The Chartered Financial Analyst (CFA) designation is one of the most prestigious in the industry. Among other requirements, earning it requires you to pass three rigorous exams. These exams are considered some of the most demanding professional exams for finance professionals, and their difficulty is reflected in their low pass rates. It usually takes around four years to complete the CFA Program, with most candidates devoting at least 300 hours over six to eight months studying for each exam.
The decision to begin the journey of becoming a CFA charterholder is an important one. Although the CFA journey is long and arduous, the vast opportunities presented to CFA charterholders once they earn the designation outweigh the sacrifices made. Below are the top four benefits of obtaining the CFA Charter:
1. Prestige in the Profession
The CFA credential is the gold standard of finance and carries enormous weight in the business and financial worlds. Charterholders are considered trusted advisors and are viewed with admiration for the effort needed to earn the Charter. The Charter is a badge of distinction within the finance industry.
2. Increased Salary
CFA charterholders often earn more money for the same job than if they did not hold the CFA Charter. According to the CFA® Society, the average total compensation for charterholders (in the U.S.) is approximately $300,000 and the median base salary for charterholders is approximately $180,000, with the balance split between cash bonuses and equity or profit-sharing. The variation in wages reflects differences in the size of a company, the location, level of education, and professional credentials.
3. Greater Job Security
According to the Bureau of Labor Statistics, the employment of financial analysts is projected to grow 6 percent from 2021 to 2030. As globalization is on the rise, more companies are cropping up, and the need for financial analysts is growing.
Additionally, suppose you are up for a promotion against someone with equal background and experience but have your CFA Charter. In that case, the promotion will most likely go to you because of how highly the designation is valued.
4. More Career Opportunities
CFA charterholders have many career options! The Charter opens doors to different career paths from which to choose. There are opportunities to work internationally, locally, and at large or small companies. You can work as a research analyst, financial analyst, credit analyst, risk manager, portfolio manager, etc.
The evenings and weekends of study are worth it! Becoming a CFA Charterholder is not the easiest endeavor, but your sacrifice can result in greater rewards and more career satisfaction. We hope you found this information helpful and that we nudged you towards embarking on the journey.
Ready to take your future in the right direction by becoming a Charterhodler? Take a FREE trial of our CFA Level 1 online Learning Tools today!