next stop...cfa

Now that my fiancée and I have decided to book our flight to England on September 23rd (orientation begins Sept 30th and classes begin Oct 5th), I am left with roughly 2-months to finish sorting out my pre-MBA plans. You don’t have to be Gary Kasparov to know that the people who are successful in life plan several moves ahead. Of course even Kasparov can lose to IBM’s Deep Blue, so it’s always important to maintain some perspective and humility. Nevertheless it won’t stop be from trying to tip the odds for success in my favor!

First, you need balance. In a previous post I mention having joined a gym, and putting some much needed work into my tennis serve, to better prepare myself physically for the endurance challenge that is the Oxford MBA. Of course I’m also motivated by the fear I’ll be the largest person in the boat rowing for Exeter College in Oxford! Incidentally, I’ve heard from another classmate who swears that yoga is such great exercise that afterwards “you would have felt that you sweated off the equivalent of a small baby!” Regardless of which way you decide to shape-up, it's imperative to find some release for all the stress.

Second, to prepare for the coursework, I’m taking several steps, including brushing up on my personal finance by inching closer to completing my CFP® certification. With over 350,000 people claiming to be financial planners in America, only 10% have actually gone through the rigorous qualification process that I am currently going through. As a brief aside, most financial professionals in America widely agree that the following designations mark the highest of achievement in their respective fields: the CFA for financial analysts, the CFP® for personal finance, the CPA for public accounting, and the MBA for general management.

Now to become a “Certified Financial Planner” you must satisfy five principle qualifications, which are: 1) a minimum 3-years of qualifying financial planning work experience, 2) a bachelor’s degree, 3) completion of additional education requirements [typically 6 courses covering the financial planning process, insurance, investments, retirement, income tax, and estate planning], 4) an ethical background check, and 5) pass the 10-hour national Board exam. Currently, I’m waiting for my test results from the Certified Financial Planning Board. Roughly 50% of test-takers pass. I won’t know until I leave for England, however, but I’m optimistic. Nothing left to do but wait.

I believe holding both an Oxford MBA and the CFP® will help me during recruiting season. It would nicely qualify me for a job as a “private banker” on Wall Street. This would be very similar to what I do now as a financial advisor, except I would be swimming “upstream” by dealing with a wealthier clientele who face more sophisticated financial issues like how to finance their G5 private jet! Luckily, despite the recent financial market turmoil, private bankers are still very much in demand by both an aging population in the developed world, and by the increasing wealth of those in the developing world. I'm also excited to apply this background to opportunities in investment banking, private equity/venture capital, or management consulting.

Why relax!? I’m never one to slow-down, or rest on my laurels. So, now that I have the summer off and things are finally winding down, I’m looking for other ways to busy myself, and make my stay in Oxford a success! All the logistics are accounted for: my financing is in place, my accommodations confirmed, my college selected, my Visa applied for, and my post-MBA job search begun. After careful consideration, I have now decided that the best way for me to prepare for the MBA in these last 2-months is to register and study for the CFA Level 1 exam in December! Frank Sinatra has got nothing on me when he wrote "that he bit off more than he could chew" in the song "My Way."

Long considered the “gold standard” on Wall Street (besides the MBA), the “Chartered Financial Analyst” designation has come to symbolize the ultimate cerebral achievement for financial “quant jocks” around the world. In fact, studies show that individuals who hold both an MBA and CFA with 10-years experience earn an average of $250,000 per year! So, while CAPM and the Treynor ratio are still “Sharpe” in my mind from the CFP® exam, now is the perfect time to polish my HP12C financial calculator, and ready myself for the mental gymnastics needed to take-on the CFA and catapult myself ahead of the curve for such upcoming core MBA courses as Finance 1, Decision Science, and Financial Reporting. Keep checking in if you want to re-connect with your own inner quant-jock, as I will continue to post info on the CFA, as well as the Oxford MBA.