The Significance of Modeling Skills in My Career Journey
Last month, I completed the CFA Level 3 exam. If I pass, I’ll earn the CFA charter alongside a few years of experience as an investment analyst. Given this combination, I believe I should be earning a six-figure salary, but unfortunately, that’s not the case at the moment.
The challenge I’m facing is my lack of modeling skills. My current role doesn’t require them, so I haven’t had much opportunity to develop this crucial competency. Although I explored financial modeling in college and am currently refreshing my knowledge through the CFA financial modeling PSM course, I still wouldn’t feel confident creating a DCF model from scratch. Will this gap in my skills prevent me from qualifying for most job opportunities?
One response
Modeling skills can be important, especially for roles in investment banking, equity research, and certain areas of asset management where financial modeling is a key part of the job. However, whether a lack of advanced modeling skills will disqualify you from most jobs largely depends on the specific role you’re targeting.
Many investment analyst positions may value your CFA charter and experience more than your proficiency in modeling, especially if the job is more focused on analysis, research, or strategy rather than technical modeling tasks. That said, brushing up on these skills, as you are doing with the CFA financial modeling PSM, is a good strategy.
Having a solid understanding of how to build key models like DCFs can definitely enhance your profile and give you an edge in competitive job markets. It shows potential employers that you have a well-rounded skill set and can handle the financial analysis aspects of the job.
If you’re applying for roles where modeling is crucial, you might want to consider dedicating some time outside of your current job to practice and refine your skills. There are numerous online courses and resources that can help you improve your modeling abilities. Networking with professionals in your desired field can also provide insights into which skills are most valued and help you prepare accordingly.
In summary, while modeling skills are valuable, they are just one part of a broader skill set. Your CFA charter and analytical experience will certainly complement your efforts to upskill in this area. Focus on improving your modeling skills while leveraging your existing qualifications and experience to open new opportunities.