Engineers – considering CFA or Financial Engineering?

104

I know of many engineers who regretted not getting the right career advice when they were in school. (What’s “right” is subjective, of course.)

Envious of the high income that an investment banker can fetch, some of these engineers decided to take up courses or certifications that hopefully will give them a chance to enter the lucrative finance sector.

Their options include:

  • Getting CFA charter. This can be done through self study, but it takes a fair bit of effort. The catch is that in order to get the charter title, you gotta accumulate a few years of relevant experience. There are people who deliberately became financial consultants (i.e. insurance agents) just to earn the CFA title. The interesting point here is that even working as a financial adviser/consultant counts as relevant.
  • Getting a financial engineering degree from NUS or NTU. You need to pay school fees, attend classes, do projects, homework, etc. It can be quite challenging.

BUT, does it help to do all this?

If you’re studying just to gain worldly knowledge of finance, then you’re fine. I salute you.

But more likely, you’re in this game because you want to get a job that pays well, at least reasonably better than your miserable engineer pay. If that’s what you want, then chances are you will be disappointed.

Don’t believe me? The next time you attend a preview session for such a course, ask questions.

Ask important questions, like “will I get a good job that pays well after I graduate?”, “can you show me statistics on the before-and-after salaries of your graduates?” and “how many of your graduates have gone on to be associates with a bulge bracket investment bank?”

You’d be lucky if the presenter advises you not to expect too much. He could’ve said, “you might need to take a pay cut…”

Share.

About Author

104 Comments

  1. I was an engineer for 15 yrs, no degree, self studied CFA (without taking exam), save up, trade financial index as hobby. Guess what, now I’m a full time trader trading solely my own account, with financial institution tried to head hunt me becoz of my track records. Maybe we shld try think out of the box, why not work for urself instead of the usual “look for a job”

  2. Unless u have a huge trading capital to start with, I think most profitable full-time traders’ monthly profits (and this is already a tiny minority in the trading population) are probably only enough to sustain themselves, but not enough to support an entire family plus a car. Full time traders also lose out on employer’s CPF contribution. Just playing the devil’s advocate here.

  3. the US institution offered to me 6 digits annual plus bonus. Trillions change hand daily in the global market, how much one can take from it depends on his capital and skills.

  4. i think even 20% is bs. if it’s so easy, why don’t Temasek Holdings and GIC simply hire traders like yourself to make $1 billion out of every $5 billion capital? why even bother to invest in companies in other countries like indonesia and get screwed?

  5. Haha, although i know nothing about trading, I think I’d still like to pass a comment about the Temasek and GIC, esp. the former. They appear as amazingly naive and ‘undiligent’ investors who buy on hearsay than do actual due diligence which would have shed light on those worthless US banks and some ABC Learning Centre whose value seemed to have dissipated within a short period of time. And thereafter, sell some of our national jewels to make up the losses while other countries go on protectionist mode, expropriating foreign investments.

  6. I have got 10yrs of exp in IT , and the last 6 yrs into Investment Banking IT. Graduate in Mechanical Engg( Industrial Engg Specialisation). My aim is to get into IT Business Analysis or into Finance. What Course I should take? Please advise.

  7. You don’t sound like you spent the last 6 years in an IB..granted it’s the tech dept. To get into IT business analysis or into “Finance”,you probably can try an internal transfer within your bank.

  8. I’m an MBA marketing and finance graduate having four years experience in salse and business developement ( Banking and rating industry). i would like to get into core finance job and please let me know whether quantitative finance can help me in getting my dream fulfilled?

  9. Hi guys, a CFA is still very useful and gives you credibility in banking & finance. However, it is more suited for investment advisory/ research roles, not much for other roles such as sales, dealing, or back office etc. If you stop using the knowledge you learned, you’ll forget the CFA contents quickly.
    Studying for CFA is a very, very big commitment and takes up a lot of your time. Most people do not pass the exams in straight three years. Furthermore, you will only earn the title AFTER you have accumulated 4 years of relevant investment decision-making work experience (and passing the 3 levels of exams). If you do not have that relevant work experience, you will not qualify to put the 3 letters behind your name.
    Because it’s not easy, employers recognise and respect someone with a CFA and you will very likely to be employed.
    Having said all that, if you have money, in my opinion, it would be most efficient to pursue a Masters/MBA as you can complete it much faster and get a job in banking & finance.

  10. Thanks for the valuable reply.
    Currently m studying for level 1 exam. Even if i clear all the levels, my experience will not get counted as per the above criteria.

    Could you please suggest me the solution on this if possible?

  11. Pls advice me…..I’m local diploma graduate in engineering….have 2+ years experience, if i study finance or bussiness courses in private universities such as uniSIM,Kaplan, is possible to get finance or banking jobs?……….

  12. I’m an engineer, I’m about to persue CFA level one; however, I’m little worried about about this may impact my engineering carrier. I’m an industrial engineer working for 3 years now, isn’t understanding finance through CFA a previlage to enpower my career?

  13. i am a b.tech (ece) fresher and want to go for further studies specially for CFA from american institute. so help me if it is a right decesion to take?

  14. Banking is all about relationship and network, so many banking, financial, business degree out there etc… Why think that by getting CFA will get you a jobs in banking. If you want to get into banking, personally think that by starting from part time job in a banking sector will help. From there proof your worth and create opportunity. Be prepare to work from morning to night…..Please do not think that the pay will be good, only some position are… and limited.

  15. Hi,
    I am Telecom Engnr and hve work exp of 4 years, currently I am acting as Operational Manager for Feild services and part of my job deals with Cost Optimization for field expenses and Invoicing for to take money from Customer
    Does CFA or Msc Financial Engg can help me out to gain key strategic position in Telecom Culture
    P.S i dont want to go in Banking Line by doing CFA

  16. I am a BTech (ECE) engineer. got 2.2 years or exp in IT. Is CFA a good option for me? I want to be in finance dept n IT for headstart and then financial analyst. please suggest as i am feeling like an ocean to decide

  17. Hi,
    I am Polymer Engg from India. I have 2 yrs of work ex in my own field.
    Things were smooth until last year, when i met with an accident. I sustained a spinal injury and have been paraplegic ever since.
    Needless to say, I cant work on site any more and am currently job hunting. Doing MBA in finance was always in d pipeline but now online certifications like CFA and FRM seem like a very good option.
    Could you please advise/help me in weighing my options.

    “P.S. : All i need is to improve my skill-set in order to secure a wheel chair friendly Job or Work from home option.”

  18. could you please tell me the good universities to
    do MS in Financial engineering in Singapore. Also let me know how these universities are comparable with US Universities like CMU, COLUMBIA UNIVERSITY AND PRINCETON UNIVERSITY.

Leave A Reply