If you’re like many, you’ve always thought that working as a financial analyst would be demanding, challenging and yet very exciting. Typically, any career that involves money is one people think of as exciting. Want to learn more about financial analysts and what their career entails? Continue reading and get the facts.
What are Financial Analysts and What Do They Do?
A financial analyst is an individual who studies business news and economic trends to become knowledge of the stock market and the financial world. The financial analyst uses his or her knowledge and expertise to advise clients and customers what and when to buy and sell investments. In addition to providing advice, they also provide a written report to their clients explaining their reasoning behind the financial advice.
Financial analysts share their knowledge, not only with private customers, but may also share it with the financial media. Networking is a very popular and widely-used method for financial analysts to seek clients and build financial relationships. The U.S. News & World Report indicates that financial analysts who want the best career opportunities should gain as much work experience as possible in addition to the education they obtain.
What Does it Take to Become a Financial Analyst?
To become a financial analyst, one must generally complete at least a bachelor’s degree. The student can choose various baccalaureate fields such as finance, economics, accounting, mathematics or statistics. Financial analysts have many opportunities for advancement. They often move on to become portfolio managers or fund managers.
To be eligible for more advanced positions, an individual may need a master’s degree in business administration or finance. In addition to earning a degree, the financial analyst must pass a licensing examine if he or she wishes to work for the securities industry. Licensure can be obtained through the Financial Industry Regulatory Authority. Although not required, certification can also improve employment options for the financial analyst.
The CFA Institute offers the Charted Financial Analyst credential. Financial analysts who choose to focus on a certain area of finance can also obtain certification in those specific areas. Continuing to take financial classes in their area of specialty can also improve financial analysts’ career choices.
What Is The Career Outlook for Financial Analysts?
Financial analysts are expected to experience an employment growth of more than 15% between 2012 and 2022, according to the U.S. Bureau of Labor Statistics. Despite the predicted job growth, this career is one that’s extremely competitive. The one downfall of this career is that financial analysts typically work very long hours.
As of May 2013, financial analysts earned annual wages that ranged from $48,100 to $152,420, with the median wage being $78,380, as reported by the Bureau of Labor Statistics. In the U.S. News & World Report ranking of the best business jobs, financial analysts were ranked #13. U.S. News also ranked financial analysts 63rd in the 100 Best Jobs category.
Related Resource: Online Master’s of Finance
If investments and portfolios have always held your interest, you may want to check into a career as a financial analyst. Imagine the excitement of helping another individual make good investments and make money. A financial analyst career may provide a lucrative salary, a challenging work day and the pride in knowing you’re helping others.
