Private Banking as the Right Career for You

Aug 26, 2022 By Susan Kelly

It is possible to amass a significant fortune working in financial services or as a broker, but these lines of work are not without drawbacks. The average workday for an investment manager is generally 16 hours long, especially in the initial stages of their careers. Brokers and floor dealers often struggle with working long hours.

Even though marketplaces are open only from 9:30 a.m. to 4:00 p.m. Eastern Standard Time (EST), the time a broker spends working may easily be doubled due to extra study, discussions, and planning sessions.

Before beginning a job on Wall Street, you need also think carefully about how you will handle stress. The good news is that

if you work in banking, you can make a substantial amount of

money while maintaining reasonable working hours and a schedule that will not cause your systolic pressure to skyrocket.

On the other hand, private bankers manage the financial affairs of high-net-worth people (HNWI), earning enormous salaries while working regular hours and experiencing lower stress levels. A high net worth individual generally has a combined wealth of six to seven figures, or perhaps more.

Massive Potential for Financial Gain

There is no guarantee that many young professionals would choose a career in financial services as it is fulfilling and offers a healthy work-life balance. Work is hard and stressful, and there isn't much difference between work and life. Yet, due to the possible earnings, the profession is rather popular.

On the other hand, the private financial sector presents an equally robust opportunity for revenue. Your income is proportional to the overall assets under management (AUM), which refers to the combined worth of all the portfolios you handle for your customers. Private bankers from wealthy backgrounds could get their start in the industry and earn substantial incomes relatively immediately by just handling the finances of their own families.

If you do not have extensive connections, you may find the path to luxurious riches to be lengthier and more difficult to travel; yet, all it takes is a few large customers to start generating a wage that can compete with corporate finance.

Less Stress

A typical day for the worker on Wall Street somehow doesn't allow for much time to unwind or relax since the job is entirely stressful. Those who work in investment banking or stock brokerage must maintain constant alertness, from when the sun rises until far after it sets. This unrelenting pressure may have a rapid deteriorating impact on an individual. A high salary that positions you in the highest percentiles of Americans' earnings is, of all, the trade-off for putting up with this level of stress.

The private banking industry may provide a comparable high salary but with a far lower stress level. As a personal bank manager, instead of choosing to spend classic working hours in an overcrowded closed office obsessing over market figures, you are much more likely to be discovered trying to court a potential customer on the tennis court or evaluating a current customer's portfolio of assets at a five-star hotel. The bankers are free to go at five in the afternoon, but the investment bankers are expected to put in many additional work hours.

Better Hours

In addition to being less demanding, a private banker's hours are nearly always shorter than those of a brokerage or corporate banker. Private bankers enjoy the luxury of clocking out at 5 o'clock more often than they think. In private banking, you may anticipate working a typical week that is comprised of 40 hours.

Managing client relationships is the primary focus of a private banker's job, as opposed to the intricacies of the market, which dominate the work of investment bankers and stockbrokers. Employees in these additional jobs are responsible for doing a great deal of administrative work to benefit private bankers and the customers they serve.

Improved Interpersonal Connections

When you work in private banking, your encounters with other people, rather than your hectic phone talks, are likely to be more critical. There are regular customer visits, and these encounters often occur in the client's territory. However, the client's domain frequently resembles a playroom more than it does a formal business

setting. It is far more probable that you will succeed in developing a connection with your customers and talking about investment plans while playing golf instead of doing these activities in a conference setting.

You may learn more aboutyour high-net-worth customers as individuals by becoming acquainted with them in the environments in which they feel most comfortable. Your connections outside work will have a healthier environment to flourish, thanks to the improved work-life balance that private banking provides. You will be able to spend time with your loved ones regularly and have the opportunity to socialise with your peers.

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