For those of you who don't know, the Series 6 is a NASD (National Association of Securities Dealers) sanctioned test designed to weed-out morons from entering the securities industry (not that this doesn't happen, it just helps a bunch). The test is very difficult with intentionally misleading questions and potential answers that skirt the line of truth. It's rough stuff.
There are tons of products out there to help people pass this thing- that's how many people fail. If you do a Google search for "Series 6 Exam" or "Series 6 License" you'll see what I mean.
Going into this thing, I knew little-to-nothing about this industry. I had a vague idea what a stock or a bond was, but no realized concept. I had to learn everything to pass the test in three weeks. I studied my little butt off.
The payoff? I get a great job with a well-respected retirement services company with good pay and benefits. This means that I can provide for my family much better than my stupid hotel job AND the place is only open when the market is open so... NO WEEKENDS! And no third shift! Woooohoooo! <pumps fist>
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Congratulations! I know what it's like to want to be able to enjoy your family and also provide for them. My husband has that dilemma. Good luck in your new job.
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The series 7 is even harder. I won't be selling securities on the secondary market or working with equipment trust certificates or other, similar, securities. In order to do this, I'd have to pass the 7. The 6 is a 2 and a half hour test with 100 questions. The 7 is a 6 hour test with many more questions (though I'm not sure how many exactly).
So, since I'm working with Annuities, 401ks and IRA's, I only need the 6. I could also use a 6 to sell Mutual Funds and other primary offerings. Basically, anything that is required to be sold with a prospectus I can sell.
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Necessity. They paid well and needed people with strong customer service skills (believe it or not I'm not as big a jerk to customers as I am here). I despirately wanted to get out of the hospitality industry (a dead-end place if there ever was one). At this point, without a college degree, I needed something where I wouldn't be killing myself every day just to make pennies and, while I won't be raking it in, this job does offer good compensation. It also offers 100% tuition reimbursement in the financial services field. So I can go back to school.
As to the rest, investment banking can be difficult. By and large, until you make some big clients, you don't make a lot of money and have to subsidize by working in other fields. I know a ton of reps who bartend or work construction or anything else to support them while they develop their client base. Only then can they switch to doing it full time and start making serious money. I'm not saying it can't happen, but you really have to work for it.
On another note, this whole situation has given me more hope for our economy. I now understand the circumstances surrounding the financial practices that lead to the Great Depression and the subsequent legislation that was crafted to prevent it from happening again. It's really tough to be a crooked investment banker these days. Not saying it doesn't happen, but it's a LOT harder.
It also lets me understand the gravity of the whole Martha Stuart Insider Trading scandal. Insider Trading is the Numero UNO "shame shame, naughty trader" thing to do. It carries significant penaulties. We're talking three times the profit of the insider trade or $1,000,000 whichever is greater, jail sentences and a lifetime bar from the industry. The material I studied repeatedly mentioned that it is the worst thing you can do as a rep. Churning, Selling Dividends and Breakpoint Sales don't even come close.
quote:*adds PC to list of people to get stock tips from*
Here's a tip: Until you have funds to meet emergency expenses, I don't recommend investing at all (excluding for your retirement). You need to be able to provide for yourself in any given situation before you start speculating with your money (even in strong investments with little inherent risks). Not taking care of outstanding debt (including school debt) will just hamper you as an investor while you try and put money away for the future and is a good example poor personal financing.
When you do start investing, look into mutual funds. Unless you have mucho dinero, you won't be able to invest enough money to sufficiently diversify your portfolio. Stocks are usually only sold in round units (of 100). If the stock is expensive (like any good blue chip stock) you're going to be spending hundreds of dollars on just ONE investment. Hardly diversified and your principle will be at stake. Don't even get me started on penny stocks. Those are HIGHLY speculative and can be dangerous to invest in without being a seasoned investor.
So, back to mutual funds. With a mutual fund, you can buy partial shares in small amounts (or large) and the fund provides all of the diversification (unless it's not a diversified fund- such as a specialty fund [eg. Biotechnology Funds]) you'll need. The investment advisor will purchase stocks and bonds to meet the fund's investment objective (such as: Safety of Principle, Income, and/or Growth), and do his best to insure that the objectives are met. All that you need to do is select a Mutual Fund(s) that fits your investment objectives. If you don't know what that is, talk to a financial advisor. They'll ask you questions about your financial status (net worth, tax bracket, investment history/experience) and recommend investments appropriately
That's not to say that any of this is guarunteed money. Market risk is always present. If there is a general downturn in the economy (such as we've seen Q1 2005) most funds won't do well or may loose money, but you'll most likely loose a hell of a lot less than you would had you invested that small amount of money on your own.