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Finance and Business Careers
Hosted by Jack Hughes
Principal of Phoenix Financial and Advisory Services
Thursday, April 18, 2002; NOON EDT
Are you looking to break into the world of finance? Want to know how to get ahead in the finance industry? Ask Jack Hughes about it.
Jack has worked with management and leadership for fast-growth technology companies over the last 25 years. He's a veteran in strategic planning, operational management, mergers and acquisitions, and industry leadership. Most recently, he was the CFO of BTG, Inc., a multi-million dollar IT company in Northern Virginia. Now, he runs his own finance company, Phoenix Financial and Advisory Services, with his wife Donna Rice Hughes.
In this discussion, Jack answers your questions on getting ahead in business and finance.
The transcript follows below.
Editor's Note: Washingtonpost.com moderators retain editorial control
over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.
Washington D.C.:
Is your company a broker/dealer. I am an experienced financial services professfional specializing in taxes and I am looking for a new broker/dealer. If so, can we talk? Thanks, Jan D
Jack Hughes: My company is not a broker/dealer, but rather a management consulting firm that specializes in financing transactions and M&A, and strategic planning and other related areas. I may be able to introduce you to a couple of broker/dealers that may be able to help you out. contact me online at jackhughes@erols.com
jack
Silver Spring, Md.:
Somewhat off-topic and personal for Mr. Hughes (NOT for public distribution):
Many thanks for listing some area lawyers to approach about writing and editing newsletters for their firms. Not much has come of these prospects, but I hope to present my qualifications well enough for at least a law firm or two to be interested.
Let's stay in touch by private e-mail. Best wishes, and thank you again.
Stephen H. Goldstein
byliner-alumni.albany.edu
Jack Hughes: As always, I am happy to help!!!!
jack
Rockville, Md.:
You frequently mention accountabiity, and given my situation of living paycheck-to-paycheck, I have decided to look for an advisor to help me develop a financial plan. I imagine that looking for an advisor is like looking for a doctor.
What should I be asking my 'advisor' as I decide whether this is the guy to whom I want to entrust my financial security? Are there key questions that an 'advisor' should be asking me so that I can believe that he has my best interest in mind rather than his potential for commission?
Thank you for your thoughts.
Jack Hughes: The advisor should thoroughly explore your current situation and recommend a course of action for you that will ease the burden on your living paycheck to paycheck and begin to do a little savings along the way. The best financial planners also take the time to understand your investing personna and should recommend a plan that fits within your particular risk tolerance and has a long-term savings and retirement aspect to the investment profile.
jack
Charlottesville, Va.:
I am curretly working in marketing/business development for defense company. I've been in this job for only few months and I am not sure if I want to be doing this for long period. I have an MBA (recent) in finance and limited experience with developing budget for defense programs while I was in the military.
What kind of positions/fields should I go after to break into finance industry? Is it worthwhile for me to take additional courses and obtain CPA? I am 29 and have 7 years of work experience and looking for mid-level management positions. Thank you in advance.
Jack Hughes: I don't think a CPA is necessary; you already have the MBA credential. At the moment, you are in a hot industry. The Defense and Gov't contracting industry is back in favor on Wall Street and many of them are executing IPOs or Follow-up offerings to raise capital and reduce debt. I think I would try making a career move from BD to finance in that industry first, before I tried to move elsewhere. You clearly have domain expertise from your military experience and the financial education to do it. If you want to talk with a couple of CFOs from that industry, please contact me by email at jackhughes@erols.com and I'll make the intros.
jack
Washington DC:
Hello Jack
My professional background is writing/editing and managing the production of print publications. However, I do not have an educational background in business or economics ( I have a sociology undergrad degree). I am interested in careers writing/editing magazines or publications dealing with economic and socioeconomic issues or managing the production of print or website dealing with economic issues. I was thinking if you think an MBA would help towards that goal or if you think I would be better off going for something else. Examples of organizations I would like to work for would be the Economist, Far Eastern Economic Review, Asiaweek, the Brookings Institution, or even consumer-oriented rights groups like Public Citizen or magazines like Consumer Reports.
Thanks
Jack Hughes: My first reaction is yes, I think an MBA would be helpful, perhaps with an International concentration. Also, I think it might be helpful to add in a few journalism courses along the way, which would give you a good grounding in the biz.
jack
Washington, D.C.:
Hi Jack
I just found out that I owe $5000 in taxes because of my freelancing that I did last year. I'm still freelancing as a matter of fact and apparently I still owe taxes from the year before. There's no way I can pay this, what do I do?
Jack Hughes: If you file the return with IRS, they will generally work out a payment plan with you so you can spread the payments overtime. It is my understanding that the IRS is a much "friendlier" organization about such issues than they used to be. Just keep in mind that they don't want you to do anything radical like declaring bancruptcy; I wouldn't suggest that under the circumstances since $5000 is a lot of money to you, but not to the IRS. I'm sure they will work it out with you. You may need to engage a professional CPA to help you thru the paces with the IRS; the CPA tax specialists have seen this many times before and know how to present your situation to the IRS most effectively.
jack
Washington D.C.:
Hi!
I’m an accomplished business analyst and a Full time MBA student (candidate May 2002). I have more than 5 years of experience in investment research, business analysis and developing Start-ups across the global frontiers. I have represented my University successfully at various national and international case competitions, earned a perfect 4.0 GPA and have been nominated for the student of the year award. But job market still looks very slump for the graduates like me. In your opinion do you think scenario is going to change in coming months or still the situation regarding hiring will be very competitive for the motivated financial professionals like me.
Thank you
Vipin S.Lala
Jack Hughes: I think the economic recovery and the stabilization of the stock market is going to be a very slow ramp back to normalcy; this will have a continuing dampening effect on the financial industry. I know of a number of Investment bankers that are looking for new jobs because of the slow-down in deals being done. You sound like you have GREAT credentials that will set you apart from your competition. What you need is a couple of pros to recommend you for a position. If you haven't done it yet, you need to do some networking to get on their radar screen, and ask for some "warm" introductions into the industry.
jack
Dayton, Ohio:
Since getting my BS in International Business 4 years ago I have been working in the not-for-profit healthcare field as both an accountant and a contract specialist/financial analyst. I plan on starting my MBA in 2003.
How difficult is it to transition from a not-for-profit to a for-profit company and do you have any suggestions that would make the process easier?
Jack Hughes: I don't know of any particular reason why the transition from non-profit to profit would be difficult. I think its a case of comparability. In other words, how does the size and complexity of the non-profit you've been working for stack up against the for-profit companies you want to work for. If you can make the case that they are comparable, it should provide a bridge to make the transition. GOOD LUCK with the MBA!!!
jack
Washington D.C.:
I would like your thoughts and comments on a idea. Though I doubt this is an entirely new idea I've not seen it mentioned, so here goes:
In the software industry, a vendor might pitch their product to the customer on a pilot basis at a reduced rate. The customer makes an initial commitment to try the software and see how it works. The vendor provides high levels of support to ensure success. In exchange the vendor receives a commitment from the customer to purchase additional licenses if the pilot is a success.
Could a similar approach work in employment under certain circumstances, for example:
The firm gets a person at a reduced rate for a trial period. When the period is over and the performance objectives established prior to the trial are satisfied the salary pops to the rate negotiated prior to the trial.
Could this work? What risks do you see? When might you try this? How short a trial period and at what rate reduction might make this attractive?
I look forward to your thoughts on this or guidance to other forums where this may have been addressed previously.
Jack Hughes: Its an interesting idea, but I have my reservations about it. Most new employees are on their "best behavior" for the first year of employment with a new employer. So, unless you are talking about an extended pilot program at the reduced salary, I'm not sure it will work for most employers. A better move might be to work as a consultant for the company for a year and then determine if it makes sense to move into a full-time employment situation. Both parties would then have had adequate time to determine if continued employment is right for both sides of the equation.
jack
Washington, DC:
Are CPA's expensive to hire?
Jack Hughes: I guess the answer is that its all relative. Some of the smaller CPA firms that have lower infrastructure costs should be able to price their services well below what the Big 5 charge. Depending on how "hungry" the CPA firm is for new business, they can be more flexible on their first time thru pricing. Also, if there is the potential for continuing business or referral business from you, they may reduce the price and make it up on the future business.
jack
Vienna, Va.:
When I was in college in the 60's most schools were using the Samulson text books and while they were very good, I was priviledged one semester to have a visiting professor named George Leland Bach if I remember correctly and we used his textbook. He was excellent and one of the best courses I ever took.
Am wondering who is really was - I never heard of him before or since.
Jack Hughes: You got me; I've never heard of him, myself. Sounds like you had a GOOD experience with his textbook and his teaching methodology.
jack
Washington, DC:
I have been working in international finance for a little over 5 years and was interested in moving into e-commerce. I think that an MBA would be most beneficial and was looking at the UMC on line program. Do you have an comments in regards to this program?
Jack Hughes: I don't have any comment on that particular program, but I do think that it would be helpful to have the MBA after your name. As an aside, I'd be careful in what aspect of e-Commerce you are looking at. Many companies that went into this space have failed over the past 18 months for lack of funds to make it work. I suggest that you open the aperture a bit and look at e-Business applications that use the Internet to exchange data/information as well as do commerce. For example, the Federal Gov't is making a big push in the e-Biz area to be able to allow the US citizenry to obtain meaningful info off the net about various Gov't programs and opportunities. My two cents worth!!!
jack
Dumfries, Va.:
I'm looking for a good accountant, can you recommend any?
Jack Hughes: Sure. I assume you mean a CPA. If so, contact me by email at jackhughes@erols.com and i'll give you some contacts.
jack
Alexandria, Va.:
Hi Jack
What is your opinion about Ameridebt? Are they good? Should I use them? I'm drowning in debt, to the point where I'm seriously thinking about skipping the country.
Jack Hughes: I've never dealt with Ameridebt, although I hear them advertised from time to time on the radio. My suggestion would be to ask for some references from them that you can contact and get some feedback on their ability to help people in your situation.
jack
Rockville, Md.:
I have worked with a large IT company since finishing business (MBA) school 18 years ago. I want to go into a career in financial planning and have approached several large companies. Other than the training I might get from one of the "big-three", are there good reasons to take a closer look at some of the mid-tier firms that provide financial planning services to individuals?
Jon
Jack Hughes: You may get more personal attention from mid-tier firms specializing in financial planning than the big guys. But, the big 3 have the reputation and infrastructure to do it right. One of my previous guests on the show was Keith Feverly, the Executive Director of Financial Planning at Kaplan College. You may want to contact him and ask his advice on the subject. Just refer to the show and I'm sure he'll give you GREAT guidance.
jack
Fairfax, Va.:
I'm a freelance graphic designer, I have a lot of experience and there are a lot of people interested in my work. I think that I should turn it into an actual business so I don't have to pay freelance taxes. How do I do this? How do I begin? I have a lot of clients but I'm not sure how to transition them from freelance to business?
Jack Hughes: When I started my business, I went thru the process step-by-step. First, I established a name for the company; then contacted an attorney and a CPA friend of mine to set up the legal entity and get the accounting structure in place. I then created a small brochure on my services and mailed it to 250 of my business coleagues and friends to let them know what I was up to. I then started hitting the networking circuit where I thought I might find potential customers. This all took about 3 months to put in place. hope this helps!!!!!!
jack
White Plains, Md.:
HI Jack
I'm a law student currenly but I also have a master's in finance. How do I best combine these degrees to have a lucrative career?
Jack Hughes: I think you should finish your law degree and then explore opportunities in law firms that specialize in corporate transactions like public offerings, mergers & acquisitions and financings. That way you can combine your legal training with your finance background.
jack
Alexandria, Va.:
I'm trying to break into accounting/finance. I have 8 years of experience in project control on government contracts. I also have over a year of audit scheduling experience with a Big 5 firm. During this time I picked up several years of seasonal tax work. I most recently picked up 4 months of public accounting experience doing write-up work, payroll, individual tax, and some light audit planning for small clients. In addition, I have a BS in Accounting, an MBA, and a CPA certificate.
What industries and positions offer the most opportunity for growth? Is the temp to perm option a viable strategy in obtaining needed experience?
Jack Hughes: I'm a big fan of the Gov't Contracting industry since I spent a number of years working in that field. Its also back in favor with Wall Street at the moment. But that doesn't matter as much. Even when the industry was out of favor over the past few years, the major companies in the space have all doubled in size, and done it profitably. Sounds to me like your experience and educational background are a perfect fit for a job in the Financial Dept of a major Government Contracting company.
jack
Arlington, Va.:
Hi Jack. Here's the situation. 30 years old, married, no kids. Have $27,000 in the bank for savings for a house. Problem is, we plan to move in the next year and a half to two years to be closer to family. (because we plan to have kids). So, every month, we pay rent ($1100), and we make a payment to house savings ($1000). I'm tired of making both payments and not having a lot left over. Should we buy a small condo and risk losing money when we sell, since we won't have had time to build up equity? Or should we just wait? There is one in our price range, ($150,000) across the street and we could do it quickly. What's your advice?
Jack Hughes: My advice is to wait and continue to build your nest egg. Given the state of the economy, I wouldn't want to be locked into a place I couldn't easily get out of when the time came for the right move. I am advising people to stay on the very conservative track for the present until we see how the "economic recovery" really unfolds.
jack
Falls Church, Va.:
Jack,
I have over 3 years back office experience, using Advent and Centerpiece for large fee only financial planning firms and investment management firms. How can I break into the sales/ people side of the business? I am very comfortable with explaining complicated financial terms and have good interpersonal skills. Thanks in advance.
Jack Hughes: Have you tried asking your boss to give you a shot at the people side of the biz where you are. If you have a proven trackrecord of performance where you are. it seems to me that your employer would be willing to take a chance on letting you experience other aspects of the business.
jack
Washington D.C.:
I have been working as an actuarial consultant for three years. I'm one exam away from a credential that would almost certainly mean a promotion and a major increase in responsibility. Unfortunately, for a number of reasons including the stressful environment of consulting, I have lost interest in this career right now. I'm not sure if I need a break from the exam track, or if I need a major change of scenery. Since this field is small and specialized, how do I counter the perception that my skills are too narrowly developed and that I wouldn't be able to break into another financial field?
Jack Hughes: I think I would try to persevere thru the final exam and get yourself aligned for the promo and increased responsibility. Then you will have positioned yourself with broader options going forward. The consulting gig can be VERY stressful, but the flexibility can't be beat; so weigh that into your decision. Also, it sounds like you need a little fun in your life. I suggest you pick a day each week and spend a little time doing something nice for yourself. It may just give you the stamina to press thru the final exam onto greater things!!! my two cents worth.
jack
Bethesda Md:
I am a finance professional with substantial experience. I have taken of several years to
be an 'at home Mom' and help my children through a family crises. Taking the time was the best thing I could do for my family. Finance can be an exacting task master. Rather than risk doing a bad job there and being ineffective at home, I chose home. It is now time to go back to the rat race. I have taken some short term work, nothing like what I have done in the past and certainly not career worthy. However, they have assisted in getting the family accustomed to 'Mom at work' again. I need to look for a serious job, Where do I start? How do I communicate this is not a frivolous choice made without forethought and prepartion?
Jack Hughes: Does it make sense for you to double back to your previous employers for possible positions or at least referrals? That may be a GOOD place to start. CONGRATS on having the courage to be an "at home MOM"!!!!! Its the toughest job in town, but the most rewarding.
jack
WashingtonJobs.com:
That wraps up today's show. Thanks to everyone who joined the
discussion.
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