CFA Results – It Doesn’t Matter! It really doesn’t!

Here we are more than a month after the CFA results and the elation hasn’t worn off for those that passed. Nor has the disappointment gotten any better for the candidates that did not make the cut.
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Beating CFA Study Burnout in these Last Few Weeks

Just a few weeks remain and CFA study burnout can be your biggest challenge. Use these strategies to stay strong.

There’s just three weeks left to the June 2016 CFA exam and you’re probably hitting the books pretty hard trying to get those last few points. After months of studying, many candidates face a critical challenge in these last few weeks. Whether you get tired of studying or just become less efficient, you need a plan to confront CFA study burnout.

Burnout can hit in one of two ways. The most obvious kind of burnout is when you just get tired of studying, can’t bring yourself to even look at the CFA curriculum and stop studying. You either stop studying altogether or procrastinate studying so much that you barely put in a few hours each week.

The other kind of burnout is just as bad, maybe worse. In this kind of burnout, you just zone out while you’re studying. You still put in the hours studying for the exam but it becomes like driving to work, you get to work but honestly can’t remember much about the trip. Not only are you still spending hours on the curriculum but it’s so ineffective that it’s like not studying at all.

Don’t want to throw you off your plan but want to offer an alternative in case you feel tired

Study Better by Turning Your Plan on its Head

I don’t want to throw you off your study plan so late in the game. If you feel like you’re still studying effectively and retaining the material, go ahead and keep to your schedule.

Use your CFA mock exam or test questions as a guide. If you are still doing progressively better every time you do practice problems after studying, then your studying is still paying off. If you’re getting less out of your CFA study sessions, you might want to check out some of these ideas to energize your studying.

One of the best ways to change up your studying is to use different media. This means using flash cards, study notes, audio and video in your studying. You can usually find some good YouTube videos to walk you through the bigger topics in the curriculum. These usually won’t substitute for a programmed course but can be a good way to break up the monotony and answer a few questions on difficult subjects.

Try going through a different process when you study. Do you always start out reading the curriculum then taking a few practice problems? Try starting off with practice problems or working through some flash cards. As a bonus, starting off with questions before you review the material will force you to reach deeper into your memory for the material.

We looked at some of the best places to study for the CFA in a recent post as well as what makes a great study place. Even the best location can get stale after a while and changing up your study spot can help to shake you out of a rut. Parks, libraries and coffee shops top the list of best places to study so try a few of these to see which helps to change up your routine.

If you’ve been really hitting one topic area in particular, you might try focusing on a few others for a few days. You still need to make sure you’re ready for the most important topics like financial statement analysis, ethics and equity investments but try not to overdo it. I spent so much time over the last few weeks studying equity investments for the Level II CFA exam that I caught myself skimming over important areas.

The idea is just to change up your studying to shock your brain into paying attention. The problem behind burnout is that you’ve done the same thing so many times that your brain is bored with the routine. Anything you can do to change that and make your new study plan unique should help to shake your brain out of its daze.

‘til next time, happy studyin’
Joseph Hogue, CFA

A Scientifically-Proven Way to Study for the CFA Exam

Look to science to help you learn and remember more of what you study for the CFA exam

The phrase ‘study smarter, not harder’ is thrown around a lot but candidates may not be taking the advice to heart. Studying upwards of 300 hours for the CFA exam is hard enough but even that may not get you closer to the designation if you’re not retaining the information. You truly do need to master the material in order to recall it on the six-hour CFA exam and you won’t be able to do that by just reading through the curriculum.

We’ve already talked about the power of active learnings to remembering the CFA curriculum. We only remember about 10% of what we read and 20% of what we hear through these passive learning strategies. Working practice problems, flash cards and other active learning strategies can help you remember up to 90% of the material.

I thought I would explore a few more ways science has proven the best study methods and how you can incorporate them into your CFA study plan.

Keeping from Forgetting What You’ve Learned for the CFA

Ebbinghaus published his hypothesis on the ‘curve of forgetting’ in 1885, describing how we learn and forget information. The idea is that you learn everything you can about a topic through a study event or lecture but then start to lose the information over time if it’s not reinforced. If you do nothing to remember the information, you’ve lost up to 80% of it by the second day and retain just 2% in a matter of 30 days.

The solution is to reinforce the material and commit it to long-term memory by reminding yourself of the key points. Spending just 10 minutes studying the material the day after a lecture will help boost your memory back to full comprehension. After that, it takes less time revisiting the material to remember the bulk of the topic.

curve of forgetting

Using this idea in your CFA study plan means reviewing the material you study the following day and each week for the next month. Use study notes to review the key points and then do 15 or 20 minutes of practice problems.

Use active recall to convert to long-term memory

Work published in Psychological Science by a Washington University professor on a 2009 study shows that students remember material better when they actively recall it after studying. Instead of just reviewing notes or rereading material, close your book and verbally recite the key points to a topic. Do this just after studying and before reviewing the material.

Focus on one thing and don’t multitask

I know a lot of CFA candidates like to listen to music or sit in front of the TV while studying but research proves that these distractions cost you when you go to recall the information. Studies by Indiana University and Ohio State show that trying to multitask while studying interrupts the process of absorbing and retaining the material. Study more effectively by concentrating on just one thing and limit distractions.

Change up your environment

We talked about finding the ‘perfect’ CFA study location last week but there’s science behind finding a few different places to study. UCLA psychologist Robert Bjork points to evidence that changing your study location regularly helps to improve retention. It has to do with state-dependent learning and the idea that the brain associates learned material with the environment you were in when you learned it. Change up your location every few weeks and you’ll be able to recall the information no matter where you are.

Get moving before you get learning

Exercise gets your blood pumping and that includes to the brain. Research has proven that a brief period of exercise before studying can make you more alert and better able to learn.

So incorporating these five ideas into your study schedule could help boost your memory and get you those last few needed points on the CFA exam. Remember to use active learning by working practice problems and learning through all five senses (ok, maybe not so much through touch and taste). Actively recall the material after you study and then keep from forgetting by touching on it the next day. Keep physically active and focus only on your studying at different locations.

‘til next time, happy studyin’
Joseph Hogue, CFA


Rounding Up the Best Ways to Prepare for the CFA Exam

Use these 8 articles on preparing for the last month before the CFA exam to get everything in order

There’s just six weeks to the June 2016 CFA exam and candidates are feverishly preparing their last month study plans. One of the biggest pitfalls that catch CFA candidates is all this time meta-studying, or studying about studying. All the time you spend finding resources, asking other candidates and putting together your study plan is time you could be spending on the curriculum and getting those last few points you need to earn the CFA designation.

To help speed up the task of meta-studying  and build out your last month study plan, we highlight the best articles on preparing for the CFA exam as well as checklists you can use to make sure you’re on track. Use the articles below as your guide to plan out your CFA study schedule as well as prepare for the big day.

Best CFA Advice on Studying

This last month CFA study plan includes the tools and resources you’ll want to use to get through the material one last time before the exam. You won’t be able to read the curriculum again but these resources will help you cover as much as possible to make sure you’ve mastered the topic areas. The article also includes a strategy on how to use practice tests to guide your study plan to focus your time where it’s needed most. Includes a six-day study schedule that you can customize with your available time.

A big hurdle to effective studying is the uncertainty around whether you’ve studied enough. Candidates freak out and scramble for ideas and input on how much is enough and what more they can do. I put together this CFA study checklist to help you know that you’re on the right track or to point out some milestones you need to reach for confidence on the exam. How many times do you need to read the curriculum and other sources? How many practice problems should you do?

The last week before the CFA exam was always my favorite. In this last week CFA schedule, I talk about how to use the time as a study-vacation and how to get the most from your time. The post also includes exam day materials and a link to some important Institute pages.

Best CFA Advice on Preparing for the Big Day

This CFA exam day checklist includes everything you need to prepare for the big day. You’ll find links to a review of the typical exam day, a list of testing centers and the CFA testing center policy. This is information directly from the CFA Institute so make sure you know it.

This post on 10 ways to relax on CFA exam day has been one of our most popular this year. The chemicals released when you’re nervous won’t help you remember the curriculum or pass the exam. One of the best things you can do to get a passing score is just to relax and have the confidence that you’ve done all you could…and that it will be enough. There’s ten great ideas here so definitely a few for everyone.

Most people carry an emergency road kit in their car but do you have your CFA exam day emergency kit ready? The post includes a list of things you’ll want to put together to have on exam day. The list includes required exam materials like your passport, admission ticket, pencils and calculator. It also includes the just-in-case materials that can mean the difference between passing the exam or ending up in one of the fail bands.

This is your CFA exam day strategy, a replay of the big day starting with the night before and running all the way through the afternoon. You’ll get advice on what to eat for breakfast and important considerations for getting to the exam. I cover what happens as the exam starts and how to spend your lunch to relax and set yourself up for a successful afternoon session.

What to do after the exam isn’t something candidates usually think about but you’ll want to check out this post-CFA exam checklist. It will get you started on making next year’s exam a success by setting an email reminder and reflecting on what worked for this year’s study plan.

The important idea here is to get what you need to put your last month study plan together and then get back to studying. Don’t spend time preparing to study at the expense of actual studying and the points you need to pass the CFA exam.

‘til next time, happy studyin’
Joseph Hogue, CFA


10 Week CFA Study Plans for Every Type of Candidate

Two 10 week CFA study plans for candidates that haven’t started and for those with a head start

We’ve got 10 weeks left to the 2016 June CFA exams and this point always seems to be a milestone for candidates. Maybe it’s just that ten is such an easy, round number that cause people to reevaluate their CFA study plans or motivate others to finally get started.

I get emails from both types of candidates. Those that started months ago want to make sure they’re on the right track. They start thinking about what they can do to change up their study plan to avoid burnout and squeeze out those last points they need to pass the exams. The candidates that haven’t managed to get started yet finally get nervous enough to crack open the books but are worried they don’t have enough time to study.

I thought I would use this week’s blog post to share some ideas for 10 week CFA study plans, one for those that have been studying and one for those just getting started. You don’t necessarily need to change up your plans if you already have a good routine but take a look at some of the ideas below.

10 Week CFA Study Plan for Candidates with a Head Start

If you’re already well into your CFA studying then revising your plan now is all about constantly testing where you’re at and changing your study plan to fill in the gaps.

We reviewed the Finquiz CFA question bank a few weeks ago and how to use it to test your progress across study sessions. You should be doing practice problems when you finish every reading and then doing more a day or two afterwards to refresh what you learned. Consider taking a half test or at least 90 questions every weekend to test your retention across all 18 study sessions. This is going to help you see where you need more studying.

If you haven’t read through all the readings yet, finish the remaining material up first. After that, go back and spend some more time on the core topic areas (those with the most points on the exam like FSA) and those readings where you are not scoring as well on practice tests.

You don’t need to read the CFA curriculum as thoroughly as you did on your first pass. Scan the official readings for the key points while using study guide notes to reinforce the Learning Outcome Statements. For your review, try to get through at least two study sessions a week.

10 Week CFA Study Plan for Candidates Just Starting

If you haven’t started studying for the CFA exam yet, or only have a couple of weeks of studying done, you’ve got a lot of work ahead of you. That 300 hours studying that the average candidate spends ahead of the CFA exam is now like a full-time job spread over 10 weeks.

There is still a chance though if you devote yourself fully to the task. If you can make studying for the CFA your job, studying eight hours a day throughout the week, you can get the necessary studying in with no problem. If you have to do your studying after work or on the weekends, it is going to be more difficult but still doable.

The difference with this 10 week CFA study plan compared to the one above is that you don’t have as much time to read through the official curriculum. The CFA curriculum is the best resource for studying but it’s just way too long when you’re pressed for time.

If you are to save the last week for an intensive review, you’ll need to work through two study sessions each week just to finish all of them. Instead of reading through the curriculum then study notes, try reading through the study notes first. This will give you a good idea of the important points and will make the curriculum reading faster and you’ll pick out those key points more easily.

Split your week into two 3-day study sessions, each one to cover one of the 18 study sessions in the curriculum. Read through the study notes and the curriculum over the first two days then spend the third day doing practice problems and reviewing the study notes one more time. Three days isn’t much to cover each study session but you’ll get through the entire curriculum in nine weeks.

One of the most important ideas for this accelerated CFA study plan is to use your time efficiently. You absolutely must study in a place where there will be no distractions. Turn off your cell phone and disable the internet browsing on your computer. You need to study straight through and cannot afford to spend your time doing anything else. If you can reserve a private study room at the library, that’s usually your best option but any quiet and uninterrupted space will work.

Whichever study plan you follow, you’ll still want to take the last week off from work for studying if possible. I always loved my last week before the CFA exams, studying upwards of ten hours to get those last points before the exam. It’s a challenging week but well worth it when you go to the exam confident that you’ll pass.

‘til next time, happy studyin’
Joseph Hogue, CFA

Staying Focused on your CFA Schedule without Burning Out

It’s a big week for Level 1 CFA Candidates. Saturday is the big day and many of you will be using this last week for an intensive review of the curriculum.

Studying for eight to 12 hours a day can get you those last few points you need to pass but you’ll need to use your time effectively and avoid burning out. You’ve spent the last few months studying the curriculum and it can be easy to zone out if you stare at it for too much time before taking a break.

The MIT Center for Academic Excellence recommends planning your schedule around one-hour blocks with 50 minutes of studying and a ten minute break. This helps you stay focused without zoning out and getting tired during those long days of studying for the CFA exam.

But there’s more to managing your time than just planning for your ten minute breaks. Make sure you avoid the biggest risks in your hourly breaks and plan activities that will help you succeed.

Avoid these Study Break Nightmares

There are two problems that come up when CFA candidates try to take a break from studying

  • Too many breaks go into overtime. You plan on stopping for just 10 minutes but then find yourself an hour later still not back on your study schedule.
  • Some activities affect your studying well after you’ve returned to the curriculum. It might seem like it’s only taken 10 minutes but the after-effects last for hours.

Avoid these bad study break ideas:

  • Don’t turn on the television thinking you are going to watch just ten minutes of TV. You’ll end up watching an entire movie and wasting the whole day.
  • Anything online is going to be a recipe for disaster. This includes checking email, news, the stock market and just about anything else on the World Wide Web. There are two problems with getting online for your study breaks. First, there is just too much temptation to go over your break time. You’ll also carry the distraction back with you to your studying. You’ll find yourself thinking about where the market is going or an important email instead of thinking about the CFA curriculum.
  • Don’t check in on CFA-related websites or study groups during your break. That’s not really a break from studying for the CFA exam. You need something that is unrelated and that will take your mind off the curriculum for a moment to relax.
  • Don’t start any conversations during your study break. You might not be able to wrap it up within the allotted time and any messages you leave might be returned when you’re trying to study.

Ideally, you want to take short breaks every hour or two that can take your mind off studying but that won’t keep you from getting off track.

Avoid foods as a CFA study distraction. Catching a snack every hour or two could mean some serious kilograms put on over the last week before the exam. Besides the extra weight, it’s too easy to be tempted to cook a bigger meal than you planned. You’ll spend valuable study time cooking and a big meal could make you drowsy when you finally get back to studying.

Instead, schedule regular meals around the day. Avoid foods high in fat that will sit in your stomach, making you feel sluggish, and don’t overeat.

Stretching or light exercise is a great way to use your study breaks. Do some quick calisthenics in the study room or stretch for about 10 minutes. It will improve circulation and wake you up. The idea isn’t to exercise vigorously but just to get a quick pickup. You’ll love the energy but won’t generally be tempted to extend the break for more than scheduled.

While you generally don’t want to do too much snacking or cooking during your study breaks, having a cup of tea can be a great alternative. It won’t take more than a few minutes to prepare your tea and another five or six minutes to drink. A cup of green tea will refocus your brain and improve your memory without hopping you up on too much caffeine.

If your study area is a disaster area, take a few minutes to organize your things and tidy up a little. Putting everything in its place can help you stay focused and can lead to less distractions while you’re studying. We’re not talking about taking an hour to deep clean the house, just a few minutes to pick up some stuff and make your study area more professional.

Whatever you decide to do for your regular study breaks, don’t do it every time you break. You’ll take upwards of ten breaks a day. Try exercising during every break and you’re going to start getting extremely tired. Doing the same thing each break will also get boring and won’t be much of a break at all.

Plan out your study schedule with effective breaks and use this last week for all that its worth.

‘til next time, good luck!
Joseph Hogue, CFA

Which Level of the CFA is Most Difficult?

Logging in to the CFA Program Candidates group on LinkedIn last week, the first post I saw was a common question I get from candidates. The candidate had been preparing for the Level 3 CFA exam and was wondering how it compared to the first two exams.

I get this question, or variations of it, quite a bit. Candidates want to know what they’re up against with the next exam and everyone wonders which is most difficult.

As usual, candidates on the LinkedIn Group came through for their peer and the post had 21 replies in about a week. I thought I would address the question here on the blog as well.

Are the CFA exams as easy as 1 -2 -3?

My own experience was that the first CFA exam actually seemed fairly easy. The second exam, living up to what I had heard from most other candidates, was much harder. The amount of formulas and detail you are expected to remember seems to increase by ten-fold from the first to the second exam. Unlike the third CFA exam, where you know some topics will appear in the morning section, you really have no idea what will be on the level 2 exam. This means you really need to spend a lot of time covering as much of the curriculum and in as much detail as possible.

I’ve heard a lot of candidates say that the level 3 CFA exam seemed more difficult than the second exam. I think this depends greatly on your preparation and comfort for the essay section of the exam. The afternoon section of the level 3 exam is no different than the second exam in format or difficulty (in my opinion). As for the morning essay section, I was actually surprised how easy it seemed after studying prior years’ exams.

You’re experience may be different but I would say the second exam was clearly the most difficult for me. The level 1 CFA exam was the second most difficult but only because you have no idea what to expect so you’ll need to study more to cover the uncertainty. The third exam can actually be relatively enjoyable if you study the prior years’ essays.

Do you need the same amount of studying on each CFA exam?

When it comes down to answering how much time is needed for each exam, it’s not really about time but about how you study. Each exam is a little different and requires a different approach to studying.

I spent way more time than was necessary studying for the first CFA exam, but then it is always hard to say how much is going to be enough. Between reading the curriculum, study notes and watching videos, I covered the material seven times and that’s not counting practice problems. When I got to the exam, I was surprised how easy and generalized the questions seemed. Knowing now that the CFA level 1 exam focuses on general concepts, I would suggest that you cover everything multiple times but don’t worry as much about the details. Understand the idea behind each LOS and broad concepts in each section.

The CFA level 2 exam is very different from the first. You will need to know deep details in the LOS to do some of the longer calculations and process. For this exam, I would concentrate on really mastering the more important topic areas. Using the topic weights for the exam, make sure you are scoring above 80% or higher on the most important topics. To get to this level of mastery, you might have to spend a little less time on other topics.

Responses from CFA level 3 candidates on the forum post were typical of what I usually hear and easily remedied with a smart adjustment to your study plans. More than a few of the candidates ran out of time or did really poorly on the morning essay section of the exam. While I thought the CFA level 3 exam was much easier than the second exam, it would have been impossible if I hadn’t spent so much time practicing prior years’ essay questions. This is something we talked about in last week’s post and absolutely critical to your success on the last CFA exam. If you spend your time studying the essay questions from prior exams, you can spend less total time than on other exams and still do well.

Last month ahead of the exam. You’re almost there!

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: July 18, 2016 at 16:22 pm

10 Weeks and 10 Goals for the CFA Exams

Ten weeks left to the 2015 CFA exam and it is time to start really defining what you are going to do to get there. As CFA candidates, most of us are driven and goal-focused people so I thought I would set a challenge for you. Give yourself 10 goals to accomplish over the next 10 weeks to make sure you pass the CFA exam.

Study Goals

1) Read through the six most difficult study sessions of the curriculum, one last time. You may not have time to hit every page of the curriculum again, but you should try to cover your sticking points. Candidates typically do really well on a third of the material, o.k. on another third and then not so well on another third of the curriculum. Figure out where you are having trouble and really hit it hard so you can get at least some of these points.

2) Read the study notes one last time. You should be able to get through the condensed study notes one last time to review all the study sessions. This is going to keep everything fresh so you don’t go into the exams with a long lag between the test and covering any specific material.

5) Master 10 concepts or problems with which you’ve really struggled. Even if you’ve avoided them, you know which parts of the curriculum are giving you real problems. These are the problems or LOS that you have basically given up on and that you’re just hoping do not come up on the exam. Pick one a week to finally master.

6) Do 2,000 more practice problems. Whether from the end of chapter sets or from a question bank, practice problems are one of the best ways to study for the exam. Make sure you really read through the answer to make sure you didn’t just guess correctly and really understand the material.

7) Take at least 6 mock exams. Sit down for a practice run at least six times, using either test bank questions or actual mock exams. Building an average across the six mock exams will help to see where you are on each topic area. Besides helping you learn the material this is really going to put you in shape for the real exam. Sitting for a six-hour exam can be physically taxing and you need to be prepared.

8) Spend a week super-studying! Believe it or not, this was always one of my favorite weeks within the CFA study schedule. Spend a whole week devoted only to the CFA exam. Go somewhere on a study vacation for the best vacation you ever had, something I detailed in a prior post.

2) Spend less time worrying about the exam and know you will pass. The stress leading up to the exam is a killer. Resolve to worry less about passing the exam. Whenever you feel the anxiety building or find yourself questioning how you’ll do, just take a deep breath and relax. Remind yourself all the hard work you’ve put in studying and know that you will pass the exam.

8) Put all your test materials together a week before the exam and check your route to the testing facility days before the exam. Being prepared for the exam doesn’t just mean knowing the material. Have everything ready and know your way to the testing site well before exam day. It’s rare but there are candidates every year that miss the CFA exam because they were late or couldn’t find their identification.

Networking Goals

Anyone that has read the blog for a while knows that I am a big advocate of networking and using the CFA exams to reach out to the rest of the financial community. You can pass all the exams but if you’ve been in a shell for three years, you’re still going to have trouble getting a job if you don’t know anyone.

9) Answer at least 10 questions from other CFA candidates. Getting help when you need it is about being ready to give someone else a hand when they need it. The CFA exams are a great time to help out your fellow candidates.

10) Attend at least one local CFA society event or CFA Institute event. These last few months before the exam are a great time to network because the local societies get a little more active with events and people are still sticking with their resolution to be more active in the community. Attend at least one event and get to know a few of your colleagues.

Don’t stop at just 10 goals. Set mini-goals each week that you can achieve if you push yourself just a little harder. Set larger goals for the year that you can really reach for and make a bigger difference. Don’t get frustrated if you miss a goal, just learn from it and push on.

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: July 18, 2016 at 16:49 pm

Using WhatsApp to Study for the CFA Exams

How times have changed since I took the CFA exams. Even though it was only six years ago that I sat through the Level 1 CFA exam, the change in technology has been dramatic. When I first started studying for the exams, online groups were still growing but not widely used among candidates. Now I see that WhatsApp messaging is quickly taking over as a way to group study.

The top three posts on the LinkedIn CFA Program Candidates forum are all WhatsApp study groups and have nearly 2,800 comments, most of them numbers of people wanting to sign up.

But is a WhatsApp group worth your time? How can you use the messaging service to best prepare for the CFA exams?

The Benefits of a WhatsApp CFA study Group

I’m too old for these new software programs so I talked to a few candidates that are using WhatsApp to connect and study for the CFA exams.

The most common response to the main benefits were:

  • The ease of sharing audio recording and pictures of materials. Users really like the fact that they can share short notes they record or a picture of the material they are studying. This really helps those of us that are not as comfortable with typing out text messages.
  • Others like that WhatsApp can easily share contacts around a group. This is one benefit I had never heard of and could be a new networking tool.
  • Users in CFA study groups liked that WhatsApp can be used across different devices so they can transition pretty easily across their laptop to their phone. Being mobile also helps candidates study on the go and when they have time.

Looking through the comments from happy WhatsApp users, I’m a bit jealous that we didn’t have the service to use when I was a candidate. I like the fact that you can quickly share voice recording and add many people to the group. I think the networking aspect could be something that a lot of candidates do not yet fully appreciate.

And the drawbacks of using WhatsApp for CFA study groups?

Using WhatsApp wasn’t all they hoped for some CFA candidates that wrote back that they preferred more traditional study groups.

  • The size of groups and geographic differences annoyed some candidates. They may be exchanging some really good notes with a sub-group of candidates but had to scroll through all the other comments and talk from other members. Candidates also commented that messages to their questions would appear hours, even days after they posted because everyone is on different schedules for when they study and post.
  • Some have reported that WhatsApp was automatically saving stuff to their memory and slowing down the performance of their phone. This should be a relatively easy fix but is still something to think about.
  • The most common complaint was the cross-talk and unrelated conversations that plagued some groups. It is pretty easy for a couple of candidates to start an unrelated conversation that can pull others into it. Pretty soon, everyone is spending an hour gossiping or just texting and not really studying for the CFA exam.

With the benefits and drawbacks in mind, we can start to put together the do’s and don’ts of using WhatsApp for CFA study groups.

  • Try to keep the conversation relevant to studying for the CFA exams. This is a big one for any study group and can save you a lot of time. Getting to know each other and building that relationship is important for networking but you are there for a purpose.
  • Avoid one-on-one conversations with other people in the group. These are just annoying and detract from the efficacy of the group. If you want to talk directly with someone, call them or send them a private message.
  • Understand that WhatsApp messages are public and do not send anything out that you would not want others to see. I’m always amazed at how quickly seemingly private messages go public and hurt someone or the firm at which they work.
  • Don’t assume that everyone understands your texting abbreviations. Most people understand the common LOL and other abbreviations used but there are those of us that are still neophytes to texting and need things spelled out more completely.

WhatsApp is a tool and like any tool, it must be used correctly. Make sure you are using it for all the right reasons and getting the most benefit for your CFA study schedule.

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: July 18, 2016 at 15:57 pm

Are You Already Too Late to Start Studying the CFA Exams?

As we get further into March, more candidates are going to start picking up their books and putting those long hours into studying for the CFA exams. If you haven’t started yet, are you already too late? How early do you need to start studying for the exams?

It’s a loaded question to be sure. There are numbers and studies for how much time you need to be successful. As a numbers guy myself, I love quoting the fact that successful candidates spend an average of 300 hours studying for the CFA exams. It is going to ultimately depend on your abilities and how well you prepared for earlier exams.

I’m not going to judge if you haven’t started, or if you don’t plan on starting until later in the month. I’d rather take the time to talk through how you can still make it work and get the good news in August.

300 Hours: A Condensed Schedule

We’ve all seen the surveys by the CFA Institute that claim an average of 300 hours is spent by candidates passing their exam. This obviously isn’t a rule but with all the uncertainty around the exam and your outcome, it’s nice to have a numerical objective to target.

If you did particularly well in a prior CFA exam, maybe scoring in the 70% or above in most topics, then you might not need 300 hours of preparation for this exam. The exams build off of each other so if you built a good base of knowledge at previous levels, current material becomes much easier. Of course, there are also going to be candidates that are just naturally smarter than others and won’t need as much prep time. I wouldn’t assume too much here. Candidates are relatively smart in general and it won’t do you any favors to start getting overconfident at this point in the game.

Whether you need 300 hours or not, it will get more difficult to fit all your study time into your schedule the closer you get to June. If you were aiming for 300 hours, 13 weeks left means you need to put in 23 hours a week. Include the fact that you are sure to have a busy week or two at work or with the family and you may need to devote 30 hours a week studying to meet your goal.

Thirty-hours a week studying is an unlikely goal, especially with a full-time job or a family, so you need to start thinking about optimizing your studying for effect. I am a huge proponent of mastering the material to become a better professional but at this point, your goal is to focus on the material that will get you points and get you to the next exam.

Practice problems and question banks are going to be your new best friends. Working through practice problems, an active learning technique, is generally a good part of your schedule anyway but it becomes even more important at this point. Break your reading up into smaller chunks and work through practice problems more often than you might if you had more time to study. Once you reach 75% on a set of practice problems, you can probably put the topic or reading aside and move on to another. This isn’t going to leave much margin for error but it will help you cover the topics quickly and sufficiently.

You are also going to want to spend more time on condensed study notes and less time on the official curriculum. The Finquiz notes are designed to be used along with the curriculum and you will not want to completely neglect your textbooks, but you may want to skim the longer text to pick out the idea for the learning outcome statement. Once you have the general idea from the curriculum, you can reinforce it with a more detailed reading of the notes.

While it’s possible to start studying for the CFA exams later in March or even in April and still hope for a passing score, I wouldn’t push it too far. Even if you’ve got a heavy workload for the next couple of weeks, start studying in small breaks and then ramp up the time when you’re able. The exams take dedication and hard work but the designation is worth every minute you spend studying.

‘til next time, happy studyin’
Joseph Hogue, CFA

4 CFA Study Websites You Will Love After Valentine’s Day

One of the hardest things about studying for the CFA exams is that you’ll have to go much of the journey on your own. There are study groups and boot camps but it is still largely a self-study course.

Outside of studying though you will find a really helpful and interactive community of charterholders and candidates. Through the four websites below, you’ll have the potential to meet professionals at the top of their game and establish some great connections. Maybe its because the program is self-study and you can get a sense of isolation that people go out of their way to interact and help out.

So next time you’ve got a question or just need to talk to someone that has been through the same professional struggles, look up one of the four websites and become a part of a great community.


There are more than 187 monthly unique visitors across 200 countries on the professional social networking site. The general site is a great place to start growing your professional network and thinking about your career post-CFA exams. Of more interest to candidates is the CFA Program Candidates group, a discussion group of more than 125,000 members. You’ll find just about everything in the group, from candidates asking questions and offering advice to service providers and general analysis.

Analyst Forum

The Analyst Forum hosts group discussions on the CFA exams, careers, investments and even a couple of forum groups for the CAIA and FRM exams. Participation is anonymous so you get some wild characters sometimes but the information is generally very good. There are more than 858,000 posts across the four CFA forum groups so you are pretty much guaranteed to find an answer for any question.

CFA Institute

The CFA Institute website isn’t necessarily an interactive community like LinkedIn or Analyst Forum but it is a great website for exploring the larger world of the designation. Beyond the pages for the CFA program, you’ll find a host of other topics and information. Candidates have access to the JobLine which posts opportunities from employers that know the value of the CFA designation. The Career Centre offers individual assistance from consultants as well as resume creation tools.

Regular readers of the blog will know I’m a big fan of the Institute’s Insights and Learning page on the website. As a member of the community, you get access to thousands of articles, multimedia and models in research. In fact, there is so much information available that it can be a little overwhelming sometimes.

Local societies

It always surprises me that candidates do not use their local CFA society more often. Most larger cities have a society that hosts networking events and professional presentations. While it’s not really a website, I had to include local societies in the list because they can be a great resource for candidates. You’ll need a letter of sponsorship from a member of the local society when you apply for the charter so it’s best to reach out now before you come asking for the favor.

It seemed a little self-serving to include the FinQuiz Blog on the list of CFA websites you’ll love, especially considering that you’re already there, but I just couldn’t resist. Over the last three years, we’ve posted more than 433 pages of ideas and advice on how to pass the CFA exams. It’s been a great time talking with candidates and seeing them achieve the designation and I look forward to another three years and beyond.

We’re coming up on just four months before the exam. If you haven’t started studying yet, you’ll need to plan a pretty aggressive study plan to get everything in. Check out our 2015 CFA study schedule to get your plans started.

‘til next time, happy studyin’
Joseph Hogue, CFA

Relaxing after the CFA December Exam – but for how long?

Congratulations to all the candidates that sat for the CFA Level 1 exam last Saturday. As I wrote in last week’s post, you’ve already shown your worth in the perseverance and dedication to professionalism and I welcome you to our group of CFA candidates and charterholders.

Many of you are now looking to the next step, the CFA Level 2 exam in June and wishing you had enough time to relax and reconnect with friends and loved ones.

There are advantages and disadvantages to jumping right back into the curriculum and you might just decide that you have more time to relax than you thought.

Sitting for the June exam after December’s Test

As December candidates, you’ve got a pretty unique opportunity to finish up the CFA exams earlier. Trying to think back on my own experience, I had not decided to pursue the designation until November so really didn’t have the option. If you’ll have the experience requirement fulfilled by late 2016 then you could potentially shave six months time off the process compared to peers.

Reasons to take the June exam after a December exam

  • A lot of the CFA Level 2 curriculum builds heavily off of concepts learned in the level 1 curriculum. In fact, many of the sections in the curriculum start off with optional refresher pages to remind you. Going straight into studying for the second exam helps to avoid losing any of that information in a year’s worth of partying and working (ok, partying for the younger candidates, working for the old timers).
  • The level 2 curriculum really gets into the detail of financial analysis and working through a company’s financial statements. A lot of candidates are pumped up about hitting the books, even after a grueling few months of studying for the first exam. The curriculum is also undeniably good for your career and the sooner you learn the material, the sooner you can impress your boss with your expertise in analysis.
  • You could easily wait until late January when December exam results come out to register and being studying for the second exam. This gives you nearly two months to enjoy with your family and friends. Believe me, you’re first few years as an equity analyst will be busier than that.

Don’t forget that the application deadline for the CFA Awareness Scholarship is February 2nd so you may want to get started on that ahead of time. This scholarship is for key influencers in the academic and financial communities and reduces the registration fee to $350, including the curriculum ebook. Check your local CFA society as well, many offer scholarships for local candidates.

The registration deadline for the standard fee on the June exam is the 18th of February though you have until March 18th as a late-register.

What’s the rush?

Whether you’ve considered it or not, there is nothing wrong with taking a year and a half to sit for the CFA Level 2 exam either. I know everyone wants to get through the exams as soon as possible but there are also advantages to taking your time.

  • You can still start your study for the Level 2 exam by borrowing curriculum from other candidates or getting it from the local library. Make sure the readings are up to date but the curriculum really doesn’t change that much so most will still be applicable.
  • Even if you set a study schedule that takes you to the June 2016 exam, you can still sit for the 2015 exam to see how it is. You only pay for the enrollment fee once but will have to pay the registration fee again.
  • Burn out is a big problem for candidates and you might not feel like a couple of months is enough to spend with family and friends after taking the Level 1 exam.
  • The CFA Level 2 exam is, in my opinion, by far the most difficult of the three. The detail and the number of formulas are intense, reasons why the average pass rate is only 44% over the last ten years. Spreading your Level 2 studies out over 18 months means you can really take your time with the material and master it.
  • Many candidates will not complete the experience requirements by late 2016 anyway and will need to wait to use the designation. If you are not working in analysis or asset management now, it might be a good idea to find a job that will move you in that direction. Starting a new job takes time but a relaxed Level 2 study schedule will mean more time to learn your new responsibilities.

I know it is unlikely that many December candidates will consider foregoing the 2015 exam to take the 2016 exam instead but I thought I would outline the advantages and disadvantages of each option. Whichever you choose, make the commitment to do it well and continue being the professional you have shown yourself to be.

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: December 22, 2016 at 7:56 am

It’s the Toughest Roads that Make the Best Journeys

First off, I just realized that in all the build-up to the December exam I forgot to congratulate June candidates for their hard work and success. I say success because, pass or fail, you committed to one of the most difficult professional programs in the world and are a better professional for it. I especially want to congratulate the 14,000 candidates that passed the CFA Level 3 exam and are on their way to receiving the charter. You’ve joined a select group in the industry and accomplished what few have been able to do.

Looking over exam results has me reminiscent of my own years studying the CFA curriculum. It’s reminded me of something I heard a long time ago from a teacher in high school. It’s the toughest roads that make the best journeys.

Would you do it all again?

The maxim is absolutely true and this may come as a shock but someday you will look back on those days with your nose buried in the CFA curriculum books with a desire to relive it.

“What?” you say, “No way, I would ever want to go through that again!”

Don’t be so sure. It’s been more than 15 years since I finished boot camp in the U.S. Marine Corps, one of the most difficult mental and physical journeys of my life, and I still remember it vividly. I constantly had to push myself beyond what I thought possible and the challenge was spectacular. I’ve yet to find another road that led to such a feeling of accomplishment or that has been as memorable.

And you will feel the same way about your years studying for the CFA exam. Right now, all you know is the constant struggle of practice problems and learning outcome statements. With every exam, you start to see the bigger picture and how much you’ve grown as a true professional. I still look back at those years and that sense of growth fondly, and I’ll bet that you will too.

No one said the road to earning the CFA charter would be easy. You will be pushed to test your limits of intellectual perseverance and commitment. You will likely question the program’s worth and your own ability to learn.

But you will also learn what it means to push yourself and sacrifice for a higher level of professional pride. The intellectual growth you achieve will only be exceeded by the feeling of emotional growth and the knowledge that you can make it down any road.

So, for you candidates struggling through those last few precious weeks to December or those of you terrified at the thought of another exam season starting soon, I say enjoy this time of your life.

You’ll miss it.

‘til next time, happy studyin’
Joseph Hogue, CFA

We’ll get back to our review of the CFA Level 1 curriculum next week with a list of must know subjects and some study tips for the last couple of weeks. Make sure you are measuring your progress with mock exams and lots of practice problems.

Your Last Month CFA Study Plan

Just five weeks remain to the December CFA level 1 exam and that pounding noise you hear is the sound of your heart beating. Ok, maybe it’s not so dramatic as that but I certainly had a few sleepless nights heading into the first exam.

The last month before the CFA level 1 exam does not have to be a stressful time. If you have followed our Level 1 basic strategy and have done the readings then there is only a few things you need to do to prepare. If you have not yet made it through all the readings at least once, there is still plenty of time to prepare but you’ll have to kick it into high gear.

Must have tools and resources

Instead of measuring your preparedness by the time you have spent studying, you really need to know where you are at in terms of practice problems and mock exams. Three- or six-hour long practice tests will be your most powerful tool over the next month. The easiest way to take these is through question banks but you can also make your own through practice problems at the end of the chapters.

I recommend taking at least one six-hour practice test a week, either in one or two sittings. Even if you have scored pretty well taking tests of individual topic areas, combining all the topics into an exam will help you to measure how well you are retaining the curriculum as a whole. Your performance on these tests every week will help you plan how much studying you need to do and in which topics. Remember, you should be targeting at least 70% on each topic area and I would target at least 75% before I set any topic aside to focus on others.

Since time is a factor now, you will also want to focus on notes and other resources. Flash cards are invaluable at this point for getting those last tricky formulas. I recommend making your own flashcards which will help you remember by writing the material as well as working the problem. Make sure you write the problem out like it is done in the end of chapter problems, in a short vignette. Carry your flash cards everywhere and work through as many as you can throughout the day.

Finquiz study notes are also a good resource to use for getting the most information in a limited amount of time. The notes are designed to be used in conjunction with the curriculum, so make sure you have read through the curriculum.

Week 1-3

I usually tried to study between 15 to 20 hours a week over the last month. I worked a full-time job but did not have kids when I was a candidate so your own schedule may differ. I tried to fit studying in six days a week, usually taking one of the weekdays off so I could just relax for a night.

The week would begin with a practice test on Saturday morning with topic area weights according to the Institute. Pay special attention to your score in core topic areas like: Ethics, Financial Reporting & Analysis, and Equity Investments. These three topics alone are nearly half your total score and you must do well if you want to pass.

Sunday was spent reviewing one or two topic areas where I needed the most work. If you work a full day during the week, you are going to be tired during your weekday study so you really need to take advantage of Sundays.

Monday through Thursday studying would involve some curriculum reading but most of my time spent was on condensed study notes, flash cards and practice problems. When you are working practice problems, it is absolutely imperative that you work through the solutions to the ones you missed and the ones on which you weren’t sure. Guessing correctly on a practice problem does not mean you will be as lucky on the actual test.

Over the three weeks, I would cover all 18 study sessions. Pick six study sessions each week, three that you score really well on the practice tests and the three that are giving you the most problem. This will help balance easy subjects with difficult subjects. You don’t necessarily have to spend an equal amount of time on each study session. I would spend about 75% of my time on the three difficult ones and 25% on the easier ones.

Week 4

I always took the last week off from work to fully commit to the exam. The CFA curriculum is your job this week and you need to spend a full 40 hours or more. Plan on taking the Friday before the exam off to relax so you need to fit your study time in the remaining days.

Each day starts with a practice exam, these can be shorter two-hour exams but you should aim for 120 questions. You can either make the test a mix of all the topic areas or make it a mix of the topic areas you studied the day before. I usually made my tests a mix of the topics I studied on the previous day or the day before. This is a good way to remind yourself of the information and helps commit it to memory.

After the practice test, I would spend the rest of the day really focusing on the topics where I was having the most difficulty. You do not have to cover every study session or every topic in the last week. If you are scoring above 80% in a topic on practice exams then you can probably set it aside and work on another topic.

Mix the day’s study up between practice problems, study notes, flash cards and maybe a little curriculum reading. Trying to study from one resource all day is just going to put you to sleep and you won’t remember as much as from a more dynamic approach.

Nearly half of the candidates fail their exam each year. That doesn’t mean you have to be one of them. Using your time wisely over the last month before the exam can mean the difference between passing to the Level 2 exam or ending up in one of the fail bands.

Stay strong, just a few more weeks. Good luck.

‘til next time, happy studyin’
Joseph Hogue, CFA

A Secret about the CFA Curriculum that You Won’t Believe

There is a secret that many charterholders do not tell candidates. A secret so terrifying that most candidates probably wouldn’t believe it even if we told you.

After struggling through upwards of 9,000 pages of the curriculum over the course of three years, the truth is nearly impossible to fathom.

But even after more than 900 hours of study and countless study problems…
Many charterholders still read their curriculum.

Keep Your Curriculum Books!

Over the three years I studied for the CFA exams, I couldn’t stand the sight of my growing stack of curriculum books. The journey begins innocently enough with your Level 1 books. You may even be excited when that big box arrives in the mail.

But it doesn’t take long for that excitement to turn to despair and loathing as you toil through thousands of pages while your friends and family go out on the weekends.

Ok, so maybe I’m being a bit melodramatic but the fact is that most candidates avoid the CFA curriculum like the plague while studying for the exams. They rely on condensed study guides to get all their information for the exams. Sometimes it works, other times the candidate is left repeating exams because the study guides didn’t include all the detail needed to pass.

After the final Level 3 exam, the candidate breathes a huge sigh of relief and burns his curriculum books in effigy.

And then something odd happens. It happened to me and I can almost guarantee it will happen to you as well. I found myself referring back to the official curriculum in my professional career as an analyst. It starts like this, you will be looking at a company or sector and thinking how a fundamental difference in the group affects its valuation. Maybe the industry typically carries an especially high amount of goodwill on the books or maybe an accounting convention within the industry is different from other industries. It depends on where you work and the exact duties in your role but maybe you do not regularly account for that kind of detail in your analysis.

Then you remember, there was a whole section in the CFA curriculum about just such a practice! You scramble to the nearest library (because you burned your books, remember) to thumb through the curriculum. You read through the section and add it to your analysis.

This isn’t a wild story or something that will only happen to you on rare occasions. Your time spent studying for the CFA will commit to memory the basic idea of the readings even if you do not exactly remember the details. While your job as an analyst will involve going beyond the curriculum’s detail in some sections, there are some sections that you may not use or will only use broader estimates.

For example, while the curriculum goes into great depth and detail to adjust the financial statements in a number of different accounts (i.e. pensions, long-lived assets, inventories and intercorporate investments) you will likely not go into so much detail in your valuation models. That is not to say that your models will not be robust but maybe the level of detail just isn’t always needed. Until that day when you see a particular deal announced or a news release and think, “maybe this changes things and I need to look further into the details.” When you do look into the details, and it produces some real value for your firm, you will be generously rewarded.

The curriculum is your friend, you just don’t know it yet

I know it is tough to imagine how reading 3,000 pages of curriculum is a better option that relying on a 1,500 page study guide. You’ll just have to trust that all the time spent reading through the detail will pay off down the road.

This industry is full of highly intelligent and committed people. Every one of them has a cash flow model and has spent hours (more like years) studying how to analyze companies in their industry. You will only be able to compete if you can find the details that others miss. Reading the whole CFA curriculum when many candidates avoid it may just be your chance to uncover those details.

…and keep the books. It will save you a trip to the library later.

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: July 18, 2016 at 16:26 pm

The Three Funniest CFA Stories I Have Ever Heard

In all the stress and excitement of the CFA exam for more than 100,000 candidates, there are bound to be stories of the strange, funny and horrific. Whether it’s a personal experience or happened to another candidate, the stories can help you prepare or just blow off a little steam during a long day of studying.

I’ve heard a fair share of horror stories from candidates, from getting lost on the way to the exam to realizing they were studying the wrong material. This close to the exam, I won’t scare you with these but will relay a couple of the funniest anecdotes I’ve picked up over the years.

One of the most common stories I get is of problems getting to the exam site. The first comes from my home town of Des Moines, Iowa and a candidate that was taking the 2011 exam. The candidate arrived bright and early at the convention center downtown, more than an hour early and ready to ace the exam. The only problem was that he had remembered that the prior year’s exam was held at the convention center but had not bothered to check his admission ticket. An hour left to the exam start and the candidate was getting a little anxious. No one else had shown up for the exam!

Checking his exam ticket, the candidate saw that the exam location had changed to a casino convention center on the outskirts of town. He jumped in his care and floored it to get to the exam in time. Fortunately, the new site was only about a 20 minute drive from the old location and the candidate was able to get there with half an hour to spare.

Cell phones have become so common that everyone has heard of one going off during an exam. The proctors are supposed to collect cellphones before the test or to tell candidates to leave them with the rest of their personal items outside the room. This wasn’t the case at the exam in Mumbai a few years ago. According to one candidate, a cell phone beeped about an hour into the exam. It was fairly loud but only beeped twice so the proctors were not able to see from where it came.

Two proctors closed in on the general area from which they heard the beeps but no one said anything. It seemed the candidate would get away because everyone went back to their exams and the phone didn’t beep again. Then, just about 40 minutes later, the phone beeps again. Now the two proctors had stayed close to where they heard the first beeps but again could not tell exactly from where the sound was coming. They moved closer to where they thought the sound was, closing in on their prey. It was like an intense game of hide-and-seek. Fortunately for the candidate, the phone did not beep again and nothing ever came of the incident.

The last story is one of extreme preparedness from a candidate in Chicago. The candidate writes, “I thought it hilarious when the candidate next to me started laying out all of her resources for the exam. We were taking the Level III exam so she had both pens and pencils, and oh man did she have a few. I counted two packs of six pencils, 12 in all, and 20 blue ink pens. The candidate also had two calculators, an extra battery, a small pencil sharpener, a small eraser (even though each pencil had an eraser), a screwdriver for the calculator, a set of earplugs and a small watch. It looked like she was setting up a small convenience store! To my surprise, she actually used five of the pencils, not so much that she needed to because it looks like they were only used until they needed sharpening.”

We’ll get a post out on preparing for exam day next week. You’ve got another couple of weeks so start wrapping up your plans and getting those last few points. Good luck.

‘til next time, happy studyin’
Joseph Hogue, CFA

Turning the last week before the CFA exam into big points

We’re coming down to the wire with just five weeks left to the June CFA exams. Hopefully you are almost through with your study plan. You should be through the curriculum at least once and have started taking practice exams. If you are not scoring around 70% or better on test bank and practice problems, you may need to kick your schedule into a higher gear.

I always took the last week before the exam off from work and swear by it to get those last few points to put you into a passing score. Whether you go to an intensive boot camp program or just stay close to home to study, the week can be a huge help in wrapping up your studying.

Is this really a vacation?

For me, that last week of study was always pretty enjoyable. Was it as nice as spending the week with an Emperor’s Package at Caesar’s Palace in Las Vegas…umm, not even close but it was a break from my day-to-day as an economist.

My own schedule would start each day with a three-hour test bank exam using the topic weights from the exam. The results from these mini-exams are extremely valuable in planning where you need more studying. If you are scoring under 70% in any of the high-value topics, this is where you need to spend your time.

Don’t feel like you have to cover the entire curriculum over the week. Review flash cards and notes in less important topics or in the areas where you are scoring well. I always tried covering a couple of study sessions completely each day and maybe hitting the important points in another one or two study sessions.

Spending 8 -10 hours a day studying means you’re probably going to need to mix it up with different resources to keep from getting bored. Spend some time reviewing flash cards and end-of-chapter questions to take the monotony off of just reading all day.

Three options for your last week vacation

You’ve got three options when planning your last week study plan if you decide to take the week off of work. If you stay home, you really do need to get out of the house to study. Go to the library or another quiet place where you can limit distractions. If you stay home, you are going to be tempted by the television, food and a number of time-killers. Turn off your cell phone and fight the urge to check your email while you are out. This week is still work, it’s just not your normal work but you need to set a 9-5 schedule and follow it. Avoid the temptation to stay out late with friends and pushing your morning study to later in the day.

My favorite plan comes from a friend in Chicago. He would plan a trip, usually to San Diego, for the week. Mornings would start early with a quick run on the beach and studying by 8am. His day still included at least 8-10 hours of studying but it would be done at the beach or the park. You may even ask the hotel to remove the television from the room. The trips gave him a real opportunity to relax but still devote some serious time to getting exam points. It also gets you away from your usual distractions and can re-energize your studying with new surroundings.

You also have the option of going to an intensive boot camp study program like the one offered by Creighton University. These are usually three or four days of intensive lecture on the curriculum. They can be a new perspective on the material and some great advice on how to approach the exam.

Take the Friday before the exam off from studying. You’ve put in the work and deserve a break. Spend the day relaxing and making sure you have your materials to take to the test center. If you are not familiar with where the test center is located, I would spend a little time looking online for routes to the test. Even better, connect with a candidate that lives near the test center for directions and possible road closures in town.

The end is in sight, stay focused.

‘til next time, happy studyin’
Joseph Hogue, CFA

Making Level I Success a Step to Level II

If you’re a CFA level 1 candidate, your top priority right now is to pass that first hurdle and enjoy a well-earned six months of rest. The last thing you want to think about is putting in your time on the next two exams.

But if I told you that there was something you could do while studying for the CFA level 1 exam that would save you a lot of time next year, would you be interested?

You bet you would!

Remembering a few key points while studying for the first exam could help you pass the level 2 exam and even give you a head start on the third exam as well.

Relationships between the CFA exams

The secret is understanding the related material across the exams and what you need from one exam to the next. While the topic areas across all three exams are all related to an extent, there are a few in which your work on earlier exams is absolutely imperative to passing.

Ethics and Professional Standards is probably the most consistent across all three exams. You will see a couple of new sections in the level 2 and 3, but the core material is exactly the same. The topic area is worth more nearly 12% of your total score across all three exams so definitely points you can’t afford to miss.

Not only is the topic extremely important across the exams, it’s been my experience from candidate comments that it is the one they are most often disappointed by on the first exam. Candidates assume they are ethical people and will be able to pick the correct answer out of the three possibles. They neglect the section and then are surprised at how difficult it is on the exam. Spend a little extra time on this area, do the end of chapter problems and save yourself a ton of time and stress in the next two exams.

Quantitative methods is another topic where mastery of the CFA level 1 curriculum will pay off big time on the second exam. While it is not a high-point section, only 12% of your first exam and 5% – 10% of the second, understanding the material in the CFA level 1 is critical to do the work on the next exam. The level 2 curriculum usually even includes optional refresher material for those candidates that didn’t learn or forgot the prior material. Think of it as the difference between two mathematics courses, one teaching the basics of multiplication and the other moving on to algebra. You would be absolutely lost in the algebra class without mastering the prior course.

Financial Reporting and Analysis is one of two or three core topics to the entire curriculum and worth more than a fifth of your first two exams. The readings on the financials statements in the first exam must be mastered to be able to do the intense analysis work in the second exam. Talk to almost any level 2 candidate and they will tell you that one of the hardest parts of the exam is the FRA material, especially intercorporate investments, multi-national operations and pensions. To be able to understand these readings, you must understand the relationships between the financial statements which is Level 1 material. Save yourself the time of reviewing this by mastering it early.

Study session 14 in the Equity Investments topic area will also be a very important reading for progressing to the level 2 exam. In fact, it looks like a lot of the level 1 material is repeated in the level 2 curriculum. Equity Investments are a quarter of your total score at the second level so you want to be ready for the topic.

The usual disclaimer applies that you cannot afford to completely neglect any topic area. You will need around 70% on your exam to pass to the next level. These exams are extremely difficult on a mental and physical level so do not expect to get all the points in any one section. Spend enough time on the secondary topic areas so you can get at least 60% or more and then focus on the higher-point and higher-importance sections.

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: July 18, 2016 at 16:59 pm