Should I go for MFE?

[TheLostGeneration]

Hi guys,
I have been struggling for a while as to figure out what I really love to do after graduation. So I am currently at a 80 or so school majoring in Computer Engineering (graduating in 2013). As a matter of fact, I love programming, but I cannot imagine myself doing programming all day long for life. Instead, I found myself more easily get intrigued by math.
In my junior year, they offered a whole sequence of FE classes (I-III) covering topics from portfolio management to option pricing using monte carlo method. I enjoyed these classes so much that made me reconsidered what the potential career out there.

I have been seriously preparing for the finance/econ PhD application. However, I will be applying for the top10 schools only, because I realize how tough the job market is for people with a PhD from non prestigious schools. But since this is a rather risky/random process, there is a great chance that I will end up with nothing. So I will need a backup plan, do you guys think I should apply for FE as a backup plan or just go for work in EE/SDE field for a year then reapply for PhD?

My background:
GPA:3.96
GRE: Will take the test on June 2012, expected to be in the range of V600 Q800 AWA 4.5.
Institution: 80ish school/top50 engineering
Math Courses: Calc I-III, Discrete, Fourier Transform, Linear Algebra I&II, Numerical Analysis I&II, Diff EQ, Abstract Algebra I, Real Analysis I&II
Econ Courses: Intermediate Micro, Intermediate Macro, Econometrics, Financial Engineering I-III
Programming Courses: up to data structure (4 courses)
Research: Worked with a finance professor for 1 year
Job: One internship at a electricity company, another internship at a major telecommunication company. Total work experience = 1 year.

Thanks

 

[DominiConnor]

Sounds like so far you've followed the anti-fragile style suggested by Taleb, you've bought options at a low cost and they may pay off.

However...
I must warn against doing a PhD as a purely career option, 4-5 years of your life in mostly self driven study/research is a brutal price to pay for something that may not pay off for you. Unless the topic you want to pursue is itself something you have a passion for then my advice is to avoid doing a PhD. You cannot yet know how miserable it might make you otherwise.

 

[TheLostGeneration]

hi, DominiConnor
Thanks for your advices. I do realize the commitment and opportunity cost for a PhD degree. The intention to pursue a PhD degree and thus a career in academia is due to my inclination to think deeply and share knowledge. I have been an engineer, and figured that the people I worked with usually just don't care about how things work. They care more about getting thing done. What's even worse is that most engineers, even though they have mathematical trainings, they don't apply them at work. This is not the type of environment I will like to work in. Therefore, I think working in a more intellectually challenging environment or research workshop will be a better fit for me.

I haven't got the chance to get exposed to the financial industry yet, not because I haven't looked for job, but because I was not given the chance to work in big financial institutions considering my non-prestigious school. Hence, I don't know about the challenges facing the practitioners. I would love to work in the industry before I make the decision for PhD. That's why I also consider FE as a potential option. Given my profile, do you think I can get in some good FE/OR programs for Fall 2013 and hopefully get a job in the finance industry?

Thank you

 

[Andy Nguyen]

You probably will find out pretty soon that things are not as rosy as you imagine, industry or academia. If you find your dream jobs, it may not pay your bills and vice versa. You have to compromise on your priorities.
Finance job is not curing cancer. Some even say it's the cancer.

 

[kwlmy]

1) The "E" in "FE" stands for Engineering.
2) People pay you to make things work, in whatever company or institution - PhD, academia included.
3) In Finance, math isn't everything.
4) The grass is always greener on the other side.

 

[TheLostGeneration]

This is very true indeed. I believe that people pay you to get things done. In fact, I think this is even more true in the finance industry where how much money one can make essentially defines one's ability. So that's why I am more inclined to go for academia. But what if I choose a career from which I can make most of the money, should I just go for FE? I am a very diligent and tenacious person, no matter how much I hate something, once I determine to get it done, I go all in.
Again, given my profile, will I be able to get in the Top 10 schools?
Thank you

 

[alain]

will I be able to get in the Top 10 schools?

If you don't apply, you won't get in. Search QN, your profile looks like any other profile posted in this site.

 

[Andy Nguyen]

Use the Tracker. People post GRE/GPA so you should have a good idea of the type of profiles got admitted into your top programs of choice.

 

[bullion]

hi, DominiConnor
Thanks for your advices. I do realize the commitment and opportunity cost for a PhD degree. The intention to pursue a PhD degree and thus a career in academia is due to my inclination to think deeply and share knowledge. I have been an engineer, and figured that the people I worked with usually just don't care about how things work. They care more about getting thing done. What's even worse is that most engineers, even though they have mathematical trainings, they don't apply them at work. This is not the type of environment I will like to work in. Therefore, I think working in a more intellectually challenging environment or research workshop will be a better fit for me.

Then you'll really really hate finance.

I haven't got the chance to get exposed to the financial industry yet, not because I haven't looked for job, but because I was not given the chance to work in big financial institutions considering my non-prestigious school. Hence, I don't know about the challenges facing the practitioners. I would love to work in the industry before I make the decision for PhD. That's why I also consider FE as a potential option. Given my profile, do you think I can get in some good FE/OR programs for Fall 2013 and hopefully get a job in the finance industry?

Thank you

Given the rising competition for MFE, it is more difficult to get in than some of the PhD programs out there. So you probably won't be able to use MFE as a backup. You'll be competing with a bunch of highly qualified applicants with perfect GPA, majors in relevant fields, related internships, and a bunch of scholarships/awards. MFE are also more like a filter for BBs instead of a chance to reborn and shake your non-prestigious school status. So if BBs won't give you a chance now, chances are neither will the top MFEs.

For PhD, it is extremely difficult to jump from 80 to top 10 unless you have some ground breaking research results. Especially for PhD programs which are normally fully funded, you'll be competing with other applicants whose school advisors all know each other and recommend their own students. There is definitely a pecking order in academia, so it will be a lot more realistic if you jump from a 80 to 50 with a master, another master to 20, and finally a PhD to 10 (don't laugh, I've seen people actually doing it). PhD admissions generally favor graduating students and has a much bigger focus on research publications.

So as you can see, MFE and PhD have very very different focus, and your positioning/preparation will be quite different when trying to appeal to either admissions committee. GPA 3.96 is most certainly an accomplishment, but it might not enough to bump you to the top 10 just yet. As alain has pointed out, your profile so far is pretty similar to most applicants. So you'll really need something else to stand out for MFE admissions.