Financial analyst
What is it?
Poring over financial earnings statements and scrutinizing companies to their core is how
you'll spend much of your time as a financial analyst. You'll most likely be employed by an
investment bank, insurance company, mutual fund, pension fund, or securities firm, and
your job will be to gauge the performance, health, and value of companies in which the
company may want to invest. Analysts generally develop expertise in a particular slice of
the economy, be it an industry, country, or asset class such as bonds. You may work on the
"buy side," for heavyweights such as hedge funds or universities with hefty endowments
and plenty of money to invest, or the "sell side," advising a brokerage on whether to, in
turn, tell its clients to buy, hold, or sell a stock.
[See a list of The 10 Best Careers of 2011 on our website.]
The Future:
Employment of financial analysts is expected to grow by 20 percent between 2008 and
2018, much faster than the average for all professions, according to the Bureau of Labor
Statistics. That means another 49,600 positions in addition to the 250,600 that existed in
2008. But competition for these jobs is still fierce, particularly for new analysts.
Money:
The paycheck is good. Median annual earnings—including bonuses, which can make up a
large chunk of total earnings—were $73,670 in May 2009, according to the Bureau of Labor
Statistics. The top earners pulled in more than $139,350.
Upward mobility:
You'll get a leg up by obtaining a certification such as chartered financial analyst or taking
advanced courses in subjects related to your specialty. The ambitious—and, in most cases,
talented—can look forward to taking on larger responsibilities and advancing to supervisory
positions. The best of the best may become fund managers.
Day to Day activity:
This is not a 9-to-5 job. Be prepared for your work days to run into the night. Analyzing
companies requires wading through an avalanche of research, so you'll spend plenty of time
in the office. But your job isn't entirely sedentary: Assessing a company's health often
involves traveling to meet with management in person.
[See a list of the best business careers on our website.]
Stress level:
Keeping abreast of industry trends and new regulations, dissecting multiple companies'
financials, leafing through piles of research, and monitoring the economy can be
overwhelming and require long hours.
Education and preparation:
A bachelor's degree is a must—preferably in finance, business administration, accounting,
statistics, or economics—and many financial analysts pursue a master's degree in finance or
business administration. A license may be required, but most are sponsored by an
employer.
[Find online degree programs in business as a less costly and time efficient alternative.]
Real advice from real people about landing a job as a financial adviser:
While numbers are a big part of the job, Karen Klugh of the American Financial Services
Association urges aspiring analysts not to ignore business etiquette skills, in order to
"become more polished." Young adults, she says, often focus so heavily on technology as a
means of communication that they forget how to network and relate to people on a more
personal, face-to-face level. She suggests classes and career workshops to boost those
social skills.