Is Finance a Good Career Path in the US 2023

“Is Finance a Good Career Path?” This is the most common search for US Job seekers . Finance is a popular career choice in the United States, with many opportunities for growth and advancement. The financial sector is a major part of the US economy and includes a range of industries, such as banking, insurance, investment management, and accounting. In the US, a common educational path for a career in finance is to obtain a bachelor’s degree in finance, business, economics, or a related field, followed by obtaining a relevant professional certification such as the Chartered Financial Analyst (CFA) or the Certified Financial Planner (CFP) designation.

Some of the most sought-after finance jobs in the US include Investment Banker, Financial Analyst, Accountant Financial Advisor, Risk Manager Portfolio Manager, and Insurance Professional. To be successful in a finance career in the US, it is important to have strong analytical and communication skills, as well as an understanding of financial markets and regulations. Additionally, continuing education and staying up to date with industry trends and changes can help advance your career in finance.

Growth of the Financial Services Industry: The financial services industry is one of the fastest-growing sectors in the US, with a compound annual growth rate (CAGR) of approximately 4% from 2015 to 2020.
Employment of the US Stock Market: The US stock market, measured by the S&P 500 index, reached a record high in August 2020 and has continued to perform well despite economic uncertainties.
Savings Rates: According to the US Bureau of Economic Analysis, the personal savings rate in the US increased from 8.0% in February 2020 to 33.7% in April 2020, due to the impact of the COVID-19 pandemic on the economy.
Retirement Savings: According to the Employee Benefit Research Institute, the average retirement savings for US households near retirement age is approximately $172,000.
Investment in Mutual Funds: The Investment Company Institute reports that as of September 2020, US households held approximately $19.3 trillion in mutual fund assets.
Personal Debt: The Federal Reserve reports that the average household debt in the US was approximately $142,000 in Q4 2020, including mortgage, credit card, and student loan debt.
Insurance Industry: The insurance industry is a major contributor to the US economy, with total premiums written in the US reaching approximately $1.2 trillion in 2020.

Basic Qualifications Required to Build a Career in Finance

The qualifications required for a career in finance can vary depending on the specific role and industry. However, some common educational and professional qualifications include:

Bachelor’s degree: A bachelor’s degree in finance, economics, business, or a related field is often required for entry-level positions in finance. Some popular undergraduate majors for finance careers include finance, accounting, economics, and business administration.
Master’s degree: Many advanced finance careers, such as investment banking, wealth management, and financial planning, may require a master’s degree in finance, business administration (MBA), or a related field.
Professional certifications: Many finance professionals choose to obtain relevant professional certifications, such as the Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), or Certified Public Accountant (CPA) designations.
Work experience: Many finance jobs also require several years of relevant work experience, such as internships or entry-level positions in finance.
Strong analytical and communication skills: A successful career in finance often requires strong analytical and communication skills, as well as the ability to work with complex financial data and make informed decisions.

Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Certified Public Accountant (CPA)

Here’s a brief overview of the Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), and Certified Public Accountant (CPA) certifications along with the process, websites, and costs involved:

Chartered Financial Analyst (CFA): The Chartered Financial Analyst (CFA) designation is a globally recognized professional certification for investment professionals. To become a CFA charterholder, candidates must pass three levels of exams that cover a wide range of investment topics, such as ethics, financial reporting and analysis, and portfolio management. Additionally, candidates must have at least four years of professional work experience in the investment decision-making process. The CFA program is administered by the CFA Institute, which sets the curriculum and exams for the program.

Process:

Complete a bachelor’s degree or equivalent
Meet the work experience requirement (minimum of four years)
Pass the three levels of CFA exams
Become a member of the CFA Institute and adhere to the CFA Code of Ethics and Standards of Professional Conduct

Website: https://www.cfainstitute.org/programs/cfa

Cost: The cost of the CFA program varies, but can range from several hundred to several thousand dollars, depending on the level of membership and study materials purchased. The CFA Institute estimates that the total cost of the program, including study materials, exam fees, and membership fees, can range from $4,000 to $5,000.

Certified Financial Planner (CFP): The Certified Financial Planner (CFP) designation is a professional certification for financial advisors and planners. To become a CFP professional, candidates must complete a program of study that covers the financial planning process, including topics such as retirement planning, estate planning, investment planning, and tax planning. In addition, candidates must pass a comprehensive exam and have at least three years of professional experience in the financial planning field.

Process:

Complete a bachelor’s degree or equivalent
Meet the work experience requirement (minimum of three years)
Pass the CFP certification exam
Complete continuing education requirements to maintain the CFP designation

Website: https://www.cfp.net/become-a-cfp-professional

Cost: The cost of becoming a CFP professional can vary, but can range from several thousand to several tens of thousands of dollars, depending on the educational program and study materials chosen. The CFP Board estimates that the total cost of the program, including education, exam fees, and other costs, can range from $2,500 to $7,500.

Certified Public Accountant (CPA): The Certified Public Accountant (CPA) designation is a professional certification for accountants. To become a CPA, candidates must complete a bachelor’s degree in accounting or a related field and pass the Uniform CPA Exam, which is developed and administered by the American Institute of Certified Public Accountants (AICPA). Additionally, candidates must meet education and work experience requirements and adhere to professional ethics and standards.

Process:

Complete a bachelor’s degree in accounting or a related field
Meet the work experience requirement
Pass the Uniform CPA Exam
Meet the ethics and licensing requirements
Complete continuing education requirements to maintain the CPA designation

Website: https://www.aicpa.org/content/dam/research/research/standards/auditattrny/downloadabledocuments/2023/january/2022-06-14-aicpa-cpa-candidate-brochure.pdf

Cost: Exam fee: $1,000 – $2,500 (total cost can vary depending on the state’s requirements and fees)

Note: These are general costs and may vary based on the location and the specific requirements of each program. It’s always best to check the official websites for the latest and most accurate information.

Career as an Investment banker

Investment bankers play a crucial role in the financial industry by helping clients raise capital, manage risk, and make sound financial decisions. Here’s a brief overview of the qualifications required to become an investment banker, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, business administration, or a related field is typically the minimum requirement for entry-level positions in investment banking.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement.
Strong analytical and problem-solving skills, excellent communication and interpersonal skills, and the ability to work well under pressure are essential qualities for investment bankers.
Relevant certifications, such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Investment bankers typically earn high salaries compared to other professions. According to Glassdoor, the average base salary for investment bankers in the United States is around $93,000 per year.
Experienced investment bankers, especially those working at senior levels, can earn much more, with some earning several million dollars per year.
Bonuses, which can be substantial, are also a common component of investment banking compensation.

Risks:

Investment banking is a high-pressure and fast-paced industry, with long working hours and tight deadlines.
The job can also be stressful and demanding, requiring investment bankers to make complex financial decisions under time constraints and with significant pressure from clients and management.
The financial industry is also subject to regulatory and market risks, and investment bankers may face job insecurity or lay-offs during economic downturns or market crises.

Opportunities:

Investment banking offers a challenging and dynamic work environment, with the opportunity to work on complex financial transactions and make a tangible impact on clients’ businesses.
The industry also provides a wide range of career advancement opportunities, from junior analyst positions to senior management roles.
Investment banking is a highly competitive field, and success in the industry can lead to high earnings and a strong reputation in the financial community.

In conclusion, investment banking can be a rewarding career for individuals who possess strong analytical and interpersonal skills, the ability to work well under pressure, and a passion for finance. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as a Financial analyst

Financial analysts play a crucial role in the financial industry by analyzing and interpreting financial data to help companies, investors, and individuals make informed financial decisions. Here’s a brief overview of the qualifications required to become a financial analyst, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, mathematics, or a related field is typically the minimum requirement for entry-level positions as a financial analyst.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement and higher earnings.
Strong analytical skills, attention to detail, and the ability to communicate complex financial information to others effectively are essential qualities for financial analysts.
Relevant certifications, such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Financial analysts typically earn a competitive salary compared to other professions. According to Glassdoor, the average base salary for financial analysts in the United States is around $67,000 per year.
Experienced financial analysts, especially those working at senior levels or in specialized areas, can earn much more, with some earning upwards of $100,000 per year.

Risks:

The financial industry is subject to market and regulatory risks, and financial analysts may face job insecurity or lay-offs during economic downturns or market crises.
Financial analysis can be a high-pressure and fast-paced job, requiring financial analysts to make complex financial decisions under tight deadlines and with significant responsibility.

Opportunities:

The financial analysis offers a challenging and dynamic work environment, with the opportunity to work on a variety of financial projects and make a tangible impact on clients’ financial decisions.
The field also provides a wide range of career advancement opportunities, from entry-level positions to senior management roles.
Financial analysis is a competitive field, and success as a financial analyst can lead to high earnings and a strong reputation in the financial community.

In conclusion, financial analysis can be a rewarding career for individuals who possess strong analytical skills, attention to detail, and excellent communication skills. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as an Accountant

Accountants play a critical role in ensuring the accuracy and reliability of financial records, and providing important financial information to decision-makers. Here’s a brief overview of the qualifications required to become an accountant, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in accounting, finance, or a related field is typically the minimum requirement for entry-level positions as an accountant.
Advanced degrees, such as a master’s in accounting or business administration, can be beneficial for career advancement and higher earnings.
Strong analytical skills, attention to detail, and the ability to communicate complex financial information effectively are essential qualities for accountants.
The Certified Public Accountant (CPA) designation is widely recognized as the premier certification for accountants and is often required for higher-level positions and greater earning potential.

Earnings:

Accountants typically earn a competitive salary compared to other professions. According to Glassdoor, the average base salary for accountants in the United States is around $63,000 per year.
Experienced accountants, especially those working at senior levels or in specialized areas, can earn much more, with some earning upwards of $100,000 per year.

Risks:

The accounting industry is subject to regulatory risks, and accountants may face legal or ethical challenges if they are found to have violated accounting standards or rules.
The job can also be stressful and demanding, requiring accountants to meet tight deadlines and produce accurate financial records under pressure.

Opportunities:

Accounting offers a challenging and dynamic work environment, with the opportunity to work on a variety of financial projects and play a crucial role in financial decision making.
The field also provides a wide range of career advancement opportunities, from entry-level positions to senior management roles.
The demand for skilled accountants is consistently high, and a career in accounting can lead to stable and well-paying employment.

In conclusion, a career in accounting can be a rewarding and stable choice for individuals who possess strong analytical skills, attention to detail, and excellent communication skills. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as a Financial Advisor

Financial advisors play a crucial role in helping individuals and organizations achieve their financial goals. Here’s a brief overview of the qualifications required to become a financial advisor, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, mathematics, or a related field is typically the minimum requirement for entry-level positions as a financial advisor.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement and higher earnings.
Strong interpersonal and communication skills, as well as a deep understanding of financial markets and products, are essential qualities for financial advisors.
Relevant certifications, such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Financial advisors typically earn a competitive salary, with the majority of their income coming from commissions or fees for the financial products they sell.
According to Glassdoor, the average base salary for financial advisors in the United States is around $60,000 per year, but experienced financial advisors can earn much more, with some earning upwards of $100,000 per year or more.

Risks:

Financial advising can be a high-pressure and fast-paced job, requiring financial advisors to make complex financial decisions and communicate them effectively to clients under tight deadlines.
The financial industry is subject to market and regulatory risks, and financial advisors may face job insecurity or lay-offs during economic downturns or market crises.

Opportunities:

Financial advising offers a dynamic and rewarding work environment, with the opportunity to build long-term relationships with clients and help them achieve their financial goals.
The field also provides a wide range of career advancement opportunities, from entry-level positions to senior management roles.
Financial advising is a competitive field, and success as a financial advisor can lead to high earnings and a strong reputation in the financial community.

In conclusion, financial advising can be a fulfilling and rewarding career for individuals who possess strong interpersonal skills, a deep understanding of financial markets and products, and a passion for helping others achieve their financial goals. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as a Risk Manager

Risk managers play a crucial role in identifying, evaluating, and managing risks that organizations face in a variety of areas, including financial, operational, and strategic risks. Here’s a brief overview of the qualifications required to become a risk manager, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, mathematics, or a related field is typically the minimum requirement for entry-level positions as a risk manager.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement and higher earnings.
Strong analytical skills, attention to detail, and the ability to communicate complex financial information effectively are essential qualities for risk managers.
Relevant certifications, such as the Chartered Financial Analyst (CFA) or the Financial Risk Manager (FRM) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Risk managers typically earn a competitive salary compared to other professions. According to Glassdoor, the average base salary for risk managers in the United States is around $115,000 per year.
Experienced risk managers, especially those working at senior levels or in specialized areas, can earn much more, with some earning upwards of $150,000 per year.

Risks:

The risk management industry is subject to regulatory risks, and risk managers may face legal or ethical challenges if they are found to have violated risk management standards or rules.
The job can also be stressful and demanding, requiring risk managers to identify and evaluate risks in real-time and make critical decisions under pressure.

Opportunities:

Risk management offers a challenging and dynamic work environment, with the opportunity to work on a variety of financial and operational projects and play a crucial role in risk mitigation.
The field also provides a wide range of career advancement opportunities, from entry-level positions to senior management roles.
The demand for skilled risk managers is consistently high, and a career in risk management can lead to stable and well-paying employment.

In conclusion, a career in risk management can be a rewarding and stable choice for individuals who possess strong analytical skills, attention to detail, and excellent communication skills. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as a Portfolio Manager

Portfolio managers are responsible for managing investments for individuals, institutions, and organizations, and play a crucial role in helping them achieve their financial goals. Here’s a brief overview of the qualifications required to become a portfolio manager, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, mathematics, or a related field is typically the minimum requirement for entry-level positions as a portfolio manager.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement and higher earnings.
Strong analytical skills, knowledge of financial markets and products, and a deep understanding of investment strategies and tactics are essential qualities for portfolio managers.
Relevant certifications, such as the Chartered Financial Analyst (CFA) or Certified Investment Management Analyst (CIMA) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Portfolio managers typically earn a competitive salary, with the majority of their income coming from performance bonuses based on the success of the portfolios they manage.
According to Glassdoor, the average base salary for portfolio managers in the United States is around $120,000 per year, but experienced portfolio managers can earn much more, with some earning upwards of $200,000 per year or more.

Risks:

Portfolio management is a high-pressure and fast-paced job, requiring portfolio managers to make complex financial decisions and communicate them effectively to clients under tight deadlines.
The financial industry is subject to market and regulatory risks, and portfolio managers may face job insecurity or lay-offs during economic downturns or market crises.

Opportunities:

Portfolio management offers a dynamic and challenging work environment, with the opportunity to work with a wide range of financial products and investment strategies.
The field also provides a wide range of career advancement opportunities, from entry-level positions to senior management roles.
Success as a portfolio manager can lead to high earnings and a strong reputation in the financial community.

In conclusion, portfolio management can be a rewarding and challenging career for individuals who possess strong analytical skills, knowledge of financial markets and products, and a passion for helping clients achieve their financial goals. However, it is important to carefully consider the risks and demands of the job before entering the field.

Career as an Insurance Professional

Insurance professionals play a crucial role in helping individuals and organizations manage and protect against financial risks. Here’s a brief overview of the qualifications required to become an insurance professional, average earnings, risks, and opportunities in the field:

Qualifications:

A bachelor’s degree in finance, economics, mathematics, or a related field is typically the minimum requirement for entry-level positions in the insurance industry.
Advanced degrees, such as a master’s in finance or business administration, can be beneficial for career advancement and higher earnings.
Strong analytical skills, knowledge of insurance products and regulations, and excellent communication and interpersonal skills are essential qualities for insurance professionals.
Relevant certifications, such as the Chartered Life Underwriter (CLU) or Chartered Property Casualty Underwriter (CPCU) designations, can also enhance one’s qualifications and career prospects.

Earnings:

Insurance professionals typically earn a competitive salary, with the majority of their income coming from commission-based sales of insurance products.
According to Glassdoor, the average base salary for insurance sales agents in the United States is around $50,000 per year, but experienced insurance professionals can earn much more, with some earning upwards of $100,000 per year or more.

Risks:

The insurance industry is highly competitive, and insurance professionals may face challenges in generating new business and closing sales.
The job can also be stressful and demanding, requiring insurance professionals to manage a large number of clients and navigate complex regulations and procedures.

Opportunities:

The insurance industry offers a wide range of career paths, from entry-level sales positions to senior management roles.
Insurance professionals have the opportunity to help individuals and organizations manage and protect against financial risks, and play a crucial role in securing their financial futures.
A career in insurance can lead to stable and well-paying employment, with the opportunity for career advancement and financial success.

In conclusion, a career in insurance can be a rewarding and stable choice for individuals who possess strong analytical skills, knowledge of insurance products and regulations, and excellent communication and interpersonal skills. However, it is important to carefully consider the risks and demands of the job before entering the field.

How to Find Financial Jobs in the US

There are several ways to find finance jobs in the United States:

Online job search websites: Popular job searches websites such as Indeed, LinkedIn, Glassdoor, and Monster are great places to start your search for financial jobs in the US. Simply type in keywords related to the financial industry, such as “financial analyst,” “investment banker,” or “risk manager,” to find a list of job postings. Online job search websites:

Indeed (www.indeed.com) – One of the largest job search websites, with a large number of financial job postings from companies of all sizes.
LinkedIn (www.linkedin.com) – A professional networking website with a robust job search section, allowing you to search for financial jobs based on keywords, location, and other criteria.
Glassdoor (www.glassdoor.com) – A job search website that also provides company reviews and salary information, making it a useful tool for researching potential employers.
Monster (www.monster.com) – A job search website that offers a range of financial job postings, as well as career resources and advice.

Professional associations and organizations: Many financial associations and organizations, such as the Financial Planning Association (FPA) and the Investment Management Association (IMA), offer job boards and career resources for their members. Joining these organizations can give you access to exclusive job opportunities and provide valuable networking opportunities.

Financial Planning Association (FPA) (www.fpa.org) – A professional organization for financial planners that offers career resources, job postings, and networking opportunities for its members.
Investment Management Association (IMA) (www.imanet.org) – A professional organization for investment professionals that offers job postings, events, and networking opportunities.
American Institute of Certified Public Accountants (AICPA) (www.aicpa.org) – A professional organization for certified public accountants that offers job postings and career resources for its members.

Recruitment agencies: Recruitment agencies specialize in placing candidates in specific industries, including finance. Working with a recruitment agency can help you find jobs that match your skills and experience, and provide guidance throughout the job search process.

Robert Half (www.roberthalf.com) – A leading recruitment agency that specializes in placing candidates in finance and accounting roles.
Hays (www.hays.com) – A recruitment agency with a strong presence in the US and a focus on placing candidates in finance and accounting roles.
Michael Page (www.michaelpage.com) – A global recruitment agency with a strong presence in the US and a focus on placing candidates in finance and accounting roles.

Networking: Attend industry events and conferences: Attend industry events and conferences to meet professionals in your field, learn about the latest developments in the financial industry, and hear about job opportunities.

Connect with alumni: Reach out to alumni from your college or university who are working in the financial industry. They may be able to provide insight into the job market, introduce you to potential employers, and help you network.
Utilize your network: Reach out to professionals in your network who work in the financial industry. They may be able to provide advice, connect you with job openings, and provide valuable insights into the job market.

Company websites: Many financial firms and institutions have career sections on their websites, where they post job openings and provide information on how to apply. Research companies in the financial industry that interest you and check their websites for job postings.

Here is a list of some of the largest financial companies in the US and their websites, where you can search for job opportunities:

JPMorgan Chase & Co. (www.jpmorganchase.com/careers)
Goldman Sachs (www.goldmansachs.com/careers)
Morgan Stanley (www.morganstanley.com/careers)
BlackRock (www.blackrock.com/careers)
Citi (www.careers.citi.com)
Bank of America (www.bankofamerica.com/careers)
Wells Fargo (www.wellsfargo.com/careers)
The Vanguard Group (www.vanguard.com/careers)
Northern Trust (www.northerntrust.com/careers)
Charles Schwab (www.aboutschwab.com/careers)

By visiting these websites, you can explore the various job opportunities they offer, including positions in finance, accounting, investment banking, asset management, and more. Some of these websites also provide information on the company culture, benefits, and the hiring process, so you can get a better understanding of what it’s like to work there.

Keep in mind that this is not an exhaustive list, and there are many other financial companies in the US that may have job opportunities. So it’s a good idea to also search for other companies that may be of interest to you, and explore their websites for job openings.

Is Finance a Good Career Path?

Whether finance is a good career path depends on your individual interests, skills, and goals. However, in general, finance can be a lucrative and rewarding field with a lot of opportunities for growth and advancement. Here’s an in-depth analysis of some of the factors to consider:

High demand: The finance industry is consistently growing, and there is a high demand for professionals with financial skills. The Bureau of Labor Statistics projects that employment in finance and insurance will grow by 7% from 2019 to 2029, which is faster than the average for all occupations.
Good earning potential: Finance professionals can earn high salaries, with many positions paying above-average salaries. For example, according to Glassdoor, the average salary for a financial analyst is $68,000 per year, while the average salary for a portfolio manager is $120,000 per year.
Opportunities for growth: The finance industry offers a lot of opportunities for growth and advancement. For example, a financial analyst could eventually become a portfolio manager, or a risk manager could advance to a higher level position in their company.
Versatility: There are many different areas of finance to specialize in, including investment banking, asset management, corporate finance, and more. This means that there are a variety of career paths to choose from, depending on your interests and skills.
Importance of finance in business: Finance plays a critical role in the success of a business. Whether it’s managing budgets, making investment decisions, or protecting against financial risk, finance professionals are in high demand in all industries.

However, it’s important to note that finance can also be a competitive and demanding field. Many positions require long hours and a lot of responsibility, and there can be high-stress levels in some areas of finance, particularly in investment banking and trading. Additionally, the financial industry is subject to market volatility and fluctuations, which can affect job security and earnings.

Overall, finance can be a good career path for those who are interested in the field and have the skills and drive to succeed. If you’re considering a career in finance, it’s important to do your research and understand what a typical day in the role might be like, as well as the earning potential, growth opportunities, and challenges you may face.