About Finance Careers

A career in finance can be both lucrative and rewarding. From positions in corporate finance to commissioned sales jobs in the insurance, investment and mortgage industries, the scope of financial career opportunities is vast. There are many different parts of the industry, and each has different compensation plans, educational requirements and career paths.

Regardless of which industry segment appeals to you, a good set of math, problem-solving, and communication skills is a must. Computer proficiency is also a necessary skill, as many of these careers will call for heavy use of office software and e-mail.

Industry Segments

The financial world has four major segments: corporate finance, insurance, investments and mortgage. Positions in corporate finance typically involve a lot of financial analysis and planning. Careers in the insurance, investments and mortgage segments tend to be more sales-oriented but still require a good amount of financial know-how.

Jobs in corporate finance can lead to executive management roles, such as controller or chief financial officer. Careers in mortgage, insurance and investments tend to be very entrepreneurial and can generate income similar to executive-level corporate jobs, but which comes from commissions, and not in the form of a guaranteed salary.

Industry Compensation

Most careers in corporate finance are salary-based. Financial careers tend to be high-paying and generally start around $40,000 per year. Corporate finance positions tend to be nine-to-five jobs that don't include bonuses or commissions.

The sales-oriented careers tend to be commission-based and/or bonus-based. Very few of these positions will offer any base salary at all. Some may provide a training stipend or financing plan, but virtually none will guarantee a salary. The sales-based careers tend to have more varied hours and offer virtually unlimited compensation. It's not uncommon to meet professionals in these roles who are making $200,000 to $500,000 annually after 30 years.

Educational Requirements

A job in corporate finance will almost always require a bachelor's degree in finance or accounting. A four-year education is a must to be competitive in this job market. To achieve true career growth in corporate finance, an MBA is strongly recommended.

The sales-based careers will be easier with an education in finance, but few companies require it. The insurance and investment industries do require professional licensing but seldom call for a degree.

Career Paths

Individuals in corporate financial careers can start as financial analysts and work through the hierarchy of a company. Chief financial officer is generally the top financial position in any corporation, but there are many aspects of corporate finance. Treasury management and cash-flow planning, risk management, credit analysis, and mergers and acquisitions are just a few of the corporate financial career paths.

Those in the mortgage field tend to stay as independent producers, but may choose a leadership or management role over time. The insurance business is similar, and there are generally only agents and general agents (who act as chief executive officers for all intents and purposes).

In the investment field, some of the most lucrative careers are in prestigious money management firms working in the fields of private equity, investment banking and private wealth management.

Warning

Many individuals are lured into the sales-based parts of the industry when they really aren't good candidates for those roles. Regardless of which industry you are in, a sales role is a sales role. The failure rates for financial advisers four years after starting is greater than 80 percent. When considering a commission-based position in a financial firm, be sure to weigh your options carefully before proceeding.