Are you considering the CFA designation but unsure if it’s worth it? As a CFA charterholder and Chief Operating Officer at 365 Financial Analyst, I’ve been in your shoes. I want to share how I chose the CFA path and the key considerations for determining if it’s right for you—guidance I wish I had received back in the day.

Why Pursue the CFA?

After obtaining my master’s in Financial Economics from Erasmus University Rotterdam, I discovered gaps in my program’s accounting, valuation, and portfolio management. The CFA curriculum addresses these deficiencies—providing a thorough and beneficial complement to traditional finance degrees.

But is pursuing a CFA worth It? I pondered this question 15 years ago when I considered how to get a CFA. The following are key factors to think about when making this crucial decision.

Time & Effort

Consider the commitment required to pass the exams. The debate around the CFA’s value often focuses on the substantial initial effort and uncertain return on investment. Passing the CFA exams demands significant commitment; success isn’t guaranteed.

It’s not merely a financial investment—ranging from $3,000 to $8,000 for study materials, exam registration, and potential retakes—but also a substantial time commitment. You must dedicate over 1,000 hours across four years. If you cannot commit, the CFA program might not be suitable, and it’s best to realize this sooner rather than later.

But beyond the initial investment of time and effort, the drawbacks of earning a CFA charter are minimal. The knowledge and skills gained can profoundly impact your career.

CFA Career Goals

Career objectives are critical in assessing the value of the CFA designation. Around half of the candidates pursue CFA exams to enhance their careers; however, although the CFA charter can boost your career, it’s not a guaranteed success route. Success hinges on your efforts. As for how to get a CFA, it involves passing three levels of exams—each demanding a significant investment in study time and dedication.

The CFA is just one component of your career development. Studies indicate that career advancement typically stems from passion, dedication, and perseverance. Therefore, post-exam, continue to work diligently and strategically seek roles where the CFA credential is esteemed.

The CFA designation serves as an essential signal of quality. It’s particularly valued within specific finance sectors, such as asset management, equity research, investment strategy, and buy-side roles. Although its recognition may vary across different finance areas, it’s a distinguished qualification in these specialized fields.

As a student, the CFA program can help secure internships or entry-level jobs, providing essential experience. For professionals, targeting positions where the charter is highly regarded can be fruitful—evidenced by 22% of CFA holders working as portfolio managers.

CFA Salary

Estimating post-CFA earnings can be challenging. Mid-level analysts typically see a 15 to 20% salary boost after earning the CFA designation. More experienced analysts and managers often see even more significant increases. The CFA designation is highly valuable for senior roles like risk managers, investment managers, and portfolio managers. To begin reaping these benefits, one must first understand how to get a CFA, which involves passing rigorous exams and meeting professional requirements.

Additionally, there are immediate financial benefits to progressing through the CFA exams—even before becoming a charterholder. According to the latest CFA salary data:

  • In 2024, CFA candidates who passed Level 2 saw a 39% increase in total compensation.
  • Those who passed Level 3 or became charterholders earned 53% more than those yet to pass Level 1.
  • In 2022, candidates who passed Level 1 saw a 29% increase in total compensation, up from 16% in 2021, indicating an earlier return on CFA progression.

FAQs

Can the CFA help with career changes or new job opportunities?

Many candidates (about half) pursue the CFA to switch job functions. Learning how to get a CFA can be a strategic move for career advancement. While the CFA charter alone doesn’t guarantee a career shift, it’s highly effective when paired with robust networking and diligent job searching.

Remember, no qualification alone ensures a job; skills in networking and interviewing are critical to persuading potential employers of your suitability. The CFA confirms your academic strength, but excelling in interpersonal skills is essential for job success.

Will AI replace CFA charterholders?

It’s unlikely that AI will replace CFA charterholders. Despite the advanced capabilities of AI models like ChatGPT, they cannot replicate practical experience or perform the nuanced tasks for which CFA charterholders are trained. AI lacks the critical thinking and real-world expertise needed for sophisticated financial analysis. Therefore, the human aspect in financial decision-making and analysis is crucial and cannot be substituted by AI.

Weighing the Rewards: Is the CFA Worth It?

Pursuing a CFA charter is a significant commitment that should not be taken lightly. It requires substantial time, effort, and financial resources. But for those dedicated to enhancing their expertise in finance, the rewards can be considerable—both in terms of career advancement and potential salary increases. Understanding how to get a CFA involves a series of steps—from meeting the prerequisites to passing the exams and gaining relevant work experience.

The CFA designation is particularly valued in specialized finance sectors and can open doors to senior roles and new opportunities. As you weigh the benefits against the costs, consider your career goals, current financial and personal situation, and the potential impact on your professional life.

And while the CFA can provide a critical boost, your passion, dedication, and strategic career moves will ultimately determine your success in the field of finance.

If you wish to get job-ready for a successful career in finance, don’t miss the opportunity to subscribe to the 365 Financial Analyst platform.

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