Going to school to become a financial analyst can set you on a career path that is both lucrative and rewarding. However, becoming a financial analyst requires more than just completing your degree and applying for jobs. Financial analyst positions are highly coveted, and making a career as a financial analyst requires the right combination of education, experience and determination.
What Does a Financial Analyst Do?
Financial analysts are not accountants. They don’t just balance the books or provide advice about profit-loss sheets. The work of the financial analyst is much more complicated.
Financial analysts study trends in the economy and in business to make predictions and to provide tailored advice for their clients. They study macro and microeconomic data to understand the larger influences behind current market conditions, then they use that information to make recommendations about when to buy and sell investments, what investments to choose, and how to guide a company’s finances. Financial analysts also help companies determine their future earnings.
The work requires a lot of research and long hours. However, financial analysts are in a position of power and respect in most companies.
Becoming a Financial Analyst
All financial analysts have at least a bachelor’s degree. However, the exact degree they earn varies. The Bureau of Labor Statistics reports that common degree types include finance, economics, accounting, mathematics, statistics and engineering. The degree itself isn’t as important as the courses taken and the subject matter learned.
Those who want more opportunities for advancement should consider earning a master of business administration. The MBA can open doors to management careers and other leadership positions.
Additional Training and Certification
If you want to become a financial analyst, your degree is just a starting point. Many states require that financial analysts obtain a license, certification or registration before they can begin working in the industry. The Financial Industry Regulatory Authority (FINRA) oversees licensing for many analysts. Many options are available for certification. One agency that provides certification is the CFA Institute, which offers the Chartered Financial Analyst certification.
In some cases, you may have to be sponsored by an employer to get licensing or certification. That means that an employer will hire you provisionally after earning your degree, then sponsor you to get licensing so you can begin work.
Some top employers may prefer that you have experience working in the field before they hire you. That means that you may need to start working with a smaller company, get your license and certification, then build up some experience before going after the top dogs.
Advancement can happen quickly. The Bureau of Labor Statistics projects that jobs will grow by 16 percent in the next 10 years, which is faster than average for other industries. That means that there are many opportunities in the field, both to get started and to grow. The median pay for financial analysts was $76,950 in 2010, but that number will grow as jobs do.
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A Secure Future
As the economy continues to be uncertain, it is more important than ever to choose a career with longevity. Financial analysts have that potential for job security. To become a financial analyst, get started with the right education, then take the steps to get licensed and certified and start building your experience. You’ll be on your way in no time.
