The Chartered Financial Analyst (CFA) designation is often called the “gold standard” in finance, attracting hundreds of thousands of candidates worldwide each year. However, not everyone should pursue it—for some, it can be a costly ($3,000+), time-consuming (300–1,000 hours), and low-return investment.
This article uses U.S. job market data, CFA charterholder salary reports, and real-world case studies to identify four types of people who may want to reconsider the CFA before committing.
1. Those Whose Career Goals Don’t Align with the CFA
Data & Facts:
- The CFA’s core value lies in asset management, investment research, private equity, and hedge funds. According to the CFA Institute, about 70% of charterholders work in these fields.
- However, if you’re targeting investment banking (IBD), consulting, or corporate finance, the CFA’s marginal benefit is limited.
- Example: Goldman Sachs and J.P. Morgan’s IBD divisions prioritize MBA degrees and internships over the CFA.
- Glassdoor Data: Only about 15% of U.S. investment banking analyst job postings mention the CFA, while elite MBAs or top-school backgrounds are more valued.
Who Should Reconsider?
- Those aiming for IBD, management consulting (MBB), or corporate finance roles at tech firms.
- Better Alternatives:
- For IBD → Series 79 (M&A advisor license) + top MBA.
- For consulting → Master case interviews + secure prestigious internships.
2. Early-Career Professionals Expecting an Immediate Salary Boost
Data & Facts:
- While CFA charterholders earn higher median salaries (~$150K in the U.S.), pay increases depend more on experience and industry than the charter itself.
- Payscale Data: Entry-level (0–3 years) CFA holders earn only 10–15% more than non-charterholders—far from the “double salary” some expect.
- Real Case: A New York investment banking analyst passed all three CFA levels but saw only a 12% raise (from $85K to $95K), while a colleague without the CFA negotiated a 20% hike by job-hopping.
Who Should Reconsider?
- Professionals with <3 years of experience who expect a quick promotion or raise. The CFA is more useful for long-term career shifts (e.g., moving from analyst to portfolio manager) than short-term gains.
- Better Alternatives:
- Focus on core skills (financial modeling, pitch decks) + high-impact projects.
- Consider niche certifications (e.g., Series 79 for IBD, FRM for risk management).
3. Career Switchers with No Finance Background
Data & Facts:
- The CFA’s pass rates (~40% for L1, ~45% for L2, ~50% for L3) are brutal for beginners.
- CFA Institute Stats: Non-finance candidates have a 20%+ lower first-time pass rate than finance majors.
- Real Case: A U.S. engineer spent two years passing all three CFA levels but was still rejected for finance roles due to lack of experience—ending up back in engineering.
Who Should Reconsider?
- Those with no finance degree/work history who aren’t prepared to start at entry-level post-CFA.
- Better Alternatives:
- Start with free courses (Coursera finance basics) + internships/part-time roles to test the field.
- Explore easier entry-level certs (e.g., SIE, Series 65).
4. Working Professionals with Tight Budgets or Schedules
Data & Facts:
- Total CFA cost: $3,000–$5,000 (fees, materials, prep courses) + 300–1,000 study hours.
- Surveys show ~30% of U.S. candidates drop out due to work/family demands, wasting early registration fees ($900+).
- Real Case: A Silicon Valley software engineer failed CFA Level 1 three times due to overtime work and quit.
Who Should Reconsider?
- Those who can’t dedicate >10 hours/week or absorb $1,000+ in sunk costs.
- Better Alternatives:
- Cheaper, faster certs (e.g., FMVA, CAIA).
- Delay the CFA until career stability allows.
Conclusion: Who Should Pursue the CFA?
The CFA’s sweet spot is:
✅ Target industry (AM/PE/Research) + ✅ 3–5 years of experience + ✅ Enough time/money.
If this doesn’t describe you, investing in better-aligned paths (MBA, internships, niche certs) may be smarter.
Before Deciding:
- Check LinkedIn job postings to see if the CFA is a “preferred” credential.
- Talk to charterholders (via CFA Society chapters) for real-world ROI insights.
Remember: A credential is a tool, not a shortcut. Career success depends on skills + experience + network—not just a title.
