Hi, I’m sure this question of mine has been debated many times over but will really like to know your opinion. I realise that there are a fair amount of engineering/science graduates taking the CFA course in hope of a more lucrative career change, but the usual reply is CFA is not useful if you don’t have related work experience (which I agree). I am 30 and just passed Level 1 this year. My first degree is in Engineering and I have a PhD in Physics from a top UK uni. For the past 6 years, I have been working for an electronic engineering-based MNC company in the UK. Although my job is fairly comfortable at present, I’m somewhat unsettled and would like to switch fields (or start applying) to finance jobs when I complete the CFA course. I’ve read hundreds of articles claiming MBA is what I should be doing and not CFA, and yes I agree… but CFA is a self-study/part-time and cheaper course, compared to an MBA which can cost almost USD 50-100K in fees alone per year. MBA is a big bet which I am can’t afford to take at present. Hence, my questions is: ‘Do you think the CFA will help in my position (the earliest I can complete the CFA course is when I am 32, which is quite old)’? Thank you for your thoughts.
My view is that you will have to take a pay cut or lose your seniority if you change careers, or both. Is it worth it? You are the best judge. An MBA seems much better - if you are keen on a management job as opposed to the technical skills from CFA. There are a couple of guys here who have Phds and they are more qualified to give you a better advice - especially how the charter helped them switch to finance and at what stage of their career. Good luck.
I am in a similar position, 30 years old, passed the first exam this year, MSc. in Computer Science and waiting to get my PhD in Computer Science completed this September. Though, I picked up a couple of business classes on economics, marketing, strategic positioning and leadership during my master. I also went through the process of founding two start-ups. At the moment I am moving into a risk consulting position. I have met only a few people who have completed MBAs. My experience was not convincing, especially if they are under 40. In short they often seemed incompetent, but not aware of it, and arrogant in character, also not aware of it. I can only speculate on the reasons. First, MBA course content seems somewhat unspecific, hazy and based more on academic marketing than proper science or management practice. Second, MBA schools tend to make their students believe they are the very best. In contrast, the CFAI tells you that you should not misrepresent your abilities, and that the mere participation in the CFA program does not tell anything at all. However, the programs content seems based much more one proper science and verifiable truth than any MBA course I have looked at so far. So, personally, I may consider an MBA strictly for networking. And I would make sure people with more than 5-8 years of work experience are included in the MBA program, preferably people with start-up experience. That said, there are a couple of fine MBA programs, it’s just not for me, yet. Given your situation, why not continue the CFA program now and move into a PE position? At least one colleague, also PhD in physics, I believe, did just that after some time with an engineering firm.
Thanks for the advice guys. JOE2010: Yes, I realise that I’ll have to accept a paycut if I move into finance. I just wonder how much impact of having passed the CFA program wil have on career opportunities. As for an MBA, I agree that route is better as it is broader than a CFA, but only if it’s with a reputable uni. I believe a CFA is worth more than MBAs from less reputable unis. egal: Yes, I’m trying to apply for PE positions, but maybe after I have passed my L2. Do you feel that your PhD in Computer Science is an advantage to pursue a career in banking? When I did my PhD, I used to get told that only do a PhD if you want to become a lecturer, else don’t bother. 6 years after my PhD (graduated at 24), I’m still not sure if it did help in my career.
egal Wrote: ------------------------------------------------------- > I am in a similar position, 30 years old, passed > the first exam this year, MSc. in Computer Science > and waiting to get my PhD in Computer Science > completed this September. Though, I picked up a > couple of business classes on economics, > marketing, strategic positioning and leadership > during my master. I also went through the process > of founding two start-ups. At the moment I am > moving into a risk consulting position. > I have met only a few people who have completed > MBAs. My experience was not convincing, especially > if they are under 40. In short they often seemed > incompetent, but not aware of it, and arrogant in > character, also not aware of it. I can only > speculate on the reasons. First, MBA course > content seems somewhat unspecific, hazy and based > more on academic marketing than proper science or > management practice. Second, MBA schools tend to > make their students believe they are the very > best. > > In contrast, the CFAI tells you that you should > not misrepresent your abilities, and that the mere > participation in the CFA program does not tell > anything at all. However, the programs content > seems based much more one proper science and > verifiable truth than any MBA course I have looked > at so far. > > So, personally, I may consider an MBA strictly for > networking. And I would make sure people with more > than 5-8 years of work experience are included in > the MBA program, preferably people with start-up > experience. That said, there are a couple of fine > MBA programs, it’s just not for me, yet. > > Given your situation, why not continue the CFA > program now and move into a PE position? At least > one colleague, also PhD in physics, I believe, did > just that after some time with an engineering > firm. Couple of comments: - I agree on meeting oodles of MBA grads who seem incompetent. Compared to the technically and objectively oriented nature of the CFA program, an MBA program is very fuzzy indeed. Granted it depends on the program; most of the weaker universities and some of top schools crank out graduates who are not prepared for actual finance so as much as sales. That being said, finance is mostly sales nowadays. - MBA programs try to build up their students as much as possible; its part of the program. Do you really think most executives know their stuff? Most of the executives at my company don’t know half of what I know about capital markets. Executives are execs b/c they can present well and play the corporate game well - NOT b/c they are the most talented. The main function of a Masters in Business Administrtion is to train executives to lead; not to train Financial Engineers. If thats what you are interested in, go for a MSci in Financial Engineering not an MBA. - Consider an Executive MBA or part time MBA option; the average age goes up quite abit versus full time programs, which is for kids with minimal experience nowadays.
I feel that there is no advantage to holding, or being very close to holding as in my case, a phd come recruiting season, unless that phd is in finance. I had a funny call with a recruiter whom I presented my desire to get into algorithmic trading. Cutting a long story short she essentially told me that “we’ve got other profiles doing such things” and that I should not bother anymore. I still wonder which “profiles” they are looking for to fill such positions, but I am sure that I will not bother here anymore. I had my reasons to do the phd, or I like to convince myself of having had reasons. Getting into finance was not among them. I discovered that I like finance only once I started with the CFA program - adding insult to injury, our faculty has an excellent finance phd program… One of the reasons I did it was front-loading work for later in my career. I believe phd’s help with promotions. That’s at least what I experienced. Part of the same motivation fuels my desire to complete the CFA and FRM programs. I will not get the charter right away because my work experience will likely not qualify by the time I complete the respective programs. But, I don’t want to study for these designations when I am 40. It’s hard enough now that my brain is still less damaged 
jassie, i would highly recommend against going into banking with your phd in CS. you will get bored very quickly due to the lack of intellectual challenges that you’ve been used to in CS. Moreover, even if you are hired as a VP (although high unlikely given that you have no prior experience), you are really just a middle manager between the MDs and the associates/analysts. Worse, if you are only hired as an associate, then you’d be simply editing powerpoint presentations and memorandums all day. if you are interested in finance, why not think about joining a quant HF? HFs love math guys like you, and you seem to have an interest in finance. Not sure what your risk tolerance or ambitions are but imho HFs are more fun than being a hand holder to analysts/associates.