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How important is it to have an MBA if you're contemplating a career as a financial advisor or financial analyst? Many people get jobs in these fields with only a bachelor's degree and virtually no work experience and seem to do quite well.
I know that the MBA gives a shortcut to higher level positions. But besides that, what does the MBA give that on-the-job training wouldn't give? What are the pros and cons of each? Is an MBA really that important to these types of careers.
How important is it to have an MBA if you're contemplating a career as a financial adviser or financial analyst? Many people get jobs in these fields with only a bachelor's degree and virtually no work experience and seem to do quite well.
First, a financial adviser and a financial analyst are two completely different types of jobs. A financial analyst is someone who sits in front of a spreadsheet all day, looking at forecasting, budgeting, cash flow analysis and determines whether certain projects will be lucrative and if the company should pursue them. There is also mergers, acquisitions, asset management, P&L analysis, preparing financial statements and analyzing data, drawing conclusions, and creating solutions/methodologies. A financial adviser is more or less and sales/marketing position where you are dealing with customers face to face and trying to sell them insurance products, junk annuities and investment advice that someone can find just by googling. This type of position is called many many many different names, to cover up the fact that it is just a sales position. Common names are: Financial Representative, Stock Broker, Credit Couselor etc. Investment banking is a whole other animal where you are looking at equity analysis, charting, financial models and company research. Financial Analyst (Corporate Finance), Financial Adviser (Salesman/Marketing) and Investment Banking (Equity Analysis/Financial Analysis) are 3 very different fields. Do not get them mixed up. Don’t let the stupid tricky names mess you up either.
For a financial adviser, you don't need a MBA. Most of them don't even have a business related undergrad degree.
For a financial analyst, you don't have to have a MBA, but it helps. A CFA also helps. I am interested in becoming a FA and I am planning on getting a MBA. However, you can be a successful FA without an MBA.
For investment banking, you need an MBA from a top rated business school. It is very competitive. -Especially now that all the firms are going under and nobody is hiring. You need to be the best of the best and you must have an MBA from a top rated school.
An MBA is meant to be more of a turning point. whether it is to completely change the career that you are in or to obtain more skills so you can advance in your current position ---analytical, teamwork, communications. People that have been in the work environment for a long time get stuck in their ways. They learn to work the system. They hate change. Going back to school for an MBA can be a very eye-opening experience. As already mentioned, credentials.
Would you want someone working on your teeth who didn't go to dental school? (They learned it on their own)
Would you want someone teaching your children at school, who wasn't licensed to teach and didn't have a degree in education? (They practiced on their own kids and learned how to do it)
Why would a company want someone with 5 years of work experience in one field, when they could have someone with 5 years of work experience and a MBA or Ph.D in that field, a real expert, a master --- who can help their company?
An MBA does not give a short-cut to higher level positions, but provides someone the tools and knowledge to reach their goals, whether it is advanced analytical, teamwork, effective communication, networking, etc.
I work with this lady that just doesn’t understand how it all works. She’s been working at the company for 6 years, can do everything on the entire floor. She is very talented and I would consider her a valuable employee. She wants a promotion, but they won’t give it to her. I began to wonder why and soon found out after working with her for a while, why she was not given the opportunity. She speaks in broken redneck English. She speaks to people in a very condescending way, often patronizing her. She doesn’t sound like a manger, she sounds like a mom at work trying to do her best. She does her job and does it well, but she’s not going to be promoted because she doesn’t fit the ideal manager. She doesn’t have the qualities to be an effective manager. When she found out that I was going back to school (I’m half her age) for an MBA, because I would like to have a managerial role at the company, she laughed and scoffed at me.
My company recently had 5 upper management promotions. 4 of the 5 had a MBA.
I've worked as a Financial Analyst and have an MBA. I must say that the MBA has given me an advantage. It changes your thought process. Before I thought as an Accountant (my undergrad degree). Now I look at situations from the perspective of an Accountant, an Economist, a Marketing person, a Management person, etc. Depending on your line of work or career path, especially if you want to one day enter management or start your own business, I'd say it's very advantageous as employers want someone who can think outside of the box.
And I agree with Oleo. Aside from the word "financial" there's absolutely no comparison between a Financial Advisor and Financial Analyst.
And on the topic of work experience - there are some things you can never learn on the job or can grasp much faster if you've been taught to think differently, as the MBA does. At least it did for me.
Highschool: Teaches you the ability to memorize and repeat a process
Undergrad: Teaches you to think, solve problems and make decisions given what information you have in a certain area (your major), finance for example
Masters: Teaches you to think from multiple angles (marketing, finance, management, IT etc.) and have a more global approach to solving problems and to be able to make quick decisions and knowing how it will impact all areas of the business. Leadership, communication and teamwork is emphasized.
However, MBA is what you make of it. Some people go to network, some people go for more education, some people go because they want to change careers, they might feel burnt out with their current job, they might have gotten laid off. It really depends.
I've worked as a Financial Analyst and have an MBA. I must say that the MBA has given me an advantage. It changes your thought process. Before I thought as an Accountant (my undergrad degree). Now I look at situations from the perspective of an Accountant, an Economist, a Marketing person, a Management person, etc. Depending on your line of work or career path, especially if you want to one day enter management or start your own business, I'd say it's very advantageous as employers want someone who can think outside of the box.
And I agree with Oleo. Aside from the word "financial" there's absolutely no comparison between a Financial Advisor and Financial Analyst.
so how did you end up a financial analyst, can a chartered accountant be eligible for this type of role or are there any other alternative paths?
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