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MBA is more general, CFA is more specific. If you only ever want to be a financial analyst, and you think you can pass the CFA, I'd say do that. If you want to be more flexible with your future employment options and want more networking ops, I think an MBA would be better.
For reference, I have 4YOE in finance and I'm making $70k+bonus in a MCOL area, and I'm starting my MBA in Spring hoping to get 100k+ when I get done with it. And I'm hoping the MBA opens more doors.
Get a CFA
I would echo the above, but the CFA is not for the faint of heart. While yes it can be challenging to get into a target school and there are more “qualifications”, getting the CFA is not a walk in the park and I would argue more difficult when it comes to the actual work. For background though I am working on CFA L2 and do not have an MBA
Wharton MBA and CFA charterholder here.
I think you can and should take the CFA as early as you can, assuming you want to stay in finance. Then decide on MBA once you feel you’ve learned enough from your current job or if you’re ready to make a big change.
For CFA, among other benefits they advertise, the charter helps you have a better grasp of financial theory and helps with job prospects which should be useful as long as you stay in finance. I think job helpfulness is very specific to investing/buy side/ research though. That said, level 1 is good to learn fundamentals applicable to most finance jobs.
MBA is a really expensive 1- to 2-year commitment but was worth it in my opinion. It’s a bell curve and some people thought it was a waste of money and some absolutely loved it/found it worthwhile. Just know what you’re trying to get out of it. It’s an amazing opportunity to learn new things and network but ask yourself what you should focus on in terms of learning or what areas do you want to build your network in? Most people use their MBA to change industries, change geographies, or breach a promotion ceiling. I’ve seen some folks use MBA as an environment to take risks and get mentorship to launch startups. Some just enjoy meeting like-minded friends in any industry. Keep in mind brand matters too if you do choose to apply and are focused on post MBA employment.
Bottom line is they are very different and what you should pursue depends on what you want to get out of it.
Feel free to ping me.
Well said. What year did you graduate WG ?
Go for the CFA. It's not as broad as the MBA, but it costs far less and the starting salary will be the same, if not higher.
Rising Star
I would echo that the CFA is very niche and tough to close doors super early in your career. MBA is a great move but just make sure that you apply to target schools for what you would actually want to do. It might be early to start an MBA, but not too early to start a CFA.
Ping me if anyone needs a tutor I have the schwesser e book. I am u chicago undergrad too so quant.
I’d lean MBA, go to the best school that you can. It’s will lead to you have a larger network and you can get relevant “investment” related internships during your time in school. The MBA is the best way to jump start your career path, just costs more. CFA is also great but it’s going to take roughy 2 years to finish, and it might not have the full pedigree to land your next role until your finished with at least the first two levels, or all three. Just depends on how comfortable you are in staying in your current role for another 1-2 years. Or you you knock out the MBA and gain other new experience. Good luck!👍
It might, or maybe you could network within your company and see if you could move roles upon finishing a certain amount of classes? You can get as creative as you want from that aspect. I’d discus it with you manager and ask him/her these questions so that you can make an informed choice. I finished my MBA 2 years ago, and while I was in one of my internships I networked within the company and spoke with people who were previously promoted from within to the position I wanted.
For those that are suggesting taking and passing the CFA, are there any tips you can offer? I did consider it, but it sounds absurdly difficult.
I think that comes with any test or certification , but thanks for your input
I'd go with MBA. You'll have more opportunities compared to CFA which is very specific or limited in scope.
Ever consider a master’s in finance? I went to a top 3 school for MSF (really just depends on your GMAT) straight out of undergrad (non target) and after the 1 year program entered my first full-time role at $110k + bonus with strong WLB. MSF is specific to finance and allows you to be qualified for very specialized roles, bringing on more selectivity and career options than an MBA.
CFA is always good to have but an incredible grind. See if someone will sponsor a 1 year msf from a top school
which company do you work for?
I tutor for cfa
I’m a wharton MBa and cfa. Start cfa now.
Register and research it. Take Kaplan schwesser course or mark meldrum .
While I echo that what you want to do is an important factor, I’d say another large factor is also which MBA programs you’re aiming for. If you’re thinking about going to a target MBA, then both career opportunities and income will be greater than if you were to get a CFA, on average.
#10 Program in 2023 Michigan Ross - 2021 median base salary accepted by new grads was $150K for us citizens (https://michiganross.umich.edu/sites/default/files/documents/21_mba_employment_report_f.pdf)
Median salary amongst CFA holders in 2022 was $180K (https://corporatefinanceinstitute.com/resources/careers/compensation/cfa-salary-compensation/)
It’s important to distinguish that the MBA salary is for new grads, which should grow over the course of their career, while the CFA salary is the average across all charterholders, from brand new to those well into their careers (CIO, PM, etc).
Lastly, I want to emphasize “on average” because there are certainly some CFAs who have similar outcomes as grads from target MBAs, though it is not the norm. Again, this just another factor in the multitude of factors that you can use to come to a decision that makes the most sense for you.
“On Avg.” for CFA is the most important part to remember here. My brother worked in wealth management but wanted to break out into ER, IB, etc. After passing all three levels in about 2 years (passed all three on first attempt) he was able to make the move to a more desired role and comp jumped but not to $180. It only increased to industry standard for his new role