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Financial analysts help businesses by making investment decisions. They assess stocks and bonds to see how well they are performing. In addition, they also evaluate a company’s value to project its future earnings. Most financial analysts focus on a specific industry. For instance, they can choose to specialize in the foreign exchange market or the energy industry. The majority of financial analysts work for large financial institutions. Some of the places that hire financial analysts include insurance companies, banks, credit institutions and the government. All of their work is done in an office setting. Since they must visit companies and potential investors, many financial analysts are required to travel. A financial analyst is also known as a security analyst, a portfolio manager or an investment analyst.
Degrees and Experience Required
In order to get a job as a financial analyst, candidates must have a bachelor’s degree in a related field. Some of the best areas to study include accounting, economics, finance, business administration or statistics. Some employers prefer to hire applicants who have a master’s degree. If students decide to earn a master’s degree, they should study either business administration or finance. Candidates should consider obtaining certification to increase their job prospects. Students can earn the Chartered Financial Analyst certification by obtaining a bachelor’s degree, passing three exams and working for four years. The ideal financial analyst has good communication skills, is great at decision-making and excels in math. Along with that, an ideal candidate should also have analytical skills and be detail oriented.
Annual Pay
The average annual salary for a financial analyst is $74,350. The lowest 10 percent of workers earn an average salary of $44,490. As for the highest paid 10 percent, they earn more than $141,700 on an annual basis. The highest earners usually have a master’s degree and years of experience. The lowest 10 percent of earners primarily consists of financial analysts who just started in the field. Geographic location also affects a person’s salary. Those who work in a small town tend to make far less than those who work in a big city. The highest paid financial analysts work in New York, California and Texas. Financial analysts who are paid the lowest usually work in the Midwest.
Job Outlook
According to the U.S. Bureau of Labor Statistics, the need for financial analysts is expected to grow 23 percent by 2020. Compared to other professions, this growth rate is extremely fast. There are more financial products on the market every day. As a result, financial analysts are needed for their skills and in-depth knowledge. The strong employment growth is also due to the complexity of investment portfolios. As new markets emerge throughout the world, there is an abundance of new investment opportunities. Even though the job outlook is good, there is strong competition for the high-paying jobs. Therefore, applicants should do everything they can to remain competitive. Earning an advanced degree and certification are two ways for people to make their applications stand out.
Financial analysts help businesses by making investment decisions. They assess stocks and bonds to see how well they are performing. In addition, they also evaluate a company’s value to project its future earnings. Most financial analysts focus on a specific industry. For instance, they can choose to specialize in the foreign exchange market or the energy industry. The majority of financial analysts work for large financial institutions. Some of the places that hire financial analysts include insurance companies, banks, credit institutions and the government. All of their work is done in an office setting. Since they must visit companies and potential investors, many financial analysts are required to travel. A financial analyst is also known as a security analyst, a portfolio manager or an investment analyst.
Degrees and Experience Required
In order to get a job as a financial analyst, candidates must have a bachelor’s degree in a related field. Some of the best areas to study include accounting, economics, finance, business administration or statistics. Some employers prefer to hire applicants who have a master’s degree. If students decide to earn a master’s degree, they should study either business administration or finance. Candidates should consider obtaining certification to increase their job prospects. Students can earn the Chartered Financial Analyst certification by obtaining a bachelor’s degree, passing three exams and working for four years. The ideal financial analyst has good communication skills, is great at decision-making and excels in math. Along with that, an ideal candidate should also have analytical skills and be detail oriented.
Annual Pay
The average annual salary for a financial analyst is $74,350. The lowest 10 percent of workers earn an average salary of $44,490. As for the highest paid 10 percent, they earn more than $141,700 on an annual basis. The highest earners usually have a master’s degree and years of experience. The lowest 10 percent of earners primarily consists of financial analysts who just started in the field. Geographic location also affects a person’s salary. Those who work in a small town tend to make far less than those who work in a big city. The highest paid financial analysts work in New York, California and Texas. Financial analysts who are paid the lowest usually work in the Midwest.
Job Outlook
According to the U.S. Bureau of Labor Statistics, the need for financial analysts is expected to grow 23 percent by 2020. Compared to other professions, this growth rate is extremely fast. There are more financial products on the market every day. As a result, financial analysts are needed for their skills and in-depth knowledge. The strong employment growth is also due to the complexity of investment portfolios. As new markets emerge throughout the world, there is an abundance of new investment opportunities. Even though the job outlook is good, there is strong competition for the high-paying jobs. Therefore, applicants should do everything they can to remain competitive. Earning an advanced degree and certification are two ways for people to make their applications stand out.