Financial Analyst Career Specializations
Financial Analysts almost always specialize in a particular segment of the market,
or a region, or a specific product such as mutual funds. The reason for this specialization
is that within their specialization they are normally responsible for forecasting
trends in the market and assisting their clients in investment decisions. This requires
they know their particular segment of the market very well. There is a specialization
called the ratings Analyst they evaluate governments and private companies for their
ability to repay debts. Another area of specialization might be the personal Financial
Analyst who assists individuals with investments in order to help them reach their
Job Duties and Responsibilities
Within the Financial Analysts area of specialization they are expected to develop
reliable forecasts as to market trends, or they help develop budget cost or credit
analysis trends. The area of a Financial Analyst's job responsibilities are
as large as the world itself and strictly dependent upon their specialization and
The Financial Analyst will usually be found working within an office with normal
office hours and a 40 hour work week or from their own homes, if self-employed.
However, financial advisors might also have after our work meetings with individual
clients and teach or attend conferences.
Employment Outlook and Opportunities
Financial Analysts will find many employment opportunities within the financial
industry. Some Financial Analysts are employed by insurance companies, stock brokerages
and others by government agencies still more are independent Financial Analysts
and worked and study worldwide, analyzing the global market.
Job growth for the Financial Analyst is predicted to be much faster than normal
for any profession. In fact, employment of Financial Analysts is expected to grow
by 31% in the next seven years. More companies have replaced the traditional pension
plans with retirement and investment plans and more advisors will be required to
assist these individuals with their investments, as well as the number of baby boomers
retiring in the next few years is expected to increase creating a need for even
more Financial advisors.
How much does a Financial Analyst make - Financial Analyst Salaries and Wages
Earnings for Financial Analysts with 1 to 4 years experience are reported
to be between the ranges of $43,147-$58,389 per year.
Earnings for Financial Analysts with 5 to 9 years experience are reported
to be between $49,006 and $67,436 per year.
Earnings for Financial Analysts with 10 to 19 years experience are reported
to be in the range of $51,082-$72,897 per year
How to Become a Financial Analyst
Education for Financial Analysts
A Financial Analyst will require a strong academic background with at least a bachelor
degree though many have doctorates. The most desirable to employers, majors are
accounting, finance, statistics, economics or business administration. Though employers
don't normally require a specific course of study for Financial Analysts, they do
generally demand at least a bachelor degree and prefer persons with majors in those
areas. Because competition is going to be so intense for these very well-paid jobs,
the better preparation the job seeker has, the more likely they are to become employed
in the more desirable positions.
The type of licensing required for a Financial Analyst depends upon their area of
specialization as well as their employer. The Financial Industry Regulatory Authority
deals with licensing for the securities industry and a Financial Analyst working
for a securities firm might expect to be required to have a license. However, since
these licenses require sponsorship by a company they are not a pre-employment requirement.
Financial analysts employed by securities firms may require another type of license
that give them the right to act as a reference is a registered representative of
a securities firm and give advice.
The type of licensing and certification required is naturally dependent upon the
area of specialization and the firm employing the Financial Analysts.
Competition is intense for positions as a Financial Analyst and that is not expected
to change in the near future. The better the academic preparation before entering
the field, the more likely a candidate is to do well. The Financial Analyst will
need communication skills, the ability to work independently, and should be very
comfortable with a computer and software for spreadsheet and statistics packages.
Continuing education, especially a master's degree in finance or business administration
is very desirable and can help in career advancement.
Becoming a Chartered Financial Analyst (CFA) can be very desirable for some Financial
Analysts in terms of career advancement.
The more a Financial Analyst knows and the certifications they have to prove it,
the broader the opportunities for advancement become. Normally they advance by moving
into positions where they are responsible for larger projects and eventually directing
investments and portfolios of their own employers.
For an exciting and very well paid career as a Financial Analyst there are links
provided upon this site to schools offering degrees and educational opportunities
for the Financial Analyst.
Financial Analysts Resources
Association for Finance Professionals