One of the most common questions I get from new CFA candidates is if it is possible to take the December Level 1 exam and then sit for the Level 2 CFA exam the following June.
To which I reply, “Possible, of course. Recommended, maybe.”
What’s the hurry?
Maybe the three years that have passed since I was a candidate have made me forget how anxious candidates are to be done with the exams. I understand that, like any academic credential, completion of the program is a big step in your career and you just want to get through it.
But are you taking the exams just to pass or are you taking them to learn how to be a better analyst? Trying to fit so much material in so little time may mean you will miss an important opportunity to really master the details. There is a ton of material in the CFA curriculum, written by some of the best minds in the industry, but a lot of it will go in one ear and out the other if you do not take your time.
Taking both the December and June exams makes for a tough schedule as well. Upwards of 600 hours studying over about nine months means a minimum of 15 hours per week devoted to the curriculum. Studying for 15 hours a week is achievable but you are going to risk some massive burnout trying to do it for such an extended period.
Even passing both the December and June exams will only get you the charter a year earlier, and that is if you will have the necessary work experience requirement.
Passing in the fast lane
For those of you intent on getting through the exams as quickly as possible, there is still time for a December and June exam schedule. You’ve got 18 weeks to the December exam which means you can accumulate the 300 hours of minimum study with a little over 15 hours per week. Some will be able to pass on less than 300 hours but many will not and it is much better to over-study than to fail an exam.
There is one advantage to the quickened strategy, that you will not need to review the Level 1 material while studying for the second exam. A lot of the material in the Level 2 exam is repeated or closely builds from the first exam. Many candidates find themselves having to review before going on to new information because of the six-month hiatus from studying.
Paying attention to the topic weights for each exam will help immensely. The first exam heavily weights Ethics and Financial Reporting. The second exam heavily weights Financial Reporting and Equity Investments. The material on Ethics and Professional Standards does not change much across each exam so spending extra time mastering it for the first exam could save you a lot of time studying for the Level 2 exam. I would also spend a lot of time studying Financial Reporting and Equity Investments within the Level 1 curriculum. You absolutely must master the material on financial statements in the first exam to be able to understand the Level 2 Financial Reporting and Equity Investments material.
You cannot afford to neglect any of the topic areas but spending the majority of your time during your Level 1 studying in these three topics will help give you a head start on the second exam.
After the Level 1 exam, taking at least a few weeks off is probably a good idea but you will want to start studying for the June exam as soon as possible. The Level 2 CFA exam is regarded as the most difficult by many candidates, especially for its huge amount of formulas.
I guess there is nothing wrong with a December-June exam schedule if you do not mind studying overtime for the better part of a year. Even if you are not successful on one of the exams, time spent studying is time well-spent and will help you in your career. Just remember not to neglect other aspects of professional development like networking or taking on more responsibility at work.
‘til next time, happy studyin’
Joseph Hogue, CFA