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…”
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Hi,
Is a person without any working experience and degree able to take the CFA Level 1 exams?
Thanks.
Collin, yes. In fact, you can take all 3 levels but will only receive the charter status after you have accumulated the relevant experience.
Oh, I thought that degree or relevant working experience is needed in order to ENROLL for the exams?
Collin, I interpreted your question as “whether both working experience AND degree are needed”. Yes, a degree is needed.
Seems there’s also a requirement on “professional conduct”. See:
http://www.cfainstitute.org/cfaprog/getstarted/requirements/index.html
Hello,
Thanks for the above information.
I am engineer with work experience of 2.5+ yrs into IT industry.Currently i am working into IT department as software programmer into USA based Financial company.Should i take CFA, if yes then what would be carrer path ahead and starting Salary package.
Thanks in advance.
Dear all, the world is populated with CFAs and MBAs… getting the right network and staying lucky is so much more important
Engineers make more on average than finance majors tho. An engineer just have to be good at what he/she does, a CFA has to be lucky as well(and trust me, a credit crunch is not lucky time). Citi just cut 10% of their investment banking department(and need I say more about bearstern?), so right now u have a crap load of experienced finance ppl out there looking for a job, just be happy as an engineer lol. Plus an investment banker works 80 hr weeks(so in term of hrly wages it isn’t anymore than a senior engineer). A lot of companies right now are saying they can’t find enough engineers even though the economy isn’t so hot right now.
Btw, I thought u need either a degree or some experience to be able to qualify for CFA exam? Cos that’s what it says on their website.
Jack,
Just to clarify doubts on CFA exams.
One would only need to produce his Degree or 4 years qualified working experience for Level 2 paper. So for Level 1, any dog cat also can go take.
I am an engineer havign trained in One Year General Managament Programme from a reputed management Institute. I have about 15-16 yrs workign experience in Manufactuing ,Project Engineering & Planning and at presently looking after the Busines Planning job in a SBU.Presently I am workign as a middle level manager and want to develop myself for taking up senerior busines leadership position in Corporate Strategy .Please give your view whether CFA will be helpful for me .
i passed CFA level 1 and want to go back to school for either a MBA or a MS in financial engineering. i wonder if the combination of CFA + MBA is better than the CFA + MS in financial engineering. any advice??
I would think that CFA and MS in Financial Engineering would be slightly correlated. Hence, going for MBA would be a better bet. But of course the institution plays a part too.
Hi Collin,
Thanks so much for the advice. what do you think of Baruch College? is it considered a good school to go for a MBA? have you heard of a major named Decision Sciences? what do you think of it? Thanks!!
Hi xoxo,
Sorry I have not much clue about the college.
Hey i am university graudate with a Bsc in Banking and Finance, and i am thinking about doing a CFA,MBa or a Msc in economics. I really would like to know what is my best bet.
I attended a talk by Jim Rogers… he advised to study and buy everything related to commodities as usual !!! And his usual preach on China and Taiwan… After seeing what the Fed and US Treasury are doing, I think he’s right to certain extent…
hence my opinion, if I were u, is to do everything related to commodities in China… this crisis will set up a different playing field and
Hi Collin
I am an engineer with 5 years experience, and am looking towards a career shift to finance. I have registered for the June 2009 Level 1 exam.
Assuming I clear alll three levels, what do you think are the chances of an engineer breaking into Finance? This will be after 3-4 years, so lets assume the economy is ok by then. Also, do you know of anyone who has successfully traversed this path
thanks
Prashanth, I know 2 persons who have cleared all levels. They are analysts now (used to be in IT).
Hi all,
I have just passed my Level I Dec 2008. I also from engineering with 10 years experience. Anyone know any career opportunity in Singapore for this background? I read many ads, while they need CFA, they also need many other stuff.
Thanks.
Hi
I did my MBA in finance last year and now I wanna pursue CFA. I am currently into developing infa projects and am also involved with project costing and financing of these infra projects…will this work ex be considered eligible for earning the Charter?
I am askin this because I saw a list of job profiles considered to be eligible for the charter on the CFA website however the profile related to my job isn’t listed there.
I am not into securities, insurance field as of now
sorry…what I meant in the above mail is currently by job involves developing infrastructure projects
hey there,
i would like to know wat the major difference is b/w a CFA qualified and an M.S in financial engineering (lets say from Columbia). Who is better paid and to what extent r these 2 courses similar or dissimilar, as the case maybe.
regards
cfa is a self-study certification well regarded in asset management industry (at least used to be).
mfe is a degree program that you can do part-time or full-time. it will get you into quantitative finance (or computational finance) roles, which are related to trading in the capital markets, eg you assist traders by churning out useful spreadsheets. very different from asset management. more brain power and less soft skills needed.
just my 2 cents.
I cleared Level 1 on 2nd attempt.
Failed Twice in Level 2.
This year taking a stress break…. maybe try next year.
Background: Bsc Engineering (NTU)
Joined Army 96-2003
Joined IFA: 2003-present
CFA is seriously tough without studying time of 3-4 hours a week. I took lessons at Cuppage Centre but still fail… cos I missed 60% of it :p
CFA is a very wide designation. You should think about your job scope: does it need CFA?
Having a CFA does not guarantee you a job… Industry experience is needed.
Hi,
I am an IT engineer and have 2 yrs of experience in a US based financial company. I have cleared l2 CFA in this june. I m looking for a switch in finance domain. Could someone please advice as to what profile will I be able to get and avg salary pckg?
There are m,any areas in finance and banking. If you are keen in the treasury, quantitative risk management and derivatives, then financial engineering training is vital. However, if you are keen in analysing financial statements, the business of companies, equity / bond analysis, then a CFA is more relevant. In financial engineering, you will capitlise on computing and advanced probability and statistical methods to solve problem (without possibly understanding the business of the corporates that you are analysing). So it all depends on which area of banking you prefer…
the key qns is – do u really have interest to be in the Banking/Finance sector? or do you want to be there just for the pay, the glamour etc? If it is the later, then i advise – don’t bother. The pay is higher, extremely high – but the hours are long, u won’t get to see daylight for most of the time. And I tell u it is not glamourous at all. A lot of ppl obviously don’t have interest and are just there for the money. Try mgt consulting, try sales try auditing if u want the $$$. The crisis told one big story – the bankin industry needs grounded ppl who know the stuff, are morally decent. Not some engineers who thought they are smart and thought they should earn more money than their peers because they have better analytical skills etc. The world is not fair and will nv be….wake up guys….CFA will give u more opportunties but is definitely not a passport into your rich glamrous dream…those ppl in the industry will tell u….How many CFA do u see in Spore? If u have worked 5 to 8 yrs in another industry, my advice is don’t bother…u are probably in ur 30s….be prepared to take a pay cut and have super bright rocket scientists sitting on top on u tellin u “U are the most stupid person I have ever seen in my life….”
I am in my second year of engineering. I was told i can give the 1st two levels before i graduate. Is it possible to do engineering and cfa at the same time? or am i putting too much onto my plate?
hi sheena, it depends on ur ability, apitude etc…..suggest u find out the content of Level 1 materials first…alot of ppl are overly ambitious, thinking it is easy to pass…but i tell u it is definitely not as easy as what alot of ppl think. Then again there are ppl who went through the 3 levels without failing once…..look at the materials and u will have a better gauge….to put in plainly, no one knows how big your plate is except urself….right?
I am electronic engineer what is right for me if i do CFA
I know. Its just i couldnt find anyone known to me who did both at the same time. Hence i was just curious. I went through the subject..il be taking coaching classes and starting from level zero. So i just wanted to know if its as easy as those choaching classes potrayed them to be.
Prashanth Cherukuri,
Did you managed to get thru. Pls share your experience
Dear all,
By way of introduction, I am a CFA holder and have passed all three levels at one try.
I am now organizing a CFA level 1 Revision Workshop to help candidates to pass the CFA level 1 exam.
There will be about 10 students at each workshop and it will be conducted by myself and my PhD friend (who is also a CFA level 2 candidate holder)
The workshop fee is relatively affordable $320 per month for 8 hours and will commence on 1 March 2010 and will last till 1 June 2010. There will be mock exam provided too.
If you are interested, please email to [email protected].
Regards
Avatar Chen
Hi to all.
I did my engineering in Computer & information system & now a day doing networking job in ISP and also studying MBA (Finance and risk management) kindly suggest is it suitable for me more specifically for Engineers to go for CFA ????
If you’ve been in the Engineering line for > 5 years or 30+, it is very difficult to switch to Finance unless you have a special skillset. The best bet would be to do a Masters in Finance or possibly an MBA in a top school not NTU/NUS/SMU plz!! Possibly an US/European school. A CFA is not that useful for career switching to finance due to lack of networking and career placement services.
In the end, CFA, MBA or MFE are no magic wands. You still need luck, aptitude, passion and hardwork to get into finance and a good paying job. I say unless you’re passionate about the finance industry, don’t waste time/energy. Stick to your core strengths(engineering/IT/etc..) and build on it.
My background:
Engineer for 2+ years. MBA. Finance for 3+ years. Doing CFA now..
Good luck!
Hi everyone! I am a final year student in NTU. I have just cleared the CFA L1 exam in December 2009. However, I am restricted to register to L2 exam in June because the status of my bachelor’s degree is still in progress (expected graduation June 2010). Does anyone know how can I update my education so that I can register with my current status?
Thanks
-Adhi
A CFA/MBA/MFE/Masters-of-whatever is not a ticket to finance at all.. Its simply contacts, some good friend on a trading floor kind enough to help you send a CV across to a hiring operations manager will clinch you that job. Go out there to know pple, if you do a masters make sure the class are filled with market practitioners and not fresh graduates/similar aspiring engineers/teachers/ITguys. And when you go for the classes, dun stick with your guys (it is very hard to try and get into our circle as we discriminate as well). Best bet is still an MFE, will launch you to get a job in product control, valuations, risk reporting and sometimes if you are lucky a front office job but that is usually seldom the case – the FO part is also 60% luck 30% connections 9% character and 1% competence.
Hi,
Its quite demoralising reading some of the comments out there with regards to engineers who has worked in engineering for 6 years and seeking a financial career switch. I am currently doing my Masters of Finance from RMIT. I dont mind a pay cut as long i can get into the financial sector. At the moment my interests have changed from engineering to finance after dabbling with stocks. I like to do valuation and financial statement analysis of companies.
By the way, I am willing to reward a 1 month salary to any kind soul who can give me a successful job recommendation and entry into any position (non-insurance) of a banking or finance company.
please email me at [email protected]
hello..
I am planning to do Quantitative finance course. I am confused about univ.
pls suggest
NUS ( univ of singapore ) , NTU
US univs
UK univs
if you a motivated self-learner, check out the 6-month part-time cqf course. it has the reputation of being challengingly rigorous and is highly regarded around the world.
http://www.wilmott.com/cqf.cfm
don’t take my word for it. search the quantnet and wilmott discussion forums for more info.
Hi,
I want to pursue Msc quantitative/compuational finance / financial mathematics. I just wanted to know my chances of getting an admit.
I must admit that I got either awful grades or did not take relevant courses ( for instance , No Probability,statistics or linear algebra).
But now, I think I am good at most of them ( probability,calculus,PDE,Stochastic calculus,Linear algebra, decent knowledge in derivatives) – all through self
study.
I know top notch univs are not for me..Just that I want to know which universities in US, UK, Singapore(NUS/NTU) should I aim for?
Also, is there anything that I should do to convey my proficiency in specified math courses as they appear shady on grade sheet?
I know CMU,Berk kind of things are out.. How abt lse,warwick,edinburgh,caas,rutgers,cornel,nus .. or any other
Will they just look at grade sheet or will they filter thru interviews or math tests? Will Math GRE test help?
Can anyone throw some light on Msc.Quantitative finance at NUS & career prospects later
My profile:
Work exp – 7 years in high end software development – Java,C++ ( No financial exposure)
Btech – mechanical engineering IIT madras 2003
CGPA – 7.27 ( A = 9,B=8,C=7,D=6)
Grades in relevant courses:
Elements of Calculus -D
Vectors, Matrices, Differential equations – C
Physics 1 & 2 – B
Engineering mechanics – A
Fluid mechanics – B
NUmerical analysis – C
Special functions and PDE – B
Complex analysis – D
Dynamics of machinary – A
Heat transfer, Turbomachines -B
since you are good, you should just take the cqf. it will open up doors for you. if you are really good, you should have no problems getting recommendations and job offers.
but if you aren’t good, it’ll be a waste of your time and money.
Hi,
I am Computer Engineering Graduate with 2+ years
experience in a Financial Services Company I am into developing web based applications in the banking domain and planning to give CFA LEVEL1.Will my work experience be considered relevant for CFA?
answer is yes, Sachin.
Yhanks!!.I have no prior Knowledge of finance.Can anybody tell from where to start;)?
don’t understand why so many indians are interest to do finance in singapore. Why not stay in India?
Question isn’t about staying in India.
India doesn’t have quant schools.
Buddy I am not thinking of leaving India or studying Finance in singapore its just I cam across the forum
and thought I would get some useful info.I am thinking of doing Cfa by staying in India only 🙂
sachin:
are you ashamed to admit that you want to leave leave india and study/work in singapore. funny indian may be funny but he is an idiot if he cannot figure out why indians want to work/live abroad.
u want money and funnyIndian is a typical smartass who thinks he is smarter than he really is.