How to become a Financial Analyst
The field of the financial analyst is less rigid than others and there are no mandatory education requirements. The requirement for being licensed also depends on the duties of the job and the employer. However, there is a preference for those with a bachelor's degree in areas of economics, statistics or finance. A few of the skills necessary for success include strong problem-solving skills, above-average communication skills, adeptness in the use of logic and math and good report writing skills.
First, start your career by the successful completion of the Chartered Financial Analyst Program, the Series 7 and Series 63 or the Securities Industry Essentials exam (SIE) exams. They have different and requirements of difficulty but are all designed to demonstrate your competence in the field finance.
Then, get an entry-level job in areas of buying or selling investments at investment firms or start in investment banks. There different types of financial analysts and a large number of areas in which to work that may even include media houses or marketing firms.
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Typical qualifications for a Financial Analyst
Skills employers are looking for
About Financial modeling
Experience or knowledge of performing various types of financial modeling.
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About Data collection
Experience researching and gathering objective and accurate information relevant to subjects of interest.
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About Financial acumen
Knowledge of the relationship between financial principles that determine business growth and skill in applying that knowledge to making strategic business decisions..
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About Financial concepts
Knowledge of and experience in articulating the principles, standards, and processes related to finance, ranging from basic fundamentals to advanced expertise.
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About Cash flow analysis
Experience in the analysis of an organization's incoming and outgoing cash. Duties may include the ability to report on the findings of the analysis.
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Career progression for Financial Analyst
Education levels for Financial Analysts
| required level of education | percent of job openings |
|---|---|
| Bachelor's degree | 3.0% |
| Master's degree | 2.0% |
| Associate's degree | 1.0% |
| High school diploma or GED | 0.0% |
Expected salary by experience
| Years of experience | Annual salary in USD |
|---|---|
| 0 - 4 | $57,300 |
| 4 - 8 | $68,400 |
| 8 - 12 | $74,700 |
| 12 - 16 | $77,300 |
| 16 - 20 | $76,900 |
| 20 - 24 | $78,600 |
Common questions about career advices for a Financial Analyst
What certifications are beneficial to financial analysts?
Certified Financial Planner (CFP) is a well-rounded certification that proves financial analysts' professional competence. Candidates need to hold a bachelor's degree, have three years or more of relevant professional experience, pass the exam administered through the Certified Financial Planner Board of Standards and adhere to a code of ethics. Topics covered in the CFP exam include:
- Debt management
- Emergency fund reserves
- Employee benefits planning
- Financial planning
- Income taxes
- Insurance planning
- Investment and real estate planning
- Planning liability
- Retirement planning
- Risk management
- Statistical modeling
What are the career advancement opportunities for financial analysts?
Analysts can become portfolio managers with experience, where they selects instruments for investments. They can also advance to be fund managers with the ability to manage large investment portfolios for companies or individual investors.
