Thinking of taking the plunge into the CFA exam…

Question

Greetings all,

I hope you all can provide some feedback/guidance as I make my decision of whether to pursue the CFA designation. While no career decision is ever a sure bet, I'm seeking feedback before making the commitment, because I don't half-ass anything, and if I commit to this thing, I'm going to finish.Therefore, I seek to make as informed a decision as possible. So let's start with some background...

I'm a CPA with a "Big 4" accounting firm, working in the audit/assurance practice of a major city. I'm 25, two years into my career and two years out of undergrad, still relatively young.  I've recently made the decision to leave this firm and accepted and offer as an accountant with a  growing REIT fund with $2 Bill+ in assets. I am doing this because my industries of interest are real estate primarily and investments secondarily. REIT funds are the only real hybrid of the two that will allow me to learn something about both by preparing the financial statements. Also, I really like the company and they've done very well for several decades.

I realized very early in my career as an auditor that I did not desire to work in a financial reporting role (corporate controller) nor an audit role (audit partner) because it's boring as hell. Financial reporting is primarily based on accounting for the past.  I seek work that will help me make an impact on the future.  I feel like controllers are scorekeepers and accounting partners are referees.  Myself personally, I'm a ballplayer by nature. This is why I seek a stronger finance background. I took a few finance courses in undergrad and enjoyed them more than accounting. I see the CFA exam as a way to gain the knowledge and pedigree in finance to open doors to more interesting and rewarding work opportunities.

Career goals are always important in a discussion like this one. First off, I do not seek to "break into IB" with Goldman or MorganStanley. I'm primarily just looking to open up as many interesting opportunities in the financial services world as possible and especially to avoid being branded as just an accountant. If I'd stayed in Big 4 accounting another four or five years, I'd be doing financial reporting for the rest of my life. I'd rather manag a REIT fund or mutual fund, or couple a Big 4 CPA background with a CFA and try to eventually land in a CFO role. At least then I'd get do more than just the financial reporting of the past, I'd be making decision that influence the success of a business. Money is of course somewhat of a factor, but by no means the main one. Though I'm approaching $100K in total comp and expect to be there in another three years or so, I could probably do that without the CFA. I love to make money and more never hurts, but it won't make you happy if you hate the work you do. I'm not some jackass who's looking at the CFA credential as some golden ticket to a $500K hedge fund manager gig at age 30.  My main focus is making myself someone who can get involved in actually investing in and managing assets (ballplayer) and/or companies instead of just being an accountant (scorekeeper) tracking what others did.

My experience with the CPA exam should be helpful to the process. Before anyone gets riled up, let me clearly state that having never studied any CFA material, I can confidently say that the CFA exam will be more difficult than the CPA. That being said, the CPA isn't exactly a snooze fest, and I did the whole thing while working in big public accounting (70-80 hour weeks Jan-Mar. and 50 hr weeks the rest of the year).  Having left public accounting for private industry, my average working hours will be greatly reduced (40 to 50 a week) while pursuing the CFA designation. Where I think my CPA exam background will prove most beneficial is my experience in balancing work and study, and in preparing a long-term study plan and churning through it with self-discipline when the pool parties and football games are seductively calling my name. That much should translate over.

Should I decide to pursue a CFA charter, I plan on sitting for Level 1 in December 2013, Level 2 in June 2014 and Level 3 in June 2015.

Given this overview of my goals and experiences, please respond with suggestions, ideas and thoughts on making the decision, and tips on getting started. Both positive and negative feedback is welcome, so feel free to play devil's advocate.

Thanks in advance.

DollarsToDonuts · Answer

@Rhino6187 To add to your rationale behind investment decisions, legendary value investor, Marty Whitman, describes financial statements and accounting as the "language of investing."

Snippy · Answer

Good decision @rhino6187! Best of luck!