What's the negative impact besides emotional ones from failing CFA L1 twice

I failed the L1 back in Dec 2012. My score was bad (below band 5), and I know the problem = not prepared! This year I come in again and wishing to get it, however, due to life problems and other goals I wanted to achieve this year, I just can’t make it in to do my studies as planned. I was in the Final Review class (mind you I only signed up for the review) and I am lost. Should I withdraw or else? My question is, if I fail again (not to say even I pass and who knows about L2 and L3), what’s the impact on me as a candidate? Mind you my situation is different, I am not in the industry and I am just below 35 (Godamnit!)

19 Comments
 

There is no harm in taking it, but I really think you should evaluate your motivation for even pursuing the program.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
so_ken_you

I totally agree that I need to evaluate my motivation. I want to get into ER, M&A, VC and PE if possible. I learned that VC, PE jobs do not all require CFA but an MBA with experience in relevant industry are more useful to get in.

What would you suggest?

M&A, ER, VC, and PE are all completely different planets. You've got to get a handle on what work each job entails and on where your interests ultimately lie.

in it 2 win it
 

Just money, time and ego.

I have seen a few places now requiring first time passes on CFA, but this isn't the norm, yet.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
Best Response
so_ken_you

First time passes on CFA??? with less than 50% passing rate every year??? You got to be kidding me? My God!!!

I mean my friends in PWM see a lot of pressure on them to pass first time too. It's two fails fired, one fail, good luck moving through this organization with any pace / getting a good bonus.
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

There's a difference between signing up for the exam, not studying much, and failing as a result of poor preparation versus studying your ass off and failing Band 5. While the CFA charter is rarely viewed as a requirement, employers will absolutely care if you fail on their dime and their time.

CFA success boils down to effort. I've seen really smart people fail L1 and average joes go 3/3 because they studied their asses off while the smart folks though they could skate by on their IQs. There's too much material for anyone to not have to study. You can get away with cutting corners on L1, but that'll never work on L2 or L3. If you find the L1 material challenging you'll be in for a rough ride on L2 and an even more painful ride on L3.

 

I know Kingtut... actually you articulated it perfectly, but it's just the fact that there are no gurantees at all that I will get my foot in the door even I pass all 3 levels. It's hard to dedicate and commit to something like this. Just like investing in something that the return, the IRR = or 0 on a project....

I am searching for a solid way to change careers, which I thought I have got it but apparently, it's not working. I need to re-evaluate it....

Thanks again for your feedback!

 

I know so many people that fail L1, in fact I'm the only one who's passed it out of the dozen or so I know who have written. The difference is obvious too - I dove in and went hard from September on, only going out drinking maybe once a month, taking vacation for final prep, etc. Everybody else seemed to not even touch a book until mid October, still finishing readings in the last couple weeks of November, one guy even went out for a friends birthday the Thursday before the exam.

So moral of the story: you need to want it, and you need to want it bad.

 

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