I am contemplating whether to press pedal to the metal and pass Level 2 CFA this June.
I am 23 year old and recently just graduated from University with Finance and Economic degree. The only job expereince I have is an internship at a bank and I am currently unemployed trying to find a job that is related to my career. My original plan is look for a job while spending 3 hours a day study CFA level 2; that way if I don’t find something decent and have to settle for something suboptimal, at least I have a chance in getting level 2 by june, which boost my competitiveness as a job candidate. But now I am rethinking my plan as I dove into studying and realize that level 2 will be quite time consuming (may need more than 3 hours a day) and maybe my time should be better spent on going balls to the wall and landing a career first and get experience ?
Just what exactly can you do by passing a level 2 CFA? Does it really make you that much more competitive if you have almost NO work experience?
I would appreciate all inputs, this will be a very important decision for my career, Thanks all!
While I agree that level 2 wont do much for you, I still think if you are serious about doing level 2 by June that should not really get in the way of any job search or even an eventual job (assuming some normal time to find one). If you really did 3 hours a day from now until then it should be more than enough hours. If anything, do a bunch of work on idea that you could get a job, then if you do you have done some extra work up front and if not, you can pull back on the later hours.
I don’t know since all my “finance” work experience comes from self employment, but the CFA is typically a certification for C suite executives. There is a huge trend to rush into things, mostly education/certificates, to “MAKE IT” in life that is going on right now, and exactly why our student loan bubble has surpassed credit cards in the USA.
I would work on work experience, and if you can’t get work experience, create your own work experience.
You gotta look at supply and demand which I feel like 90% of people don’t look at. There is a huge shortage of jobs available across all fields. All these douchebags come on this forum and say they make 80-100k here or there and its all bullshit. Their broke as a joke. So don’t be pressured into something that doesn’t feel right for you, just because some idiot sticks a dollar sign there that no one can prove.
If you get a high paying job, but your in debt to the point you can’t pay it off, you still lose.
To OP: You still have plenty of time to do both: job search and level 2 studies. Give 2-3 hours daily to your studies (more on the weekends, studying from Schweser + CFAI curriculum EOC questions) and you’ll be fine. In case you think it would be too much and want to prioritize, get a job! There is no substitute to work experience.
I’m in a similar position as you, 23 year-old Finance and Economics grad, writing Level II in June. Not unemployed, but most definitely underemployed. Like many of the people have already said, you must balance on also trying to find a job as experience is critical.
Let me drop some Canadian knowledge for you, we are LITTERED with CFA Charterholders and CFA Candidates in Canada. For example the CFA Society Toronto has over 8000 members and is the second largest society in the world! Not to mention Rotman/Queens/Ivey/Schulich all pouring out tons of high calibre finance kids every year. After talking to lots of people in the industry they have all told me that getting the charter does not by any means guarantee you a job, but not having it/being in the process of attaining it will probably be detrimental to your chances. My facts have a Toronto bias because that’s where I’m from, but it is a similar story in Vancouver and Montreal as well.
I would recommend you join your local society and start networking hard. 3 hours/day of study time should be more than enough if you use it effectively. I would split up my time 33/33/33 between networking/jobapps/studying. Just focus, keep your eyes on the prize and don’t lose hope. As soon as you find a job and pass Level II, your resume will become all the more attractive to recruiters.
The difference between AF and certain other forums is that there are actually people here who have the jobs you want, and these people can give you useful advice. You just have to know how (and who) to ask.
Anyway, the basic consensus regarding CFA is that it can be helpful as a supplement to job experience. However, you should not rely on the qualification as a way to get your foot in the door.
To the OP: Given that you have no work experience, your best tool is persistence. That is, call as many places as you can and ask about job openings. Prepare a 30 second speech about why you are a unique snowflake. Look up the contact information for people in companies that you are interested in - invite these people for an “informational” lunch to learn about the industry. Try to get information on places that might be hiring. This is the hard way, and you might not end up with the job you initially envision, but this is probably the best way to go.
^ good question. Depends on where you go to lunch I guess. I just keep it simple and meet at the closest Starbucks to their office, it’s quick and a lot cheaper than lunch (I pay). A 20 min conversation is usually enough to build rapport, answer all the questions you have, and also not waste too much of the other persons time.
You admitted this at the start of your post. Nothing wrong with self-employment, but the OP is 23 year old recent graduate expressly asking for help finding a job and getting work experience.
Nope. I encourage you to spend more time on these forums, in one of the many prep classes, or at a testing center on the day of the exam. The average candidate is probably starting the program somewhere between the ages of 24-30. Hardly C-suite material.
Rushing into an MBA might be a bad idea, given the 6-figure price tag. Rushing into a marriage or a baby is a bad idea. OP hardly sounds like he’s “rushing” into anything. He’s passed level I of the exam, no easy feat, and he’s weighing the cost/benefits of trying to pass level II, while also looking for a job. The total cost to him will probably about 300 hours of his time and $1,000 for prep materials and fees. Your point about student loans would be more relevant if this guy was talking about skipping the job hunt entirely and going back to school for a $120,000 MBA from University of Phoenix.
I agree with this part. You should’ve limited your post to this.
You reveal more about yourself through this sentence than you do about AnalystForum. No one anywhere in this thread has mentioned what they make, or why that would be important. Also, you mean “They’re”, not “their”.
OP: As others have suggested, put your focus on getting a job first, and worry about level II only if you’ve got the time and energy to spare. Level II (and the CFA program) are nice compliments to a good career, but the various levels and even the charter itself mean very little alone, or with a work history that isn’t related. My advice is, go find yourself the best job you can land. Once you’re paying the bills (hopefully with a job at least a little related to the CFA designation), you can resume focusing on passing the second level. Studying for both level II and looking for a job at the same time is likely to be pretty demanding, both in terms of time and mental energy. You’re more likely to end up doing a half-assed job search and a half-assed attempt at level two, a way worse outcome than doing either of them with 100% effort.
To the OP: I guess I just don’t see why this is an either/or situation. You should be able to study for L2 and look for a job at the same time. It’s only January, and there’s plenty of time. In the worst case scenario, you will find a job next week, and then wonder if you have time to study and do your new job, but again, plenty of people have managed to pass L2 while employed.
The L1 exam is about understanding basic tools, like TVM, dividend discount models, basic fixed income, supply and demand, etc… It’s kind of a comprehensive exam of a lot of stuff that would typically crop up in a good undergraduate finance degree.
L2 is primarilly about valuation. How to handle merged companies or companies that own each other. How to handle international investments where currency or international economic risk is an issue. Alternatives to DDM for companies that don’t pay dividends. How embedded options affect fixed income. How do you deal with the fact that maybe there is some alpha to be had when you are constructing portfolios. What are the ways that you price derivatives. Some aspects might be touched on in an undergraduate program, but most of it is closer to master’s level work than undergraduate level work.
Passing L2 doesn’t guarantee you a job, but it is likely to make you more competant to discuss stuff intelligently. I was in an interview once where I was about to be shown the door for lack of experience, but when the guy learned I passed Level 2, he turned around and talked to me more. I ended up getting the job, and passing L2 clearly made the difference. Admittedly, that was pre-financial crisis, and so there is more competition these days from people who have been dismissed elsewhere, but if you want to be doing that kind of stuff, L2 does contain valuable information for a professional and people recognize that.
Hiding! Nah, not really. The latter third of last year told me totally how surprised by how busy we were at work. I went to Dublin in August and had an awesome time (took lots of recommendations from the kind folks on AF as far as sights to see). Came back to the office to catch up on work and suddenly it was Christmas. I’m back on the forums now, trying to post a little more frequently on the interesting topics. Also considering going to Omaha for the Berkshire meeting agin wooooooooooooooooooooo!
It’s gorgeous and a ton of fun. March weather will probably be a little drearier (we were there in August/sept for unusually nice weather) but it’s great. Spend time on the western coast if you can - we went to Galway and Doolin in addition to Dublin.
Dublin’s great, though - wonderful people, wonderful city. Super different from NYC. A taxi driver proudly pointed out Dublin’s tallest building, Liberty Hall, to us. 195 feet. 16 stories. In NY, I’m higher up than that every day for my job. Check out Trinity College and the surrounding area, too - beautiful university, cool historical sights.
I changed my job after finishing Level 2. During the interview the HRD only mentioned one question about CFA, “will you keep pursuing for Level 3?”. I choose to believe that the company values my Level 2 so that they hired me, although I know that may not be the truth.
Now I have CFA charter and CPA designation. But I found it still hard to get a better job. Companys always prefer EXPERIENCE to CERTIFICATE. I have a roomate in university. He has no certificate, but he worked for world-famous banks as finance manager.