Financial Analyst

Working Schedule

Financial Analysts work typical day schedules, with overtime or evening work necessary depending on client needs. Work is usually indoors, with some travel needed from time to time.  

Typical Duties

• Review client financials (income statements, balance sheets, cash flow) to assess their capital needs, investment budgets, and risk tolerance 
• Consider investment types and portfolios to recommend to clients
• Suggest investment remedies, debt restructuring, refinancing, and other fixes to an employer’s financial problems
• Prepare reports and presentation materials with explanatory graphics to help clients understand options
• Study companies whose stocks might be potentially good investments. Conduct site visits, as needed
• Evaluate historical real estate sales data to forecast if a property is a viable investment 
• Utilize financial models and programs to aid with developing investment strategies
• Pay attention to local, national, and global economic and business trends
• Prepare and execute approved action plans for financial investments, transactions, and deals
• Work with investment bankers, accountants, PR staff, attorneys, and other relevant parties
• Evaluate existing investment performance and recommend adjustments or sales
• Seek out new opportunities to diversify, boost potential profits, and mitigate risk
• Compare securities in various industries 
• Analyze data regarding prices, yields, and stability
• Collaborate as needed with governmental agencies. Ensure compliance with regulations and laws
• Help clients understand tax implications of investments

Additional Responsibilities

• Stay up-to-date by reading financial publications
• Find “green” investment opportunities 
• Advertise services to attract new clients, as needed
• Train and mentor new analysts

Soft Skills

• Active listening
• Adaptability
• Analytical
• Compliance-oriented
• Critical thinking
• Detail-oriented
• Discipline
• Financial acumen
• Patience
• Persistence 
• Persuasion
• Planning and organization
• Problem-solving skills
• Skepticism
• Sound judgment 
• Strong communication skills
• Teamwork
• Time management 

Technical Skills

• Math and accounting skills
• Strong understanding of economics and investments
• Familiarity with applicable laws governing the securities industry, such as: 
  • Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
  • Investment Advisers Act of 1940
  • Investment Company Act of 1940
  • Jumpstart Our Business Startups Act of 2012
  • Sarbanes-Oxley Act of 2002
  • Securities Act of 1933
  • Securities Exchange Act of 1934
  • Trust Indenture Act of 1939
• Analytical software such as SAS, MATLAB, Spotfire, QlikView, Tableau, and MicroStrategy
• Other digital tools including Excel, SQL, VBA, Python, and R

• Banks
• Credit intermediation services
• Financial investment companies
• Insurance companies
• Pension funds
• Private companies and corporations
• Real estate brokerages

Investors rely heavily on the expertise of their Financial Analyst teams. Sound investments can equal long-term profitability and stability, which often translates to ongoing work for a company’s employees. Bad investments might cause a business to suffer significant financial losses, leading to downsizing, worker layoffs, or even bankruptcy. 

Expectations run high and Financial Analysts must work hard to conduct thorough research and create accurate models to forecast the best investments for their clients’ needs. As Zippia points out, “while financial analysts are usually paid well, it comes at the cost of a healthy work-life balance in many cases.” Potentially long hours and the stress from so much pressure causes some analysts to experience burnout. 

The economy has been seeing turbulent times, with investors riding a rollercoaster as stocks, mutual funds, ETFs, real estate, and crypto prices have fluctuated in unpredictable ways. Such volatility is the opposite of what most Financial Analysts want to see when it comes to wealth building, yet there haven’t been many safe harbors lately. There are relatively safe options such as savings accounts, bonds, treasury bills, and similar items, but the return on such low-risk investments may not even keep up with inflation. Meanwhile, some analysts do suggest taking advantage of lowered stock prices, advocating a “buy the dip” strategy while stocks are “on sale.” 

The digitalization of currency has become a growing trend, with plenty of investors viewing cryptocurrencies and NFTs (non-fungible tokens) as an intriguing alternatives to traditional investment vehicles. Indeed, venture capitalists alone sank over $33 billion in crypto and blockchain in 2021. Meanwhile, trading apps have utterly revolutionized how everyday people trade, which in turn impacts the overall market greatly. 

Financial Analysts may have always enjoyed learning about money, how it works, and how it can be used to make even more money! Growing up, they might have been entrepreneurs who launched their own side hustles online or in-person. They could have enjoyed playing around with stocks and cryptos, trading via mobile apps and engaging in online forums. It’s possible they liked math, finance, economics, and programming classes in school. Others might have come to them for help or advice about investments, leading them to realize they could turn their skills into a well-paid profession one day!