Financial Analyst Careers | The Princeton Review (2024)

A Day in the Life of a Financial Analyst

Financial analysts gather information, assemble spreadsheets, write reports, and review all non-legal pertinent information about prospective deals. They examine the feasibility of a deal and prepare a plan of action based on financial analysis. Being an analyst requires a vigilant awareness of financial trends. Analysts have a heavy reading load, keeping abreast of news stories, market movements, and industry profiles in financial newspapers, magazines, and books. Most analyst jobs are in banking houses or for financial-advising firms, which means following corporate culture and wearing corporate dress. If a deal demands it, they must be prepared to travel anywhere for indeterminate lengths of time. Those who wish to rise in the industry should note the necessity of significant “face time,” attending social events and conferences and spending downtime with people in the profession, which can be expensive; this social circle tends to gravitate to high-priced attire and costly hobbies, habits, and diversions.Analysts sacrifice a lot of control over their personal lives during their first few years, but few other entry-level positions provide the possibility of such a large payoff come year’s end.

Many employers use bonuses, which can be equal to or double the beginning analyst’s salary, to attract and hold intelligent personnel. Successful financial analysts become senior financial analysts or associates after three to four years of hard work at some firm. Those with strong client contacts and immaculate reputations start their own financial consulting firms. Many work as analysts for about three years and then return to school or move on to other positions in banking.Financial analysts work long hours, and deadlines are strict. “When you have to get the job done, you get the job done. Period,” emphasized one. The occasional fifteen-hour day and night spent sleeping in the office is mitigated by the high degree of responsibility these analysts are given. The long hours breed a close kinship. Over 65 percent called their co-analysts extremely supportive, and many labeled them a “major reason” they were able to put up with the demanding work schedule. Most people become financial analysts because they feel it is the best way to immerse themselves in the world of finance and a great way to earn a lot of money. They’re right on both counts, but be aware that the immersion is complete and somewhat exclusive, and although people earn a lot of money, few have the free time to spend it all how they’d like to.

Paying Your Dues

Entry-level positions are highly competitive. A bachelor’s degree in any discipline is acceptable, so long as the potential analyst’s course of study demonstrates an ability to understand and work with numbers. Those with computer science, physical science, or biological science backgrounds may find the field more welcoming than do liberal arts majors. Business majors don’t necessarily have an advantage; each company trains the incoming class of financial analysts before they begin the job. To become a financial analyst you need to have a strong sense of purpose-it is not a job for those who are uncertain that their future lies in the financial world. Candidates must be able to meet and interact with clients, handle a heavy work load, prioritize and complete work under strict deadlines, work as part of a team, and work with computer spreadsheet and valuation programs. Many find the travel stimulating initially, but “after your third week in Jopbsug, Tennessee, at the ball-bearing plant, it gets old.”

Present and Future Outlook for Financial Analyst Careers

The obligations of today’s financial analyst were covered by more experienced individuals as late as the 1970s, but with rapid deregulation of ownership in industries in the early 1980s and the rapid growth of the financial sector during those same years, the need arose for a structured and continuing stream of intensively trained professionals familiar with the financial industry. Larger firms, which consolidated their programs in the early 1990s, are cautiously beginning to expand them again, finding opportunities in such new and developing industries as software development, biotechnology, and aerospace technologies.

Quality of Life

PRESENT AND FUTURE

Long hours, low base pay, and a fair amount of responsibility characterize the early years. Analysts travel, pore through documents, meet with clients (on a highly supervised basis) and prepare valuation analyses. They work together on teams that are rotated quickly when needed. Lack of control over hours and personal life are common in the first two years. The burnout rate is surprisingly low in the beginning-around eight percent-because most who enter the industry have few illusions about the demands the job will place on them.

FIVE YEARS OUT

At the five-year mark, those who remain have achieved the rank of “associate” or “senior financial analyst.” Responsibilities shift from producing to pitching, and client contact increases. Many study for professional degrees during these years. Over 70 percent of those who began in the field have either changed firms, returned to school, or changed jobs within the industry. While loyalty is tangible between analysts, the same sense of fidelity doesn’t seem to apply to the companies that employ them. Salaries remain relatively stable but bonuses, which once were merely large, can become astronomical; hours, for those who are successful, can actually increase.

TEN YEARS OUT

Successful financial analysts have moved on to vice-presidential positions in the investment banking, financial analysis, or valuation departments of the company. While bonuses still account for the bulk of income, salaries are significant as well. Hours can decrease but responsibility increases and pressure develops to solicit new business. Responsibilities also include personnel decisions and hiring.

Financial Analyst                                  Careers | The Princeton Review (2024)

FAQs

Is it hard to get hired as a financial analyst? ›

In this highly competitive job market, a master's degree gives an applicant a boost. A successful career as a financial analyst requires strong quantitative skills, expert problem-solving abilities, adeptness in logic, and above-average communication skills.

Is there a high demand for financial analysts? ›

The field is also growing at a steady pace. The BLS projects employment for financial and investment analysts to grow by 8% from 2022 to 2032, which is faster than the average projected growth for all jobs. This amounts to about 29,000 new financial analyst jobs by 2032.

What is the highest paid financial analyst? ›

High Paying Financial Analyst Jobs
  • Commercial Finance Analyst. Salary range: $52,000-$195,000 per year. ...
  • Financial Reporting Consultant. Salary range: $119,000-$146,000 per year. ...
  • Financial Operations Analyst. ...
  • Fixed Income Analyst. ...
  • Sox Analyst. ...
  • Asset Liability Analyst. ...
  • Private Equity Associate. ...
  • Corporate Financial Analyst.

Which company is best for financial analyst? ›

Highest Paying Financial Analysts by Company
  • Google.
  • LinkedIn.
  • Microsoft.
  • Amazon.
  • Apple.
  • Tesla.
  • Salesforce.
  • Goldman Sachs.

Do you need a CFA to be a financial analyst? ›

Financial analysts do not need the CFA credential to work in the field, but employers may prefer individuals with certification. Candidates with a relevant degree alone can qualify for entry-level positions.

Is CFA a stressful job? ›

A lot of CFAs work in high-pressure environments that often come with demanding deadlines and high stakes. Therefore, you need to have a decisive attitude, the ability to compartmentalize stress, and an unfaltering ability to think clearly.

What is the hardest part of being a financial analyst? ›

Being a financial analyst can be a tough gig because it requires a lot of complex thinking, preparation, and hard work. Many analysts report that the hardest part of their job is communicating sophisticated analysis and insights to decision-makers in a way that is both comprehensible and actionable.

Which degree is best for a financial analyst? ›

Education - Bachelor's degree in finance, accounting, economics, business administration, or a closely related discipline is needed for applicants. A competitive advantage may come from having a master's degree. The Chartered Financial Analyst (CFA) qualification is well-respected in the financial sector.

Do Financial Analysts make 6 figures? ›

As with any industry, the totals can vary by area, but about half of FAs make around or more than $100k / year. Meaning that you have about a 50% shot at making six figures or more as an FA.

Do financial analysts make more money than accountants? ›

Financial analysts tend to work with the overall picture of economic trends and market movements to forecast financial situations. A career in accounting may be ideal if you enjoy examining data like auditing and reviewing financial statements. Financial analysts may make more money on average than accountants.

Who pays most to a financial analyst? ›

Top companies for Financial Analysts in United States
  • Google. 4.3 $114,532per year. 5,448 reviews27 salaries reported.
  • Capital One. 3.9 $97,064per year. 10,561 reviews16 salaries reported.
  • Houlihan Lokey. 3.8 $86,276per year. ...
  • Boeing. 3.9 $83,078per year. ...
  • Northrop Grumman. 4.0 $81,744per year. ...
  • Show more companies.

Which field of finance pays the most? ›

What are the top 5 highest paying jobs? The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.

Is it better to be a financial advisor or analyst? ›

As for financial analysts, their median annual pay in 2022 was slightly higher than their advisor counterparts – $96,220. However, there's a significantly smaller range of typical salaries in the field, as the bottom 10% of financial analysts earned less than $58,510 in 2022 while the top 10% earned more than $175,720.

Is CPA or CFA better for financial analyst? ›

If a career primarily focused on finance falls into their strengths, desires, and career growth, a CFA designation would be the better choice. Alternatively, if they want to explore career advancement opportunities that revolve around accounting duties, they should be looking at a CPA certification.

What is the career path for a financial analyst? ›

Financial analysts typically start by specializing in a specific investment field. As they gain experience, they can become portfolio managers and select the mix of investments for a companys portfolio. They can also become fund managers and manage large investment portfolios for individual investors.

Is getting a job as a financial analyst hard? ›

Competition for these jobs is fierce, especially among analysts new to the field. The Bureau of Labor Statistics projects 8.2% employment growth for financial analysts between 2022 and 2032. In that period, an estimated 68,000 jobs should open up.

What GPA do you need to be a financial analyst? ›

Minimum GPA: Minimum cumulative 3.3 GPA required, 3.5 GPA preferred. Certifications: All are optional: Chartered Financial Analyst® (CFA), Certified Public Accountant® (CPA), or MBA.

Is it hard for finance majors to get a job? ›

You don't need an MBA to work in finance, but the field is highly competitive, especially at the entry-level. Internships offer experience, exposure, and a tryout for a full-time gig.

What salary should I ask for financial analyst? ›

Salaries by years of experience in the United States
Years of experiencePer year
1 to 2 years$72,780
3 to 5 years$80,670
6 to 9 years$87,622
More than 10 years$90,743
1 more row

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Nathanial Hackett

Last Updated:

Views: 5729

Rating: 4.1 / 5 (52 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Nathanial Hackett

Birthday: 1997-10-09

Address: Apt. 935 264 Abshire Canyon, South Nerissachester, NM 01800

Phone: +9752624861224

Job: Forward Technology Assistant

Hobby: Listening to music, Shopping, Vacation, Baton twirling, Flower arranging, Blacksmithing, Do it yourself

Introduction: My name is Nathanial Hackett, I am a lovely, curious, smiling, lively, thoughtful, courageous, lively person who loves writing and wants to share my knowledge and understanding with you.