Financial Analysts and Personal Financial Advisors
Many businesses and individuals seek advice from financial analysts and personal financial advisors. Both occupations require collecting data, analyzing it, and making financial recommendations to the client. Financial analysts work with large companies to assess performance and advise on investments. Personal financial advisors offer financial options to individual clients.
Business Schools
Career Opportunities
Financial analysts are often referred to as securities analysts or investment analysts. Large companies, insurance companies, and banks typically employ them. Financial statements are reviewed and analyzed. Financial analysts focus on costs, sales, expenses, tax rates, and other vital information to determine how well a company is doing and will do in the future. They also take into account the industry in comparison to the client. Once an analysis is complete, the analyst prepares a report with recommendations. Some financial analysts are given the authority to make decisions about a sale or investment.
Necessary Qualifications
Financial analysts are required to have a bachelor’s degree. Many employers prefer a graduate degree. Personal financial advisors are not required to have a college degree, but it is preferred. College coursework in mathematics, statistics, accounting, and financial analysis are also beneficial. Although it is not mandatory, many companies encourage analysts to become certified. To become a Chartered Financial Analyst (CFA), candidates must have a bachelor’s degree, three years of experience, and a passing score on the three required examinations. Personal financial advisors may choose to become a Certified Financial Planner (CFP). This license is issued to those individuals with appropriate education requirements, relevant experience, a passing score on the examination, and adherence to a code of ethics. Any personal financial advisor who sells stocks or bonds will need to obtain additional licensure. Analytical and problem-solving skills are vital for financial analysts and personal financial advisors. They should have strong selling skills and have the ability to form strong relationships with clients. They also should be familiar with financial software, industry regulations and policies, and the state of the economy.
Salary and Advancement
Financial analysts earn between $34,000 and $108,000 annually. Bonuses are also awarded increasing a salary substantially. Personal financial advisors earn between $36,000 and $100,000 per year. They often charge hourly fees as well as a percentage of a client’s assets. When stocks or bonds are sold, the advisor earns a commission. Advancement for financial analysts comes as a promotion to a financial or portfolio manager. Personal financial advisors sometimes move into managerial positions. However, most advance by taking on more clients and larger assets.
*This is a summarized article created to allow for a quick career review. For the most accurate and up-to-date information visit the Bureau of Labor Statistics, U.S. Department of Labor website to learn more about Financial Analysts and Personal Financial Advisors.
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copyright 2005
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