What does a financial analyst do? They analyze financial trends. Financial analysts stay current on financial trends and business news and they analyze company strategies. They also write reports to explain their analysis and share what they learn with their colleagues. In addition, they may also communicate their perspectives to the financial media and to the public, according to the Boston Consulting Group. They are employed by financial companies, insurance companies, and some financial analysts become fund managers with their own clientele. They often work long hours; usually over 50 and sometimes up to 70 a week to earn their salaries. Financial analysts do the research, forecast the future economic trends, and then share their expertise.
Education
According to an article in the US News and World Report, to become a financial analyst, a bachelor’s degree is mandatory, preferably in a finance related field; although many go on to earn their Master’s in Finance or Business Administration while taking additional financial analysts courses. Some become certified analysts and those that take advanced courses may find themselves in a supervisory position in time.
Related Resource: Average Corporate Finance Salary
Financial Forecasters
It is imperative that financial analysts stay current on economic trends. They are in the business of forecasting and they have to have the correct information to do that efficiently. They are tasked with recommending to their clients when to buy and sell investments and if their clients do not get accurate information, it could be ruinous for both the financial analysts and their clients. Financial analysts are paid to interpret the current financial situation and, taking into account the bigger picture, forecast what the economy will be like in the next few years.
Types of Analysts
There are specialties in the financial analyst’s field. The typical analysts come from an accounting background and they are called financial analysts. They usually deal with financial planning, forecasting, cost structures, and project budgeting within companies. Investment analysts are usually the ones who write the reports in the financial media and analyze mutual funds and investment portfolios.
Employment
Before a financial analyst has finished their education, it is time to find employment. There are many directions that a financial analyst can take depending on where their interests may lie. It is important to gain work experience while still continuing to learn. Networking is also important while still in school. The salary for a competent financial analyst is good with the median being around$76,000. For a well-educated analyst with prior work experience, the salary can be even higher. In fact, it is one of the higher paid professions in New York City and San Francisco.
Some analysts are happy to work for a large financial company and analyze trends, write reports, and share their expertise with colleagues. Others are more interested in working their way into managing a hedge fund or managing investment portfolios. Either way, the work can be very fulfilling and the compensation cannot be better.
