The demand for the financial specialists is at its peak than ever with the Bureau of Business Statistics projecting an 8% growth from 2014 to 2024. Reflecting on this statistics, more than 632400 new jobs in finance field shall be open within the same period. The high demand follows the increased regulatory frameworks in the business world accommodating companies to demand more financial specialists. In matching the world corporate demand for financial professionals, the finance graduates are faced with numerous financial careers that offer job opportunities to exercise their financial skills. This paper seeks to explore the careers in Finance by examining two different financial career options through assessment of the option details, job positions and the benefits attached to the posts.
For this paper, two financial career options namely; Financial analyst and personal Financial Advisors are examined. Through the finance education programs, a graduate is equipped with particular skills necessary to meet the world corporate requirements. A graduate can become a financial analyst, a career that allows an individual work for either businesses or individual investors make sound investment decisions. Financial analysts use their risk analysis and investment analysis skills to study economic factors, examine company’s financial statements, legal jurisdictions and prepare financial reports recommending best alternative investment options.
Markowitz in his study and research realized that all investors hate risks attached to investors despite their desire for immense profits on investment. He, therefore, established the Capital asset pricing model (CAPM) that would help in the assessment of the investments, returns and the possible risks attached. This requires extensive know-how on the investments features and financial factors of which only the finance graduates can best understand thus gives them the opportunity to the financial analyst career to exercise their financial skills. This allows the finance graduates work in the banks, pension, securities, insurance, mutual funds and investment institutions to help the society as a whole make sound investment decisions.
On the other hand, a closely related careers option is the Personal Financial Advisors who are consultants to individuals and businesses in financial and investment management. Personal Financial advisors provide financial advice to individuals on how they can best plan their finances to ensure financial freedom in the long run. Using their financial management skills such as finance sourcing and budget management skills, the personal financial advisors examine the economic conditions present to establish best financial management options. Based on the economic conditions, the financial advisors reflect the conditions effects on an individual seeking advice and recommend the most efficient way for them to plan their financial being for the future.
Following the economic hardships presented by the inflation rises and limited access to financial resources, the demand for the financial advisors has been on the increase than ever. The personal advisors have thereby helped individuals especially families meet their financial goals aligned with other needs. These requirements define Personal advisors functions such as; Monitor clients financial accounts, research investment skills, recommend investments, educate clients, retirement planning, planning family finances, educational funding, tax payment and assessment of client's current financial position. This career option thereby features the use of vast finance skills and knowledge alongside the field experience gained after school.
Being successful in these two career options requires immense financial and nonfinancial skills to provide quality services as desired by the society. For a graduate seeking to become either a financial analyst or a financial, he/she ought to possess excellent research skills that would enable them to assess and evaluate the current economic and investment factors to help clients make sound investment decisions. To surpass the economic hardships, both a financial analyst and advisor should have utmost critical thinking and complex problem-solving skills to help analyze, evaluate, develop and implement best investment solutions. These skills also showcase the active learning, monitoring, analysis, judgment and decision-making skills that these specialists are ought to possess.
These two career options also require the graduates to hold great writing; communicating and negotiation skills aligned with effective listening skills to enable them to speak and convey information to their clients. However, a financial analyst ought to have high-security research skills compared to the financial advisors who are supposed to have family financial analysis skills to enable them to meet the career requirements. Also, a personal financial advisor should have great marketing and social skills to avail their service to the society as they often work on an individual basis.
Comparing the two finance career options, Personal Financial Advisor is recommendable for finance graduates following its base on financial qualification rather than experience field case for financial analysts. BLS (2016) outlines that the median pay is $89160 annually for personal financial advisors with minimal educational entry level being a Bachelor's degree. The employment rate for the personal financial advisors is projected to grow by 30% by 2024 a growth rate that is considered much rapid compared to other occupations. Compared to the financial analyst profession, it is projected to grow by 12% with an annual net pay of $80310.
Despite financial analyst having more pay, the attached benefits to financial advisors leaves the personal financial advisor recommended. Having minimal financial experience in the field, the graduates can quickly set up their specialty by joining other advisors or even create their plattforms through seminars and webinars offering financial education. Also being an independent specialty, an individual can self-manage and carry out the responsibilities independently without interference hence enabling one to reach their career peak. This has been made possible by the National Association of Personal Financial Advisors (NAPFA) that gives individuals power and authority to exercise their financial skills with certification provided.
References
BLS. (2016, June 12). Retrieved from Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook 2016-17: hhtp://www.bls.gov/ooh/business-and- financial/personal-financial-advisors-htm
BLS. (2016). Financial Analyst. Retrieved from Bureau of Labor Statistics: www.bls.gov.ooh/business-and-financial/financial-analysts.htm
Burton, G. F., & Jermakowicz, E. K. (2015). International Financial Reporting Standards: A Framework-Based Perspective. New York: Routledge Publishers.
Levy, H. (2013). The CAPM is alive and well: A review and Synthesis. European Financial Management, 16 (1), 43-71.
NAPFA. (2016). Financial Advisors. Retrieved from National Association of Profesional Financial Advisors (NAPFA): https://www.napfa.org