I am sitting for the Lvl 3 CFA exam in 2009 and I am thinking about doing a MBA or Master in Finance thereafter. What do you think is the added value of an “official degree” after the CFA? Many Thanks!
Go for it!
I think you’d probably see more value out of CFA+MBA than CFA + MS in Finance.
The added value of MBA will be…negative 100k tuition cost, plus negative 50k living expenses, plus…say, negative 200k of unearned income for 2 years. So, c. negative 350k in total.
I think I’m having Deja vu
superchef how old are you?
After getting one, you can huddle up with friends in a circle, as in before a basketball/sports game, all lean in, put your hands together and yell out : Ceeeeeee … FAMBA!!! while throwing your hands into the air - - yahh!!! It almost gets me pumped thinking about it right now
Neud Wrote: ------------------------------------------------------- > The added value of MBA will be…negative 100k > tuition cost, plus negative 50k living expenses, > plus…say, negative 200k of unearned income for 2 > years. So, c. negative 350k in total. dude, do you know how to do NPVs??? this post has to be a joke
I’d say NPV is negative. It costs ~ 75K in tuition + 150K in time (Bearing in mind that after you have the CFA, the value of your time goes up) So you’re 225K in the hole before you see any positive cash flows from the MBA. What’s your valuation of the benefits of the MBA?
I’d say the MBA would be worth it if you’re working BO, IT, Engineering, etc. When calculating NPV of an MBA, only use excess cash flows (over and above what your forecasting to make in the future without one)
daj224 Wrote: > dude, do you know how to do NPVs??? this post has > to be a joke Given I was awarded CFA charter in 2007, it is assumed that I do know. But it is not a joke, I do think that MBA is vastly overrated. If you can get hired (by a renowned employer, that is) via other means (for post-MBA level positions), you do not neet an MBA - it doesn’t make you ANY better once you are in. Not in the slightest. Even more, in this situation MBA actually makes you feel somewhat inferior to people who work alongside you in the same roles, but without this precious “Harvard (or Wharton, no difference) MBA” - because you either understand from the start or will understand pretty soon that these guys actually know how to get the job done and have much broader knowledge in this field than you as an MBA graduate, which is the reason for their career progression.
Neud, be nice to those guys, you are going to be working for them someday.
Neud - I have the CFA as well, but still think a top 7 MBA would add value to my career. I think that down the road when I’m trying to lead a company, it’ll be helpful to have a Harvard or Wharton next to my name. The CFA just doesn’t have the same cache and never will. I’m sorry man, I wish you were right…for my sake and yours…but a top tier MBA trumps the CFA every day of the week.
MBA +CFA --------- WGAF
DirtyZ Wrote: ------------------------------------------------------- > Neud - I have the CFA as well, but still think a > top 7 MBA would add value to my career. I think > that down the road when I’m trying to lead a > company, it’ll be helpful to have a Harvard or > Wharton next to my name. The CFA just doesn’t > have the same cache and never will. I’m sorry > man, I wish you were right…for my sake and > yours…but a top tier MBA trumps the CFA every > day of the week. this article contradicts your last statement http://www.stonewoodgroup.com/images/news/eaclarkeNP.pdf “A study by the CFA Institute and Russell Reynolds Associates shows that, globally, CFA-holders out-earn their MBA-holding counterparts by 24% (median average salary of $248,000 versus $200,000) for people with at least 10 years of experience. Length of experience aside, the gap is even wider. Those with the CFA designation command compensation levels 54% higher than those without it ($180,000 versus $116,000).”
^ Dirty Z is talking about top tier MBA though . . . while I think the article is only looking at joe-sixpack MBA
Don’t you have to compare only MBAs in the Investment Management profession to the CFAs in the Investment Management profession to be apples to apples? As you know, a lot of MBAs go into lesser paying jobs than finance, or more specifically Investment Management.
you can never have enough designations! adalfu, CFA, CAIA, CERA and then off to Chicago Booth for my MBA! Just another 4-5 more years to finish em all!! yippie
all these studies are totally flawed…
Hopefully, and if I am lucky, I can become a CFA Charterholder and also get an MBA from one of the schools that I am targeting. Then that’s more than enough for me. I also hope to retain the P.Eng. status as well. While I fully respect those who desire to achieve many designations and benefit from the learning potential, I feel that my extroverted personality is better suited in creating relationships and aligning myself with people that present good working opportunities…