collageQuestion:
Is it worth it to get a graduate degree in quantitative finance?
Answer:
In order to figure out whether going back to graduate school is worth it, the potential job prospects and average salary are important things to consider, but so too are the financial costs and time commitment that are part of applying to a graduate program. When it comes to a degree in quantitative finance, specifically, I will provide the job and salary prospects here so that you can keep this information in mind while you search for different graduate programs and discover the time and financial expenses associated with them. For starters, quantitative analysts are in high demand within the financial and trading world, especially since a large part of their job is to flag profitable investments and manage associated risks. Due to this high demand, the average salary for quantitative analysts was $106,751 in 2020, and the Bureau of Labor Statistics projected a 5% growth for the financial analysis field (which quantitative analysts are a part of) between the years of 2019-2029.
1. Risk manager
The job in a nutshell
Risk managers (AKA risk technicians bumped up to a managerial role) advise organizations and businesses on any existing risks to their profits, identifying and evaluating possible threats and setting up contingency plans. Risk managers may specialize in technology risk, business continuity, markets and corporate governance (and a number of other areas).
Salary potential
After one to six years of experience in their role, risk managers in the US can expect to earn between US$55,300 and US$127,000, on top of their annual bonuses ranging between US$1,600 to US$25,000.
2. Financial engineer
The job in a nutshell
Financial engineers provide financial analysis to companies, evaluating their products and assets, and suggesting any changes where necessary. Typically employed by banks, investment houses and mutual fund companies, they use their expertise in applied mathematics, statistics and IT to help businesses prosper.
Salary potential
Career duration and city have a major impact on income, with salaries varying between US$54,350 and US$117,500 in the US, with an average salary of US$87,000.
3. Derivatives trader
The job in a nutshell
Derivatives traders are highly specialized stock traders. Simply put, they buy and sell derivatives (financial products that derive their value from their relationship with another asset or cash flow e.g. swaps, futures contracts, employee stock options, exchange traded stock options).
Salary potential
With US salaries ranging between US$36,100 and US$131,700 plus bonuses of US$1,500 to US$60,400, it’s fair to say derivatives traders lead prosperous lives.
4. Asset manager
The job in a nutshell
Working in asset management, you would be employed to manage assets (intellectual property, human capital, financial assets and goodwill) on behalf of people and businesses in order to achieve the greatest possible returns.
Salary potential
Earning between US$43,600 and US$109,120, asset managers in the US also enjoy annual bonuses ranging between US$500 and US$24,800.
5. Fund manager
The job in a nutshell
Fund managers handle and supervise funds to maximize returns. You could be working in a number of financial sectors, from banking or a brokerage firm, to insurance or the treasury departments of a large industrial group.
Salary potential
A fund manager in the US makes about US$71,800 a year, up to US$172,000, depending on performance and location.
6. Consultant
The job in a nutshell
Working as a financial consultant, you’d be offering your money management expertise and advice to individuals and businesses in order to guide them toward their desired long-term goals, which might be anything from debt management to growing their investments and savings.
Salary potential
Financial consultants in the US typically earn between US$40,100 and US$107,000, in addition to their hefty bonuses which range between US$40,100 and US$ 20,000…
All salary estimates were sourced from Indeed.com and PayScale.com.
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