I was on free lunches growing up. Most people I knew were. I grew up in a small rural town where everybody had a blue collar job. White collar people were the ones that were looked down upon, because “they didn’t know what it was like to actually work for a living.”
For a long time, growing up, I was hoping to get a job that would pay me the exorbitant sum of $50k per year, or probably $70-75k in today’s dollars. I figured I’d be king of the world, then, because nobody needs more than that to be happy.
as a person with a high IQ from a family of people with IQs of 90-105 (my best guess) i can tell you that the average person would have a near zero chance of passing the exams with unlimited tries. i surmise that anyone with an IQ 120+ would have a near 100% chance with say 50 possible attempts, 110-120 would have a 80% chance, 100-110 maybe 50%, 90-100 maybe 20% and then virtually zero below that.
so that’s about 33% when you add it all up. i’d say that’s about right with 50 or so attempts to get through three exams. considering about 1/3 adults have a bachelor’s degree, i’d say this is pretty close. some with a bachelor’s wouldn’t be able to do it while a select few without a formal education could do it.
that said, this guess assumes that people don’t get outside help and are “trapped” by their circumstances. if low income folks who didn’t go to school could get priate tutoring by Stephen Hawking, paid for by an advance loan against the $10M windfall that would help fund their studying for the CFA exams, I’m sure a large % of the currently formally uneducated populace would pass.
i do like it. but after looking at my comment again, i did day average person = near zero, but then went on to say 90-100 = 20% and 100-110 = 50% so clearly not near zero. but decent nonetheless.
Possible after awhile if I did it every year and started younger. I’m actually a good golfer for a guy that plays only once or twice a week. At my peak when I was playing 36 holes a week I was a 4 handicap. This is in Canada where I could only play five months a year, so about 10-15% of the 2,000 hours I suggested. I’m not saying I would be with certainty, but I would stand a chance of at least European or Canadian tour status. Importantly my point was that dedicating the time is 90% of the battle when it comes to many things. It is a skill or quality in of itself.
People like to feel like they’re smart and special, and if you doubt me, read this thread.
I’m not surprised at the failure rates for these exams because 1) most who take these exams are finance grads and finance grads aren’t the brightest and most disciplined people out there. This is coming from a finance grad. 2) Many have demanding careers and put their careers before the exams (rightfully so).
Or maybe I’m just way in left field and am underestimating my “accomplishments”.
I have no clue what the parameters of the average American are.
It’s 95% for someone with average intelligence, with a business/hard science degree and 500 quality hours put into each level. That’s the message I’m trying to convey.
Don’t get intimated by those that tell you the material is difficult, because there are people out there that have pleasure scaring others. When someone asks me how difficult the exams are (I get that a lot in the alumni program I sponsor), I always ask 3 questions: 1) are you as intelligent as the average man 2) do you have a good degree 3) do you have the discipline and time to put in 25 hours a week, everyweek for 20 weeks straight. If the answers are yes to all 3, I tell them they have a great shot at doing well.
I think he’s saying that if you have the mental ability to graduate with a bachelor degree with a good major like business, engineering ,math, etc then that demonstrates you can do the CFA
If you’re able to obtain a degree in physics or medicine, odds are good you are able of absorbing the CFA material and have exemplary discipline and work ethic.
I think you underestimate that for some people finance stuff is difficult even if they have a good education. My wife for example studied law and is way more intelligent than I am. But she has not even an idea of what I am doing every day because she doesn’t understand nothing about banks, stock exchange and so on. Of course she is mentally capable of studying for the CFA, but I assume it would be extremely difficult to work through thousands of pages when you have no background knowledge and - more important - no interest in the subject.
For me the Level 2 curriculum was very hard because I was not familiar with financial reporting and I had serious problems with the english vocabular. If I immagine a person with no interest in the subject, it can hardly believe she will pass CFA exams.
You’re in fincance and your wife will be a lawyer? man you should be busy helping companies to establish branches in Luxembourg, Netherlands , or Ireland. I’m not kidding. Focus on this. MicroSoft, Starbucks, and other giants were clients of such practices. Master the tax code.
I know of these practices and i hate them! I definitely have no interest in helping companies evade taxes. If you want to see what happens when people and companies don’t pay taxes, have a look at Greece.
This is considered tax avoidance (legal) not tax evasion (illegal). The main difference is: tax avoidance was designed by lobbyists, drafted by lawyers, and passed by politicians. It’s an integral part of the corporate world.
Greece I believe had a different problem. It carries the disease of mediterranean. It’s when obtaining what’s not legally yours is called a “chance”.
I agree with you about the definitions, but it is a very thin line IMHO. I think the Starbucks practices should fall under tax evasion and I strongly hope that there will be adequate international tax laws soon to bring this to an end.
someone of average intelligence will rarely ever have a good degree. most people with a good degree are already of well above average intelligence (i.e. IQ 110+). so to say average intelligence AND a good degree is basically a redundant statement. you should just say, a good degree.
also, the average person is so bad at math that it would take them 5 years just to understand compounding.
I dont think it requires any sort of above-averrage intelligence for a “good degree”. Passing college isnt really that hard. Maybe a 4.0 career GPA, but just graduating doesnt mean someone is above-average in intelligence automatically imo