I have a background in electrical engineering and am working on a second career path as a financial analyst. I am also considering starting other career paths as well. I may get hatemail from career gurus reading this, but I think everyone would be more employable with multiple career paths. Multiple career paths multiply one’s prospects. Of course, the career path actually has to be viable. So I’d like to hear from anyone here with an actuarial background. How do I enter the field? (I read that there are actuary exams.) What’s the difference between a good actuary and a bad actuary? What would it take for me to ensure that I’m a good actuary? If I do enter the field, I want to make sure I’m a great actuary, not someone who looks good on paper but becomes fodder for Dilbert cartoons.
Hey, I just wanted to *fist pump* in agreement that one person should be able to have multiple career paths. I think actuary is a hard field to break into (but then again, I also think finance is a hard field too). Job is good in terms of pay, work/life balance, but I heard after a couple of tests, the tests are HARD. Good thing is that your work typically gives you time off to study for the tests (or so I’ve been told). My friend recommended that I should be one, but… meh, it’s capped at 100k no? Sure fire way to enter the field is to know someone in the field, and it helps if you passed some of the levels to get your foot in the door. You might need to take a paycut for the entry level though.
The great ones I knew went to actuarial or statistical undergrad and then the 9 absurdly hard exams. It is a focused career, I don’t think you dabble in actuarial.
In terms of difficulty and the time needed to study, how do the actuarial exams compare to the CFA exams? When I network with other financial analysts, should I mention that I’m also working on an actuarial career (if I decide to go in this direction), or do I need to keep it secret? When I network with actuaries, should I disclose that I’m working on the CFA, or do I need to keep this secret?
Ocean Mist Wrote: ------------------------------------------------------- > Hey, I just wanted to *fist pump* in agreement > that one person should be able to have multiple > career paths. > > I think actuary is a hard field to break into (but > then again, I also think finance is a hard field > too). Job is good in terms of pay, work/life > balance, but I heard after a couple of tests, the > tests are HARD. Good thing is that your work > typically gives you time off to study for the > tests (or so I’ve been told). My friend > recommended that I should be one, but… meh, it’s > capped at 100k no? Sure fire way to enter the > field is to know someone in the field, and it > helps if you passed some of the levels to get your > foot in the door. You might need to take a paycut > for the entry level though. Not sure where you got the 100k cap from. Credentialed actuaries working on the east coast with 3 years of experience are already making 100k base plus bonus. (speaking based on my situation and of those that I know) There’s actually a public survey on actuarial salary. Experienced actuaries make 300-400k while working short hours.
I pulled the 100K figure based upon my friend that has friends in the industry. I also looked it up on salary.com. For Actuary III, 90k is the median base. Actuary V, 135k is the median base with 8-10 years of experience. It states that many have ASA and FSA designations. Salary.com is pretty accurate from my experience. Where did you get your 300-400k? This is probably for managers?
DWSimpson is the single most reliable source of actuarial salary, separated by practice. It’s also what everyone in the field benchmark their own salaries against. http://www.dwsimpson.com/salary.html If you work in NYC, 135k is probably a little less than what an FSA gets before taxes. I am only near FSA, 3 years out of college, and I get more than that in total. I would benchmark myself against the Life&Health, FSA 2.5-4.5 years grid, which shows 98-148. For a job in NYC, I would feel comfortable being on the higher end of the range. The 300-400k is for experienced consultants who get paid based on sales of projects or management level actuaries.
I see. Very insightful post!
DiehardValueInvestor Wrote: ------------------------------------------------------- > In terms of difficulty and the time needed to > study, how do the actuarial exams compare to the > CFA exams? > Several historical discussions on this topic – use Search. Quick answer: there’s no real comparison.
Actuary exams are harder but they let you study at work at some jobs.