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Career-Industry Forecast

Date: 09/11/16
Name: Doyoung Jung
Job Title: Financial Analyst
Job Description: Financial analysts provide guidance to businesses and individuals making
investment decisions. They assess the performance of stocks, bonds, and other types of
investments.
Training, Education, and Certification: A majority of financial analyst jobs require a bachelors
degree related to finance, accounting, economics, applied statistics, and applied mathematics.
For higher paying jobs and positions, however, a Masters in Business Administration (MBA) or
Masters in Finance is often necessary. Individuals should possess fundamental knowledge of
options pricing, bond valuation, and risk management. Degrees outside of college include
licenses from The Financial Industry Regulatory Authority (FINRA), which is the main licensing
organization for the securities industry. These licenses often require the sponsorship of the
company, so individuals are not expected to have them before they start working. Other types of
certifications the Chartered Financial Analyst (CFA) certification from the CFA Institute which
can greatly increase the chances of getting higher position jobs. Financial analysts can become
CFA certified if they have a bachelors degree, 4 years of qualified work experience, and pass
three exams. Financial analysts can also become certified in their field of specialty.
College or Post High School Programs and Recommended High School Courses: In most cases it is
required to achieve a bachelors degree from a 4-year college. There are specific programs in
undergraduate business schools that prioritize getting a BBA (Bachelor of Business
Administration). However, a bachelors degree in finance, accounting, economics, or applied
statistics is also acceptable for the position. Recommended high school courses are business and
math related subjects such as AP Calculus BC, AP Statistics, and AP Macroeconomics.
National and Local Professional Organizations: Financial Industry Regulatory Authority (FINRA),
Global Academy of Finance and Management, and CFA Institute are all national organizations
that provide necessary certification and information for financial analysts and mangers.
Related Areas: Fields such as public accounting, management accounting, corporate finance,
financial management, and investment banking all share similar requirements and skills in the
business sector of the economy. In a lot of cases, one would graduate with a major in finance
and pursue their career as an accountant or investment banker.
Salary: The median wage for financial analysts in 2015 was $80,310. This number is projected to
grow, but the specifics vary based on the position and field of the job. Also, after 5 or more years
of experience as a financial analyst, one can get a higher position as a financial manager, which
had a median wage of $117,990 in 2015.

Career Outlook: Employment of financial analysts is projected to grow 12 percent from 2014 to
2024, faster than the average for all occupations. This relates to the growing amounts of
financial products, complexity in investment portfolios, and new investment opportunities.
However, job positions will be very competitive as there is a surplus of labor willing to work in
the field. Acquiring certifications and advanced degrees will be vital to beat out competitors.
Terminology: Specific terminology is required for financial analysts since economics is often
described as a foreign language. Terms used in economics, finance, and management will be
used in daily work, so there is a need to expand ones vocabulary and familiarize oneself with
those terms.
Analysis:
My interest in working in the business sector came from my prior interest in
mathematics, statistics, economics, and business applications. Researching the specific
profession of a financial analyst made me realize that many jobs in the field are interchangeable,
meaning that having a MBA will open doors to any of these professions. I believe that as of now
financial analyst is a suitable profession for me, but depending on the stress level and work
environment I will consider less intense jobs such as accounting or statistics since financial
analyst is a high input high return job with mentally stressful decision making and office
environments.
Through the career and industry research I gained not only meaningful insight about the
profession but also doubts. However, it is too early on to make generalizations before I actually
experience the conditions myself and I believe that the benefits of working as a financial analyst
may outweigh the difficulties. I am glad that I learned new knowledge about related occupations
in the field, so I can widen my choices and not limit myself to a single profession. I look forward
to experiencing the real world conditions of financial analysts to help me decide my future
profession.
Works Cited
"Occupational Outlook Handbook, 2016-17 Edition, Financial Analysts." U.S. Bureau of Labor
Statistics. U.S. Bureau of Labor Statistics, 17 Dec. 2015. Web. 11 Sept. 2016.
<http://www.bls.gov/ooh/business-and-financial/financial-analysts.htm>.

"Financial Analyst Overview." U.S. News & World Report. U.S. News & World Report, n.d.
Web. 11 Sept. 2016. <http://money.usnews.com/careers/best-jobs/financial-analyst>.

Summary

Financial analysts recommend individual investments and collections of investments, which are known as
portfolios.
Quick Facts: Financial Analysts
2015 Median Pay

$80,310 per year


$38.61 per hour

Typical Entry-Level Education

Bachelor's degree

Work Experience in a Related Occupation

None

On-the-job Training

None

Number of Jobs, 2014

277,600

Job Outlook, 2014-24

12% (Faster than average)

Employment Change, 2014-24

32,300

What Financial Analysts Do


Financial analysts provide guidance to businesses and individuals making investment decisions. They
assess the performance of stocks, bonds, and other types of investments.

Work Environment
Financial analysts work in offices. Most work full time, and many work more than 40 hours per week.

How to Become a Financial Analyst


Financial analysts typically must have a bachelors degree, but a masters degree is often required for
advanced positions.

Pay
The median annual wage for financial analysts was $80,310 in May 2015.

Job Outlook

Employment of financial analysts is projected to grow 12 percent from 2014 to 2024, faster than the
average for all occupations. A growing range of financial products and the need for in-depth knowledge
of geographic regions are expected to lead to strong employment growth.

State & Area Data


Explore resources for employment and wages by state and area for financial analysts.

Similar Occupations
Compare the job duties, education, job growth, and pay of financial analysts with similar occupations.

More Information, Including Links to O*NET


Learn more about financial analysts by visiting additional resources, including O*NET, a source on key
characteristics of workers and occupations.

Overview

Financial analysts keep their fingers on the pulse of the economy. They help their
clients by recommending when to buy and sell investments and by staying current on
economic trends, business news and company strategy. They also write reports that
explain their analyses, share their expertise with colleagues who arent financial experts
and sometimes communicate their perspectives to the public and financial media. Many
work for financial companies, including those in the financial services and insurance
industries. For their influence and sizeable paychecks, financial analysts pay the price
by working long hours: One in three put in between 50 and 70 hours a week.
According to the Bureau of Labor Statistics, financial analyst positions are expected to
grow by 12 percent, or 32,300 jobs, by 2024, which is much faster than the average for
all professions. But competition for these jobs is fierce, especially among analysts new
to the field.

Salary
Financial analysts earned a median salary of $78,620 in 2014, with the lowest-paid
making $48,170 and the highest-paid making $154,680. The best-paid in the profession
work in the metropolitan areas of San Francisco, New York City and Bridgeport,
Connecticut.

Training
While a bachelors degree is required (usually in a finance-related field), many financial
analysts also earn masters degrees in finance or business administration and take
additional financial analyst courses. Many in the field also become certified financial
analysts, and employers often sponsor certification and licensing programs. Youll get

an advantage in the field by obtaining a certification, like a chartered financial analyst, or


by taking advanced courses in subjects related to your specialty. The ambitious may
take on larger responsibilities and advance to supervisory positions, and the best of the
best may go on to become fund managers.

Job Satisfaction
Average Americans work well into their 60s, so workers might as well have a job thats
enjoyable and a career that's fulfilling. A job with a low stress level, good work-life
balance and solid prospects to improve, get promoted and earn a higher salary would
make many employees happy. Here's how this job's satisfaction is rated in terms of
upward mobility, stress level and flexibility.
Upward Mobility High
Opportunities for advancements and salary

Stress Level High


Work environment and complexities of the job's responsibilities

Flexibility Below Average


Alternative working schedule and work life balance