I know! I promised I wouldn’t ever again consider signing up for any formal education programs, because after the CFA, I was D-U-N, done!
But in a moment of weakness – after one of those 7.2% ABV Sierra Nevada Torpedoes – I found myself at caia.org doing some recon. If the CFA essentially forged a raw, out-of-shape recruit into the investing equivalent of a Navy SEAL, maybe doing the CAIA afterwards could be like sending a SEAL to sniper school? Does that make sense?
…only if you’re thinking with your Sierra Nevada.
I eventually came back down to earth, but I did return with some good intel that I will share only with you, my platoon mates. Stand by to copy.
|Have a bachelor’s, be in the final year of your bachelor’s, or have any combo of college + work exp. that totals 4 yrs||Apparently none, though they do say you should have a “basic foundation” in finance and quant|
|Minimum Cost: registration + exams only||Level 1: $1080
Level 2: $640
Level 3: $640
Total = $2360
|Level 1: $1550
Level 2: $1150
Total = $2700
|And after I pass the stupid exams, before I get to put the letters after my name, I still have to…||Accrue 4 yrs relevant full-time work experience, if you don’t have it already||Accrue 4 yrs only if you don’t have a bachelor’s. Otherwise, only 1 yr of work experience required|
|Affiliate Members||Haven’t done the program. They’re just professionals who want access to the publications, networking, events, etc.||Have passed all the exams but haven’t completed the work experience requirement yet|
|Minimum Suggested Study Hours Per Exam|
|The exams are given how often?||Level 1: 2x per year
Level 2: 1x per year
Level 3: 1x per year
|Level 1: 2x per year
Level 2: 2x per year
|Recent Exam Pass Rates||Level 1: 38%
Level 2: 42%
Level 3: 52%
|Level 1: 68%
Level 2: 58%
|My impression about the program BEFORE reading about it||Basically just Volume 6 of every CFA Level|
|My impression about the program AFTER reading about it||The Gold Standard. This is what you want if your inclinations are towards building & managing portfolios or doing research analyst work||Good knowledge for a fund-of-funds sort of manager who’s looking for a skill set that will help him add non-traditional, low-correlation asset classes to a portfolio of traditional equities and bonds|
And probably the biggest question is, what are the designations relatively worth? In forum-after-forum, the suggestions were that if you’re trying to decide between the two, want to open career doors, get respect, etc., there’s really no comparison: CFA all day. A caveat though is that there are no guarantees about it getting you a job. Many believe we’re starting to get an oversupply of CFAs.
As for the CAIA… it’s really something that you might want to add on top of a CFA to complement it. (I knew it! Sniper school!)
…but only in very rare situations, when one particularly needs alternative asset expertise, would one choose the CAIA instead.
And as one person succinctly put it, if you’re wondering how many of these FRM, CFP, CAIA, and CMT thingies to go after: CFA + MBA, then you’re done.
Now my wife already knows I’m a special operator, but I floated a trial balloon of maybe thinking about the CAIA, so that I can be really special. Instead of shock and awe at my ambitious pursuit of challenge and self-improvement, I got shock and disapproval.
So looks like this soldier of fortune will only fight in minor skirmishes at iTunes U and Coursera for the time being. The truth is, I was only pulling her leg. I think finishing the CFA program permanently cured me of the desire to prove something through long, difficult academic programs.
But I won’t be held responsible if you switch out my 12.5% ABV rioja with a 15.0% Zeven Deadly Zins…
Update: I wrote an eBook about my experiences in the CFA Program. If you’re interested, click here.