Make sure investments are worth the risk.
What does an Investment Actuary do?
Any type of Actuary — whether it’s an Insurance Actuary, an Investment Actuary, or another type of Consultant — is in the business of risk management. It’s their job to evaluate every possible outcome to a situation so that they can advise the company they work for. If you’re an Investment Actuary, you use your analytical skills to focus on the risks and rewards within the investment world.
There’s one thing we all know about investing: We must take a risk to enjoy the reward. Your goal as an Investment Actuary is to evaluate the amount of risk that a particular investment might contain. You might use your skills to analyze the historical payout for gold, or decide if a retirement fund will earn the client’s desired return. Large businesses and investment firms rely on your findings to guide them about the likelihood of an investment’s profitability.
You work at an investment bank or other institution, and your job is basically to ask a lot of questions and find the answers using complicated (for the rest of us, at least) computer software and mathematical calculations. You consider the “temperature” of the market, analyze historical data, follow industry trends, consider human actions, and weigh the probabilities of different scenarios.
This job requires a nearly inhuman love for math and statistics. It also entails curiosity and an understanding of the economic world. You look at things a little differently than the rest of us, but that’s a good thing because it makes you marketable to investment companies.