You do not need a master’s degree to become a financial analyst. Many people who hold this position do so with just a bachelor’s degree, although graduate studies can certainly help you move up in the field. Read on to learn more about the process of becoming a financial analyst and what to expect from this lucrative career.
Role of a Financial Analyst
Financial analysts are responsible for using projections to provide investment advice to individuals and corporations. They evaluate data, study financial statements, and meet with leadership to determine the best financial moves for a given situation. Some analysts are “sell-side,” which means they advise those individuals that are selling stocks and investments; others, known as “buy-side,” advise companies and individuals who have substantial funds to invest.
Becoming a Financial Analyst
To get started in this industry, you must first earn a bachelor’s degree in finance or a related field. Some degrees that fit well with the role of a future financial analyst include business, statistics, mathematics, accounting, economics, and engineering. New analysts typically start out by specializing in a particular type of investment and then expanding their practice as they gain experience. In order to move up in the world of finance, you may want to become certified or licensed. Licensure, which is often sponsored by an employer after you begin working, is done through the Financial Industry Regulatory Authority. Certification from the Chartered Financial Analyst Institute is available to those with a bachelor’s degree, four years of experience, and passing scores on three exams. In addition, a master’s degree in finance or a related field can help you advance more quickly as a financial analyst.
Salary and Job Outlook
According to the Bureau of Labor Statistics, financial analysts earn a median wage of $76,950 per year. The highest paid analysts work in securities and commodities, followed by professional, scientific, and technical services; credit intermediation; company management; and insurance. The highest paid 10 percent of analysts make more than $148,000 per year, so there is great opportunity to earn substantial funds for those who excel. Jobs for financial analysts are expected to grow by 16 percent over the next 10 years, which is faster than the average growth for all occupations. While this growth is expected to result in approximately 39,300 new jobs, this is still a competitive field with many more graduates than available positions. Excelling in your bachelor’s degree program and pursuing a master’s degree can make you much more marketable to potential employers. New York has the most jobs for financial analysts, followed by California, Texas, Massachusetts, and Illinois.
Related Resource: Online Master’s of Finance Degree
If you want to pursue a career as a financial analyst, start by doing as much research into the field as possible. While you do not need a master’s degree to become a financial analyst, pursuing continuing education helps prove your dedication and expertise and goes a long way to helping you excel in your chosen role.
