This article reveals the best US cities for finance professionals to live in. For a complete ranking, see 15 Best US Cities for Financial Professionals to Live.
The United States has long been a world leader in finance, offering many job opportunities and a high standard of living for financial professionals. The financial sector is a major contributor to the U.S. economy, accounting for approximately 8% of GDP and employing more than 9 million people. The US capital market is one of the largest in the world, accounting for 40% of the global bond market and 41% of the global equity market. Domestically, it finances 72% of economic activity.
The jobs provided by the financial sector are spread across the United States, with more than 90% of them located outside New York State. For example, as of 2021, Florida had 420,000 jobs, Illinois 315,000, California 585,000, and Texas 591,000. These are also some of the best states for finance jobs.
Financial institutions provide capital to all sectors of the U.S. economy, including agriculture, manufacturing, and various service industries. These investments have synergistic effects that significantly improve overall growth and job creation beyond their direct impact on the financial sector. For example, each job within the U.S. financial sector creates 3.6 jobs in other sectors of the economy.
The U.S. financial services industry is deeply connected to the global economy. US-based financial companies export services around the world and maintain consistent trade surpluses. In fact, more American jobs depend on exports of financial services compared to exports of computers and automobiles. The financial services sector is directly involved in international markets through foreign direct investment. This international investment is reflected in $760 billion in investments in the United States by foreign banks, brokerages, and other institutions as of 2021.
During the COVID-19 pandemic, the financial industry also played a critical role in raising funds, providing medical assistance, and supporting affected communities. This industry now plays a critical role in ensuring sustainable growth for the U.S. and global economies. As of 2018, the climate finance market, covering both emissions reduction and climate change adaptation efforts, totaled $600 billion.
The bank is committed to aligning its portfolio with the goal of achieving net-zero emissions by 2050. A recent analysis of global sustainable finance efforts by banks revealed at least $4 trillion in total commitments covering various time horizons (typically the next five to 10 years). This joint effort represents an estimated annual investment of approximately $700 billion in sustainable finance initiatives.
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One of the popular banks contributing to the U.S. financial landscape is Citigroup (NYSE:C). Citigroup (NYSE:C) has promoted $441.2 billion towards sustainable finance as of last year and has a goal of investing $1 trillion in the sector by 2030, according to the bank’s 2023 ESG Report. This shows progress towards achieving this goal.
Here’s what Patient Capital Management said about Citigroup (NYSE:C) in its Q1 2024 investor letter:
“Citigroup (NYSE:C) continued its upward trend from the fourth quarter, rising 24.1% in the quarter. (and even higher), Citigroup has finally undertaken a multi-year effort to cut unprofitable departments, eliminate middle management, reduce overall headcount, and more. As of early March, the company is 70% complete and its management layer has been reduced by a quarter. We are confident that Citi will achieve its goals. Meanwhile, the company is returning cash to shareholders, which could increase significantly if Basel III capital proposals change.
The importance of the financial sector is clear from the above discussion. According to the U.S. Bureau of Labor Statistics, jobs for personal financial advisors are expected to grow by 13% from 2022 to 2032. With this in mind, let’s take a look at the best US cities for financial professionals to live in.
Best US cities for financial professionals to live in
Financial experts who research new markets and investment opportunities.
our methodology
To shortlist the best U.S. cities for finance professionals to live in, we looked at the average annual salary for the field, differences in cost of living by city, availability of employment opportunities at financial firms, and overall standard of living. We collected data on a variety of important metrics, including: We also gathered information from Reddit threads such as r/FinancialCareers and r/immigration to gain personal insights from a broader audience. Using these inputs, we calculated a weighted average score for each city based on four key metrics. This approach helped us identify cities that not only offer competitive salaries and career opportunities, but also ensure a comfortable and affordable lifestyle for financial professionals. Cities are ranked in ascending order of score.
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Best US cities for financial professionals to live in
1. Boston, Massachusetts
Score: 25.93
Boston, Massachusetts secured the number one spot on the list of top U.S. cities for financial professionals. The city is well known for its strong mutual fund management and venture capital sectors. Popular financial sector companies operating in Boston include Fidelity Investments, Morgan Stanley, and Goldman Sachs.
Institutions such as Harvard University and the Massachusetts Institute of Technology continue to produce skilled graduates who contribute to the state’s financial industry. Professionals with a finance background typically earn between $81,500 and $118,400 annually in Boston. Boston also ranks 7th on the list of cities with the highest average salaries in the United States.
Find out which city secured second place. See the 15 best US cities for financial professionals to live here.
Insider Monkey delves into a variety of topics, from the best US cities for finance professionals to the business side of things. However, our expertise lies in identifying the best performing stocks. Currently, artificial intelligence (AI) technology is attracting attention as one of the most promising fields. If you’re looking for AI stocks with more promise than NVDA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. The 5 Best U.S. Cities for Financial Professionals to Live originally appeared on Insider Monkey.
