How To Get A Finance Job From An Engineering Background

“It’s something very personal, a very important thing. Hell! It’s a family motto. Are you ready Jerry? I want to make sure you’re ready, brother. Here it is: Show me the money. SHOW! ME! THE! MONEY! Jerry, it is such a pleasure to say that! Say it with me one time, Jerry.”

-Rod Tidwell, “Jerry Maguire” (1996)

“If I’m an engineering major, how can I get into finance? Show me the money!”

I find myself answering this question a lot, possibly because I’m from a non-finance background myself. Or maybe just because everyone wants to get into finance.

How you can leverage your technical background to land a job in the jungle of finance? As a technical person right out of school, you have two ways of breaking in:

Get an investment banking analyst position in the technology or TMT (Technology, Media & Telecom) group of a bank. You will use none of your quantitative/analytical background and instead use your interest in the industry/work ethic to get in.
Get a quantitative job at a hedge fund or doing trading/fixed income at a bank. You will leverage your quantitative and probability skills to get in.

Of the two, the second is easiest for most engineers. Wall Street has never been more quantitative, and it’s only getting more quant-focused each day. Even with some recent problems in the credit market and some high-profile difficulties at prestigious funds such as Goldman Global Alpha, this trend will not stop anytime soon.

Hedge Fund And Related Jobs

On-campus recruiting for these positions is less common than it is for banking analysts, but it’s there if you seek it out. Citadel, one of the largest hedge funds in the world, does undergraduate recruiting for its rotational program, as does Jump Trading, based out of Chicago.

The good news is that if you’re an engineering major at a top university, you have a good chance of landing one of these jobs, even with no previous finance experience. If you’re in this position and go through on-campus recruiting, you need to emphasize your interest in finance because this is how they select candidates. Here’s a direct quote from a Citadel recruiter:

“To be honest, we know you’re all pretty good quantitatively… after all you got an engineering degree at one of the top programs in the country. You need to show us that you’re interested in finance because that’s what differentiates you.”

During interviews they will ask you quantitative questions but it’s crucial that you show them you have had a strong and consistent interest in finance. Have some good stories prepared, especially on personal investing and why you’re particularly well-suited to be a trader.

For trading jobs the “fit” part of the interview is even more important than it is for banking. If you don’t trade stocks in between classes and wake up early each morning to read financial news, gambling is a good hobby to mention. I was asked if I played video poker/online poker and other casino games when interviewing for hedge fund jobs. You want to emphasize hobbies/interests that show you can think about risk vs. reward.

No Thanks, I Really Want To Be A Banker

Full disclosure: you can do this, but the hours are going to be far worse than trading, the pay won’t be much better and you’ll have to do truly menial, low-value-add work. The advantage is you do have a wider variety of exit options – doing engineering and then banking sets you up very well for venture capital, for example. And the perks are nice.

As a technical person, you have several things going for you right away: no one will question your intelligence, and they probably won’t ask you brain teasers or math questions. If you can get a degree in Electrical Engineering, you can do Excel calculations in your sleep. And no one will question your attention to detail (or at least not as much as if you were an English major).

What you will need to focus on in recruiting and interviewing is demonstrating your 1) interest in finance and 2) ability to handle the hours/stress of the job, which are considerably worse than those of an engineering/tech company.

A few more specific tips: when you discuss your interest in finance you need to mention tech companies if you’re applying to a tech group in a bank. And don’t just mention Google or Facebook. These are the most visible tech companies by far, but anyone can learn about them by reading TechCrunch or by listening to friends.

You need to show real interest in the industry, which means taking the initiative and talking about less well-known companies. Before my interviews at tech groups in banks I made a list of less well-known startups/other companies I found interesting and had a story prepared around each of them. You should do the same.

What Is Financial Engineering?

Financial engineering is a discipline that uses knowledge from multiple fields, including computer science, economics, applied mathematics and statistics, and applies them to innovative solutions to financial problems as well as the creation of new finance products. Also known as computational engineering, finance engineering is used in a variety of organization, including investment banks and insurance agencies. One example of the application of financial engineering to a current problem is financial reinsurance products, which allow an insurance provider to write big policies without shouldering too much risk by sharing it with another company in exchange for a portion of the premiums. Another example is bundling several products together into one package that is offered to consumers at a special low price.

Some of the fields in which financial engineering is applied include:

Corporate finance. This is a blanket term that refers to the way the finances of a corporation are managed. Financial engineering can be used to solve problems such as how to allocate limited company resources among a series of investment opportunities in order to maximize returns. Or he can look at the financial records of the company and decide how to cut costs in order to make a company more profitable.

Portfolio management. As a portfolio manager, it is your duty to manage an investment portfolio to ensure the best returns for the investor. Financial engineering is one of the tools that you can use to help achieve this goal. For example, you can choose to hold on to certain investments long-term in the expectation that they would deliver consistent returns over time. Or, if the investor has a higher risk tolerance, you can adopt an active management style in which you will look for opportunities to make a quick profit by aggressively trading securities.

Risk management. This field involves recognizing and minimizing risks in order to increase the probability that a desired outcome will be achieved or an unfortunate event will be avoided. For example, the financial engineer can decide if it is worth it to enter into a particular investment opportunity and to look at methods for minimizing risks. For example, he can limit the amount of money that will be put into the investment. Or he can split the risk by diversifying the portfolio and allocating resources to other investments in an attempt to minimize the possible losses in case the investment does not pay off. You can read download free pdf books on risk management strategies if you want to learn about them and how to apply them to your investment portfolio.

Lead You To The Authentic Zone Of Money Transfer

If you have an international business and you have to move to many countries for the purpose it is the urgent requirement to find a reliable and efficient money transfer service. Business with any other country will require a resourceful money transfer. This transfer should be fast efficient and safe. Your trade shouldn’t be forced by the variation in exchange rates either. For all these reasons, it is prudent to take the assistance of International money transfer Services available. It will be better to find the reputed and quality one on the internet. It is an internet era and you get different types of information on the internet.
Process Involved
This service helps you find a provider that you are comfortable with. After you decide on the money exchange provider you will need to complete some forms. Once you have established contact, you will be informed about the rules, terms and conditions involved with a deal. Finally, you will be asked to complete some forms to set up your account. You can fix a standard rate for your exchange as well. The whole process is hassle free and once you learn how to go about it, the upcoming transactions will be smooth, effortless and quick.
Exchange Rates
When you wish the inexpensive currency transfer to be done, you should be careful about the rate you choose. With large amount of money a little change can make a big variation for your commerce. When you transfer your money to a bank, they will transfer it at a great exchange rate that you are happy with on the day you have mentioned. Exchange rates promised may differ between agencies that are why you should be careful while choosing one.
Staying in the circle
Most good free currency transfer companies will make sure you are kept in the circle about where your money is. When the transaction is being made, you will be sent a verification message and sometimes even a message. You will be consulted before and after the deal, which assures that nothing can go wrong with the deal. This feature gives you more control over your money.
Expediency and safety
Foreign Exchange is a very expedient way of sending money across countries. When you choose a reliable company, along with good customer service, you will also safer transferring your money. This service is as useful for the common man as it is for businesses. Having an overseas exchange agent working for you is an immense way of saving money. In some websites, you get to check the exchanging rates promised before you sign in to transfer money. This makes it easy for you to select the best in the record.
Currency Exchange near me, this thought is quite wise and intelligent as there is lower risk for the safety of your cash. If you are in Adelaide, you can find a good currency exchange company that has a strong team for a powerful deal of money transaction. A reputed and trustworthy company always offers the better rates and a higher security.

Judge Some Facts Before Exchanging The Money

When you will go traveling, then you have to take the things, which you will need in that place. It is necessary because you will not get the facilities of your home there and you have to be prepared for every situation. But when the matter comes to the visiting of a foreign country, then apart from our excitement we have to think about the thing first is the money. As all of us know that there is variety in the currency of different place. So, we must take the proper currency of that place as we cannot do anything without it. There are some methods, by which you can exchange the money, like the banks, the ATMs or from some brokers.
The banks are the most reliable medium for exchanging the money. You can be assured by the fact that you will get the service authentically. They will systematically exchange the currency and you don’t have to think about it. You can also convert it from the banks of that place also. You will get the same reliable service. But as you are going to a public sector, then it will take some time and you have to wait for it. So, if you don’t have the time to wait there, then you will face difficulty by exchanging through the banks. The banks also charge high rates for converting the money, then it can be expensive for you.
You can take the money from the ATMs also. It is the most convenient medium for getting your cash, as you yourself will draw the money and you don’t have to depend on someone for this. So, you can take the money whenever you needed and it is the fastest service. But there I also the problem, as the ATMs charge a very high price for drawing the money. It will become more expensive for you as you have to pay more than the normal transaction. If you think that you will get the money at a time, then also it will not be safe for you to carry so much money to an unknown place. But with every transaction, you have to pay the charge.
When you will try to go some brokers for Cash Exchange, then it becomes easy for you as you can get the money by sitting at your home. You can do it by online and the agent will come to your home and will take the money from you and will also return it within the given time. It can be a suitable option for you as you don’t have to do anything for the exchanging the cash. But there also can be a problem as the matter is about your money, then you have to be a little careful and have to know about the broker and the agent, who will be the medium of transaction. If they are not reliable enough, then your money will not be safe enough. There is also the matter of the false currency as it has happened in the services like Australian Currency Exchange. So, be careful about every facet of exchanging your money so that you don’t have to waste your money in the wrong place.

Sip Calculator Magnetizing The Investors Towards Online Investing

Online investing option has reached to a higher level with the introduction of SIP calculator. Making the calculation of SIP amount easy, the tool is handy to use as well. Let us understand the concept of SIP calculator with a story. There were two friends Yash and Rohan. Both had passed out college and were placed in MNCs. With the commencement of their career, they took a resolution of initiating their investment also. Yash was very trendy, and new technologies magnetized him. On the contrary, Rohan was simple and was not much of a techie. As both of them decided to invest, Yash did all the research online and also prompted Rohan to take up the online investment method. But, as for Rohan, it was not his area of expertise. So, Rohan relied on the mutual fund agent, and Yash went for online investing. When it came to deciding the amount to invest as SIP monthly both were confused. Yash took the help of an SIP calculator, and Rohan trusted the agent. But, the outcome was that Yash got the exact amount required for investment and the agent failed to calculate the precise amount and thus took an approx figure. Thus, for the same scheme Yash paid the correct amount that was required and Rohan had to pay a little more due to the inaccuracy of calculations.

The story signifies the importance of SIP calculator in the investing process, because the amount of SIP decides the corpus (the main aim of investing). Especially in the online investing the role of an SIP calculator is of vital importance. The investor advances towards being free in order to make the optimal use of their money. SIP calculator acts as a catalyst in aggravating the process investment through proper channel.

Features of an SIP calculator:-

There are a lot of features which motivates an online investor to use SIP calculator. A few amongst them are stated below:

Easy to use:

SIP calculator is an easy tool to operate on. The user-friendly approach is the striking feature of the tool. Providing an environment of smooth functioning and quick calculations, an SIP calculator in India is making online investments attain new heights with each passing day. The main reason of the increasing inclination towards online investment is the handy tool (SIP calculator), which ease out the complex calculations manifolds.

Using CAGR:

SIP calculator uses the formula of CAGR (Compound Annual Growth Rate) to calculate the returns. CAGR is the most widely accepted concept for the growth calculation of investment over a period extending one year. The calculation of CAGR is very complex and not beyond the grasping power of non-financial people. It is a mind wrecking concept and takes time to understand. But you need not worry. The CAGR calculation is simplified with the help of SIP return calculator. Paving the way for quick and easy calculations, SIP return calculator has become a defining point of online investment.

Targeting accuracy:

The goal of an SIP calculator is to provide results that are 100% accurate. But, it works on the inputs that are fed to it. Any mistake in the input data leads to an erroneous result. Otherwise, the result shows the exact and accurate outcome without the mistake of a decimal place. A perfection of that level is surely a strong feature of SIP return calculator.

Top 6 Advantages Of Student Loans

It is just a common myth that only the federal loans provided by the UK government are cheaper and easier to repay than the student finance options provided by the private direct lenders. However, if you see the APR and repayment modes, then you come to know that private student loans are the clear winner! Let’s have a quick look at the top 6 advantages of education funds offered by the direct lending companies:

Borrow Short-Term and Long-Term Funds

Whether you are looking for a big amount to complete the higher education course, or need short-term funds, to give just hostel and tuition fees; both options are easily available and you can access the required funds in less than 24 hours without facing any hurdles. You can ask the lender to transfer funds directly to your bank account or deliver to your doorstep.

No Documentation to Waste your Time

The time of a student is very precious and instead of taking stress about the cash, he should focus on studies. Direct lending companies know the importance of young generation in the development of the UK and hence they offer paper free student loans plans. You are not required to submit your last class mark sheet or the address proof.

Apply Online in Just 2 Minutes

You don’t have to bunk classes or take leaves from the college, just open your laptop or smartphone and apply for the student finance loans on any reliable direct lending website. You would need just 2 minutes to complete the online application procedure. No hard copies or soft copies are required.

Avail Funds with No Guarantor

Students don’t have a big network to arrange a guarantor. They are dedicated towards their studies and interact less with people. Arranging a guarantor is an embarrassing task for them as people are not ready to co-sign their application. They can easily access student education loans with no guarantor and no broker by applying to a reliable direct lender.

No Hurdle of Bad Credit History

Some students have bad credit issues due to pending credit card bills or some other reasons. Banks and conventional lending companies don’t entertain their funding requests. However, they can easily secure the cash by applying student loans to a bad-credit friendly lender. There are no hidden charges. You can compare various deals and grab the best one with the lowest APR.

Easy and Flexible Repayment Modes

Everybody knows that a student can’t repay funds during his education time. He doesn’t have a steady source of income. Direct lenders offer various student repayment plans that can be chosen as per comfort. You can either start repaying in installments from the next month or repay the total debt in instalments after completing your education.

What You Can Learn From a “Personal Finance for Engineers”

Just before the Twitter IPO, Adam Nash, the CEO of Wealthfront, gave a personal finance talk to Twitter’s engineers. While the presentation was geared toward young, tech-savvy high-earners, much of the advice it contained can be applied to anyone’s finances. Some of the best tips shared with Twitter’s engineers:

Manage Emotions When Investing
Studies show that many people, especially those who work in STEM fields, consider themselves more rational than the average investor. People think that they can beat the averages. But, the truth is that very few people can beat the market. And, those who do are more often lucky than smart.

Instead of playing hunches, work from an investment strategy with an end goal in place. As Nash said in the presentation: smart investing is boring. But, where it lacks thrills and chills, it makes up for it all in financial security.

Have an Emergency Fund
The most basic building block for financial security is an emergency fund. You can’t build for the future if you are constantly being set back by emergencies. The ideal emergency fund should contain three to six months worth of living expenses. If that number is too daunting, start smaller. First build an emergency fund that can carry you through one week’s groceries; once you reach that number, aim for a month’s utilities; then, climb toward even larger goals.

Save for Retirement
The sooner you start, the better. One thousand dollars put into an interest bearing account when you are 25 will grow to several times the size of the same amount put into the same account when you are 40.

Retirement can seem like a very abstract goal when you have so many other things demanding your more immediate attention. But, even a few hundred dollars a year put into an IRA will make things easier on you when you get older.

Maintain a Balanced Portfolio
Never keep all your money in one investment or in one type of investment. The best portfolios mix stocks, bonds, CDs and other instruments. This way, you have a balance of safer but less lucrative investments and higher risk ones that generally pay more over time. You should also change where you invest based on when you will need the cash. As you get closer to retirement or another large financial goal, start putting your money into safer investments.

Does Social Media Help In Getting An Auto Loan?

We live in a world dominated by technology and social media. Whether they are your shared posts, status or your connections, social media platforms play a key role in carving your virtual personality. A well-known fact is that technology is an inevitable yet an integral part of our lives. When it comes to financing your car, social media is building its way and becoming a relevant medium of profiling. For instance, John walked into a dealership to purchase and obtain financing for a car. The quickest and easiest way to search for a tentative background of John would be to get a grasp of his personality on the basis of his behavior on Facebook and Twitter account, respectively. Currently, a small percentage of lenders use social media for judging an individual’s creditworthiness. However, the developing presence of social media is gaining mind share of the lenders.

Can Social Media help in ascertaining the Creditworthiness of an individual?

1) Facebook can build your Credit Circle

The very essence of Facebook lies in networking. A creditworthy profile does not require millions of posts or many friends. However, if you have a genuine profile and do not pose any abnormal social behavior, your profile is likely to get approved for an auto loan. Additionally, the presence of certain contacts in your friend list with a clean history and a strong credit score further add to your creditworthiness. Lenders can look for mutual contacts that have been previous customers. The payment history of the mutual contact can then be used as a basis to judge your creditworthiness. In order to get the most out of your circle, seek a person with a good credit score and make him a cosigner and your auto loan process will become smooth.

2) With LinkedIn, lenders can check your Employment Stability

A stable employment speaks volumes about your personality and trustworthiness. LinkedIn can serve as the best source of obtaining information regarding your job history, duration, professional position and interests. The documentation of an auto loan requires you to display evidence of a source of income through pay stubs. However, there is less proof one can gather regarding the stability of employment. Social media can become a tool to ascertain not only if there is job-hopping, but also the financial strength of the individual. A person with a 500+ connections, long duration of employment history and a considerable profile activity can become a favorable applicant in the eyes of the lender.

Buying a Car: Making the Most of your Social Media Profile

Social media has made its way into the minds of auto buyers as well as lenders. As primary sources of guides, nothing comes above your credit score, current income status and payment history. However, virtual platforms such as Facebook and LinkedIn are starting to occupy mind share in terms of creditworthiness. Once the primary sources of information seem insufficient, lenders may turn to social media to get an idea of your personality. A few helpful ways to make sure your social media positively adds to your credit score is to be careful with your online posts, invite only genuine friends into your virtual circle and to always keep your professional profiles updated.

Some More Ways to Save Money While Driving Your Car – Taking Care of Your Personal Finances

In our previous article, we discussed some ways to save money while you are on the road, driving your car. Today, we discuss Some More ways to save money while you drive your car.

1) If you love your car (which I presume that you do…), then at least you can wash it yourselves, on a Sunday/Holiday, if not everyday. Believe me, it will make you feel a whole lot better and also you will save money, by not having to go to the car wash.

2) Use your car for transportation of people. Don’t use it for transportation of baggage/Heavy Stuff – the reason is simple. The engine burns fuel in the combustion chamber which provides the force necessary to move the car. More is the weight of the car – more is the fuel that has to be burnt in order to move the car. So, it is prudent to keep the load light, and you can save money on fuel in the long run.

3) Also, try not to keep a lot of things on your car’s rooftop, because it increases the aerodynamic resistance and the engine has to work harder to maintain the same speed as compared to when there is less resistance. So, one of the ways to save money on fuel is – not keeping a lot of stuff over your car’s roof when you drive.

4) Among the easy ways to save money is – Always do a survey of the gas stations in your area. And try to find out which ones are offering lesser prices. Try to have your tank filled up at these stations.

5) Also, once you come out of your house, it is better to accomplish as many errands as possible. Don’t just complete one work and then come back. Try to complete a lot of things before your return back After all, for doing each task, you have to again and again come out of your home, start the car, drive around, and spend money on fuel…. So why not just try your best to complete all of them in a single trip and try to save some money?.

6) While driving to your job, you can explore the option of Car Pooling. 3-4 people can go in one car and can thus share the expenses for the same trip.

7) Another point among the ways to save money is – when you are going out with your friends / family, don’t take 2 cars. (If possible ). Try to fit all of them in a single car..

8) Further, if possible, then use a public transport, you would be saving a lot of money.

9) Also, if possible, then for shorter distances, it is better to go by walking rather than take out your car. Remember, every time you turn on your engine, you burn precious fuel. So, better to try to save money wherever you can.

10) For health reasons, try to ride a bike. It is good for your health and good for your personal finances.

The Latest Trend In Doorstep Loans

These days, individuals frequently have no opportunity to visit loan specialist’s office to apply for quick cash bolster. Henceforth they begin asking financial assistance from relatives and companions that is exceptionally humiliating. Be that as it may, no more you need to shoulder the disgrace of looking for assistance from companions for banks and facilitates everywhere throughout the United Kingdom have presented Doorstep loans. As the very name suggests, finances under this cash backing is conveyed comfortable doorstep. Additionally, the sum affirmed is all that anyone could need for all your unimportant needs that look for your moment consideration.

Until the point that a couple of years back, applying for extra subsidizes was a testing assignment as you were requested to experience repetitive customs. You were solicited to submit piles from archives. Actually, it took a very long time to finish the whole procedure. The greater part of the circumstances, when you got an endorsement, the requirement for stores was finished.

Be that as it may, things changed with online machine mode that scarcely took a couple of minutes of yours. Simply peruse pages and you will run over different banks offering moment cash backing. Because of regularly expanding rivalry among moneylenders, it has turned into a great deal less demanding for you to pick the loan specialist that offers bargains according to your need.

Render your own subtle elements on an online application frame yet ensure it is finished and exact. Numerous loan specialists may get in touch with you inside no season of applying. You can choose from bargains that suits your current needs. In the event that they are happy with your data, assets may be authorized into your bank tally and you can sue it the way you need with no confinements. From paying pending power charges, Visa charges, stockpiling charges; obligation solidification, child’s instructive expenses to traveling, meeting wedding costs and therapeutic urgencies, you can do everything.

Regardless of where you live in the United Kingdom, you will get cash comfortable home as 12 Month Loans. Assets will contact you either as cash or as a check. Loan specialists will charge financing cost contingent upon your current settled pay and reimbursement capacity. Sometimes, reimbursement residency is additionally broadened. Here, loan specialists charge extra expense for late installment. Be that as it may, paying extra sum isn’t an issue as you can dispose of every one of your inconveniences without running all over.

There is all around the energy among the general population about getting the sum specifically at the entryway with no dreary undertaking by any stretch of the imagination. What’s more, the news is valid and spread like a fire over the United Kingdom. In this way, it is awesome time for those individuals, who used to go to the entryway of the bank keeping in mind the end goal to have exchange about the loans. However, now, the time has come to desert the conventional framework for the acquisition of the earnest bucks in light of the fact that the presentation of doorstep loans UK has been influenced the impact in the finance to advertise.

In this way, the borrowers don’t need to squander their valuable time in going all over on the grounds that the sum something like 100 to 500 is specifically dispatched at the home of the candidates inside round the clock. There is no prerequisite of playing out the hassle full customs. In this way, influence a call to the appropriate loan specialist with the sensible enthusiasm to rate and get the sum as ahead of schedule as could be expected under the circumstances.