A little advice for an undergrad???
 

My name is Kevin and I currently am a Junior/Senior at Washington State University and will be graduating with my Bachelors in Finance December 2007. I have been contemplating multiple ideas of what I want to do next and thought I might be able to find some advice from some experienced people here.
My targeted career field at this time is aimed at something either in Financial Analysis or Financial Planning. Im trying to figure out what would be best for me from here. My options really are:
-Trying to go straight to grad school for my MBA, which I could most likely get into here at WSU immiediately.
-Waiting for some work experience so that I could maybe get into a better MBA program somewhere else.
-Starting to work on getting my Level I CFA for possibly taking the exam next December when Im graduating.
Of these options, which seems the most feasible as well as which seems like it would be the most helpful in finding a good job? Any advice would be greatly appreciated and I thank you in advance for your insight.
Kevin

Re: A little advice for an undergrad???
 

2 and 3 are both good ideas; an mba w/o work exp is basically worthless.

Re: A little advice for an undergrad???
 

-IF you want MBA wait after your work exp and go to a better MBA.
-Read strassa's post

Re: A little advice for an undergrad???
 

Kevin:

Since you will already have a business degree - getting an MBA right out of college is not a smart move - in fact, with an undergrad bus degree getting an MBA from anything less than a top 20 B school is a waste of money. Depending on your grades, I would shoot for a entry level job at one of the larger Northwest banks - then study you a$$ for the GMATs and apply to a good school after 2 years on the job.

Is there any way you could apply to the accounting firms and try to get your CPA? Much more valuable than a CFA in the long run and a good launching point to an MBA down the road.

Re: A little advice for an undergrad???
 

In more and more states, sitting for the CPA requires 5 years of schooling. It also requires a substantial courseload in accounting. Work experience won't substitute and allow you to sit for the exam. I passed 7 years ago, and Illinois' 5 year requirement went into effect shortly after I passed. Not sure about WA.

I second that a CPA is more valuable than a CFA over the long haul, but you've really got to know quite a bit about tax and audit to pass the CPA exam.

Re: A little advice for an undergrad???
 

[ QUOTE ]
Kevin:

Since you will already have a business degree - getting an MBA right out of college is not a smart move - in fact, with an undergrad bus degree getting an MBA from anything less than a top 20 B school is a waste of money. Depending on your grades, I would shoot for a entry level job at one of the larger Northwest banks - then study you a$$ for the GMATs and apply to a good school after 2 years on the job.

Is there any way you could apply to the accounting firms and try to get your CPA? Much more valuable than a CFA in the long run and a good launching point to an MBA down the road.

[/ QUOTE ]

Definitely agree with avoiding the MBA track straight out of undergrad. But why is everybody so adamant on CPA>CFA in the long-term? I'd argue both are valuable, but the only people I hear touting this are CPAs (not CFAs).

Re: A little advice for an undergrad???
 

Of course we CPA's think we're better.

My thoughts relate solely to the type and volume of corporate opportunities avaialable to those that hold CPA's vs. those that hold CFA's. A CFA is a much more narrowly defined certification in my opinion. As a CPA, you can work in just about any type of tax, audit or finance position. There are many different avenues, both in the corporate world and the public accounting world, that you can get a job. A CFA is much more limited.

To try this out, look for Finance jobs posted on any major job board or in any newspaper. You will see few, if any, references for being a CFA. You will see dozens referencing a CPA.

Re: A little advice for an undergrad???
 

Definitely get some work experience. Who knows, your company might even pay for your MBA.

Re: A little advice for an undergrad???
 

Yeah I have considered the Accounting route for my major as I have done very well in my accounting courses with very limited effort, and the accounting school is recruiting me but although im fairly decent at the material, I really dont find it interesting. I really seem to find all of my Finance classes and information pertaining to investments much more interesting and more likely something I would enjoy as a career. Would a CPA be beneficial even in the more investment related careers?

Re: A little advice for an undergrad???
 

There are basically no CPAs in important investment positions in the hedge fund, investment banking, LBO, or venture capital firms.

CPAs do work for these firms and charge by the hour while people at these firms drive Ferraris and live in Greenwich.

In my experience the CFA was valuable as much because it showed dedication and demonstrated interest as anything else. At the better investment firms they won't be like "wow, you are a CPA, that's great". They will be like, "what the f.ck is your problem, why did you get a CPA?"

Actually, that is untrue, since you won't even get the interview.

Re: A little advice for an undergrad???
 

Thanks for the positive outlook Scorpion Man.

After rereading your post, were you hinting that I wouldn't get the interview at the investment firms because of having the CPA vs. the CFA, or that I just plain wont get the interview there period?

Re: A little advice for an undergrad???
 

If you want to get into Investment banking, get a CFA.

If you want to get into Accounting or Corporate Finance, get a CPA.

Re: A little advice for an undergrad???
 

If you got the CPA instead of the CFA. I was kinda kidding...kinda.

I am serious about the fact that CPAs were very much looked down on in investment business. The reason for this is that most CPAs became accountants and none of the best people became accountants. This is because its not as high paying a job as jobs in the finance world (longer term) and also considered less dynamic and intellectually challenging...hence the CPA was a "signal" about these people.

CPAs won't like this post, but it doesn't matter. I looked at thousands and thousands of resume and interviewed 1000+ people and this was a fact at my firm. What I am saying is most relevant at the best firms...it probably declines modestly as the quality of firm declines.

I highly disagree with previous poster comment about getting a CPA for investment banking. I would say <5% of people in investment banking at the first and second tier firms have CPAs.

Re: A little advice for an undergrad???
 

Kevin:

I mentioned the CPA track for a reason - the college you are in will make it very difficult for you to get into an investment bank - let alone a hedge fund or private equity firm. I assume that you could in fact get your CPA (prove you're smart) then move on to a top 10 biz school then have your pick of finance jobs. CFA's are basically useless in today's market unless you're working for an insurance company or asset manager - the lower end of the financial services pay scale.

Re: A little advice for an undergrad???
 

[ QUOTE ]
Kevin:

I mentioned the CPA track for a reason - the college you are in will make it very difficult for you to get into an investment bank - let alone a hedge fund or private equity firm. I assume that you could in fact get your CPA (prove you're smart) then move on to a top 10 biz school then have your pick of finance jobs. CFA's are basically useless in today's market unless you're working for an insurance company or asset manager - the lower end of the financial services pay scale.

[/ QUOTE ]

Good point, I was speaking more generally -- what kind of grades did you get Joker? Midas -- there are a lot of people who did not get an MBA who layered on the CFA and ended up at hedge funds. For example people who were associates for sell side research analysts at investment banks. It is pretty common (I have an MBA, not a CFA, fyi).

Again...if I wanted into asset mgmt or Ibanking, I think the CFA is far superior.

That said, to Midas' point, if you are unemployable for the better jobs, a CPA is like going to trade school...you will be able to find some way to use it.

Re: A little advice for an undergrad???
 

My grades are ok but nothing spectacular, largely due to me transferring here and the grades that I transferred don't count towards my GPA here, which hurts me because they were most of the introduction and easy 4.0 classes. My business GPA although should be a bit higher, probably around a 3.6 or so with a cumulative around a 3.4.