Popular Careers in the Financial Sector

Finance jobs , on and off Wall Street

Fact checked by Jared EckerReviewed by Ebony HowardFact checked by Jared EckerReviewed by Ebony Howard

Jobs in the financial sector can be lucrative, but breaking into the world of finance often requires a four-year degree, and many professionals have advanced degrees in business, math, economics, or statistics. The industry offers opportunities in banking, portfolio management, and financial planning.

Key Takeaways

• Most finance jobs require four-year or advanced degrees.
• Positions may include investment banker, actuary, portfolio manager, quantitative analyst, securities trader, and financial planner.
• The median annual wage for business and financial occupations is $48,060 higher than the median wage for all occupations.

Investment Banker

• Average base salary: $120,188 (total pay is $62,000 to $301,000)
• The projected growth rate to 2033: 7%
• Education requirements: Four-year degree in finance, economics, or a quantitative or business-focused field, plus an MBA or a Master’s in Finance

Investment banks help companies and governments raise money through bonds, stocks, public offerings, venture capitalism, and mergers and acquisitions (M&A). Employees may engage in work associated with:

• Mergers and acquisitions (M&A): Bankers advise companies looking to merge with competitors or buy smaller companies. M&A bankers use financial modeling to evaluate these potential large-scale deals.
• Underwriting: Raising capital is part of a bank’s underwriting department. Underwriting specialists typically focus on debt or equity. These bankers commonly serve in client-facing roles, working with outside contacts to determine capital needs.
• Private equity: Many investment banks have private equity arms, though jobs are typically found at smaller firms. Bankers raise money for nonpublic enterprises and companies.
• Venture capital: Venture capital (VC) firms frequently provide cash to emerging companies, often in rapidly developing industries. VC companies prosper by getting their financial stake in and out at the early stages of development.

Actuary

• Average base salary: $103,327 (total pay is $61,000 to $178,000)
• The projected growth rate to 2033: 22%
• Education requirements: Four-year degree in actuarial sciences, math, statistics, or a business-related field such as finance, economics, or business, plus coursework and a series of professional exams from the Casualty Actuarial Society (CAS) or the Society of Actuaries (SOA)

Actuaries analyze the monetary consequences of risk by using math, statistics, and financial theory. These professionals gather, assemble, and analyze data to estimate the probability and likely costs of such events as injury, sickness, disability, death, and property loss.

Actuaries work for insurance companies, pension plans, banks, investment firms, accounting firms, consulting firms, governments, and hospitals. Their input and expertise are vital in helping these entities manage their assets to minimize risk and maximize returns. 

Individuals need a strong background in math and a four-year degree in actuarial sciences, math, statistics, finance, or economics. To achieve full professional status, they must become an associate or fellow of the CAS or the SOA. The certification process can take up to seven years at the associate level, with an additional two to three years to earn fellowship status.  

Portfolio Manager

• Average base salary: $99,158 (total pay is $63,000 to $184,000)
• The projected growth rate to 2033: 17%
• Education requirements: Four-year degree in business, economics, or finance, plus applicable Financial Industry Regulatory Authority (FINRA) license(s)

Portfolio managers or money managers oversee institutional and retail client investments. Portfolio managers may specialize in asset classes such as equities, fixed income, stocks, blockchain-related startups, or high-yield bonds. After college, aspiring money managers also attain the Chartered Financial Analyst (CFA) designation and may be employed with:

• Investment companies and financial service firms
• Investment banks
• Commercial banks
• Money management firms
• Portfolio management companies
• Hedge funds

Quantitative Analyst

• Average base salary:$96,837 (total pay is $71,000 to $166,000)
• The projected growth rate to 2033: 9%
• Education requirements: Master’s or doctorate in a quantitative field such as math, statistics, finance, or economics with a strong computer skill set; or an advanced degree in financial engineering or computational finance

Quantitative analysts help companies make business and financial decisions and create algorithms to find the most profitable trading opportunities. Most workers have backgrounds in mathematics or statistics, often with a Ph.D. . Asset managers, banks, hedge funds, insurance companies, and private equity firms employ these analysts to manage risk and identify investment opportunities. 

Securities Trader

• Average base salary: $73,145 (total pay is $50,000 to $175,000)
• The projected growth rate from 2023 to 2033: 7%
• Education requirements: Four-year degree plus applicable FINRA license(s)

Securities traders may work at commercial banks, investment banks, asset management firms, and hedge funds. Traders work in different markets, such as stocks, commodities, or cryptocurrencies, and may specialize in one asset class or investment.  

Most traders have a background in a finance-related field from a strong university, and many have advanced degrees in statistics, mathematics, or related fields. It’s also common for traders to take the Series 7 and Series 63 exams. A trader may choose one of the following career paths:

• Sell-side traders: Sell-side traders typically work for banks and buy and sell products for their clients or the bank itself.
• Buy-side traders: Buy-side companies, such as asset management firms employ traders who buy and sell under the direction of a portfolio manager.
• Hedge fund traders: Hedge fund traders maximize profits for the fund itself. Like buy-side trading jobs, traders at hedge funds may take orders from a portfolio manager.

Financial Planner

• Average base salary: $69,658 (total pay is $49,000 to $126,000)
• The projected growth rate to 2033: 17%
• Education requirements: Bachelor’s degree plus certifications and applicable FINRA license(s)

Financial planners help individuals ensure their present and future financial blueprints. They review a client’s financial goals and generate an appropriate strategy for saving and investing. The plan may focus on wealth preservation or investment growth and include estate and tax planning.

Most financial planners work in large, nationwide groups or smaller, locally based firms. Some planners charge a set fee, and others charge a percentage of the client’s assets under management (AUM). Commission-based planners receive commissions on products they sell and may charge no fees. Some planners are compensated in more than one way.

Financial planners with the Certified Financial Planner (CFP) designation have received rigorous training. To be certified, planners must hold at least an undergraduate degree from an accredited university, complete coursework, pass exams, and have relevant experience in the financial field—6,000 hours of financial planning experience or 4,000 hours of apprenticeship experience.

Financial Analyst 

• Average base salary: $67,591 (total pay is $51,000 to $93,000)
• The projected growth rate to 2033: 9%
• Education requirements: Four-year degree in finance or a related field; MBA, CFA certification, and applicable FINRA license are helpful

Analysts at financial industry firms are responsible for researching potential investments and offering opinions and recommendations to help guide traders and portfolio managers. Financial analysts also work at nonbank corporations, evaluating a company’s financial position and budget. Job opportunities include:

• Investment analyst: Investment analysts typically specialize in geographic locations, industrial or economic sectors, or types of investment vehicles. Analysts who work for sell-side companies usually put out buy-and-sell recommendations for clients. Analysts working for a buy-side company typically recommend securities to buy or sell for their portfolio managers.
• Financial analyst: Financial analysts work at corporations or government agencies. They analyze cash flows and expenditures and maintain budgets. These analysts also may help determine the best capital structure for the corporation or assist with capital raising.

Economic Analyst 

• Average base salary: $73,467 (total pay is $52,000 to $111,000)
• The projected growth rate to 2033: 5%
• Education requirements: Degree (advance preferred) in economics, statistics, or a related field, plus experience writing and publishing reports. 

Economic analysts observe broad areas of the economy. These jobs appeal to individuals who enjoy analyzing data, and making opinions based on trends of financial markets. Analytic jobs frequently involve writing, public speaking, spreadsheet applications, and data software.

Positions exist at investment banks, money management firms, government, and academia. Most financial analysts hold an MBA degree, and many have a Ph.D. An economist tracks and analyzes data to explain current market or economic circumstances and predict trends. While economists focus on the broad economy, economic strategists study financial markets. Strategist jobs are found at banks and money management companies.

Choosing a Financial Career

Financial jobs require distinct skills and present vastly different work environments, so it’s wise to select one that aligns with your long-term interests and abilities. Someone with solid interpersonal skills may do well as a financial planner, while someone who enjoys crunching numbers might excel as an actuary.

There are two ways to find openings—online and offline. When looking offline, specialized executive recruiters or headhunters can be excellent resources for financial job opportunities and career advice. A university’s alumni association can also connect candidates with industry insiders. Industry conferences and networking events are also great places to look for financial jobs.

Important

The median annual wage for business and financial occupations was $79,050 in May 2023, according to the Bureau of Labor Statistics (BLS). This was $48,060 higher than the median annual wage for all occupations.

Advantages and Disadvantages

Notable advantages of working in the financial sector include decent working conditions and a certain degree of flexibility. Being good with numbers and finance is generally highly desired in every industry, so it may be easy to find new opportunities. However, finance jobs may come with high stress, big responsibilities, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry can be cyclical.

Pros

• Compensation

• Working conditions

• Flexibility

• Transferable skills

Cons

• Stress and responsibility

• Long hours

• Continuing education requirements

• Lack of job security

What Are Some Careers in Finance?

Careers include financial planners, financial analysts, actuaries, securities traders, portfolio managers, and quantitative analysts. 

What Are the Highest Paying Jobs in Finance?

Investment bankers, actuaries, portfolio managers, quants, and securities traders earn some of the highest salaries in finance.  

Is Finance a Good Career Path?

There are many perks to working in finance, including earning a decent salary, and different kinds of jobs to suit different personalities and skill sets. It’s also a sector that’s expected to grow through 2033.

The Bottom Line

Financial careers often offer numerous perks, including a challenging work environment, interaction with highly motivated colleagues, opportunities for advancement, and excellent pay. While many people flock to the financial field because of the income potential, most have a passion for their work.

Read the original article on Investopedia.