Basic prerequisites before starting CFA program

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I just joined this forum because I’m considering starting the CFA program. I’ve talked to couple of people who have/are going through the CFA program. The first person I talked to has had their CFA for over 5 years and he’s told me that I would need an accounting background or some experience with accounting before even starting to attempt to take the level 1 exam. He suggested that I take a couple of intermediate accounting courses.
A little bit about myself, I have no accounting or finance background from school or work. I’ve been working at a 401k plan consulting firm for about 3 years. My main duties are basic investment report building and nothing specific to investments. I do look at mutual funds a lot, but nothing in detail. I’ve taken the series 7 and 66 and passed it.
If someone can help/guide me in the right direction as to how I should start the CFA process. I was planning on taking the Dec 2009 level 1 exam but after talking to the person at work, I’ve lost direction. Should I take the accounting courses (which will take another year to complete) or should I start with reading and learning the books from the CFA institute? Any good suggestions? Thanks in advance!
 
You only need interest, dedication and strong will power….
The CFAI text books assume you have no prior knowledge of the a particular subject…I am from an IT background and found the course decent (not tough and not easy). So i think you hsould go for it
 
Yes, level 1 is designed with the assumption that your only background is decent math skills (like grade 12). If you don’t mind studying harder for level one than someone who took an accounting or finance background, you’ll be just fine. Besides, all you need to know for level 2 is level 1, so once you past the first exam you’re pretty much on even footing with everyone.
Good luck!
 
I think your friends were right, intermediate accounting is a must for better understanding of the FSA in level 1.
 
Thanks for your input guys. I do have a strong interest in this field so I’ll give it a go with level 1. Good luck to everyone else and if anyone else has any comments or suggestions for me, feel free to post. Thanks again!
 
cfamonkey Wrote:
——————————————————-
> If someone can help/guide me in the right
> direction as to how I should start the CFA
> process. I was planning on taking the Dec 2009
> level 1 exam but after talking to the person at
> work, I’ve lost direction. Should I take the
> accounting courses (which will take another year
> to complete) or should I start with reading and
> learning the books from the CFA institute? Any
> good suggestions? Thanks in advance!
I would just go for it. Yes those with an accounting background will have an advantage on the FSA sections, but you can learn those from the CFA text or Schweser on your own rather than waste time (and money) completing accounting courses. Everything you need to know for the CFA exam are in their textbooks.
 
It really depends on how smart you are. If you are a very fast learner you should be able to pick everything up by reading the curriculum. I would imagine that L1 would be hard for someone without any background in finance / accounting, but nothing is tested that’s not taught in the curriculum.
That said, most people fail Level 1 even though it is much, much easier than the proceeding 2 exams. So the difficulty of successfully completing the first step (let alone the entire process) should not be underestimated.
 
Agree with McLeod81.
Also, I’m not sure about Schweser, but if you buy L1 Stalla, they actually include the base readings that are not found in the CFA books for people who do not have a background in business/finance.
ie the CFAI says, we recommend at least knowing Accounting, Statistics, etc etc and you should have attained this knowledge before beginning the curriculum - - Stalla contains these CFAI recommended readings in their L1 study notes.
 
If you start early enough there is enough supplemental materials online for free to help you along. Stick to a diligent study schedule and you will do fine.
 
Don’t waste time with an accounting class. Get to John Harris’s accounting workshop instead. You’ll learn more in 16 hours than in a school year of accounting 101.
 
Chi Paul Wrote:
——————————————————-
> Don’t waste time with an accounting class. Get to
> John Harris’s accounting workshop instead. You’ll
> learn more in 16 hours than in a school year of
> accounting 101.
+1
 
Thanks for the info. Who’s this John Harris guy? I’m in Socal, is he available in different locations? What’s the cost? Thanks again. Thanks for the support and the info from all the poster in this thread! It’s been a lot of help and support for me.
Chi Paul Wrote:
——————————————————-
> Don’t waste time with an accounting class. Get to
> John Harris’s accounting workshop instead. You’ll
> learn more in 16 hours than in a school year of
> accounting 101.
 
u dont need a finanacial background to do CFA. true, a financial background will give you a slight advantage on Level 1, if you read what you have to read, you will still pass.
 
CFA Monkey,
Can’t recall his website off hand, but if you just google “John Harris accounting workshop” you should find it without trouble. Not sure if he does this in southern cal, but if not, go to where he does. Even with travel costs, it’s still cheaper than a college course and a better payoff.
 
I do not think it’s necessary to go for any workshops at all. It’s more worthwhile spending your time reading the materials in the CFA text or some study notes like Schweser.
The reasons being:
1) the material tested is not as extensive as those in full-fledged accounting courses;
2) the CFA text or study notes covers adequately what is required for the exam;
3) save some money and time as well.
Of course, there’s nothing to stop you if you really want to know more about the subject. p.s. accounting’s not really fun anyway.
More importantly, the reason why one should take the CFA exam should also be considered carefully as it is a huge investment. Read more on http://whycfa.blogspot.com
 
eshawn, from my experience reading the FRA book, taking John Harris’s course, and then scoring over 70% on the exam in FRA with no previous accounting background I have to disagree.
Also, in regards to your list of reasons, they would all make sense if not for the fact that John Harris’s class is specific to Level I of the CFA exam.
 
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