I keep wondering this one point, especially reading people’s personal experiences and lack of expectations for any tangible benefit from obtaining the charter. I, for example, work with a CFA charter holder (w/ MBA) who has the same position as me and, in fact, I think my area of responsibilities is much better. This has not been very motivating when studying for the CFA. So I’m looking to hear from other people to see why you guys are putting yourself through this. I, for one, think I’m only going through with this because I started it, and I just don’t want to quit half way through. Other than that, perhaps I’m just a glutton for pain and need an excuse to stay sober for 4-5 days a week.
First of all, that’s a good question. It’s a qualification that’s “cheap” in terms of money and effort, particularly is your company pays for it. Even if the benefits are small, I guess many people find that it is worth getting since it’s not really that difficult. This is assuming that you’re not in equity research, or some other field that values the CFA charter a lot more.
If you work in an area of finance where you feel the CFA will not add value, chances are that you should not get the CFA. For most people I know (myself included) that took the CFA and already worked in finance, it was clearly something that would be worth getting. Otherwise, why do it? I don’t think the problem is why go through with it. It is undoubtably worth it for many people, particularly analysts working in public markets or consulting. As most know, for IB, FA work, trading, PE or pure sales it is not useful.
Brain… so when you say “worth it”, do you mean you find it helpful for your line of work and therefore, it makes you better at your job? Or do you mean, it has opened doors for you that might have otherwise been shut and/or has yielded in higher pay? I know some might say that these are the same. However, I think one can get this information without sitting through the entire CFA. For example, I manage a fixed income portfolio. The FI in the CFA helps, but I could have spent a lot less time if I just read FI (and gotten deeper into it). I don’t need equities, corp fin, most of FRA, etc. The only tangible benefit then, I would think, is if someone places a direct value on the stamp of approval the CFA offers. Don’t get me wrong, I think the broad market knowledge the CFA yields is great and could be of value in unforeseen ways. I’m just trying to assess it’s actual value in getting one hired or promoted or better paid. From a lot of what I’ve read on AF, it seems most people haven’t had this experience.
I like that the CFA curriculum is very broad, it gives pretty good high level introduction to quite a few areas of finance.
Once you start you can’t stop. Just like Pringles.
Muddahudda Wrote: ------------------------------------------------------- > Once you start you can’t stop. Just like Pringles. +1
Let’s look at it from risk - rewards perspective. Investment 1: Spend lot of time in studying CFA. Risk: Low risk, once you clear the exam, it’s certain that your effort will be recognized and you will be rewarded. Return: Since the knowledge is only bookish knowledge, covering broad concepts, many of them not relevant to your work, you will be rewarded modestly for your interest in finance and improving your competency. Investment 2: Spend lot of time in studying books and articles more specific to your area of work. Risk: It’s not certain that your effort will be recognized. If you had bad luck and you couldn’t improve your performance significantly with so much investment in studying, it’ll be only you who knows about your hard work and knowledge. Return: Since you will acquire very specific knowledge, you’ll know more than CFA charterholders about what’s going on and you might be making a lot of money and informed decisions for you firm. So returns are uncapped here, while risk in uncapped too, all your hard work may go to (waste) unrecognized. So CFA is more like a hedged bet, where risk is very low, and returns are certain.
I like the risk/reward approach to this, d0pa. However, the reward part is what I’m trying to quantify. I would like some empirical evidence and even settle for anecdotal evidence which supports the “reward”. Right now, it’s just theory.
I have increased my salary & opportunities as a result of the CFA. 'nuff said
I was working on CFA during 2007,2008, 2009. Due to a CIO departure, the firm hired a new CIO who decided to use the difficult market/fee revenue environment to clean house on the equity investment staff and open up spots to bring in some new people. In the junior ranks, two types of people were fired: those with bad attitudes and those who decided not to pursue the CFA or who failed multiple times (although these two are not mutually exclusive). So has the CFA helped me? I would say it helped me to keep my job, which allowed me to gain more experience and move to another firm at a significant pay increase. The why’s are kind of pointless, it’s the what’s that matter here.
the answer is simple…if you enjoy it, you should proceed, otherwise, watch Jersey Shore and fist pump at your nearest club…done. snooki got arrested…
I “suffer” the CFA to learn beyond just the job.
FrankArabia Wrote: ------------------------------------------------------- > the answer is simple…if you enjoy it, you should > proceed, otherwise, watch Jersey Shore and fist > pump at your nearest club…done. > > snooki got arrested… You should just make that your signature
no…my signature is… Free Snooki
You take the CFA for a few reasons, 1. you need to take to keep your job/ get the job you want - the reward here is easy, you stay/get employed 2. you want an edge on the rest of the work force if you ever find yourself looking for a job. (MBA + CFA > MBA) 3. You want to increase your knowledge base and have that knowledge base validate. The CFA is probably the most reconizable investment validation credntial If you just want to learn then there isn’t really a good reson to pay the money to get a CFA, the above 3 reasons are probably 99% of the test taking population with most of them in category 1.
I stopped paying my CFAI dues this year, I don’t really see the point, they don’t have anything I need. But I still love AF!!
Got the CFA designation in summer 2007 - has done nothing for my career prospects - of course neither has the credit downturn - the knwoledge base is extremely broad and I have forgottent the majority of it - can I act cool at cocktail parties, sure - do I get kudos from colleagues, absolutely - but it has not led me to anything In hindsight I would not have done it and would rather have focused my pursuits elsewhere I got it to further my career opptys - it has not done that BTw I work in structured finance involved with ABS origination - not that there is any of that anymore - guess i hoped it would open up a buyside credit analyst role covering ABS it has not done that
Yeah, the knowledge is broad, but really good stuff…however you can get that from just buying the books.
purealpha Wrote: ------------------------------------------------------- > Yeah, the knowledge is broad, but really good > stuff…however you can get that from just buying > the books. Your right but casual reading and hardcore studying are 2 different animals. Its would be hard to really learn (imho) the curriculum if you were not gearing up for a test.