Employment of financial analysts and personal financial advisors is expected to grow much faster than the average for all occupations. Growth will be especially strong for personal financial advisors, which are projected to be among the 10 fastest growing occupations. Despite strong job growth, keen competition will continue for these well paid jobs, especially for new entrants.
Employment change. As the level of investment increases, overall employment of financial analysts and personal financial advisors is expected to increase by 37 percent during the 2006-16 decade, which is much faster than the average for all occupations.
Personal financial advisors are projected to grow by 41 percent, which is much faster than the average for all occupations, over the projections decade. Growing numbers of advisors will be needed to assist the millions of workers expected to retire in the next 10 years. As more members of the large baby boom generation reach their peak years of retirement savings, personal investments are expected to increase and more people will seek the help of experts. Many companies also have replaced traditional pension plans with retirement savings programs, so more individuals are managing their own retirements than in the past, creating jobs for advisors. In addition, people are living longer and must plan to finance longer retirements.
Deregulation of the financial services industry also is expected to continue to spur demand for personal financial advisors in the banking industry. In recent years, banks and insurance companies have been allowed to expand into the securities industry. Many firms are adding investment advice to their services and are expected to increase their hiring of personal financial advisors.
Employment of financial analysts is expected to grow by 34 percent between 2006 and 2016, which is also much faster than the average for all occupations. Primary factors for this growth are increasing complexity of investments and growth in the industry. As the number and type of mutual funds and the amount of assets invested in these funds increase, mutual fund companies will need more financial analysts to research and recommend investments.
Job prospects. Despite overall employment growth, competition for jobs is expected to be keen in these high-paying occupations. Growth in the industry will create many new positions, but there are still far more people who would like to enter the occupation. For those aspiring to financial analyst jobs, a strong academic background is absolutely essential. Good grades in courses such as finance, accounting, and economics are very important to employers. An MBA or certification is helpful in maintaining employment.
Personal financial advisors will also face competition, as many other services compete for customers. Many individuals enter the field by working for a bank or full-service brokerage. Most independent advisories fail within the first year of business, making self-employment challenging. Because the occupation requires sales, people who have strong selling skills will ultimately be most successful. A college degree and certification can lend credibility.
Financial analysts and personal financial advisors held 397,000 jobs in 2006, of which financial analysts held 221,000. Many financial analysts work at the headquarters of large financial institutions, most of which are based in New York City or other major financial centers. More than 2 out of 5 financial analysts worked in the finance and insurance industries, including securities and commodity brokers, banks and credit institutions, and insurance carriers. Others worked throughout private industry and government.
Personal financial advisors held 176,000 jobs in 2006. Jobs were spread throughout the country. Much like financial analysts, more than half worked in finance and insurance industries, including securities and commodity brokers, banks, insurance carriers, and financial investment firms. However, about 30 percent of personal financial advisors were self-employed, operating small investment advisory firms, usually in urban areas.
Job Zone 4 - Preparation needed
Overall Experience
A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations. For example, an accountant needs four years of college and several years of accounting work to be considered qualified.
Education
Most of these occupations require a four-year bachelor's degree, but some do not.
Job Training
Employees in these occupations usually need several years of work-related experience, on-the-job training, and/or vocational training.
Examples
Accountants, chefs and head cooks, computer programmers, historians, and police detectives.
These occupations often involve coordinating, supervising, managing, and/or training others.
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For general information on securities industry employment, contact:
- Financial Industry Regulatory Authority (FINRA), 1735 K St. NW, Washington, DC 20006. Internet: http://www.finra.org
- Securities Industry and Financial Markets Association, 120 Broadway, 35th Floor, New York, NY 10271. Internet: http://www.sifma.org
For information on financial analyst careers, contact:
- American Academy of Financial Management, 2 Canal St., Suite 2317, New Orleans, LA 70130. Internet: http://www.aafm.org
- CFA Institute, P.O. Box 3668, 560 Ray C. Hunt Dr., Charlottesville, VA 22903. Internet: http://www.cfainstitute.org
For information on personal financial advisor careers, contact:
- Certified Financial Planner Board of Standards, Inc., 1670 Broadway, Suite 600, Denver, CO 80202. Internet: http://www.cfp.net
- Financial Planning Association, 4100 E. Mississippi Ave., Suite 400, Denver, CO 80246-3053. Internet: http://www.fpanet.org
- Investment Management Consultants Association, 5619 DTC Parkway, Suite 500, Greenwood Village, CO 80111. Internet: http://www.imca.org
For additional career information, see the Occupational Outlook Quarterly article "Financial analysts and personal financial advisors" online at http://www.bls.gov/opub/ooq/2000/summer/art03.pdf and in print at many libraries and career centers.
Sources: O*Net data version 12.0
Occupational Outlook Handbook
Department of Labor
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