Just two months are left to study for the 2014 CFA exam and most of you are probably wondering where the time went. Even starting early, an impending sense of dread always came over me about this time of year when I was taking the exams. Whether you have 300 hours or just 30 hours under your belt by now, these last two months are the time you need to focus your time and make sure you’re ready for June 7th.
From Quantity to Quality
Most of us are die-hard numbers people so it easier to put things in quantitative terms. We talk about 300 hours or 70% needed to pass. While this may be convenient, it isn’t necessarily the only way to prepare for the exam.
All the time spent studying won’t help you if you are not comfortable with the material going into the exam. Candidates get so focused on scoring high enough to pass the exams that they forget the reason for the exams in the first place, to master the material. Instead of placing some arbitrary amount of time on study, focus on trying to be able to explain the material in your own words and how it applies to analysis and asset management.
Where your time counts
We’ve talked a lot about core topics to the exams but they are even more important as the exam draws near. While you can’t afford to neglect any part of the curriculum, there are some topic areas that will make or break your score.
Ethics, Financial Reporting & Analysis, Equity Investments and Fixed Income account for a strong share of the points across all three exams. The four topics may account for between a third and 80% of your exam score. Beyond that, you will need a strong concept of the material in the four topics to be able to understand more detailed material in later exams.
Getting max points in these core topics means a lot of wiggle room across the other six topics.
An important note here is that if you are going to be spending a lot of time on these four topics, you need to do it with different resources. Reading the same thing over and over again is just going to lead to burnout.
Resources for the finish line
When I talk about different resources, I mean ways to study the curriculum whether different media or different sources. These might include the curriculum, condensed study notes, flash cards, question banks, videos or your own personal notes.
- Using different resources helps avoid burnout by not repeating the exact same material.
- Using different resources also helps to find the one with which you learn best.
- Different resources can help provide different perspectives on the material.
Reviewing two study sessions a week
Covering two study sessions a week means you can cover nearly every topic and still have a week left for an intensive review. There are two ways to approach this, you can either cover 16 separate study sessions or you can cover some of the core topics multiple times. It really depends on how comfortable you are with some of the secondary topics and how well you know the core topics.
I always liked alternating study sessions when I did my two per week reviews. Using Ethics and FRA as an example, a week might look something like:
Sunday: Read through condensed notes for the Ethics material and spend an hour on practice problems
Monday: Read through condensed notes for FRA and spend an hour on practice problems
Tuesday: Review each LOS for Ethics, highlighting key concepts and re-reading the sections in which I haven’t quite mastered
Wednesday: Review each LOS for FRA, highlighting key concepts and re-reading the sections in which I haven’t quite mastered
Thursday: Review flash cards for Ethics and spend two hours on practice problems
Friday: Review flash cards for FRA and spend two hours on practice problems
It’s a pretty intense schedule but can be flexible for the number of days and hours you have available. Alternating study sessions helped me avoid burnout trying to cram consecutive days on one topic. Notice I also use different resources through the week so I am getting different perspectives on the material. Practice problems are an extremely effective resource at this point so I tried to include them nearly every day.
Do this up to the last week and then do an intensive review of the curriculum as a review. Plan on giving yourself a day or two to relax before the exam and plan your test day.
‘til next time, happy studyin’
Joseph Hogue, CFA