Financial Analyst - Latest Jobs and Salary Outlook
Now that you've read what the coursework will be like during your online business degree program, you may be wondering what types of jobs are out there for you. A degree in business can open the doors to a wide variety of different fields, from accounting to marketing and administrative services.
It's up to you to decide where your interests and strength lie to determine which road to take. One of the top earning careers within the business industry is that of the financial analyst.
Nature of Financial Analyst Work
Financial analysts assess the economic performance of companies for firms and institutions who are investing. They can work for investment banks, insurance companies, mutual and pension funds, securities firms or the business media, helping them make sound investment decisions.
There are two types of financial analysts: those who work on the buy side and those who work on the sell side. Analysts on the buy side work for companies that invest a great deal of money, and they devise investment strategies for a company's portfolio. Analysts on the sell side help securities dealers to sell their products.
Within their areas of specialty, analysts assess trends in business practices, products and competition. They must be aware of new regulations or policies that could affect the investments they are watching and monitor the economy to determine its potential effect on earnings.
Financial analysts use spreadsheet and statistical software packages to analyze financial data, spot trends and develop forecasts. They use the data they find to measure the financial risks associated with making an investment.
Training and Education Requirements for Financial Analyst Jobs
Financial analysts must have a bachelor's degree. Many also earn a master's degree in finance or business administration. Most companies require financial analysts to have at least a bachelor's degree in finance, business administration, accounting, statistics or economics. A master's degree in finance or business administration is also desirable.
Depending on an individual's work, you may need to have a number of different licenses. The majority of licenses require sponsorship by an employer, so companies do not expect you to have these licenses before starting a job.
Other skills needed to succeed in this career include strong math, analytical and problem-solving abilities. Self-confidence, good communication skills and the ability to work independently are important as well.
Financial analysts must be detail-oriented and familiar with the workings of the economy, tax laws and money markets. Computers are indispensable in the work of financial analysts, so they must be comfortable with different software and spreadsheets.
Financial Analyst Jobs - Employment Overview
Financial analysts held 221,000 jobs in 2006. More than 2 out of 5 financial analysts worked in the finance and insurance industries. Others worked throughout private industry and government.
Employment of financial analysts is expected to grow by 34% between 2006 and 2016, which is much faster than the average for all occupations.
As the number of mutual funds and the amount of assets invested in these funds increase, mutual fund companies will need more financial analysts to research and propose investments. However, it is unclear how the recent downturn in the economy will affect these positions.
Financial Analyst Salary Info
Median annual earnings of wage salary financial analysts were $66,590 in May 2006. The middle 50% earned between $50,700 and $90,690. The lowest 10% earned less than $40,340, and the highest 10% earned more than $130,130.
You should also note that financial analysts typically earn bonuses, which could be a significant part of their total earnings.