CFA Charter: worth it?

[ChiliPalmer]

The CFA demonstrates commitment. You cannot obtain the charter without a serious commitment to studying and a concomitant sacrifice of your free time.

It will distinguish you. If you want to be on the buy side, it is absolutely essential. People point to "Senior" guys who don't have it, but that's because they've been in the business as long as you've been alive. For someone trying to break into the field, you will need it, unless you are highly connected in some other way. Do not be surprised to be told that a condition of continued employment is enrollment in the CFA program.

In some respects, it's like a college fraternity. The guys who already belong look for reasons to make it hard to join the club. It's part of paying your dues.

My advice is to study as soon after leaving school as possible. Just take the hit and get it done. You don't want to fool with it in your early 30's. And once you start a family, you have no chance of getting it done.

When it comes to jobs, some will state you need either a CFA or an MBA. Clearly, a CFA is a compelling value vis a vis an MBA. You're talking $3,000 -vs- $75,000+.

The one thing an MBA will get you is acess to a network of alumni. Of course, that assumes you go to a top 25 school and aren't a socially maladjusted dumbass.

All in all, the CFA is worthwhile. People know what it takes to get those three letters after your name and will compensate you and deal with you accordingly.

 

[bobdobalina]

It's not as difficult as a lot of people claim, IMO.

Anyway, as to whether it's worth it, well, I went through the exams (and paid the greenmail to AIMR, err, CFAI) to break into the buy side. It didn't work.

So then I entered a top MBA program, which is what it eventually took for me to get my foot in the door. I can't tell you whether the CFA helped me get into the selective MBA program (the grades sure didn't but the GMAT must have helped), and I can't tell you whether I could have landed my buyside job without it.

All I can tell you is that in my limited experience, the CFA alone could barely land me an occasional interview for a good analyst position, but my MBA classmates-- even the career changers-- got plenty of interviews and offers from both sell-side and buy-side firms.

 

[CBDB]

Originally Posted by feynmix

not to hijack this thread, but any opinions on the FRM certificate? I am in the field of risk management, and my boss wants me to get it, but any experience with the exam or comments on the exam preparation would be great. I would probably be taking it in Nov 09.

It too is a ball breaker. Expect 250 hours prepping over the March - November period. Nov 09 is the last time you can do the test in one shot, after that its a two stage exam. If you don't have a math or engineering degree FRM demonstrates your numeracy in a way that business degrees (under and post grad) don't. If you choose to do it try the prep course from www.bionicturtle.com it's worthwhile. BTW our firm ($300Bn asset bank) is using the FRM more and more as a requirement for risk management hires.

 

[warmpi]

Originally Posted by bobdobalina

It's not as difficult as a lot of people claim, IMO.

Anyway, as to whether it's worth it, well, I went through the exams (and paid the greenmail to AIMR, err, CFAI) to break into the buy side. It didn't work.

So then I entered a top MBA program, which is what it eventually took for me to get my foot in the door. I can't tell you whether the CFA helped me get into the selective MBA program (the grades sure didn't but the GMAT must have helped), and I can't tell you whether I could have landed my buyside job without it.

All I can tell you is that in my limited experience, the CFA alone could barely land me an occasional interview for a good analyst position, but my MBA classmates-- even the career changers-- got plenty of interviews and offers from both sell-side and buy-side firms.

when you were trying to break in, did you have just the exams or the full charter?

 

[vitaminc]

Originally Posted by Flambeur

It's that time of the year to crack the CFA books again... LOL

its stacked on my bed side table, brand new mint condition still.

 

[bobdobalina]

Originally Posted by warmpi

when you were trying to break in, did you have just the exams or the full charter?

The whole kit and caboodle.

 

[TRINI]

BUMP! Anyone else studying?

 

[clee1982]

Depends on what you do, if you're in a highly quantitative desk, then CFA isn't very useful (CFA's math is not on the same order as MFE or Ph. D). If you're in IBD, equity research, then it's pretty useful. Overall, not difficult, but time consuming, nothing intellictual challenging.

 

[feynmix]

Originally Posted by CBDB

It too is a ball breaker. Expect 250 hours prepping over the March - November period. Nov 09 is the last time you can do the test in one shot, after that its a two stage exam. If you don't have a math or engineering degree FRM demonstrates your numeracy in a way that business degrees (under and post grad) don't. If you choose to do it try the prep course from www.bionicturtle.com it's worthwhile. BTW our firm ($300Bn asset bank) is using the FRM more and more as a requirement for risk management hires.

Yeah, I was on the GARP site a few days ago and I saw that they are offering the one shot test for the last time this year. I am going to be signing up for it very soon. I will probably start studying for it after the first week of May. I have a pretty strong math background, but I think for those in risk management, this certification will go a long way in the future.

I will check out the prep course, thanks.

 

[Flambeur]

Originally Posted by clee1982

Depends on what you do, if you're in a highly quantitative desk, then CFA isn't very useful (CFA's math is not on the same order as MFE or Ph. D). If you're in IBD, equity research, then it's pretty useful. Overall, not difficult, but time consuming, nothing intellictual challenging.

yeah it's definitely more about building a knowledge base and memorizing ****.. but at least very useful ****.

 

[surfnbank]

Like everyone has said it can be worth it in certain circumstances. It does give a bit of an edge but otherwise just kind of eh.