Financial Analyst: Job Profile & Salary

Overview

Many financial analysts, especially those who worked at investment banks, lost their jobs during the crisis and related fall-out. But now, thanks to renewed interest in fiscal responsibility and an uptick in the economy, financial analysts are once again in hot demand. The job is best suited for those who enjoy numbers. Much of a financial analyst's day is spent poring over financial earnings statements. Financial analysts generally work for investment banks, insurance companies, mutual fund companies, pension funds, or securities firms, and are charged with gauging the performance, health, and value of potential investments. Analysts usually develop expertise in a particular slice of the economy, be it an industry, country, or asset class (such as bonds). But there are two sides to this profession. The "buy side" refers to helping heavyweights such as hedge funds or universities with hefty endowments invest their money, while the "sell side" means advising a brokerage on whether to tell its clients to buy, hold, or sell a stock.

According to the Bureau of Labor Statistics, financial analyst positions are expected to grow by 23 percent between 2010 and 2020, much faster than the average for all professions. That means another 54,200 positions will open up in addition to the 236,000 that existed in 2010. But competition for these jobs is still fierce, particularly for new analysts.

Salary

The paycheck is good. Median annual earnings for financial analysts were $74,350 in 2010, with the lowest-paid 10 percent earning less than $44,490 and the highest-paid 10 percent earning $141,700. The highest paid in the profession work in New York, California, and Texas.

Training

A bachelor's degree is a must, preferably in finance, business administration, accounting, statistics, or economics. A good number of financial analysts also pursue a master's degree in finance or business administration and take additional financial analyst courses. Many in the field opt to become certified financial analysts, and employers often sponsor various certification and licensing programs. You'll get a leg up by obtaining a certification (such as becoming a chartered financial analyst) or taking advanced courses in subjects related to your specialty. The ambitious can look forward to taking on larger responsibilities and advancing to supervisory positions. The best of the best may become fund managers.

Reviews and Advice

Manisha Thakor, a chartered financial analyst and former corporate financial analyst, says the financial services industry is changing quickly, which means the days of linear career paths are largely over. Her biggest piece of advice for aspiring analysts is to gain work experience while studying. "Something as basic as offering to work with an established financial professional for five to 10 hours a month can make all the difference," she says. Thakor adds that networking and building relationships in the field is also essential. "So remember to keep one hand in the books and one hand out shaking new ones," she adds.

» Real Advice From Real Financial Analysts