Is a Career in Finance Right for You? (2024)

Summary.

If you’re considering a career in finance, a good way to get your foot in the door and build a strong foundation for your growth typically involves pursuing one of two paths: retail finance or institutional finance. How do you know which path is right for you? Consider the following:

• Retail finance typically involves dealing with the general public. These professionals service customers that include individual investors and small businesses. The most notable designation for finance professionals working in this space is the CFP, certified financial planner.
• Institutional finance generally refers to working with large institutions such as banks, hedge funds, and other business entities. The premier designation in this space is the CFA, chartered financial analyst.
• Retail finance offers the flexibility of working in almost any locale. Institutional finance often implies that you’re an employee of a large institution, and you likely will have less opportunities to work remotely.
• Retail finance, such as being an independent financial advisor, can mean working with new customers every day, but often doing so alone. Institutional finance usually means working on a team within a department that’s part of a larger department, meaning there is more of a hierarchy.
• People in retail finance are more likely to obtain a bachelor’s and then pursue necessary insurance and investment licenses or designations specific to their career and clientele. People in institutional finance may have to obtain a master’s to move up the ladder.
• The average salary for afinance major is $101,038. Pursuing a career as a financial advisor or another form of financial sales can go well beyond this number, whereas a career in corporate America or the government typically stays close to it.