Posted January 27, 2018 06:00:00By now, you’ve probably heard the word “financial” more than a million times, and it’s almost guaranteed that you’ve heard it at least once in your lifetime.
It’s a phrase that’s been used for more than 25 years, and many of us have learned a lot about it over the years.
But how exactly does the financial industry use this term?
Here are the five biggest misconceptions you need to know about the industry.1.
Financials aren’t the same as “businesses” or “people.”
“We’ve all heard that financials are businesses, and we’re all in finance.
But they’re not the same,” says David Rolf, CEO of the Financial Accounting Standards Board (FASB), which sets industry standards.
“It’s a much more complex world than that.”2.
Financial products are the same thing as accounting software.
“Financial products are products that make financial statements,” says Mike Lohmann, CEO and cofounder of the investment banking firm KKR Investment Research.
“They’re not accounting products.”3.
You don’t need to be a financial expert to be an accountant.
“There’s no reason to become an accountant,” says Lohman.
“The way you make your living is different than the way an accountant makes his or her living.
It all depends on your profession and how you’re paid.”4.
You can get paid to be financial analysts.
“As an accountant, you don’t have a salary,” says Rolf.
“You do have a contract with your employer that you sign that you’re responsible for all of your financial reporting.”5.
There are many types of financial products.
“If you’re an accountant who’s making $40,000 a year and you get a job offer and your employer says, ‘Oh, we want you to be our accountant,’ you can’t say, ‘I don’t want to do that.'”1.
You need a certificate to be in the financial services industry.
“I would say that’s pretty common.
The first time I heard of it, it was in a commercial,” says Matt Laskow, the CEO of financial consulting firm Credibility Management Group.”
People would just tell you, ‘Well, I’m a financial analyst, so I don’t actually have a certificate.’
I’ve had people tell me, ‘No, I do, but it’s not as easy as that.'”2.
You’re not a financial consultant if you work for an investment bank.
“When you start out as an investment banker, you’re doing a lot of your work in-house.
You have a job to do.
That’s it,” says Jim Schindler, a partner at law firm Schindlers Law Group.
“But as you get more experience, you get certified as an independent financial analyst.”3, You’re probably not qualified to be certified as a financial adviser.
“Certified financial advisors are typically people who have done a lot more of their own research and who have been certified in the field of financial analysis,” says Jeff Muehlhauser, president and CEO of Fidelity Investments.
“As far as the level of knowledge that they’re bringing to the table, they’re experts in the areas of financial literacy and the types of questions that they have to answer.
If you’re looking for someone who can do that for you, you’d be looking in the wrong field.”4, You’ll never become a financial planner.”
Most people think that when they’re looking to get into the financial field, they have an exam, and they have a test.
That is not the case,” says Muellah.
“When you go to school, you learn the subjects.
You do the tests.
If they have no idea what you’re talking about, they won’t take you.”5, You can’t start as an accountant without first working at a financial firm.”
That’s the thing that everyone is so nervous about: If you go into an accounting firm, you can start as a bank, and if you go in the finance industry, you have to be doing the same things.
But that’s not true,” says Schind.
“If you want to be able to do the same type of thing, you’ll have to start as part of the accounting group.”1.
The financial profession is not for everyone.
“The profession of financial analyst is not necessarily the way for everyone,” says Michael Lohm, the head of investment banking at KKR.
“Some people might like to work in the accounting or finance industry.
Some people might be more comfortable working with financial analysts.”2, It’s OK to have a financial background.”
A lot of people will say, I can’t really tell you what I’m going to do as an investor,” says Scott Stump, a former hedge fund manager. “I’ll