Financial Analyst Career

In the industry that caters to financial services, among the most enviable occupations is that of a financial analyst. Although it takes a lot of hard work to open more doors for better opportunities, with the right mindset, talents, knowledge, and skills, any person can succeed and be on his or her way to earn big. Do you think you have what it takes to start a financial analyst career? This article will help you gain a better insight about the job.

What is a Financial Analyst?

A financial analyst is someone who guides companies and individuals when they are in the process of making investment decisions. There are 2 classifications of financial analysts and these are: sell side analysts and buy side analysts. They are the ones who study the trends and performances of the many different types of investments such as stocks, bonds, and commodities. They find employment in insurance companies, securities firms, banks, and business media, among others.

Financial Analyst Job Duties

The job duties of a financial analyst are to analyze trends in expenses and revenues, measure financial risks, prepare presentations for clients to illustrate financial trends. In addition, they must provide information on finances to company managers, review company financial records, prepare budgets, and perform expense and revenue forecasts that will be needed prior to making financial decisions. Some financial analysts also manage a team of analysts to study on a variety of products and industries that are part of their company’s investment portfolio.

Financial Analyst Skills

For individuals who are thinking about starting a financial analyst career, it is imperative to prepare themselves for the job. Among the skills needed are analytical and problem-solving skills because financial analysts are often presented with complex data that needs to be analyzed, understood and interpreted. They also need to have excellent communication and people skills because they will be making oral and written presentations for their clients. Knowledge of how to use spreadsheets and other software applications would also be advantageous.

Financial Analyst Education

For education, an aspiring financial analyst must have at least a bachelor’s degree in the finance field. Having a graduate degree or an MBA would be helpful but not really necessary. There are advanced courses that cover coursework in risk management, pricing, and bond valuation, which will also enhance a person’s knowledge and skills needed to become a good financial analyst. Passing the licensure exam given out by the FINRA is likewise needed.

Financial Analyst Salary

Based on data gathered as of 2008, the median annual salary of financial analysts was $73,150. This amount is double that of the national median salary, and while this is already a high wage some financial analysts are earning more than $141,070. Entry-level financial analysts are paid around $43,440 and as they gain more knowledge and experience, their salaries would gradually increase. In addition, there are also bonuses.

Financial Analyst Job Outlook

There were about 250,600 jobs held by financial analysts in 2008. And employment projection for this occupation is said to grow 20% for 2008-2018. Growth can be attributed to the development of more investment opportunities. With the number of mutual and hedge funds increasing, and as more and more businesses and individuals become open to making investments, there will also be a need for more financial analysts to meet the demands.

Building a future with a financial analyst career seems to be a good decision. With proper training and the will to succeed, there is no stopping an individual from carving out a successful future in this occupation.