Popular Careers in the Financial Sector

According to the U.S. Bureau of Labor Statistics, professionals in business and financial occupations earn a median wage that’s about $48,000 higher than the overall median wage across all jobs. That makes finance a career that involves not only managing money but also building personal wealth.

Yet the financial sector is undergoing a profound transformation. The rise of fintech, the changing nature of investing, and the increasing dominance of data analytics are reshaping traditional roles in ways that can be hard to foresee. Whether you excel at crunching numbers, building relationships, or leveraging technology, the expanding financial sector offers career paths that could align with your strengths and interests. While the average projected growth rate for all U.S. occupations from 2023 to 2033 is 4%, the financial careers discussed here are all projected to grow at higher rates.

Required Education and Skills

Most finance roles require a minimum of a bachelor’s degree in finance, accounting, economics, business administration, or a related field. However, the level of education depends on the specific role and the career you want. Here’s a breakdown:

• Bachelor’s degree: This is often needed for entry-level positions. According to an analysis of 1,000 financial analyst job postings by 365 Financial Analyst, 38% of such job postings require a bachelor’s degree.
• Master’s degree: This is increasingly preferred for advanced roles, with 29% of financial analyst job postings requiring a master’s degree.
• MBA or specialized master’s degree: Often beneficial for leadership positions or specialized areas like investment banking.

In addition, professional certifications can provide an edge for specific careers:

• CFA: Highly regarded in investment management.
• CFP: Globally recognized for financial planners.
• Financial risk manager (FRM): Valuable for risk-management roles.

Investment Banking Careers

• 2023 median annual salary: $76,900
• Projected growth rate from 2023 to 2033: 7%

Investment banking helps individuals, corporations, and governments raise capital and provides financial advisory services. The field comprises mergers and acquisitions (M&A), securities underwriting, and private equity and venture capital services.

M&A professionals identify and assess potential deals, conduct financial analysis, manage transactions, and perform due diligence. Success in this field requires strong financial modeling skills, analytical abilities, and excellent communication. M&A activity is expected to surge in the coming years because of lower interest rates and regulatory shifts.

Private equity (PE) and venture capital (VC) professionals focus on different investment stages. PE typically targets mature companies for restructuring, while VC funds early-stage startups.

Actuarial Careers

• 2023 median annual salary: $120,000
• Projected growth rate from 2023 to 2033: 22%

Actuaries specialize in risk analysis, using advanced mathematical models and statistical techniques to build models that can help predict and mitigate risks. They are important in industries such as insurance, health care, finance, and government. They assess the likelihood of future events like natural disasters, economic downturns, or health crises, and estimate their financial impact.

A bachelor’s degree in actuarial science, mathematics, statistics, or a related field is typically required. Certification involves passing a series of challenging exams administered by professional organizations like the Society of Actuaries or the Casualty Actuarial Society. These exams cover topics such as probability, financial mathematics, risk management, and actuarial modeling. In addition, candidates must have an education in areas like economics and finance.

Portfolio Management

• 2023 median annual salary: $156,100
• Projected growth rate from 2023 to 2033: 17%

Portfolio managers oversee investments for individuals, institutions, and funds. Their primary responsibility is to create and carry out investment strategies that match their clients’ goals, risk tolerance, and market conditions.

The job often involves market research, analyzing economic trends, and making data-driven decisions to optimize portfolio performance. Portfolio managers often specialize in specific asset classes or investment styles, such as stocks, bonds, or alternative investments.

To become a portfolio manager, you typically need a bachelor’s degree in finance, economics, or a related field. You would then gain experience in financial analysis or investment management.

Most portfolio managers obtain advanced certifications, with the CFA designation being the industry’s gold standard. The CFA curriculum covers investment analysis, portfolio management, and ethical standards. Other relevant certifications include the CFP and FRM designations.

Quantitative Analysis

• 2023 median annual salary: $99,890
• Projected growth rate from 2023 to 2033: 9%

Quantitative analysts, or “quants,” develop advanced mathematical models and algorithms for trading and managing risk. These professionals use statistical techniques and programming skills to create trading strategies while analyzing vast amounts of real-time market data before executing trades at high speeds.

These algorithms often look for market inefficiencies and predict price movements. Quants look to exploit even the smallest market opportunities, and these programs often execute thousands of trades per second.

In risk management, Quants use techniques such as value at risk, stress testing, and Monte Carlo simulations to quantify and predict potential losses. These models help traders and portfolio managers with capital allocation, limiting risk, and hedging.

Trading Careers

• 2023 median annual salary: $76,900
• Projected growth rate from 2023 to 2033: 7%

Sell-side and buy-side traders are very important in the day-to-day operations of financial markets. Sell-side traders, typically working for investment banks or brokerage firms, focus on executing trades for clients and providing liquidity to the market. They often specialize in specific asset classes and sell their research to their buy-side counterparts.

Meanwhile, buy-side traders work for asset managers, hedge funds, and other institutional investors. They execute trades in line with their organization’s investment strategies. These traders often have more discretion in their trading decisions and work closely with portfolio managers.

Hedge fund traders are highly competitive. These professionals must have strong analytical abilities, quick decision-making skills, and a deep understanding of market dynamics. They also need a background in quantitative analysis and financial modeling since many hedge funds rely on complex algorithms and data-driven strategies.

Programming skills, particularly in languages like Python and R, are increasingly valuable for developing and implementing trading strategies.

Financial Planning

• 2023 median annual salary: $99,580
• Projected growth rate from 2023 to 2033: 17%

Financial planners help individuals, families, and businesses manage their finances and achieve long-term financial goals. They create financial plans, advise on investments, and provide retirement, tax, and estate planning services. Financial planners also stay up-to-date with the latest industry developments and economic policies to offer their clients the best available options.

The CFP designation is the industry’s gold standard, though planners who began as analysts might have a CFA. The median total compensation for financial planners was $192,000 in 2023, with CFP professionals earning 10% more than other financial planners, according to the CFP Board. 

Financial Analysis

• 2023 median annual salary: $99,890
• Projected growth rate from 2023 to 2033: 9%

Financial analysts guide businesses, government and nongovernmental agencies, and individuals toward sound financial decisions. They assess investments by analyzing financial statements, market trends, and economic data to provide actionable recommendations. Investment analysts often specialize in specific industries or asset classes. They use their expertise to develop financial models and make buy, sell, or hold recommendations. On the corporate side, financial analysts focus on budgeting, forecasting, and allocating funds to improve operational efficiency and profitability.

Economic analysts focus on observing macroeconomic trends and their potential effects on industries and markets. They use quantitative methods such as regression analysis and scenario planning to forecast economic outcomes and provide strategic recommendations. For example, they may analyze inflation rates, employment levels, or energy costs to guide government policy or corporate strategy.

Advantages and Challenges of Financial Careers

Financial careers offer compelling benefits, with investment banking, private equity, and hedge fund professionals often earning base salaries between $100,000 to $200,000, plus bonuses. The field provides job security and diverse career paths in very different industries, along with valuable networking opportunities with industry leaders and executives.

However, these rewards are matched by significant demands on your time. Many roles, particularly in investment banking and trading, require long work hours. The fast-paced environment can be highly stressful, especially when managing large investments or making high-stakes decisions. Staying competitive requires continuous learning to keep pace with technological, market, and regulatory changes.

The Bottom Line

The financial sector offers diverse career paths, from high-stakes investment banking to client-focused financial planning, each with a mix of rewards and demands. While six-figure salaries are more common than in other fields, success requires more than just following the money.

The most satisfied finance professionals are those who align their roles with their skills and lifestyle preferences, whether that’s the intense dealmaking environment of M&A, the analytical focus of quantitative trading, or the relationship-building aspects of wealth management.