I have a PhD, MS finance or MFE or MBA finance

[soham]

Hi,

I have a PhD in Engineering with back ground of Numerical Modeling in Fluid Dynamics. Lately I am not finding much interest in fluid sciences part of my background and becoming more and more fascinated in Finance (quant modelling, stock markets, trading, investment banking). Money is also a huge factor in my thought process, as I have understood that in my present field, there is no way I could make huge money (as in finance), and since the passion is also lacking, I am considering a career change into finance. However, I am trying to decide between MS finance or MFE or MBA finance, and I will highly appreciate any thoughts, comments on the following options I have:
1) Landing into quant positions without an MFE or similar degree. I love programming, but not expert in any language, never worked in C++, No background in finance. Good in basic maths, but definetly not in advanced mathematics.
I am good in self study, so my question is with self study in C++, and computational finance subjects, Can I get an interview or job in a quant position. In this way, I dont have to quit my current positon and lose pay until I move into a quant job.
2) Quit my job (lose 1 year pay) and apply for a MFE or MS in finance in top 10 schools. Since I already have a PhD, can I get admission without GMAT or current GRE score. Main issue is getting funding, tution waiver for research or teaching assistantship. Is such funding possible in finance programs.
3) To go for an MBA finance from top 10 schools (lose 2 year pay). I already have 4 years of work experience beyond my Phd. So I have to write GMAT and get a very good score. Also, has anyone ever got tution waivers or scholarships in top MBA programs.

Interest in finance is certainly there, however, I am trying to understand the faster path for higher salary. While an MBA or MFE entry level salary +benifits could be around 150-200 K, Which path would bring me closer to a Million dollar salary. May be its silly thinking, or greed, I dont know, but I just feel that it is a good enough challenge to make this kind of money (which I guess many in the world or finance already do) and this certainly motivates me.

Any comments are highly appreciated.
Thanks

 

[TBeas]

Honestly, I don't see why you would need another degree. Study for the CFA, keep your current job while you do.

 

[purplyboy]

Why not take the Baruch C++ online seminar class and try to get distinction?

 

[AlexandreB]

I agree with Tbeas and purplyboy, the CQF, the CFA, self-study and/or Quantnet/Baruch C++ cert will give you better bangs for your bucks than MBA or MFE.

I would very rarely advise to do the CFA but for someone with absolutely no formal finance formation it could make sense, maybe.

 

[amanda.jayne]

Money is also a huge factor in my thought process

Interest in finance is certainly there, however, I am trying to understand the faster path for higher salary. While an MBA or MFE entry level salary +benifits could be around 150-200 K, Which path would bring me closer to a Million dollar salary.

Have you picked up a newspaper recently?

 

[finengtoo]

Have you picked up a newspaper recently?

Oh come on

 

[purplyboy]

No experience, 65k-115k
http://mfe.baruch.cuny.edu/wp-content/uploads/2011/05/2009-2011_Baruch_MFE_Employment_Report.pdf
How many quants have million dollar salaries?

 

[psuhoops]

This is not directed at soham personally, so please don't take offense, but I feel this is as good a time as any to get this off my chest. I have seen, both on this site and among current/recent MFE students and grads, the attitude that the finance aspect of quant finance or an MFE is "no sweat" compared to the programming and/or mathematical areas. I feel, based on my experience, that without the understanding of how markets truly work, which includes understanding differences from the theoretical, areas such as behavioral finance and other alternative theories such as fractals, power laws and their application, someone with just a technical/mathematical background will be limited to areas such as derivative pricing and modelling. Nothing wrong with that, but if someone aspires to a seven figure salary, the way they are going to get there is trading.

If you are going to trade, what is your "edge"? You need to know what inefficiencies in the market you intend to exploit to profit in the market. Can your theoretical edge or arbitrage actually be exploited in the market? You will need to know the differences between financial systems and those in the physical sciences when trying to apply those PS theories and formulas to the markets. If you can do this, more power to you, but with no background or experience in finance, I believe your journey will be more difficult than you think.

PS. I am sure you know this, but there are very large differences between I-banking, quant modelling and trading.

 

[soham]

Thanks for the replies.
I agree with you psuhoops, that a very good foundation in finance is a must. My present thought process is infact inclined towards getting a good finance education and am trying to determine the best path.
I guess doing an MS in comprehensive finance from a top 10 school might be good. But again, the thought of losing pay for 1 or 2 years is kind of hindering the idea. Does any top 10 schools in MS finance provide tution waver?...
Thanks Tbeas, purplyboy, AlexandreB for the suggestions...
I Guess CFA, CQF, and Baruch C++ looks like a better way for my background. I am trying to find more about CFA. It seems very good in that the credential is very respected, difficult to pass, and will encompass a deep and comprehensive knowledge in Finance. However, I dont have the 4 years investment experience to gain the CFA charter. Can I finish the CFA Program, and may be worry about the CFA charter after gaining 4 years investment experience (if at all I can get a position with only PhD in engineering + CFA background). Will I get a finance or quant job, if I complete CFA (all three levels?).
Or may be the other way to go is to first complete Baruch C++ (may be with distinction), and then complete CQF and try for quant positions.
Any info, suggestions are welcome.

 

[psuhoops]

soham:

The big question is : What do you want to do? I-banking, portfolio management or trading, maybe the CFA followed by an MBA (with a summer internship). A quant position - an MFE. I have the CFA, and MBA and MFE, plus 15+ years as a trader/portfolio manager. If you tell me what path you prefer to take, I'll tell you what I think the best course of action might be. Getting an understanding of the markets (practical, not theoretical), is the key to understand how you would then apply your technical background to finance (to develop "the edge" i talked about earlier). For either the MFE or MBA, you will paying most, if not all of the tuition and fees (some programs such as CMU will give some financial help, but that is the exception, not the rule).

 

[purplyboy]

If you can get into the C++ program and do it right away in 4 months or so. Then you can register for the Dec CFA level 1 exam in Dec and CFA level 2 exam June 2013 exam then you can register for the Cfa level 3 June 2014. CFA can be done in 2 years, but you have no life for 2 years

 

[soham]

psuhoops: Your career path (CFA, MBA and MFE ) is amazing.

I am still exploring my interests in finance. Portfolio management is very interesting. As for quant, since I have a PhD and background in computational modeling of fluids, I thought quant would be a easy transition. Best way I guess is to do spend some time and do more research till I get more clarity.
Is CFA not comprehensive by itself, does one still require an MBA finance after CFA?..
Also what about the path CQF/Baruch C++ for quant positions with my background instead of an MFE or may be even CFA/CQF/Baruch C++?
Can one learn enough through the online programs CFA, CQF?.. Or doing MS in comprehensive finance from top school like Princeton the better way to go at it?..
If I can ask, "Which path would bring me quicker to the seven figure salary?" , (may be its difficult for quants, and it is possible mainly through investment banking). May be this will help me in choosing the path. Will highly appreciate if you can enlighten me on this.

purplyboy: Yes, whatever path I may choose I guess I will not be having much life, but I am definitely going to master C++ over next few months.