mutual Funds – Financial resources such as mutual funds are usually handled by professional money managers. In order to become qualified for such a job, it takes a lot of time, because as an manager you would have to focus on activities such as mutual fund trading, order execution proper analysis and even bits of marketing will be essential to the trading process. It’s a tedious, stressful job, but for those enjoying it, by far incredibly interesting.
Becoming a money manager is extremely difficult and competitive but it’s certainly possible. A strong education, hard work, and a little dash of luck are all you need to become one so hit the books and hope to find some luck along the way.