Financial Analyst Careers

Overview

What is this job like?		Back to Top

Financial analysts help people decide how to invest their money. They work for banks, insurance companies, mutual funds, and securities firms. They often meet with company officials to learn more about the firms in which they want to invest. After the meetings, the analysts write reports and give talks about what they found out. Then, they suggest buying or selling that firm's stock.

Financial analysts may specialize. Those in investment banking study the companies that want to sell stock to the public for the first time. They also might study the pros and cons of a merger (when two companies join together) or a takeover (when one company buys another). Some financial analysts are ratings analysts who find out if companies can pay their debts.

Financial analysts usually work in offices. They may work long hours. They sometimes work on evenings or weekends. Analysts usually face many deadlines. Their day is filled with telephone calls and meetings.

How do you get ready?		Back to Top

Most financial analysts have a college degree in business, accounting, statistics, or finance. A master's degree in business administration (MBA) is desirable.

Math, computer, and problem-solving skills are vital. Working with clients requires good people skills. Confidence, maturity, and the ability to work on your own are important, too. Analysts also need good communication skills to explain complex financial ideas using simple words.

Financial analysts must like to look for obscure facts and details about companies.

To get ready for these jobs, math and social studies classes are good. It helps to learn how to make presentations and write reports. It also helps to read about business news.

How much does this job pay?		Back to Top

The middle half of all financial analysts earned from $50,700 and $90,690 a year in 2006. The lowest-paid 10 percent made less than $40,340. The highest-paid 10 percent made more than $130,130. Many financial analysts also get a bonus. The bonus can add a lot to their earnings.

How many jobs are there?		Back to Top

There were 221,000 financial analysts in 2006. Many work at the head offices of big financial firms. Many of these jobs are in New York City.

What about the future?		Back to Top

Employment of financial analysts should grow much faster than the average for all occupations through 2016. Banks and mutual fund companies will need more financial analysts to recommend which stocks and bonds they should buy or sell. But competition is expected for jobs, because many people want them.