The value of a CFA

[LikeWise]

Don't quit your civil service job. You will
appreciate it when you hits middle age.

Pursue investment interests outside job. Get bread and butter
first. Value investing don't work in the fund mgt
becuase of institutional imperative and career risks.

How to pass CFA - take 2 weeks leave from exams and study the guide books
and get a good approved calculator. High fail rate because a lot people never take
leave to cram study coz people taking exams got degrees so proven can study one.
Warning: This advice may be outdated. Hahha.

haha... yeah... that's what my mum keeps telling me. I agree that a finance job can be unstable and it's hard to justify not buying overvalued stocks in a bull market when everyone is making money and you are not if you work for a fund.

I guess maybe I'm jaded after 5 years at the job. Sometimes I find myself dragging my feet to work, I find little meaning in my work sometimes, and I wondering if there is something more interesting out there.

Just to add on jobs and careers.

The reality of life is that not everyone will make it to the top. Many will get stuck in middle mgt and will be retrenched when the downturns come.

The problem with corporate skills is that it is not very useful without a corporate framework. Meaning being great in your job is useless if you dont have a job.

The MOST IMPORTANT thing to do in any job is to make sure your bosses like you. Capability is secondary.

Last two lines make alot of sense.

[kazukirai]

Just sharing some thoughts with regards to the original question on the value of a CFA.

Disclaimer: I'm sitting for the Level 3 exam this June after taking the Level 1 and Level 2 exams a couple of times before I passed. I'm also a civil servant (having worked at a Ministry before and currently at a Stat board) without experience in the finance or banking industry. My roles are not really related to the finance industry per se but my current role would probably be at the edge of qualifying for relevant work experience under the CFA.

When I first started sitting for the CFA exam, the plan was to pass all levels and jump to the finance sector while working in the civil service. The main consideration was of course that a civil service job would leave me free time and energy to study for the CFA exams. Well, I didn't really like the job so I was out of there after 3 years. By this time, I had only passed level 1.

After I moved to my current job, I passed level 2. However, at this point, I don't see myself moving to an industry role any longer. I don't think I qualify for senior positions but I'll probably be too overqualified for a fresh grad role plus I don't think I'll have the energy or commitment level (where you can spend 12-14hr days working) of a fresh grad.

I'm still going to finish the exams and get my charter. Think of it as fulfilling the paper chase but if you are thinking of making a switch since you don't have a finance/economics degree, then the CFA may be the paper qualification you need. Think of it as a necessary but not sufficient condition. For those already within the industry, apparently the CFA doesn't have that kind of worth anymore.

More importantly, who you know is paramount. This is where the CFA can open doors. CFA institute Singapore organises events regularly and this I think is one of the best avenues to meet people who are at a sufficiently high level to open up doors in the industry. Check their membership requisites but I believe they have a membership for candidates and non-cfa holders as well.

My opinion is that the CFA is still better than a Masters/MBA from a 2nd or 3rd rate university if you're looking to break into certain parts of the industry such as asset management, i-banking, equity research etc. Once again, not a sufficient condition but a good-to-have if there's no better way you can sell yourself.

[valuebuddies]

A 30+ married man with CFA but no relevant financial experience is already obsolete, that's the reason why I, almost, give up trying CFA.

[Vivian]

Likewise, I can share with you my thoughts and experience in Financial industry, I have worked almost 10 years in Commercial and Investment banking, right now in Stock broking industry.

The value of CFA MAY only give you a job interview opportunity, putting yourself compete with other potential candidates. You need to prove yourself as an valuable resources to get the job. Do you have specific skill-sets? Excellent writing skills? Problem solving ability? Quick judgement? Analytical skills? model building ability?

There is no free lunch in the Financial Industry. You worked avg 10-12 hours in commercial banks, avg 14-15 hours in Investment banking. In most instances, you need to rush work and reports over weekends.

Which is more important to you now? Spending time with Family / GF / kids or Work for more ($$$?)

What is your passion? If money is the sole motivation, I advise you to do something else.

Hi dear valuebuddies,

I would like to ask if any valuebuddies have taken the CFA before. I am currently thinking of leaving my job for something in finance and I am considering doing CFA so I can make the transition (I have an engineering degree from NUS). I am currently in an administrative government job not related to finance. I understand that CFA is a lot more depth in portfolio management as opposed to a masters in applied finance and the pass rate is 20%. I also understand the time needed to take it is alot.

The questions I'd like to ask is if it does open doors in the Singapore context in terms of job prospects. I know there are a number of stock analyst who write reports who have CFA, so I guess that is a possibility, but are there more options? I don't suppose that it is easy to get into places like Investment banking with just a CFA. (I have read that some analyst transition into IB, any confirmation?)

Also I'd like to ask buddies their opinions on why they do not transition into finance. There are a good number of you who have great grounding in accountancy and what it seems like a lot of experience in stock analysis but don't seem to be in fields related to finance(I understand some like greenrookie actually love their day jobs though.). Is it because you already have the capital to be independent or perhaps you know its not easy to get a job in portfolio management? I would be grateful for some sharing.

I guess I should also share that I'm thinking about this as I am wondering if I can do something that I think I will like and make good money in the process.

I do appreciate all points of view.

Many thanks and regards
Likewise.


PS: I'm not sure if I'm posting on the right tread. Moderator pls shift if I'm wrong.