This question pertains to the professional benefits versus exam prep…
Right now I’m in a challenging predicament, as I’m sure many of you are. I graduated and got my MBA last spring. After a jobless summer (as in I couldn’t find one) I decided the smartest thing to do would be to start studying for my CFA charter. I threw three months into level 1 and just found out I passed. Well, when you have time to study all day and you’re fresh from an MBA, that does tilt the odds in your favor.
Now I’m in front of a dilemma: to continue and get level II out of the way in the next four months, or put it off for a year and focus entirely on addressing my lack of work experience in finance by getting an unpaid internship anywhere I can (asset management).
My fear is that if I get into an internship situation, I won’t be able to hack level 2 this summer because its tough during your first six months when you’re out to make an impression, even if its an unpaid internship (you do want to learn as much as possible on the job and get a good reference, even if they can’t hire you). I’ll end up with some work experience (even if its just three or so months worth), but only be a level 1 candidate and will have less retained from level 1 and my MBA when it comes time to doing level 2 in '14 (loss of momentum).
On the other side, if I dive into level 2 entirely, I’m confident I can pass it but then I’ll have nothing but the exam prep to show for my time since graduating last summer (plus I’ll only be able to put exam results on my resume in August).
I suspect most likely option 2 is correct: even minimal unpaid work experience and being a LII candidate, because on the job should in my view count more than academic credentials. But before I make a final decision in the next few days, I’d just like to hear your thoughts?
If i were you, i’d have gone with option 2. See, you have got your whole life ahead to start a proper career. It is just a matter of four months. You won’t get this much free time ever in your life to study. Level II alongside with a job is really a pain, so i guess it’d be a smart move to get Level II out of your way as early as possible.
I have always thought all else equal, strive for work experience first before certifications. The way things work, the longer you stay “out of the industry” the further away the odds. CFA charter is not going away in the next ten years, you can always do it at any point you want. But if you stay out of the industry for longer than necessesary or missed the chance to grab an opportunity now, you may find it’s much more difficult to ever get back in.
There are people who hold their jobs and still pass these exams, it may even be a better way to convince your employer for a full time offer
I guess the better option is to go for level 2 now, dont take it easy. Putting a level 3 candidate on your resume will really boost your chances and plus the same thing SpyAli said, you will never get this time again once you break the momentum.
If you are sure to pass then I would go for option 2 since it’s only 4 months away. After that you can start yr internship and decide for lvl 3 in '14 or later.
Thank you all for your comments, they’re helpful. So it seems 3 pro CFA 2 now, 1 pro work experience now. Hmmm…
In some ways the problem is that as of today I don’t have any concrete offers in hand. The only thing I can do with certaintiy is day trade my own money, but that takes up a lot of energy (esp. since I am still relatively new at it) and putting that together with CFA 2 is going to be challenging - I have a fear one of them is going to give. Also, I don’t know how asset managers respond to day trading, esp. if you’re unfortunate to have a poor four months.
The issue is if I press things harder I may get an internship opportunity, but then I might have to drop CFA 2 because the last thing I want to do is screw up an internship.
On a personal development level I’ve already grown comfortable being a student, I know what you need to do to score. At the same time I feel like I want to take on a new challenge by getting some finance work experience, assuming of course I can get it (and its fully possible that I won’t, which puts me in an even worse situation, no CFA, no work experience, lol).
Man, I have rarely been so truly undecided about something - usually I lean in one or another direction, here I am evenly split. I’m making my deadline February 1st. Any additional thoughts are appreciated!
People are way over-estimating the power of passing L2. Getting work experience is FAR more valuable to your career. I am 100% for the work-experience (even unpaid in asset management). And realistically, if should not be hard for you to have the internship and study/pass L2.
I second iteracom - get an internship and do L2 - tough, but the time to exert yourself is now before famiy responsibilities truly limit your options …
^ me too… Go for work experience… Nothing nothing substitutes it… And for an employer the fact that you cleared level 1 gives enough signal that you are serious about what you are doing… Good luck!
This. No question. The fact you have an MBA adds to it. Wait too long and nobody will hire you because they’ll think something is wrong with you. Gee why does this guy have all this education and zero work experience. He must be broken and other hiring managers obviously discovered a major flaw and I’m not going to be the one to take a risk on hiring him. I’ll find someone better whose actually worked in the other 700 resumes that just came in.
I understand experience matters a lot but it is just a matter of four months guys. That is certainly not going to jeoporadize his whole finance career for sure. But yeah he should try and pass, otherwise that would really suck!
Do you think it helps to get you a job just bcoz you passed level II. If reading books could substitute the pressure of managing a portfolio to bread even, forget about a profit , then I would say you have the liberty to choose option 2.
It’s a standard dilemma for youngsters. Aat 35 I feel work-ex is more important ,bcoz learning never stops. Remember the Code of Ethics.
What is your background? Based on your answers, I would guess you are a young person, perhaps a student, or someone without a lot of actual finance work experience. I’m not trying to be mean.
The guy got his MBA last spring, and went jobless the whole summer, He already has a big gap in his resume. And now you are suggesting adding another 4 months gap??? It gets dramatically worse the longer you are out of a job.
Internship. There isn’t even a valid debate to have.
Hello everyone, thank you for contributing your opinions. They have been very helpful for me.
On the one hand, the gap issue concerns me simply because its always going to look worse compared to someone who was working. On the other hand, for someone who is a career changer graduating from a state school that is not exactly strange given the economic environment we’re in. I don’t think anybody could fairly accuse me of being lazy or incompetent due to such a gap, given that there are top 10 MBA graduates with finance work experience who are either out of a job or are woefully underemployed. And to be fair, during a good three months I did throw myself into CFA 1 and got results, as opposed to hanging out at the beach with coronas and a hibachi.
The additional problem here is that its simply not guaranteed that I’ll get an internship in an investment management office during the next four months. I’ve realized that if I don’t sign up for Level 2, I run the risk of coming into June without something to show for my time. Consequently at this point I’m 90% sure that I’m going to sign up for level 2 this June, and should something exciting come up in the interim, I’ll see if I can find a way to fit it in. My one problem is that I have a long commute from the financial center where I live, so fitting in CFA study time will be a bit more challenging if I do land an internship.
My final question relates to how day trading is viewed by asset managers. If I day trade for my own account during the 4 month period that I study for the exam, would that be seen as some kind of work experience? I do use fundamentals in my trading decisions, but I don’t have a large account, and there’s always a chance I’ll have a bad streak. Any opinions on that?
For once, I agree with Iteracom. All the initials in the world mean absolutely nothing without work experience.
And don’t put “I passed Level 1” on your resume. You’re one of several million people who passed Level 1, but have never passed Level 2 (no matter what the reason).
Personally, I think (and I may be mistaken–I am not the hirer/firer) that if you can say you passed Level 3, that’s as good as being a Charterholder in most bosses’ eyes. It shows you have the dedication and determination to do the hard work. The rest is just paperwork.
Certainly doesn’t count for experience for the Charter.
And I doubt you’d ever get a higher-up to look at your own account. They have better things to do rather than examine your brokerage statements. And even the question is predicated on the assumption that day-trading is positive. Many asset managers might view that as a negative.
Correct, unless you trade someone else’s capital, e.g. at a prop firm.
I’d honestly be surprised if it were seen in a negative light. Its one thing if we’re talking about the NASDAQ bubble era where all you needed to do was buy every breakout and you made megabucks, its another in this market where even experienced traders are having a very rough time. I also do longer term stuff in currencies for example, based on fundamental and technical analysis.
What would you think of me writing research reports on companies and posting it on a blog, in case I can’t land an internship?
Totally agree assuming an internship is the most feasible (I would recommend applying for FT work if possible - get as much interview practice as possible). Even working 60-80 hours a week, it is possible to find the time to study for L2, especially since you’re fresh out of B-school and just passed L1. I’ve interviewed many CFA candidates for positions on my team and am constantly reminded that no amount of theoretical knowledge can make up for getting your hands dirty in a real job. There is so much more to being successful in a corporate environment outside of what you learn in the CFA curriculum.
Of course there are those who pass while working crazy hours, and I have great respect for those individuals.
But the success stories I’ve heard are all pretty much with people who’ve already established a track record with their employer, and their employer gives them some added flexibility including some time off, or people who have been in the business for quite some time and already have been doing the stuff in the curriculum for a number of years (for example, the ethics section requires a decent understanding of industry practices which helps a lot with comprehension). I could always take a gamble, but with four months remaining I’d be majorly setting the odds against myself if I were expecting to nail L2 and put forward 110% in a new relationship.
After much contemplation I’ve decided I’m going to register for L2 this June. As for my job situation, if I land something solid I will jump on it and if I have to blow the exam, so be it. Career comes first.
My remaining question for all those who are willing to chime in: if I can’t get anything going during this time, I’d be very glad to do some kind of work that would be sharpening my equity research skills. If I wrote up my own research of companies and posted them on a blog, would that have value to an employer?
Thanks again to everyone who contributed their opinions!
