Financial analysts and personal financial advisors are expected to have above average job growth through 2010, according to the Department of Labor’s Occupational Outlook Handbook. Why will this industry grow more than others in the coming years?
1. Businesses and individuals are poised to increase their investments in the next decade. The handbook reports that both financial analysts and personal financial advisors will benefit as “baby boomers save for retirement and a generally better educated and wealthier population requires investment advice.”
2. People are living longer. This means people must plan to be financially stable for a longer retirement. According to the report, the rapid expansion of self-directed retirement plans, such as the 401(k) plans, is expected to continue. Most of the money in these plans is invested in mutual funds. As the number of mutual funds and the amount of assets invested in the funds increases, mutual fund companies will need increased numbers of financial analysts to recommend which financial products the funds should buy or sell. Growth in retirement plans will also increase demand for personal financial advisors to provide advice on how to invest this money.
3. The deregulation of the financial services industry. According to the DOL Report, banks, insurance companies and brokerage firms have been able to broaden their financial services since 1999. Firms across the country are adding investment advice to their list of service, and will need a staff to meet the demand for those services.
There are other reasons for growth as well, including the globalization of securities markets, the increasing complexity of financial products and the continuing growth of mergers and acquisitions. To read more about the report on Financial Analysts and Personal Financial Advisors, please visit the report here.
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