The recent volatility in the stock markets is cranking up the stress level for those in the financial market. Investment bankers, traders, financial analysts alike are affected.

A global stress survey published in March by hereisthecity.com, a website for financial market professionals, showed that nearly two-thirds of over 3,000 respondents felt more stressed than they did six months ago.

In Growing Stress Takes Toll On Financial Workers, Michael Taylor quoted a psychologist in London, Michael Sinclair as saying, “A lot of underlying insecurities come to the surface, around self-esteem and self-worth, and - yes - there has been an increase in suicides.”

I believe this is the core of the issue. When the investment bankers and traders dedicate so much of their time to work, there is a tendency to identify themselves with their jobs. This means success at work equals success in life. So when their jobs and their standard of living are at stake, their self-esteem and self-worth are impacted. If they lose their jobs, they could lose their identity and become a failure in their own eyes.

It is important not to lose sight of the fact that your job is not all of who you are. You should not define yourself by an impermanent job or a fleeting compensation package in this cyclical and volatile financial industry. You are much more than that. That’s why it is important not to be consumed by your work and become disconnected with the bigger picture of who you are.

It’s only with hindsight that I understand that getting laid off was one of the best things that ever happened in my life. I invite you to read my 3 Life Lessons I Learned From My Layoff Experience: Acceptance, Appreciation and Adventure.

I came across the subject of face time several times these past two weeks, so here’s my two cents on it.

Face Time
Typical usage: “I’d leave right now but it’s only 9 PM… need to put in some face time.”
What it really means: “Face Time” refers to staying in the office until an acceptably late time (11 PM or later, though some offices can be more like 2 AM) so that everyone thinks you’re busy and no one gives you more work.
Inquisitor, Mergers and Inquisitions

It’s encouraging to hear that many financial institutions are not as big on face time as they once were. I’ve always thought it to be nonsensical. Back in my days in equity research, I had always been the face time rebel. If there wasn’t any work that required my physical presence, I would leave the office by 6pm. When needed (which was often), I would take my work home and continued at it after dinner with my family and bed time story hour with my son.

More than once, my research director reminded me that I was setting a poor example for the team. Since I always showed up for my meetings, met my deadlines and pulled all-nighters when needed, I didn’t get fired for a lack of face time. Interestingly, the annual evaluations indicated that my boss was pleased with my performance.

After a long stretch of work, I found it re-energizing to take a break. I focused better with little distraction at home in the evenings.

It is counter productive to work excessive hours in the long run. We all know too well that just “being there” does not equate to higher productivity. So if there is no work that needed your immediate presence, why hang around late at the office just to be seen? There is so much more to life outside of the office.

It is widely known that a 100-hour work week is typical for financial analysts. The hours could be longer if you’re in investment banking or when you’re trying to meet a project deadline.

I can understand when you’re just starting out, full of energy and enthusiasm. No two days are alike and there is so much to learn. Life as a financial analyst is exciting. The long hours can move you forward quickly up the learning curve. These long hours simply aren’t sustainable.

Imagine you’re a runner, trying to sprint through a marathon. What are the chances you’ll finish the race if you don’t slow the pace at some point?

It’s simple math here. There are 168 hours in a week, take away 100 hours of work and 42 hours of sleep, you’re left with 26 hours to fit in everything else in your life. This “everything else” includes your family, your friends, your relationships, your self, your health and your fun time.

I believe all of these areas are intertwined and inseparable. When one is out of balance, either too much or too little, it’ll impact all other areas of your life. If your health is weak from lack of rest or exercise, you won’t have enough energy to work. If you don’t have enough fun to offset the demanding work hours, you’ll grow to resent your work.

In the long run, if you don’t pace yourself, something’s going to give. It will be either your work hours or the “everything else” in your life. Usually what gives is where you don’t pay enough attention to.

You have the choice to keep sprinting through the marathon or you can start switching to a more sustainable pace to take you through the finish line. What’s your choice?

Did you know that only 10% of people make goals?

Are you one of them?

I must confess that I was not big on setting goals. I didn’t know how it would help me in achieving them. But now, I have written goals for all the main areas of my life and I review them 2-3 times each year.

Neuroscientists have revealed the reasons why goal setting works. Your brain is probably more sophisticated than the most advanced computer system. Simply put, goal setting triggers your brain to find and follow the opportunities towards your goals.

There’s a part of your brain which works like your own lightning fast personal Google search engine. Have you ever bought a car and all of a sudden notice there are many other cars on the road identical to yours? When you key in the search words (i.e. your goals), your brain will work 24/7 to find everything you need to get you to your goals.

You must be specific in your goals. If not, the perfect opportunity can be right in front of your eyes and you won’t see it. Note that this part of your brain only recognizes the absolute terms of your goals. To the brain, there is a world of difference between passing the next CFA exam and not failing it. If your goal is to not fail the next exam, guess what?

There’s another part of your brain which works like a guidance missile system. Once your internal search engine identifies the opportunity to reach your goals, it will lock onto this target and will follow it until you reset your goal. It will also signal you when you’re off course to bring you back on track.

What is the future that you choose to create?

Take advantage of this special internal search engine and guidance system you have. Write down your goals and review them regularly.

Do you know people who are brilliant but only achieve mediocre results at work because they are in the “wrong” role for them?

The Toronto CFA Society recently organized an informative seminar on career paths for financial analysts. The three panel speakers were: 1) Jaime Ziegler, Principal of Focus Consulting Group; 2) Beverly Flaxington, Co-founder and Principal of The Collaborative; and 3) Ross Healy, President and CEO of Strategic Analysis Corporation.

According to Jaime Ziegler, one of the keys to career success is playing to your strengths. I have always been a big believer of this. She pointed out that everyone can operate in any of the four zones depending on the task:

• Genius
• Excellence
• Competence
• Incompetence

When you’re operating from the genius zone, you’re coming from a place of true passion. You achieve great productivity with great ease and find it difficult to imagine others struggling at it. But beware of the “management trap!” The promotion that follows outstanding performance could shift you into the incompetence zone if you don’t first assess whether you have the skills to excel in the new role.

I personally knew of two brilliant investment analysts who were promoted to become research directors. Both quickly moved down to the incompetent zone because they were not born managers and had never received training for the managerial role. One stayed on, performed miserably and was eventually asked to leave. The other resigned after three months and became a successful fund manager.

I’m not suggesting quitting at the first sign of challenge. There is always the choice to learn and grow into the new role. Better yet, think ahead the skills that are required for your next logical step up the career path and acquire them before the promotion offer comes.

If you find yourself in the incompetent zone and it’s not where your passion lies, get out quickly. Any successful fund manager would tell you that a winning portfolio is not just about allowing the profits to run on the performing stocks but also quickly getting out of those that don’t.

Knowing your strengths requires self-awareness. There is no guarantee that your next move would always work out even with the best of preparation. If it doesn’t turn out the way you anticipated, it calls for decisive strategic quitting so you can play to your strengths.

If the bad news comes true and the layoff is official, what do you do next?

It can be a challenge to think objectively at a time when the future suddenly becomes bleak and directionless. Financial analyst jobs can be difficult to come when the industry is going through a shake-up.

Here is a six-step action plan for financial analysts to finding a new job. Notice that looking for a new job is last on my list.

1. Acceptance

I wrote about the 3 Life Lessons I learned From My Layoff Experience: Acceptance, Appreciation and Adventure. I believe that accepting reality is essential to help you cast aside your resistance and resentments so you can gain a clear perspective of the big picture. These emotions are understandable given the circumstances but they will get in your way if you want to move forward in your career.

2. Take a vacation

Allow yourself time to unwind from the tension and anxiety built up prior to the layoff. Look at it as a paid vacation. You’ve been working long hours and you deserve a vacation. You’ll be able to think better and more creatively when you are relaxed.

3. Design the life you want

With your financial analyst job out of the way and 80-100 hours released to you each week, you now have the time and freedom to design the life you want. In Taking the Perfect Shot, I wrote about first having a life vision and then deliberately create opportunities towards it. What does the vision of your life look like? If you don’t already have one, now is the time to create yours.

Your life vision should cover all major aspects of your life. Here’s a list of the main areas. Feel free to make your own list.
• Career
• Self
• Family and friends
• Relationships
• Health
• Wealth
• Fun
• Contribution

You may wonder why you need to include so many areas of your life when all you’re looking for is a financial analyst job. These areas are all intertwined and inseparable. Each one of them will impact one or more areas in your life.

4. Assess where you are

Compare where you are now to your life goals. It’s like finding the “You are here” sign on the shopping mall directory. This will help you gauge how far you are and the alternative routes that will take you to your destination.

If you’re most recently an equity research analyst and you would like to move into hedge funds one day, how many ways can you get there? What skills do you need to acquire to qualify for the position? How do you build them into your next career move?

If you’re single and want to start a family soon, take into consideration whether your work hours will support a healthy family relationship.

5. Develop your job search action plan

List up to ten specific measurable goals to complete within the next 30 days. Break down your larger goals into smaller steps and set a target completion date for each step.

Given a slowdown in the supply of financial analyst jobs, explore options and alternatives to reach your career goals so you can build some flexibility into your action plan. This increases your chance of finding a position and still in line with your long-term career goals. For example, moving into institutional sales or a buy-side equity analyst job are both logical next steps for a sell-side equity analyst who aspires to become a hedge fund manager.

6. Take action: looking for a new job

I have placed this last on the job search action list because I believe it is necessary to first have a specific career goal before contacting the recruiter. You must first know which direction you want to go, then you can articulate intelligently to the recruiters and potential employers what you want. No one wants to hire a desperate, panicky prospect who will accept any position just because.

Remember to review and fine tune your job search action plan weekly to help you monitor your progress. Follow up with actions. You can find some of the latest financial analyst job postings on our Analyst Jobs page.

Have you ever wondered how successful people seem to have time for work and a personal life as well? Here’s the secret: make inviolate appointments with yourself.

As a financial analyst, you are probably no stranger to the concept of “pay yourself first.” You set aside a portion of your income to long-term savings before spending the money. You do this because you understand that it’s easy to overspend, leaving little or no money towards your financial freedom funds, as I prefer to call it.

It’s incredible how many financial analysts don’t make the connection and apply the same principle to time. You probably feel obligated to finish work before allowing yourself to do other things. This way, you will rarely have any free time left to “fit in” a personal life.

Bring out your day planner and block out the times for your exercise, your family birthday parties, your monthly gathering with college buddies, your community charity event or your bedtime story hour with your kids. Give these personal appointments the same importance as you would to a work appointment.

The more time you block out for specific activities, the more you will achieve both at work and outside work. You’ll find yourself no longer stretching your work to fill the unassigned time slots or missing out the memorable events of your family and friends.

The latest article by the Inquisitor, The Conference Room: How You Get Fired in Finance, is a sad reflection of times. This anonymous investment banker is offering advice to young financial professionals on how to get ready for a layoff, in sharp contrast to his usual quality recommendations on how to start a career in investment banking.

I find it almost amusing that these early warning signs are so generic over time and across markets. You only need to experience it once and you’ll be able to foretell a layoff months in advance.

I’d say most people have a pretty good hunch whether they are on the hit list. Either way, it’s prudent to be prepared for the unexpected. When the axe falls, there is usually little time to pack or to think straight.

The Inquisitor mentioned three action steps to prepare for the battle:
1. Remove important personal belongings but be subtle about it.
2. Contact headhunters and explore “strategic alternatives.”
3. Form a close-knit group of co-workers for support.

The Inquisitor is spot on about being subtle. I advise applying extra caution to ensure you won’t arouse speculation from management. It may seem curious to those of you who have never experienced a layoff or switched jobs before.

It can be an extremely sensitive issue when there is an indication that an employee is preparing to exit the firm, voluntary or involuntary. There is always a possibility that a departing employee could cause damage if there is time to plan for the exit.

I’ve heard plenty of stories about financial analysts destroying database or client information. Some I know to be true and others groundless. Mostly, only the insiders would know. My take is that few analysts would break the professional code of ethics to risk their hard-earned names. Nevertheless, the stories will cast a shadow on the analysts’ reputations.

So, heed the advice of the Inquisitor – plan ahead but be subtle.

According to a recent post by Wall Street Oasis, there are plenty of eligible bachelors from Wall Street describing themselves in their late 20s and some even Ivy League educated, looking for girlfriends on Craigslist. I checked it out. It’s true.

This seemed a little peculiar at first. Immediately, I wondered, “What’s wrong with these men?” On second thought, there is probably nothing wrong with them.

A financial analyst typically spends 80-100 hours or more at work every week This is the expected “norm” for investment bankers to research analysts. Who would have the time or energy after work to find and develop a romantic relationship?

Whether you are an eligible bachelor (or bachelorette) or you already have a family, stop for a moment to take inventory of how you spend your day. Your day planner is your best source of information. Do you spend most of your waking hours at work? Are you canceling your time with your family and friends to get more work done? Are you skipping your exercise time to finish off a project?

In the world of finance, the work never ends. It’s easy to be so absorbed at work that it gradually takes over your life. Unless your career is the only thing that matters in your life, spend some time each day with your family, your buddy, your sweetheart or yourself. It can be simple as a quick phone call, a brief note or a relaxing dinner.

What’s one small action you can take today to bring a smile to that someone special in your life?

The top hedge fund manager, John Paulson, earned a whopping $3.7 billion in 2007, according to Alpha Magazine in its seventh annual survey. George Soros came in second at $2.9 billion and James Simons third at $2.8 billion. Click here if you want to see the full list of the top 50 money managers. Here are a few interesting highlights:

• The top 25 earned an average of $892 million, up from $532 million in 2006.

• The top three managers in 2007 each made more than the grand total earned by the top 25 on Alpha’s 2003 ranking.

• Five of the managers each made over $1.2 billion – the price that JPMorgan Chase & Co. is paying for the 85-year old Bear Stearns Cos. that is on the brink of collapse.

Doesn’t that make you curious what it takes to be at the epitome of the investment industry?

It’s true that the financial upside is unlimited for hedge fund managers. That’s why hedge funds are able to entice the best and brightest in the industry. Let’s not forget that their compensations are highly performance-based. In fact, hedge fund managers also carry a downside risk that mutual fund managers don’t have to bear.

Typically hedge funds are set up as limited partnerships. The fund managers are the general partners and the investors are the limited partners. The two sources of income are:
1. Management fees, generally at 1-2% of asset size under management
2. Performance fees, generally at 20% of the fund’s profits

You can see from here how a hedge fund manager’s compensation will be affected if his fund performs poorly. Not only that, his own capital will be at risk because he has a vested interest in the fund.

There three functional roles in a hedge fund are: portfolio manager, investment analyst and trader. A partial or completion of the CFA program is required to become a portfolio manager or investment analyst. The entry level isn’t a true entry level position as it often requires experience.

If you would like to explore hedge fund as your career option, Richard Wilson has an excellent blog where you can find pretty much everything about hedge funds. In Hedge Fund Jobs, you will find job advice, career tips, resume tips and more.