Investment Banking Analyst or Actuary?

Question

I'm a rising junior at UC Berkeley. Applied Mathematics Major.

Now it's time for me to choose an applied area.

I'm considering economics and actuarial science.

Some of my senior friends (majoring in economics) got offers from investment banks, for example, JPMorgan. The salary is quite high as an investment banking analyst.

According to PayScale, investment banking analysts seem to have higher salaries than actuaries do. esp during the first year.

Which one actually earns more?

Which one should I choose?

Thank you in advance.

Answer 1

Actuaries are in a profession in the sense that they have special governmental and historical standing for the safety of the public, international trade, small and large businesses, and the public sector.  They control their own entrants and professional standards.  They do not compete with any other profession nor (technically) among themselves.  Their methods are well established and develop across the profession as computational methods develop.  Actuaries very very rarely go to jail because their professional standards are maintained and supported.

Investment banking analysts are in a cut-throat competitive industry that no-one would call a profession.  Good and bad, clever and stupid, lucky and unlucky, rich and poor - anyone who qualifies to run a gamble in the banking industry can do this job.  Their risks are very high, including the risks of fraud and theft, not only from the world outside but from among their own members.  Bank analysts go to jail more often than you would expect, not because they are crooked but because the financial industry contains crooks who implicate and involve the analysts.

My advice is to join the actuarial profession if you have the ability.  Sleep well at night.  Be honoured within the financial community.  Enjoy the backing of a strong professional association.

Answer 2

Not an expert in either area, but the investment banking analyst positions will be more cut throat than actuarials.  Do you want to work in a highly competetive environment?

Answer 3

not an expert either but with investment banking is the place to be. You will figure it out