How much would you sell your charter if you had the option to?

CFA General
#21

How else would you value the charter? What sort of equity valuation or fixed income technique would you use?

#22

Guesstimating that my current position (which requires the Charter) pays about 60k more than another general finance-related position for someone with the same education/background but without the Charter – AND assuming I’ll be in the workforce for another 30 years… Keeping it simple (without accounting for different levels of raises/bonuses, or discounting back to 2016), I’d calculate the Charter’s FV to me as:

n = 30 i = 3% PV = 0 PMT = 60k THEREFORE, FV = $2,854,524.94

#RoundingUpto3M

#23

I had no problems with your choice of valuation method. As I clearly state, my issue is with your estimate of post-tax incremental revenue the Charter grosses you per year. I find it hard to believe the Charter adds nearly half a million to your income every year. Also, not sure why you used a discount rate of 8%. Shouldn’t this be along the line of inflation?

#24

Ill sell it for a 30 year job contract that offers 15 k a month and I still keep my knowlege and use it for personal investment. I dont feel like Im passing the Cali bar test this exam is a bit overrated in my opinion no offense…

#25

Working for a hedge fund on wallstreet is been my dream for years but will it ever come true? I hope but I doubt it I read a lot about these sharks and even discuss their pay with friends that are heavy lawyers in the game and they are absoluetly asstounded by how filthy rich they can be oh lord PLEASE send me over there I worked hard and I`m running out of time … anyway NBA game is ON LETS ****** GO WARRIORS !!! if not GAME 6 its GAME 7 WATCH OUT CAVS!!

#26

I agree with you Calvinoh… the exam is overrated; personally, I can consider myself successful - having worked in IB in NY for 6 years, now a PE manager in Boston… I don’t think I will make extra pay with the charter. Many of my colleagues who got the charter in the recent times (2011 onwards) have not received any extra pay for it. When you hit 30s, its no longer a case of monetary value but pride-value; just finishing it because you started it.

#27

+1

#28

So you won’t sell it for anything less than $180k/yr for 30 years guaranteed (amounting to $5.4M) and you think it’s “a bit overrated”? That makes sense… And don’t come back with “I never said I wouldn’t sell it for anything less…” because in that case you might as well have said $100 billion…

#29

Don’t forget the caveat that he gets to keep the knowledge for his own personal use!

Lololol

#30

A Harvard MBA.

#31

Lol give it 20 years CFA will be some entry level requirement haha

#32

I can tell you put a lot of thought into this theory… Excellent analysis.

#33

MORE is my number)))

#34

I see diminishing return on the charter going forward so I’d probably take it for less than a million dollars since I would be established enough by then anyway so value of the charter to me would be far less.

#35

Why people think CFA is overrated ?

#36

Do npv of career with, then do npv of career without, calc the difference. Maybe gross up for idiosyncratic/sentimental value.

#37

Never will (provided i get one :stuck_out_tongue: ).

I hope everyone else does the same.

Supply and demand cheeky

#38

For next year`s CFA level 3 takers this situation here is the definition of an endowment bias :wink:

#39

Seriously in Canada people love letters and it is very common to see that on Linkedin that Canadian professionals write two to three letters after their name. This behavior is very common in HR, Finance, Accounting…