# Going back to school full time...financial advice??



## The_Mechanic (Jan 6, 2012)

Hey guys. So as title states I'm currently in the process of getting back behind a school bench and getting smarter! I've been an auto mechanic for the past 7 years by trade, but have realized over the past 1-2 years that I appreciate the financial sector much more than I appreciate cars anymore. Therefore my aim is to get a bachelors in finance and then complete a CFA. Now i've got a little money put aside for this but i'm not sure on what all the best options are for going about this. My current situation is this:

-No debt anywhere.
-14,000$ in small cap RRSP
-23,000$ in ETFs (RRSP also)
-6000$ in TFSA 
-5000$ in chequing account
-8000$ value car that i'm selling to get more cash for school. (Nobody needs an 8k car in school in my opinion)

I'm 27 years old , live in an appartment with my brother. Monthly expenses all inclusive are around 1000$ (This includes groceries, rent, insurance,transportation etc etc). I'm going back full time and probably won't be working for the first couple of semesters unless absolutely necessary. My goal is to come out of school debt free or with as little as possible. I'm taking the condensed 2 year course so my time frame isn't too long.

My questions are: What would you guys do to keep debt down, and to stay afloat for the two years? Money generated by selling my car aswell as what I have aside in TFSA's will be plenty to pay for mostly all my sessions and books. But as for the cost of living, do you guys think it would be wise to extract money from my RRSP's ? It would not really be taxable if i keep the amount low, seeing as how I won't be working. Or would it be wiser to keep the RRSP's intact and to borrow for school instead? 

Seeing as how I want as little debt as possible on the way out, If I borrow from the bank I'd be tempted to get a student job and make the loan as small as possible. I'd also like to reimburse as much of it as I can without being completely broke all the time. Now I know I can acheive my goals but i'm no boy genius, so any time spent working will cut out on studying time, which I know I will need a lot of...

What would you guys do? Opinioins and ideas are all greatly appreciated!


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## SkyFall (Jun 19, 2012)

Will you study in Sherbrooke? or somehwere else i.e Montreal?

I am currently in a situation somehow like yours... I've been fooling around after high school, I had to move out of parent's because we weren't getting along... So I had to live on my own, tried many jobs (restaurants, car salesman, etc) and realize that the financial sector is where I wanna be. With time I realize something important, that school is VERY important, BUT it's not the only thing, you need experience!

I don't know exactly what you want to do exactly with your degree, but let me tell you what I notice... is that if you come out of college with only a degree and ZERO experience or the know how, you will get the hardest punch ever in the face. I am currently doing a Bachelor in Business Admin. and working for TD Canada Trust, I started at the bottom, simple teller... I show them that I can get the job done by doing the ''sales" they want me to (even if I don't consider that as real sales) I went up in the ladder which is helpful because I am building experience, network and I get noticed... which is important because I am aiming to get into TD Waterhouse or TD Securities (which is TD's investment department) once I finish school and get my Bachelor I already have the experience and the know how to perform right away and also I already know more about the job and the industry then the freshman!

When I was teller I had guys that just graduated and getting in the branch as Financial Services Rep, and I'll be honest with you, the degree in Finance they had help them understand the products we had but they didn't know how to interact with clients or how to deal with issue because of their lack of experience, my advice to you will be get a job in one of the big bank (part time) and in the same time get your degree, take your time you don't have to do it in two years you'll burn yourself with stress and workload, you get the academic credentials and the experience and even if you do it in 4 years you'll be more prepare and confident when you will go out there.

And by experience, for the CFA, start with the bachelor and see after because in order to get CFA designation it's not a walk in the park, it's very hard! but props if you really want it and going to

my 2 cent


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## The_Mechanic (Jan 6, 2012)

Thanks for the input Skyfall. Yes I will be studying in Sherbrooke. The cost of life is much lower than Montreal and the degree is very well recognized. As for part time job in a bank, I hadn't even thought about that seeing as how banks arent open nights or weekends making a part time job kind of hard to come by. I don't want to stretch the course over more than 2 years as I want it finished as quickly as possible to start gaining experience as soon as possible in the sector i'm aiming for. I'm looking to get into the financial sector mainly for portfolio investment and analasis for bigger companies. I've actually got many friends and contacts in that sector, including quite a bit of family therefor i'm not worried about the ''no experience'' factor you mention.

I'm looking more for financial tips fto make it through than tips on how I should get through it, but appreciate the input non-the-less. I'll really have to look into a part time job in local banks. What could be offered ? Just teller jobs? Or other more, umm.. interesting positions?


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## SkyFall (Jun 19, 2012)

TD is open longer and on Saturday (even Sunday) so you can get a job and if they know you are studying in the field you picked you even have greater chance. Also, without any credentials you'll have to start at the bottom which is teller, and work your way up. 

Just by curiosity and no offense, how the fact that you know people will affect the experience part? I mean, knowing the CFO of a company won't change the fact that you still don't know how is it to be IN the industry, that's what I meant. Just because you have friends, yes it may be easier to get a certain job or even promotion, but with out the "know how" you won't go far that's what I mean. If you can do your degree in two years that's perfect I hope you'll do it, but you'll have a reality check when you will enter the field without REAL experience.

People I know that manage portfolio didn't get there that easily, first they work hard which I assume you do but also they have experience that's why the company trust them and most important the CLIENTS trust them. Trust me, when you manage a portfolio you have to deal with clients and they won't someone with confidence, which can only be gain with experience. 

Don't misunderstand and think I am bringing you down or disrespect you, I just want to tell you that if you can or get the opportunity to get experience jump on it, because out there you need both School and Experience, I know that experience need to be build, but hey if you can start sooner you'll get ahead. 

As for the teller position, it's boring but I learned a lot and after that get into Financial Services Rep, you'll do small investments (GICs, Mutual funds, etc), you'll learn how to talk with clients... it's always different when people trust you with their money it's another type of game if you don't make them trust you.....

once again no offense buddy!

p.s. dont forget you'll still need to get your credentials like CSC, etc...


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## The_Mechanic (Jan 6, 2012)

Yea I get where you're coming from skyfall, and it makes perfect sense. I know you don't walk out of school and get tossed a multi billion portfolio to manage. I'm aware that experience, and know-how are just as important as school knowledge. I like to think of it as the difference between knowledge and wisdom. The auto-industry works in the exact same way. Coming out of school with a course in auto-mechanics makes you nothing more than a complete noob in a garage. I've worked long and hard to become the top diagnostics expert in my sector and work in a dealership that is very pleased with my results. I've had to work hard and study hard looooong after school was over to make it to where I have, and i'm more than certain that the challenge will be even greater in the financial sector seeing as how we work with a much more sensitive good.

Again, appreciate the advice Skyfall, and I understand where you're coming from, but i'm trying to get more of a financial stand-point view than where I should be going with my plan.


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## Spudd (Oct 11, 2011)

You can use the Lifelong Learning Plan to borrow money from your RRSP tax-free, which won't use up your contribution room like withdrawing it would. I don't know the details but you can google it.


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## fraser (May 15, 2010)

Good for you. Many years ago I went back to school. I have never regretted it. It enabled me to change jobs and to have careers changes. I worked with, and met many interesting people from all walks of life. I never had to work with people I did not like, for a company that I did not like, or in a position that I did not like for any extended period. And I made some money.


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## MoneyGal (Apr 24, 2009)

CFA and porfolio management =/= front-line customer service rep. As someone who works in portfolio management (I don't manage money), I do not recommend looking for part-time front-of-house work in a bank. Instead, focus on learning as much as possible through your course of study. The CFA program will weed out lots of people all on its own, as well.


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## The_Mechanic (Jan 6, 2012)

MoneyGal said:


> CFA and porfolio management =/= front-line customer service rep. As someone who works in portfolio management (I don't manage money), I do not recommend looking for part-time front-of-house work in a bank. Instead, focus on learning as much as possible through your course of study. The CFA program will weed out lots of people all on its own, as well.


Yea so i've been told ! It's apparently one of the harder programs out there from what I hear...

I've looked into the LLP or REEP here in Quebec. I think this will be my best option to get by with as much financial efficiency as possible


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## kcowan (Jul 1, 2010)

I would recommend that you work to finance your education rather than borrowing. Should you need some extra cash to get through then using your RRSP money makes sense. If the work you get is related to your future vocation, so much better. My #1 son managed three delivery/takeout Pizza Hut locations while in school. He learned about cash flow management, inventory management and hiring/firing. This helped him get a job more than his education.

(I think Skyfall is sharing some great advice, as is MG)

Good luck!


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## MoneyGal (Apr 24, 2009)

I'm going to disagree with kcowan (I already did!) - but specifically for the CFA part of your plan. 

You are eligible to start studying for the CFA Level I exam when you are in the final year of your undergrad program. I provide the strongest possible caution against trying to work (esp. in a low-level service job) while you are studying for the CFA. The most recent pass rate for Level I is under 40% and it doesn't improve much as you move through the program. 

So if you are thinking of doing one year of undergrad with no CFA studying, then one year of CFA studying while completing your undergrad, then my advice would be to drop paid work out from your plans. 

While I intend no disrespect to anyone posting in this thread, I'm a little worried that the advice to work - at anything - while studying for the CFA is misguided. A successful completion of the CFA will open more doors than a decade of work experience in a low-level job ever could, and the stakes for passing the CFA exams are high. Anyone attempting the CFA at any level would be advised to arrange their life so they can maximize studying and prep (and there are some excellent exam prep courses you can take!)


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## Four Pillars (Apr 5, 2009)

Yeah +1 for what MG said.

The only thing I would add is that you don't need to study for 12 months for each exam, so you can still work for part of the year. It's really the 2-3 months just before the exam that are the critical study times.


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## kcowan (Jul 1, 2010)

I still think MG is sharing some great advice along with FP.


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## marina628 (Dec 14, 2010)

My friend's daughter passed her CFA this year and I can tell you that she spent all her time at the library even on weekends to study .We have been friends 10-12 years and we get together 2-3 times a month for dinners and it seemed a job just for her to spend an hour to eat at the dinner table.It obviously paid off as she got a very high score and now has a decent job.


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## MoneyGal (Apr 24, 2009)

There are 3 six-hour exams. Here are the pass levels for 2013:

38% passed the first exam
43% passed the second exam
49% passed the third exam

So here's a potential flow for 100 people who wrote exam 1, 38 were successful. Of that number, 16 passed the next exam. And of that number, 8 passed the third exam and became eligible for CFA Charterholder status. 

People who are CFA Charterholders are not unemployed, like, ever. They are highly in demand and can work in multiple areas of the industry. Not all behind a desk as PMs, but there are tons of opportunities in private money management - from client services to Compliance.


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## The_Mechanic (Jan 6, 2012)

Those are some scary stats indeed. I had thought of doing my finance course in two years full time and then working full time while doing my CFA...Kind of thinking twice about that now. I think i'll try and get a high paying job with low hours while im in my first two years , and maybe just work in the field part time after that while concentrating on my CFA.


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## Sampson (Apr 3, 2009)

I was once a CFA widower, not fun.


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## SkyFall (Jun 19, 2012)

is it that bad? as worst as med school 

there's a guy that swing by my branch at TD from time to time (higher rank in the bank) he passed the first exam but failed TWICE the second and decided to drop it he said at the stage he is in life it wasn't worth anymore he was making a good living with the salary he was getting...all those comments make me think and realize why there so few with CFA designation


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## jcgd (Oct 30, 2011)

Where do you get a finance degree in two years? I would like to get one, but I don't have the money for four years off work. Two years I could pull off soon though.


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## SkyFall (Jun 19, 2012)

OP said it's in Sherbrooke University which is in Quebec, which is probably a program in French...


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## PrairieGal (Apr 2, 2011)

Back to the original question, as mentioned upstream, you can borrow from your RRSP to fund your education. You will have to pay it back after you graduate. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/

Good luck! It sounds like a very difficult, but worthwhile program.


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## The_Mechanic (Jan 6, 2012)

SkyFall said:


> OP said it's in Sherbrooke University which is in Quebec, which is probably a program in French...


This is correct. The program is two years condensed . 3 semesters per year, only 1 week off between each semester. Its a non-coop program so no internships, just the full course and then you're on your own. And yes the program is in french , but I think the same program is available in english, you'd have to check with the university though, i'm not 100% on that.


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