How much does a good financial analyst make yearly?
Financial analysts typically have a bachelor's degree in accounting, business administration, finance or statistics, according to the U.S. Bureau of Labor Statistics (BLS).
A master of business administration degree (MBA) is not a requirement to become a good financial analyst, but it will boost your credibility and make you more desirable for employers. Financial analysts help people decide how to invest their money.
According to the BLS, the average annual salary for financial analysts in 2008 was £55,110. Good financial analysts likely earn more than this.
The BLS also states that many financial analysts get an substantial annual bonus, especially if they perform well. A leading salary website indicates a lower average salary range between £28,745 and £39,370, plus an annual bonus of between £675 and £2,295 a year.
Salary by experience
Experience plays a part in how much good financial analysts earn. Many analysts become better at their job as they gain more experience, and earn higher salaries because of it.
According to a leading salary website, analysts just starting out with less than one year of experience earn between £25,380 and £33,455 a year, while those with one to four years of experience earn a higher range between £28,200 and £37,850. Analysts with five to nine years of experience earn between £32,340 and £43,730; analysts with 10 to 19 years of experience earn between £33,650 and £47,500; and analysts with more than 20 years of experience earn between £32,815 and £49,985 a year.
Financial analysts work for a number of different companies, including banks, insurance companies, mutual funds and securities firms, according to the BLS. The size of the company affects salaries for financial analysts. In general, the larger the company, the higher salary range, except when the company has more than 50,000 employees. For example, according to a leading salary website, analysts who work for a company with one to nine employees earn between £25,820 and £36,090, while those who work for a company with 50 to 199 employees earn between £26,960 and £37,890. Analysts who work for a company with 2,000 to 4,999 employees earn between £29,225 and £40,380, while those who work for a company with 20,000 to 49,999 employees earn between £30,060 and £40,640. The salary range dips back down for analysts who work for a company with 50,000 or more employees; the range is between £31,320 and £39,910 a year.
Location also plays a part in average salaries for financial analysts who perform well. For example, according to PayScale, financial analysts who work in New York City are paid the highest, likely due to the proximity to the New York Stock Exchange as well as higher cost of living.
The average salary range for analysts in NYC is £32,700 to £44,130. Analysts in Houston, Texas earn slightly less, between £30,880 and £42,970. Analysts in Washington, D.C. earn between £31,420 and £41,560; analysts in Chicago earn between £29,545 and £38,990; and analysts in Boston earn between £30,485 and £39,195.