How Can I Become an Investment Professional?

<h2 id="section---WhatIsAnInvestmentProfessional">What Is an Investment Professional?</h2> <p>As an investment professional, you can help both companies and individuals with diversifying portfolios, managing assets, analyzing market trends and reducing financial risk. You may be interested in becoming a financial advisor, a financial analyst or a trader. Financial advisors provide individuals with assistance as they make decisions and goals regarding their finances. As a financial advisor, you'll help clients make sound investments, handle their estate and save for college or retirement. As a financial analyst, you'll analyze bonds, stocks and other investments and provide advice to businesses and individuals who want to invest. Traders generally work in the stock market, buying and selling stocks and bonds. In order for them to make wise trading decisions, it's important for traders to watch the market closely so they can predict what it will do in the future. The table below outlines the general requirements for these career options. </p> <p /> <table border="1"><tr><th> </th><th> <b>Financial Advisor</b> </th><th> <b>Financial Analyst</b> </th><th> <b>Trader</b></th></tr> <tr><td> <b>Degree Required</b> </td><td> Bachelor's degree minimum, master's degree may be required for advancement </td><td> Bachelor's degree minimum, master's degree may be required for advancement </td><td> Bachelor's degree minimum, master's degree may be required for advancement</td></tr> <tr><td> <b>Key Responsibilities</b> </td><td> Tax management<br /> Assist with retirement<br /> Estate planning </td><td> Analyze the market<br /> Study economic patterns<br /> Monitor how stocks, bonds and securities perform </td><td> Work trading floor<br /> Receive requests from clients<br /> Make trades</td></tr> <tr><td> <b>Certification</b> </td><td> Certification is voluntary </td><td> Certification is voluntary </td><td> Certification is voluntary</td></tr> <tr><td> <b>Job Growth (2020-2030)</b> </td><td> 4%* </td><td> 6%* </td><td> 4% <i>(for all securities, commodities, and financial services sales agents)</i>*</td></tr> <tr><td> <b>Median Salary (2020)</b> </td><td> $89,330* </td><td> $83,660* </td><td> $69,309 <i>(for securities traders, December 2021)</i>**</td></tr> </table><p><i>Sources: *U.S. Bureau of Labor and Statistics, **PayScale.com</i> </p> <h3 id="section---WhatEducationDoINeedToWorkAsAnInvestmentProfessional">What Education Do I Need to Work as an Investment Professional?</h3> <p>According to the U.S. Bureau of Labor Statistics (BLS), you'll need at least a bachelor's degree to work as an investment professional (<i>www.bls.gov</i>). Common degree programs relevant in this field include a Bachelor of Science with majors in accounting, applied economics and finance. A Bachelor of Arts degree with a major in mathematics is also applicable. These degree programs could teach you about financial reporting, financial markets and mathematical formulas used to calculate risk. </p> <p>A master's degree program can provide more specialized training in areas such as investment banking, securities and commodities, and stock analysis. Master's degree options include a Master of Science and Master of Business Administration (MBA) with concentrations in corporate finance and investment banking, applied security analysis and quantitative finance. You could also enroll in a graduate certificate program, such as strategic decision and risk management. </p> <h3 id="section---WhatCertificationsCanIEarn">What Certifications Can I Earn?</h3> <p>To boost your credibility as an investment professional, you could obtain a certification that demonstrates to employers your competency in and dedication to the field. The Chartered Financial Analyst (CFA) credential is a common certification for investment professionals who want to perform market research help companies allocate their financial assets. You'll need a bachelor's degree or four years of work experience to take the CFA exam (<i>www.cfainstitute.com</i>). You can also qualify to take the exam if you have a combination of college credits and work experience </p> <h3 id="section---WhatLicensesDoINeed">What Licenses Do I Need?</h3> <p>Depending on the type of job you obtain, you may need to be licensed by the Financial Industry Regulatory Authority (FINRA), according to the BLS. The most common license that allows an investment agent to work as a registered member of a company is the Series 7 license. In most states, professionals who provide financial advice are required to hold the Series 63 and Series 66 licenses. </p> <h3 id="section---WhatJobsCouldIGet">What Jobs Could I Get?</h3> <p>Some of the most common job titles for this career field include broker, financial advisor, financial analyst, investment banker and trader. Brokers primarily sell stocks to individuals and can help with analyzing risk. Financial advisors often provide services such as tax management, retirement and estate planning. </p> <p>Financial analysts generally work with businesses; they analyze market and economic patterns, and monitor how stocks, bonds and securities perform. Investment bankers work in corporate financing and may perform job duties such as overseeing mergers and acquisitions, allocating company shares and structuring a company's use of stocks and bonds. Traders typically work on the floor in a fast-paced environment, receiving requests from clients and making trades. </p> <h3 id="section---WhatAreSomeRelatedAlternativeCareers">What Are Some Related Alternative Careers?</h3> <p>If you're interested in helping people make important purchases, you could consider working as a real estate broker. As a real estate broker, you'd assist your clients in handling property, whether they are buying a new house, selling their old house or looking for a place to rent. In order to work as a real estate broker, you'll need a high school diploma at minimum, though many employers prefer candidates with a college degree. You could also work as a budget analyst, which requires a bachelor's degree. These professionals help a variety of organizations, such as schools or businesses, manage their finances by looking at their spending and income in order to create budgets. They then analyze these budgets to see if the client is operating within its financial means.</p>