Michael Somann found his calling in investment banking and the hospitality industry, but later switched to medicine. In this interview, he reveals how he made the switch and encourages others to pursue what they truly enjoy. This story was produced in partnership with StoryCorps and MALA. In it, Michael reflects on the challenges and rewards of his new career and offers some advice for those who are considering a career change.
High risk tolerance
Depending on your personal financial situation, you may have a high risk tolerance. For instance, an investor with a high income may be willing to take more risks than someone with a lower income. Similarly, an investor who is saving for a future goal may not be willing to take as high of a risk.
Your risk tolerance may also be influenced by a number of major life events, including marriage and having children. For example, if you’re planning to buy a bigger home, you may have a higher risk tolerance. However, if you’re saving for a child’s education, you may have a lower risk tolerance. However, if you’ve just retired, you likely have a much lower earning capacity and rely heavily on pensions, investments, and benefits.
In addition to financial factors, a person’s risk tolerance can also be affected by a traumatic event. For example, a sudden job loss, a large medical bill, or a windfall can change the amount of risk that an individual can tolerate. It’s important to understand your risk tolerance so that you can balance the rewards of increased volatility with the risks of bigger losses. Risk tolerance is a personal trait, and you should assess your risk tolerance by asking yourself some personal questions about your behavior.
Once you’ve determined your risk tolerance, you can start building your portfolio. For instance, a person with a high risk tolerance may want to focus more on stocks and bonds while a person with a low risk tolerance may want to invest more in real assets. Increasing your portfolio’s diversification will help lower your overall risk. You’ll also want to consider your goals and your risk tolerance before making any investment decisions.
Communication skills
If you want a career in investment banking, it’s important to have excellent communication skills. You’ll need to know how to communicate effectively with clients, develop relationships, and work collaboratively. You’ll also need to understand the nuances of the finance world, including the importance of risk management.
Teaching communication skills in medical schools has been gaining momentum in recent years. In the United States, for example, communication skills are now taught at the undergraduate level. Medical students aspiring to be physicians must learn these skills in medical school. They’ll need to master public speaking, business writing, and interpersonal relationships.
During the interview, you’ll be asked about how you have applied the knowledge you learned in school to real-world scenarios. The right answer will demonstrate your personality and how your skills are applicable to the industry. Your answer should convince the interviewer that you have the qualities necessary to become a successful investment banker.
Medical education in Croatia emphasizes the importance of communication skills. Communication skills have been taught in medical schools in Croatia for over 20 years, but there have been major curricular changes within the University of Zagreb School of Medicine within the past five years. In 2010, a new department was created focusing on communication skills education for medical students and professionals. This department has also been a center for research on healthcare communication skills.
While finance is a highly quantitative field, communication skills are essential. The strength of a financial organization determines the organization’s goals and overall mission. It’s crucial to have good communication skills in order to communicate the financial data that underlies those goals.
Working hours
If you’re a finance student considering a career in investment banking, consider this: Working hours in investment banking are notoriously long, and many bankers choose to forego their personal lives to get to work on time. Although the job is prestigious, it’s also a brutal grind. Most bankers sacrifice their personal lives for the first two or three years, before transitioning to more lucrative careers in private equity or hedge funds. However, you won’t break into the associate levels in these sectors without first gaining experience in investment banking.
In investment banking, working hours can reach up to seventy hours per week. This is significantly longer than most other professions. While the hours can be long, they can also be very rewarding. You’ll develop expertise and experience through working long hours in investment banking. It’s a necessary part of the process, and it’s a prerequisite to climbing the career ladder. If you want to work in private equity or hedge funds, you need to get in the door at eight or nine in the morning and be at the office until midnight.
Working hours in investment banking or medicine may vary depending on the industry. For example, a banker’s workload is often high, so it’s not uncommon to work on weekends. However, this is not a legal requirement. Some investment banks require employees to work seven days a week, which may not be optimal for many people.
Many investment banking jobs are highly stressful and require a lot of manpower. Some bankers report working sixty to eighty hours per week or more. However, this number can vary depending on the company and the deals they work on.
Requirements
If you have the skills and aptitude for analyzing data, you can pursue a career in investment banking. The field requires a combination of talent, foresight, perspicacity, and a strong desire to help people. The requirements are similar to those in medicine, but the work environment is different.
Investment banking positions usually require an extensive knowledge of financial markets. Moreover, these individuals must be capable of handling constant pressure. In addition to these qualifications, they must also have relevant work experience. In addition, investment banking positions are highly competitive. Applicants who have the right temperament and are willing to learn new things will have a competitive edge.
Transition from medical to investment banking
If you are interested in the financial aspect of healthcare, you may want to consider a career in healthcare investment banking. This niche is growing quickly as more large companies and institutions merge or sell assets. The healthcare industry is heavily regulated, and large publicly traded health insurance companies dominate the market. Moreover, the healthcare industry is growing with the overall financial industry due to mergers and acquisitions. Consequently, healthcare investment banking is an exciting field that is highly coveted.
A medical background may seem like a plus, but it’s worth considering the drawbacks. While a medical background may make a banker more interesting to potential clients, medical professionals may not be able to exert as much influence on companies, and their experience may not be as valuable to bankers. Furthermore, a medical background won’t be enough for a banker; you must know about valuation and financial modeling in order to be effective in your role. Often, it’s necessary to obtain a CFA certification or get one-on-one tutoring to master these skills.
Investment banking is fundamentally a demanding job, and most analysts don’t come from a finance background. However, it’s also a rewarding career path and comes with exceptional compensation. Depending on the bank, you can earn as much as $250,000 as a first-year associate. As you progress up the ranks, your pay will continue to increase. Managing Directors at top banks can earn up to several million dollars a year. Investment banking requires a great deal of self-discipline, and is also a highly entrepreneurial environment. Many investment bankers are highly motivated, and enjoy the fast-paced environment.