Financial Analyst Job Description - Salary, Education and Career Guide for Becoming a Financial Analyst

Business owners and firms often need help making investment decisions. In these situations, they rely on the expertise of financial analysts. Financial analysts look at their clients' financial information, analyze it and make recommendations based on their findings. The field is competitive but quite lucrative if you can get your foot in the door.

Job Description

Financial analysts help firms and institutions with investments by evaluating the financial performance of companies and industries. Financial analysts may work for:
  • business media
  • insurance companies
  • investment banks
  • mutual and pension funds
  • securities firms.
 
Analysts help their clients make investment decisions by reading a company's financial statements, determining its value and projecting its future earnings.
 
The business world needs two types of financial analysts: those on the "buy" side and those on the "sell" side. Buy side analysts work with institutional investors, or companies that want to invest money. The analyst helps the company plan investment strategies. Buy side financial analysts work with:
  • charitable organizations
  • hedge funds
  • independent money managers
  • insurance companies
  • mutual funds.
 
Sell side financial analysts help securities dealers, such as investment banks and securities firms, sell their products.

Salary Guide

Median annual earnings for financial analysts are $66,590. The lowest 10 percent earn less than $40,500 and the top 10 percent earn over $130,000 per year. These numbers include bonuses, which can make up a substantial part of the total annual earnings. Bonuses are typically based on how well the analyst's predictions compare to the actual performance of an investment.

Education and Training

Financial analyst jobs require a bachelor's degree in one of the following areas:
  • accounting
  • business administration
  • economics
  • finance
  • statistics.
 
Courses in statistics, economics and business are typically required as part of these degree programs. Some employers want candidates with a master's degree in business administration or finance.

Prior Work Experience

Jobs in banking, accounting firms, sales or brokerage may give a potential analyst a background in the finance industry. Entry-level analyst positions are available, however, and you can boost your chances of landing one by completing an internship while in college.
 
More important than experience, potential financial analysts must display the following qualities:
  • ability to work independently
  • attention to detail
  • communication skills
  • computer skills
  • familiarity with the functions of the economy, tax laws and money markets
  • math, analytical and problem-solving skills
  • maturity
  • self-confidence.
 

Career Advancement

Financial analyst employment is expected to grow faster than average. By 2016, overall employment for financial analysts and financial advisors should grow by 37 percent. However, competition is fierce for analyst positions. An excellent academic background should give you an advantage.
 
Financial analysts move forward in their careers by taking on bigger or more important projects. They may move into management, either by supervising other financial analysts or by becoming portfolio managers or funds managers.

Related Associations and Groups

Plenty of groups and associations exist to help people interested in financial analyst careers. Examples are:
  • American Academy of Financial Management
  • Financial Management Association
  • Global Association of Investment Professionals.
 
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