Fities Finance and Business Solution

Within the next 10 years, finance degree jobs are expected to grow fast. There are plenty of opportunities ranging from corporate and international financial management, personal financial planning and investment services. Many firms often look for finance degree graduates to hire, such as brokerage firms, banks, credit card companies, and insurance companies. Here are some potential finance degree careers one can seek for.

Working with the banking sector or any financial institution will find you jobs like banking manager who is responsible of looking at the needs of small business owners or clients of large corporations. You can also find job as a credit analyst who assess risks to offering credit to businesses. In the same line, loan officers are the ones who assess if one is worthy for credit.

Careers in finance also include the field of investments, which would be like the buying and investing of mutual funds or pensions. You could also consider investing funds under insurance companies. If you are interested in selling investments instead, you could become a stockbroker or securities analyst. On the other hand, if you would like to help advice clients on ways they can attain their financial goals, becoming a financial adviser may be a choice. There is also the position of a portfolio review associate who analyzes a client’s past performances with mutual funds and then reports their finding to them.

If you think you might have the upper hand in financial managerial roles, you could work in that area for an organization. There, you could become a chief financial officer whereby you will help an organization use their capitals effectively in order to create financial growth. You could also become a credit manager, in which you are responsible for establishing and implementing the organization’s policies. Other finance degree jobs to do with managerial roles are like financial analyst, revenue analyst, and income tax compliant managers.

These are simply the several finance degree jobs available. If you are interested in a career in finance but is unsure of which might suit you best, you could always talk to a career consultant. Job opportunities are aplenty so there would definitely be one right for you.

Do not confuse these funds with money market accounts offered by banks.  These are insured, and pay depositors an interest rate that is at the discretion of the bank.  Money market funds pay market rates, or prevailing rates (short-term rates), minus modest expenses.

Except for a notable exception in 2008, retail investors (like you and me) have never faced the threat of losing money in these funds.  Why?  Let’s take a closer look.

Money market funds invest in high quality short-term IOU’s issued by the U.S. government, banks, and major corporations.  Examples include T-bills, commercial paper, and short-term CD’s.  Average maturity of this short-term debt is less than 90 days.  So, when one IOU is paid off with interest, it is replaced by another.

Money funds have historically been viewed as very safe investments.  U.S. T-bills are considered the safest investment in the world.  High quality short-term debt has a great record for safety.  No major corporation issuing debt can afford to default on any debt.  That would lower their credit rating and make future borrowing more expensive and difficult.

Money market funds peg the value of their shares at $1. Share price does not flucuate.  They pay investors interest in the form of dividends.  As short-term interest rates in the economy change, the rate these funds pay track these changes.  Money funds are very liquid.  You can pull money out of them quickly and easily with no charges or fees.  There are no sales charges to invest.

Remember, these funds do not declare interest rates like banks do.  They are replacing their portfolio holdings on an ongoing basis.  When money rates rise they are buying higher paying securities.  When rates fall they are replacing higher rate paper with lower rate paper.  They pass the interest onto investors, minus expenses which can be considerably less than one half of 1%.  Thus, what they pay investors tracks or follows what money is actually worth in the money market.

So, if rates in the economy go up, investors automatically benefit from these higher interest rates.  For example, my money market fund paid 13% in 1980, 17% for 1981, and 13% for the year 1982.

And then there’s the flip side.  In early 2009 interest rates were at historical lows and money market fund rates were down to about one-fourth of 1%.  The 3-month U.S. T-bill rate was even lower.  Meanwhile, many banks were offering higher rates to attract and keep customers.

Some money funds specialize and invest only in U.S. government securities.  Others invest in short-term municipal debt and offer tax-exempt income.

Keep in mind that money market funds in early 2009 were paying super low rates because interest rates were at record lows.