Aspirations

A good article:
Proof M.B.A.s Are Overrated

The author’s point is that: MBA’s stunt creativity and that 20 of the most successful people out there have admitted that an MBA didn’t help them on their path to fame.

What I agree with:
It is true, in many paths, especially entrepreneurialism where brilliance, decisiveness and perseverance determine success. It is also true that one learns more starting one’s own business.

What I don’t agree with:
Being like Bill Gate’s isn’t the only path in life. I mean perhaps an MBA won’t get you filthy rich and won’t allow you to start a company but it does open opportunities to advance your career. For plebians like myself with more humbler aspirations, an MBA may give the skill sets to advance from a $60,000/year job to an $100,000 job. If one’s goals and dreams are less grand, an MBA, like many other degrees will be a tool that can be leveraged to advance one’s career.

If you haven’t looked it up, there are three exams to pass for the Chartered Financial Analyst program. The current fee schedule is: $990 for level I, then $600 each for level II and III. All in all, I spent roughly $1200 on level I, $990 for registration (if you register early), $50 for the calculator, ~$50 for supplies and the rest on test day for getting to the test site, lunch at the test site etc. The amount of time I ended up putting into it was: ~16 hours a week for 26 weeks (November till June) ~ 416 hours. The CFA institute recommends at least 250. I think for someone who has very little background, 250 hours may be 1 read through and problems in the book.

When I was studying for it, I was working full time, so my schedule was: on average 2 hours a day on week days and 3 hours a day on weekends. I didn’t feel that this schedule obliterated my social life, I usually aimed for 3 hours a day on weekdays and 4 on weekends so there will be extra time to do other things. I found pacing to be crucial. If I didn’t stick to a regular schedule, getting enough sleep everyday, and working so many hours a day, it was very easy to lose concentration. There is a lot to remember and some of it was confusing so good pacing will save you a lot of time.

When studying, the major challenge was remembering everything. If you have little prior knowledge in finances, you’ll be bombarded with new concepts. Though they may not be too difficult, the test is quite specific and you need to remember details. The strategy that I eventually stuck with was: read the chapter summary at the end so you know what to focus on, then the chapter. Afterwards, go through the chapter highlights at the beginning and try to remember what each point references. When you finish a section, go back to the section highlights and do what you did for each chapter highlight again, except for every chapter in the section. Go over the section highlights in the book you are working on like this once every other week. This way, by the end, you’ll have a better chance of remembering what happened at the beginning. You’ll find that this process get’s faster and faster as you do it more and more.

I ended up doing all the problems twice, once when I was reading, and once when I was reviewing to identify all the parts I was weak on. I obtained some 3rd party study material for the test two years before mine from a friend. It would be a help if you have it. However, in the end, for me at least, it didn’t make up for more than 15 hours of study time. Get it if it’s free, but not mandatory, may save you a couple hours in the long run.

Some Links
1. CFA institute study guide
2. Study materials my friend lent me
3. Lecture videos posted online. Helpful if you like to listen to lectures instead of doing readings. He has practice problems as well.

I deluded myself early on that passing the level I CFA examination would be a good enough catalyst to get me at least somewhere in the financial field. My plan had been: pass level I, find an entry level financial job, pass the other levels while working up some experience. To get your CFA charter, you need four years of experience and they are very picky about what constitutes experience in the field. After passing level I, I calmed down and became much more realistic about my expectations. I knew it would be landing a job, but wasn’t quite ready for the reality that hit me. 40 resume’s out, 3 recruiter contacts, 6-7 career site resume uploads later… nothing. The eery stillness of my mailbox brought reality crashing down on me.

Passing CFA exams isn’t like a real degree, it cannot replace experience. Although the people I talked to were quite impressed with the feat, they ultimately didn’t find it the winning factor. Plus, when the automated resume tearing programs and busy recruiters process your resume, they will find: no relevant experience, no actual degree and no understanding of their professional tools. This immediately filtered your resume out of the pile in a lot of cases. In a lot of application pages, I didn’t even have a place to fill out the fact that I passed level I. It wasn’t a full certification, it didn’t fit under education, and even if I snuck it in, I doubt it’ll be noticed. I ended up bugging every contact on my list just to land a job, any job.

After a good friend of mine (who worked as a recruiter before) enlightened me, I settled on a mixed strategy of: direct mail, spamming and recruiters. The only thing I could say to convince them of my conviction was that I was a fast learner. I hoped that I could get least a chance to talk to them to show them I had to offer more than they needed. I was also informed me that the investment field cares about the CFA a lot more than corporate finance, but the investment field looks for candidates with a lot of experience.

Moral of the story? the path into a cushy investment job is long and arduous and though the CFA exams are a step in the right direction, they in themselves do not guarantee that you will land a job. I went through a period of disappointment seeing my hardwork go unappreciated, but have since then woken up and moved on. Though I haven’t given up hope on finding a position, I have also made new plans.

Some Discussions:
1. list of acceptable professional experience for the CFA charter”
2. “it may be difficult to land a job right now. Keep at it and if you enjoy the testing, go forward with a CFA.”
3. good discussion, a lot of people wondering the same question and a few suggestions

Much of my motivation to pursuing the Chartered Financial Analyst (CFA) originated from motivational books, the first I could remember was Rich Dad Poor Dad. The books investment tips were in retrospect, pointless, but the one thing I did get out of it was: there was the urge to be in the position to do what I want to do without worrying financially. Subsequent reads in investing primers like “What Works on Wallstreet” and “Foolish Investing” solidified my interests.

At this point in time (roughly three months after college) I had started reading financial newspapers like The Wall Street Journal, and Bloomsburg and was trying as hard as I can to find some sort of a foothold into the field. I tried investing my own money, reading, listening, absorbing what few droplets of wisdom I stumbled upon. Yet, I knew, as well as anyone else that these were hobbies, not qualifications. If I wanted to get into the field, I would need something much more solid to work off of.

My first plan of action was taking courses at local educational centers. Harvard Extension school popped up as an obvious candidate, as did the MIT open coursework program though by this time, the registration date had passed. I considered an MBA, though it didn’t take as dramatic a change as I hoped. One day, when I was surfing through the MBA wiki page, I found a link to the CFA. The more I read about it, the more it felt like the thing to do. Grueling coursework? self taught? prestigious international renown? these seemed to me winning characteristics.

After about a week’s worth of consideration, I enrolled.

Here are some links that got me started:

1. the wiki that opened my mind
2. the official CFA page
3. some good advice
4. a very good discussion about a CFA, read it and the comments for arguments on both sides
5. a neat little discussion
6. great blog, his experiences were very similar to mine and his blog served as an encouragement through my studying process

I am an computer engineer by birth, but one that has developed a craving for something different. My hobby of stock analysis fostered an interest in finances in me and after working in the industry for a few years, I decided on a career shift. The everyday set of problems began to bore me and I realized that I could perhaps do more in this world than just code. So, a while ago, I decided to take a completely different direction in my career and go into management and finance. I just passed level 1 of the CFA and am looking into getting an MBA.

When I first started down this path, I was very confused and insecure. Was this the right choice? Would I be able to get employment afterwards? What kind of work would I be doing? were just a few of the plethora of questions that nagged at me. Many wisened people helped me greatly on this voyage of learning. I feel that this information is useful for all who are travelling down this path and hope to exchange ideas with all those who stumble here.

Seeing as this is still a voyage in progress, your suggestions and comments are greatly appreciated!

- Snow