This article is for people who would like to work in finance, but don't really know what to expect since it is a very large field. I will explain here everything you have to know about the financial analyst position, ranging from the salary to the work expectations. I personally think it is very useful to have an article like this at hand, because many who go in finance don't actually know the conditions and expectations of this field.
Being a financial analyst means long hours and high pressure, but also high salaries and promising exit opportunities. It is a very large field, but work can be repetitive, and it is a difficult environment overall.
A financial analyst studies companies financial data and create financial models to help make investment decisions. They normally focus on equity markets or credit markets, and unlike research analysts, they give recommendations based on their analysis.
On a typical day, financial analysts mostly build spreadsheets, gather information, write reports and analyze deals. They also have to read a lot of news on the global economy and markets to stay on track in their work.
Financial analysts normally work at large corporations like investment banks, insurance companies and more. For example, big names of the industry includes JP Morgan or Goldman Sachs.
Most of the time, the best way to get an entry-level job as an analyst is to get a bachelor's degree in finance, accounting, business administration or a related field like economics. You can substitute a degree with several years of valuable work experience, but a candidate with a degree is normally preferred. Senior roles demand specific skills, such as good communication and client relationship skills.
The salary range can vary a lot. The average salary for a financial analyst in the United States was $116,490 and the median salary was $101,350. An entry role position is estimated to start at around $60,000 per year, and senior roles can push it to more than $200,000.
There are a lot of credentialing choices available for analysts to become more professional in their job. The main credentials are the CFA Exams, the Series 7 Exam and the FINRA Licensing.
The main risk of becoming a financial analyst is that the hours are excessively long, especially in investment banking. Also, the stress level is really high since it is a very competitive industry. So, the work-life balance is the biggest downside of being a financial analyst.
The chance of financial analysts being replaced by AI or robots is very low. Although AI helps analysts work, the need for human judgment is still there.
It is hard knowing the exact age financial analysts retire at since most of the time, the analysts exit toward another position. That being said, analysts can retire early if they manage their salary right, but they can also retire old if they need to.
To conclude, being a financial analyst is hard but also rewarding. Personally, I still have university to go through, but my goal is to be a financial analyst at a big investment bank like RBC. I hope this article was useful for anyone wondering if they want to go down this career path.
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Authority: recognized author
Date: still relevant
Accuracy: probably true
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Rationale: to inform or educate
Authority: recognized author
Date: still relevant
Accuracy: probably true
Relevance: relevant for this document
Sources: no sources cited
Rationale: to inform or educate
Authority: recognized author
Date: still relevant
Accuracy: probably true
Relevance: relevant for this document
Sources: no sources cited