Are You Sure about the Time You Spend on CFA Exams? Fooling Yourself or Missing Some Time?

When preparing for the Chartered Financial Analyst (CFA) exam, candidates face a formidable challenge. The CFA curriculum, often likened to a master's degree in investment management, encompasses a broad spectrum of topics from quantitative methods, economics, financial reporting, asset management, to ethical and professional standards. This breadth and depth demand not just familiarity but a deep understanding and integration of complex concepts across multiple subjects. A recent poll about CFA study habits provides intriguing insights into how candidates claim to manage their time, but the results invite skepticism regarding their accuracy.

Prepping for the CFA Exam: What Does It Take to Succeed?

The poll asked CFA candidates about their time allocation:

- 20% study, 40% plan, 40% track

- 30% study, 30% plan, 40% track

- 40% study, 40% plan, 20% track

- 80% study, 20% plan and track

An overwhelming 74% of respondents stated that they dedicate 80% of their time to studying and only 20% to planning and tracking. Given the CFA program's complexity, this distribution seems disproportionately skewed towards direct studying, raising doubts about the authenticity of these responses.

Getting Real

Few who pass the exams spend less than 30% of their allotted time to planning and tracking progress. So you candidates who don’t do that, you’re limiting your chances of being successful.

Planning and tracking progress are crucial to studying efficiently. If the plan is just to read the materials then do practice questions ad infinitum without reviewing results and adjusting future activities, then that 80% study time is just wasted.

To give respondents the benefit of the doubt instead of just thinking they’re fooling themselves, many candidates may not consider the time spent in creating and updating a study plan, making study aids like notes or flashcards, reviewing results of practice questions and removing material from future lessons that you already have mastered, or tracking hours spent and knowledge progress documented to be time spent on exam prep.

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But we do. Every minute spent away from friends family, work, and hobbies, is time spent away from friends family, work and hobbies. Thinking about the total time investment in your CFA prep and your future career advancement is thinking like a smart investment manager. You can’t calculate ROI correctly if you eliminate some of the cost.

If you’re truly not performing all these tasks then you’re not studying efficiently.

. ? ? creating and updating a study plan,

· ? ? ?making study aids like notes or flashcards,

· ? ? ?reviewing results of practice questions and removing material from future lessons that you? ? already have mastered, or

· ? ? ?tracking hours spent and knowledge progress documented

So for 74% of respondents, you have to get real. You’re either not performing necessary tasks to make the study hours efficient, or you’re not including all the time you’re investing in this important undertaking. On average, this should take up a minimum of 30% of your total time invested in the CFA exams.

Challenges in the CFA Curriculum

Studying for the CFA is not simply about reading and memorizing; it involves a substantial degree of synthesis and application of knowledge to diverse scenarios, much like a full-scale graduate program in investing. The material is not only voluminous but intricately interlinked. Candidates must not only grasp individual subjects but also understand their interrelationships and real-world applications. Such a comprehensive requirement usually necessitates significant time spent on organizing study materials, planning study sessions, and tracking progress to ensure all topics are adequately covered and retained.

The Question of Accuracy

Given the demanding nature of the curriculum, the poll results suggesting that most candidates spend the majority of their time directly studying, with minimal time for planning or tracking, appear overly optimistic. To break this down, those 80%’ers are deluding themselves due to:

1. Social Desirability Bias: Respondents may report what they perceive as the most impressive or acceptable study method.

2. Misinterpretation: The term 'study' might be broadly interpreted by some candidates to include planning and tracking activities.

3. Overconfidence: There may be an overestimation in how effectively and efficiently candidates believe they are studying.

Examining Less Popular Responses

Only 3% of respondents admitted to spending 20% of their time studying and 80% on planning and tracking. While less appealing, this distribution might more accurately reflect the extensive preparation truly beneficial for mastering the CFA curriculum. The modest support for more balanced approaches (30% study, 30% plan, 40% track and 40% study, 40% plan, 20% track) further hints that many candidates might be underreporting the time they allocate to non-studying tasks.

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Up Your Game

The results of this poll likely do not portray an accurate picture of how CFA candidates really distribute their study time. The complexity and breadth of the CFA curriculum demand dutiful planning and tracking. Recognizing the importance of these elements in the preparation process could provide more realistic and beneficial insights for future candidates.

We’ll take some responsibility for the skewed results. The survey might have achieved more accurate results by clearly defining what constitutes 'study' time and possibly differentiating between the planning and studying tasks.

What do you think? Could this adjustment could lead to a more honest reflection of the preparation strategies employed by CFA candidates.

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