I am in a situation that is much different than most people on this forum and am looking for some advice. I just passed the CFA level 1 exam and will be sitting for level 2 in 2013. What makes my situation different is that im 28, have worked in the finance industry for 5 years (in the brokerage division of a large fund company), but have not yet completed my undergrad. Ultimately I want to transition to more of an analyst role, or fund wholesaling.
Would a finance degree do me much good if I am going to stick to and finish the CFA program or would I be better off studying econ, accounting, or something else?
Thanks in advance for any input!
There will be some overlap between the CFA curriculum and a finance degree but it might also be complimentary. There would be less overlap with accounting but it may take you too far into the weeds. I would vote for the finance degree since it will be more applicable to your goal of an analyst role.
Finance is good and Ithink you should take a lot of coursework in Econ. ALthough I suppose it depends which college you’re enrolling in.
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Slightly off topic, but I thought you had to have an undergraduate degree to sit for L1?
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Don’t you need to have a college degree in order to be signed up for Level I or be in the last year of the degree?
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I’ll second the finance and econ. I’d probably focus on the econ though as most of what you’ll lean in a finance major is covered in the CFAI curriculum (from what I’ve seen at least).
So yeah, econ major & finance minor or something. acctg minor might not hurt either.
I kind of think you should do a non-finance quantitative major, if you’re up to it. You should definitely finish your undergraduate degree, but getting a finance-related degree is not going to help your resume much, given that you already have finance-related work experience.
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If you want to go into IB accounting is a must. I did Finance/Accounting majors, and took some extra econ classes during a summer semester.
I’d go finance with accounting minor if you can. FSA is a big component and the stronger you are there I’d think it’d help. Look at the syllabus and focus on cost accounting / pensions / etc… to tailor the classes to what will apply.
That’s specifically to get you something that would help on the exams. From a job standpoint I’d look at something more quantitative within the math realm to stand out a bit.
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You might consider math or comp sci if you think you have any talent or interest in it. Otherwise Econ is probably going to take you farther than finance or accounting. There are scads and scads of business/finance/accounting majors every year and something to differentiate yourself might be prudent, not to mention a degree that can be used for other stuff in case finance completely collapses. Your experience + CFA progress already gives you a certain amount of credibility that an accounting or finance degree would normally deliver to someone with no experience.
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If I could go back and do it all over again I would have done Computer Science then done an MBA or CFA. Its almost a must to know how to code in several computer languages anymore for many positions in finance.
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Thank you everyone for your input!
I like the idea of doing something that is not directly finance related but will compliment my experience and the knowledge gained from the CFA program to differentiate myself as well as “diversifying” my potential opportunities outside of finance if ever needed. My school is Arizona State University so the business school WP Carey is not top tier, but it is a decent program.
I think if you’ve been in finance for 5 years it doesn’t really matter what your undergrad degree is in. More important where you get it (unfortunately).
I am sure finance, econ, and accounting would all be fine ideas. But, pick something interesting to you… If you want to do some programming, do computer science. If you want to design buildings, study architecture. A couple accounting, econ, and finance classes can be electives. And the CFA exam will be there for years to come, so enjoy yourself in college.
As for career stuff, network often and always be thinking about it. You never know who the worthwhile connection will be, so treat people with respect, even if they don’t deserve it.
Sorry that this is a little preachy.
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i say econ..i was finance and truthfully level 1 covers everything i learned in college…wish i would have majored in something else.
If you’re going to stick with a business degree, I would definitely say econ. The finance industry is becoming increasingly more quantitative, and the economics hits on those areas more. I am currently finishing up a finance degree as an undergrad and can say that I have learned more in studying for the level I than I have in my entire undergraduate program (of course that can come down to where you go to school as well).
On the other hand, if you are up for it, it would be a lot more beneficial to get a dregree in something like Math, Actuarial Science, or Computer Science. A lot of the recruiting for bigger firms comes from these areas as well. There is also a growing need to have programming skills in the finance industry, which would give you more opportunities and more job security.
To add to what another member stated, this will also give you the opportunity to move into other industries should you ever want or need to change. Being a charter holder will get you most of the opportunities you could want in the finance industry, and a finance bachelor’s is not going to add much to that.
Another thought: given that you already work in the industry and are working through the CFA program, you should see if any programs will let you into a master’s program. I’m not sure how often that happens, but I would talk with their business department if you are set on a business degree, atleast you will actually learn something. I know at my university, they have something called an accelerated program, allowing you do get a masters and bachelors at the same time, skipping any undergraduate courses that have a masters equivalent. It cuts down on wasted classes and can give you more of a challenge.
Sorry for the long post.
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Do math or computer science. Learn how to program no matter what you decide on. Having a diverse background is good and there’s lots of overlap with accounting/finance that you’re already getting in the CFA curriculum. There are lots of business people that can’t do real math or programming, and lots of programmers/mathematicians that can’t do anything involving human interaction. If you can straddle those 2 worlds you have a lot of options.
If private equity is your thing, for sure go with Accounting. I have yet to meet an i-banker that can model taxes correctly. I’m pretty sure Accounting would be useless if you were a straight up equity analyst though.
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I’m only Level 1 right now but I majored both Economics and Finance… and truthfully, I think if you passed CFA Level 1 and feel you’re capable of starting to study for Level 2, you probably won’t learn anything new in a traditional Finance BBA (at least in Canada). At least in the core classes: fixed-income, derivatives, time value, etc.
You’d likely learn more either majoring in Economics (a Major goes mathematically much beyond CFA), Accounting, or a Finance major at a school with more accounting-leaining classes (that go outside of CFA)… my school had electives in project valuation or company/takeover valuation that specialized enough that they went beyond CFA Level 1. Or, if possible, a more mathematical Finance major (financial engineering? not really sure about that at undergraduate level)
My concern for you is that this material is basically the last 25% of a BBA… and you’ll waste the first 3 of 4 years on classes that may feel sort of useless now. 3 years of intro marketing, intro micreconomics, intro ethics… new students go crazy… you’ll go insane
this is of course anecdotal. i’m 1 student… a good but not special student from an average Canadian BBA and barely survived the CFA Level 1. my school wasn’t as difficult or mathematically technical as I wish it was, or as more important ‘target’ universities.
the biggest thing to take away from all that (my first post here on AF hehe sorry if it’s long) is that in my experience, I would be worried that you’d spend too much time wasted on material you already know or don’t need anymore. so if you do go that route, I wouldn’t go traditional core Finance, and I’d try get into a undergrad program that’s more technical and specialized on either financial math/engineering, accounting, or accounting… so that you spend more of your 4 years learning something new and valuable
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I agree with Wintermute
I did an Econ major and business minor. I’m glad I did Econ because it exposed me to econometrics and more advanced calculus than you would see in any BComm program. If I could go back in time, I would have done a math/stats minor or even major. It all really depends on your career aspirations though. That being said, It never hurts to be solid with math.
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Those are very different routes. I’m a wholesaler so I’ll comment on taking that path. Don’t bother getting your undergrad, but definitely stick with the CFA. Given your work experience not many firms are going to care. Your sales experience working brokerage is worth far more. The CFA will help a lot though. Wholesalers in the key accounts and institutional roles are expected to have their CFAs now. The advisory channel not so much, but it still looks really good. Provides you with some instant credibility when calling on the large RIAs.
Anyway, try to get a role as an internal at the fund company you work for now. Provided your boss likes you and thinks you’re a good worker, making the transition shouldn’t be that hard. Once you have a couple years experience as an internal you should have the opportunity to go external at your current firm, or you’ll be a viable candidate for an internal position at another fund company. At that point no one will care about your undergrad degree - or lack thereof.