Top 5 Reasons NOT to Take the CFA Exams

https://joemaule.com Personally I did pass all the exams and I'm glad that I did because of how much I learned. But the program is a lot of work, takes a ton of time, and it's not right for everybody. So it's important to understand the limitations of the CFA, and to consider if it really makes sense for your personal situation. Reason #1 to not do the CFA: If you think it will automatically get you a job in the investments industry or a promotion Unfortunately The CFA is not a magic bullet. Some people start taking the tests thinking that once they finish they'll have companies falling over each other ready to hire you, and it's just not the case Even after you pass all three levels you still have to do networking, apply for jobs, and go through job interviews. For the best jobs, you're usually competing against other CFA charterholders as well, so it's not as much of a differentiator as you might hope. If you do pursue the CFA, do not wait until after Level 3 to start thinking about your next career move. I've seen people network their way into the industry first, and then do the CFA later to move up over time. Also remember to keep developing your real life finance skills, like financial modeling, learning how to put together an investment recommendation, and polishing your communication skills. These can be even more important than the CFA itself for getting a job. Reason #2 If you're Not genuinely interested in the financial markets & Investing For the CFA You're going to spend a lot of time studying the material, so it's important to deeply consider, do you really like it? Do you find these topics interesting? Do you pay attention to the financial news for fun, do you talk about the markets with your friends? Do you like managing your own investments? The CFA curriculum will give you a deeper understanding of all of this. For example, When interest rates up, why does that make stock and bond prices go down? CFA topics like the dividend discount model and fixed income pricing will give you that answer. Now, When studying for the CFA exams, it can feel boring to memorize formulas, read the textbook, and do problems over and over again, it's normal to feel that way. But if you enjoy connecting the dots between the material and real world events, that's a good sign that the CFA could be worth it for you. Reason #3 Doing it for the money Everybody always wants to make more money in their career, but that by itself is not a great reason to do the CFA. Related to the last reason, if you're not genuinely interested in finance, studying for the exams will probably feel like torture, and you probably won't enjoy the job. Even if it pays a lot of money, you won't be happy. Reason #4 to avoid the CFA program is If you're not a self learner The CFA program is a self-study program, not only do you have to teach yourself, you also have to keep yourself disciplined and on track to finish all the material in time. In school, teachers feed you the information, and you're told exactly what to learn, when to learn it, and what assignments to do. The CFA curriculum is more self taught. In school, you can pretty much just show up and pass, but with the CFA you have to put in a lot of work on your own just to have a chance of passing, and it's certainly not guaranteed. Pass rates are pretty low. To pass the CFA exams you need to be self-aware and identify your weak points, forcing yourself to do extra practice in those areas. It can be really discouraging to not understand a topic or to fail an exam. It takes a special kind of self-confidence, and self-motivation to keep going and finish the program. Reason #5 to not do the CFA: If you are going to complain / make excuses for how hard it is Everybody who signs up for the CFA should know that on average it takes years and about a thousand hours of studying to finish the program. If you sign up for it, it's important to accept that reality and tackle the challenge head on. Give it your all. It's important to go into this program with a clear idea of how much work is involved and how difficult it is. If you're passionate about investing, and willing to sacrifice the time and effort to pass the exams, then the CFA program will probably be a great investment for you. Remember to click the like button below and subscribe for more videos. TIMESTAMPS - 0:00 Intro 0:24 You think it will automatically get you a job 1:41 You're not genuinely interested in investing 2:36 You're only interested in the money 3:13 You're not a self learner 4:14 You're going to complain and make excuses #cfa #cfaexam #cfalevel1 #cfalevel2 #cfalevel3 Stock footage provided by Videvo, downloaded from www.videvo.net