actuarial vs. finance (1 Viewer)

[sikeveo]

Can someone outline the differences, and why you choose your particular major (finance or actl) ?

thanks

 

[ND]

Actuarial is a lot tougher. In an actuarial degree you will learn methods of financial modelling and lots of statistics and other things that are necessary for a high level finance job (or actuarial work obviously).

A finance degree basically gives you an overview of corporate finance and the financial markets.

If you're good at math and want to do alot of it, do actuarial (or a combined math and finance degree).

 

[sikeveo]

But does doing acturial give you a heads up over other finance grads? Like can acturial grads apply for finance roles eventhough they may not be quantitative based?

 

[ND]

But does doing acturial give you a heads up over other finance grads? Like can acturial grads apply for finance roles eventhough they may not be quantitative based?

Definately. Anything a finance grad can do, an actuarial grad can do (but the converse obviously doesn't apply).

edit: Most aspects of finance require quantitative ability (though some more than others). You'll even find banks hiring people with degrees in unrelated quantitative areas such as engineering.

 

[sikeveo]

ND you're definately correct about the engineering bit. I always wondered why they asked for engineers!

On another note, how hard is it to maintain a credit average so you can get exemptions? (I also need a min credit average for further study in actl subjects)

 

[ND]

Not really sure about UNSW, but at Mac as long as you're good at maths you wouldn't have to put in too much work for credits (in most subjects).

 

[sikeveo]

damn.....im scared that finance will be really theoretical, and actuarial will screw my marks over =/

 

[ks21]

I'm a second year, doing a double major with both finance and actuary at UNSW.

Finding the actuarial component much more challenging so far, however, you should be able to get a credit average if your good at maths (it will probably be harder to keep up a good average). I am finding finance more interesting at the moment (a little bit of theory won't hurt anyone), and much easier.

As far as employment goes, with an actuarial major you will probably need around a D average to get a job as an actuarial graduate, however, if you get a C average, probably expect you to find work in other areas of the financial services industry. Likewise, you will probably have to do well with a finance major to get a good job.

 

[sikeveo]

I ditched both ideas. I'm not game enough to mess around with my marks especially as actuarial/finance would be my back up career until i could make med, if i didnt make it in the first place.

 

[§eraphim]

Actuarial screws up your WAM so it can disadvantage you when apply for jobs in Finance.

Maths and Finance gives you much more opportunity to explore the theoretical underpinnings of the financial models. For example, Measure and Probability theory, Functional Analysis, Partial Differential Equations, Optimisation and Numerical Analysis are branches of mathematics with many applications in financial mathematics. Understanding the theory is essential as all the numerical methods are pretty easy to pick up and implement (That's what Physicists do).

eg. Actuaries basically only know Monte Carlo simulation methods to numerically approximate the solution to an Stochastic Differential Equation. However, someone with a Maths background could use other methods such as Quasi-Monte Carlo, Finite Difference/Element Methods, etc.

A Finance degree can also provide you an opportunity (with the right electives) to specialise in Investment Management.

 

[overfloat]

Actuarial screws up your WAM so it can disadvantage you when apply for jobs in Finance.

Maths and Finance gives you much more opportunity to explore the theoretical underpinnings of the financial models. For example, Measure and Probability theory, Functional Analysis, Partial Differential Equations, Optimisation and Numerical Analysis are branches of mathematics with many applications in financial mathematics. Understanding the theory is essential as all the numerical methods are pretty easy to pick up and implement (That's what Physicists do).

eg. Actuaries basically only know Monte Carlo simulation methods to numerically approximate the solution to an Stochastic Differential Equation. However, someone with a Maths background could use other methods such as Quasi-Monte Carlo, Finite Difference/Element Methods, etc.

:jaw:

 

[turtleface]

and we econometricians know how to use eviews/excel to do an Ordinary Least Squares yay!!!
lol

 

[Omnidragon]

Yea well... what does a finance student know then? Why companies takeover one another?

 

[:: ck ::]

well accounting and finance aside,

anyone know what the market is like for insurance specific, actuarial roles?

grad salaries, prospects etc...

my impression atm is that there isn't many jobs out there...

 

[sikeveo]

Zurich were recently looking for 6 final year actuaries.

 

[bananasmoothy]

Actuaries - starts off with 6-digit salary.

Always a plus.

 

[sikeveo]

Er nope. Around 40k actually.

 

[blackfriday]

until you get to part 3 - and getting 100k+ after that is still kinda hard

 

[§eraphim]

In addition, the qualification is bloody hard (30% pass rates).

The Chief Actuary of a fairly large insurance company usually gets 300k+, but that's many yrs after qualification (it takes around 3-5 yrs to qualify for most ppl, so add another 5-10 yrs at least).

Actuarial salaries are a myth perpetuated by Actuarial departments across Australia. Especially, with the oversupply of actuarial grads.

 

[ND]

A friend of mine got a grad job at an actuarial firm and is getting about 58K base.