Financial management is a tricky business, so finding the right financial manager is a matter of choosing the right person for the job, says Michael St. Aubin, author of The Financial Management Essentials, a guide to managing your money.
St., who is a former investment banker and chief financial officer at a large bank, says the most important consideration is whether you’re looking to save money or invest in your own business.
“If you want to make a lot of money, you have to think of a financial manager who’s going to invest a lot in your business,” he says.
He also recommends that you pick a manager who knows what you’re doing, but isn’t going to charge you a lot to manage your business.
You don’t want a bank manager who has no business skills, or is only going to do the right thing for you, says St. Baldwin.
The same goes for investment bankers, who tend to be less knowledgeable about the financial industry, says David W. Renn, an investment manager at Renn Capital Advisors in Dallas.
“Investment bankers are the people that have been at the helm for a lot longer than investment bankers have been there,” he said.
“They know a lot more about investing than the average investment banker, and they’re probably a lot smarter.”
St. Barrett says that the best financial managers are people who can work with clients, and who are comfortable with dealing with other people, especially if they don’t work for a company that is going to make money.
“That’s not a bad thing,” he recommends.
For those who aren’t ready to get into the finance world, the best investment banks for beginners are: Citi (NYSE:C) — They’re based in New York, and can help you get into finance in a matter or a day.
Citi has more than 30,000 employees and offers more than $20 trillion of consumer, commercial and institutional loans, according to the company’s website.
“A lot of people will tell you that the biggest asset they can invest in is a bank, so Citi is a great choice,” says St Barrett.
He says that Citi will also pay you a reasonable commission for your investment, and is also committed to helping you get your money out of bad situations.
In the case of a bad investment, they can help resolve the situation with your lender, and you can make a down payment and move on.
For a good idea of what to expect when opening an account with Citi, check out our guide to getting into the investment world.
Bank of America (NYSE,BAC) — The second-largest U.S. bank, with about 5,000 workers and $4 trillion in assets, is based in Charlotte, North Carolina.
It has a reputation for helping its customers save money and manage their money better than any other financial institution, says Brian McElroy, chief executive officer of Wealthfront, a financial advice website.
But if you want more of a traditional investment banking experience, he recommends checking out a brokerage firm.
“I can’t say that it’s the most competitive option, but it does offer a better feel,” he explains.
BankAmericard, the third-largest bank in the U.A.E., is also based in the Charlotte area.
But it’s not as large as Citi or Citi Capital, and it doesn’t have a reputation as a financial services company.
The company has some good reviews online, but you might have to be willing to work for them, and pay them a fee, McElroys says.
For the best experience, “I would recommend getting a good credit score, getting a mortgage or checking account,” he adds.
For all of the best online and offline advice on getting into investing, check with an adviser.
Investing for yourself is not always easy.
While you might think that saving money can be done with a bank or an investment firm, that’s not always the case, says McElrod.
“We’re not always sure how much of a return can be made by investing directly in the stock market,” he notes.
“In a lot the stock markets you get some benefits.
But you might be losing out on some of the growth opportunities that the stock sector provides.”
It’s also possible to get your investment returns directly from your savings or investments.
That’s how you can get your first big payday in a financial investment.
“It’s not about making a lot out of your money, it’s about making money from your life,” says McEllrod.
You can save a lot by investing in small, diversified stocks, but the stock industry isn’t the only place to invest.
“Some of the companies that you might invest in may not be that well known, or may be in a less developed market,” McEllrods says.
“You might have a better chance of getting a big return by investing from a more established company.”
To get started