Is Finance A Good Career Path?

Part of the reason for the high demand for financial industry jobs is their potential for significant financial gain. Naturally, there are entry requirements for the banking industry that might be just as high as the pay. Many professionals hold postgraduate degrees in business, math, economics, or statistics. At the very least, most positions demand a four-year degree.

However, there are still several career options in the finance sector, both on and off Wall Street, to suit a variety of interests and skill levels. A wide range of professions with average base salaries between $72,411 and $116,973 and total pay figures that include bonuses and commissions ranging from $50,000 to $293,000. These include positions as an investment banker, actuary, portfolio manager, quantitative analyst, securities trader, financial planner, financial analyst, and economic analyst. twelve

Types of Careers in Finance

There are many different kinds of job roles in the broad field of finance. Here is a list of some of the most well-known and lucrative jobs in this field:

Investment Banker

• An investment banker’s base pay ranges from $50,000 to $293,000. The average salary is $116,973.1
• Growth rate anticipated: 7%3
• Qualifications for schooling for investment bankers: an MBA or master’s degree in finance (preferably from a prestigious institution) along with a four-year degree in finance, economics, or a quantitative or business-focused discipline.

Investment banking is home to some of the most glamorous (and demanding) financial professions. Investment banks assist businesses and governments in raising funds through mergers and acquisitions (M&A), bonds, equities, and initial public offerings.

Investment banking companies typically consist of multiple groups and divisions, each with distinct goals and duties. Dealing with securities issuers and M&A specialists is one of the benefits of working at a traditional investment bank. Working on the trading desk and dealing in stocks, bonds, and other secondary market securities is another possibility.

Types of Investment Banking Jobs

• Mergers and acquisitions (M&A): M&A-focused bankers advise businesses seeking to acquire smaller firms or combine with rivals strategically. M&A bankers assess these possible large-scale transactions using financial modeling. High-profile executives are frequently contacted in these roles, and M&A specialists have to persuade them of their proposals.
• Underwriting: An underwriting department of a bank is responsible for raising capital. Underwriting experts frequently concentrate on debt or equity and frequently have an industry-specific focus as well. Typically, these bankers deal directly with clients, assessing capital requirements through external connections and identifying optimal solutions internally with traders and securities sales representatives. In recent years, underwriting has become more prevalent at larger universal banks and is no longer just found in investment banks.
• Private equity: Though positions are usually found at smaller, specialized organizations, many investment banks have private equity (PE) divisions. These bankers provide capital for private businesses and nonprofits in exchange for a percentage of the profits they make from their transactions. In addition to having strong academic credentials, PE practitioners frequently have experience working in investment banks.
• Venture capital: Investing in startups is a common specialty of venture capital (VC) firms; these companies are typically in fast-growing sectors like biotech, tech, and green technology. Even if a lot of target companies fail in the end, venture capital firms thrive because they exit their investments early on and get enormous returns on their capital. Generally speaking, VC firm staff members are knowledgeable about emerging ideas and technology and are skilled at making deals and calculating numbers. Their excitement stems from the possibility of finding “the next new thing.”

Financial Planner

• The typical basic pay for a financial planner is $67,682 (with a range of $48,000 to $124,000).14.
• A 13% growth rate is anticipated.
• Requirements for financial planner education: a bachelor’s degree, along with any necessary FINRA licenses and certifications.

Personal financial planners assist people in creating plans to guarantee their current and future financial security. Usually, they examine the financial objectives of their clients and devise a suitable plan for investing and saving. Estate and tax planning may be included in the strategy, which may have a wealth preservation or investment growth focus.

The majority of financial planners work for big, national companies or smaller, locally-owned businesses. A portion of the client’s assets under management (AUM) is what some planners charge, while others have a fixed fee. Commission-based planners may not charge their clients any fees in exchange for receiving commissions on the goods they offer. Some planners receive multiple forms of payment.

The most in-demand financial planners are often those who hold the Certified Financial Planner (CFP) title due to their extensive training. They have to complete 6,000 hours of financial planning experience, pass many tests, including a 10-hour, two-day case-study exam, and fulfill ongoing education obligations.

Financial Analyst 

• Base compensation for a financial analyst on average is $66,084 (total pay ranges from $50,000 to $91,000).sixteen
• 8% growth is anticipated.
• Education requirements for financial analysts: A four-year degree in finance or a similar discipline is required; an MBA, CFA certification and a current FINRA license are beneficial.

Typically, analysts in financial sector firms are in charge of investigating possible investments and providing advice to portfolio managers and traders. Nonbank corporations employ financial analysts as well, who assess the firms’ financial standing and assist in creating budgets.

Strong arithmetic, analytical, and communication abilities are essential for work as a financial analyst, as is the capacity to handle pressure. You must have a four-year degree in finance or a closely related discipline. Eventually, you’ll also probably need an MBA in addition to a FINRA license or CFA certification.

Types of Financial Analyst Jobs

• Investment analyst: Investment analysts usually have a focus on one or more of these areas: investment vehicles, industrial or economic sectors, or geographic regions. Typically, sell-side firm analysts provide buy-and-sell recommendations to their customers. Typically, buy-side analysts suggest stocks for their portfolio managers to purchase or sell.
• Financial analyst: Financial analysts are typically employed by government organizations or more conventional (non-financial) businesses. Almost all large businesses, irrespective of their industry or sector, employ financial analysts to manage budgets, assess cash flows and expenses, and perform other tasks. These analysts might also aid in raising funds or in determining the optimal financial structure for the company. Financial analysts can advance through the ranks of their company and eventually hold positions as chief financial officer or treasurer.

Economic Analyst 

• Base compensation for an economic analyst on average is $72,411 (total pay varies from $50,000 to $110,000).
• 2 6% growth rate is anticipated.
• Requirements for schooling for an economic analyst include a degree in statistics, economics, or a similar discipline (advanced desirable), as well as experience publishing and authoring reports.

Economists monitor several sectors of the economy and financial markets to identify significant patterns. Those who appreciate data analysis, trend analysis, and opinion formation about the direction of the financial markets can find great satisfaction in these occupations. Writing, public speaking, and extensive use of spreadsheet software are common tasks in analytical occupations.

Investment banks, money management companies, and other conventional financial institutions employ people in these positions. They are also present in government, academia, and the public sector. The majority of financial analysts are MBA- and often Ph.D.-holders. Writing and publishing experience in the industry is important because many related occupations require it.

Types of Economic Analyst Jobs

• Economist: At several organizations involved in finance, economists are widely employed. Economists are employed by academic institutions, government organizations, asset management firms, and central banks. To forecast future trends and provide an explanation of the state of the market or economy, economists monitor and evaluate data.
• Economic strategist: A strategist and an economist are two very different things. While strategists concentrate on the financial markets, economists typically follow the path of the whole economy. In contrast to academic and governmental institutions, strategists are more likely to work for banks and money management firms. As research analysts, many strategists first specialize in a specific product or sector of the economy.

Choosing a Financial Career

Pay is by far the biggest benefit: employment in finance typically pays more than those in other industries. Some noteworthy benefits are the opportunity to employ your abilities elsewhere, flexible work schedules, and respectable working circumstances. Any company will value having strong financial and numerical skills, so it should not be too difficult to discover new chances if you’d like to switch careers. Eighteen

As with any profession, a career in finance is not without its challenges. Due to the often fairly cyclical nature of the banking industry, some of these may include high levels of stress, significant responsibility, lengthy workdays, ongoing education requirements, and, in certain situations, unstable employment.

Conclusion: