Almost an ASA, FSA exam update

I ended up passing MLC with a 7, so I have completed all the prelim exams!  Yay!  And it only took all my free time for 3 years (note sarcasm)!

I still have one VEE I need credit for.  I took the Actex class this summer and am awaiting my grade as I type.  I attended the APC as well, so I should be an ASA within the next couple of months.  I couldn’t even have imagined writing that when I started this blog three years ago.  I guess I am the type of person who puts my head down and does the work without spending a lot of time thinking about the end goal.  Granted, I always know I am working on the end goal and that is what drives me, I just don’t spend a lot of time pondering what it will feel like to be there.  So now that I can start thinking about the ASA, it actually is nice to know all the endless hours of studying pay off and to get there!

Was that enough rest and reflection?  FSA exams are on the docket!  I’ll be taking the ERM exam on Oct. 29.  It is a weird feeling again to not really know how to prepare.  I am almost done with the first pass of the reading, and obviously I need to memorize all the material and really understand how to apply it, but HOW to do that is a mystery to me right now.  I remember this feeling well from Exam P – knowing I wanted to get to a certain goal but not having an idea HOW.

One thing that greatly benefited me was finding someone else in the company taking the exam.  In talking this over with that person, I really figured out that I need to make my own study guide, much like I did for Exam C.  Putting together the notes in my own way will help me internalize the material.  Well, hopefully anyway!

Strategy for Passing FAP modules, Interim Assessment, and Final Assessment

Last year I completed the FAP Modules, the Interim Assessment (IA), and the Final Assessment (FA).  I was able to pass all of these on the first try.  I figured I’d share some of the strategy I used, as it seems to contradict some of the conventional wisdom floating around on message boards.

Format
For those who do not know, the FAP Modules are a set of 8 self-paced online lessons (Modules 1-8) and two timed assignments (the Interim and Final Assessment).  Each module has a series of slides to review as well as assigned book reading.

A typical module might have 5 sections, each with 50-100 slides to read, and then refer you to 5 or 6 chapters to read in the various books that go along with the modules.  After you complete that, you will have an end of module assignment, which is generally a series of calculations and write ups you will have to do that relate to what you read.

The IA is a large scale series of tasks that you have a 30 day window to complete.  The IA relates to material in Modules 1-5.  You would complete the IA after Module 5, and submit it for review and graded (pass/fail).

The FA is a large scale series of tasks that you complete after Module 8, and you have 96 hours after starting it to submit your final result.  It is graded pass/fail as well.

Module Strategy
Each Module consists of a large series of slides, assigned book reading, and some case studies and handouts within the slides.  After you complete this material, Modules 1-4 and 6-7 have end of Module exercises to complete.  The IA and FA function as the end of Module exercises for Modules 5 and 8.

For each Module, I first downloaded and reviewed the End of Module assignment to get an idea of what I was going to have to work through at the end of the module.  I then read every slide straight through.  There are a lot of points in the slide where it says something like “now read pages xxx-yyy in book abc”, but I found it very disorienting to keep switching back and forth between the online content and the books.  So, for each Module I kept a document that listed every book reading that was assigned, and where it was assigned.  I used google docs, but a word doc or anything similar would suffice.  Each entry would read something like “s4s30 UAP ch.9”, where s4s30 stands for section 4, slide 30, and UAP ch.9 is the book and chapter it says to read.

I also kept notes in another section on the same document.  So, if a slide had content I thought was worthy notes I would either type a summary in my notes, or copy and paste the section directly into my document.  As I made the notes, I used the same s4s30 type notation to note which slide the notes came from.  This is useful when you are going back and want more detail on what you noted!

The Modules each contain various handouts to read and case studies.  I saved each of these into a folder on my computer, and read the handouts as they came up in the slides.  Many of the case studies require calculation work in a spreadsheet – so they essentially function like homework to reinforce the concepts.  For the case studies, I reviewed the assignment and the data, and decided whether I felt it was really necessary to follow all the steps to get the main ideas, or if I could just review the summaries.  Most of the time I did not work through the entire case study, but I did spend time with it to absorb the ideas.

After completing all the above, I would begin the book reading, going in order as noted in my document.  I highlighted my books as if I was studying them, and made additional notes in my document for main points I thought were worthy of note taking.  My document would have notes like “UAP p.132” and then a write-up to note something I thought was significant from page 132 of the Understanding Actuarial Practice book.

After completing all of the above, you will get to the End of Module (EOM) assignment.  Given as you reviewed this before starting the Module, you should have an idea of where you are going to go with the assignment.  I would usually start by just making some high level notes on each question, then going back and reviewed my document of notes to see what might apply to the EOM assignment.  Once I have all that together, I did the write up as assigned.

As you can see, I took a very studious and diligent approach to the Modules.  Many people on the Actuarial Outpost recommend not even reading the assigned readings, or skimming them at best.  Well, you might be able to pass the Modules that way, but that is going to hurt you quite a bit when it comes to the IA and the FA.  Instead of being lax with your preparation and trying to sneak through, it is much better to work through the material as intended and assure yourself of a pass.  You will find many of the same people who recommend taking shortcuts also complaining that they failed an EOM exercise or the IA or FA!  Well, I wonder why??  It seems pretty obvious.  Don’t shortchange yourself or the assignment!  You wouldn’t approach your work at your employer that way, would you?  Well, if you would, then maybe this isn’t the strategy for you.

Interim Assessment and Final Assessment Strategy
You have 30 days from when you download the IA to submit it.  The IA is more or less a bunch of EOM assignments strung together.  I’m not allowed to say much more about the contents of the IA, but strategy-wise if you have followed the above approach for the Modules you should be in good shape.  You will be referring back to the slides, the books, and your notes to answer the questions.

For both the IA and the FA, before I started writing I made a series of passes through the questions making detailed notes of how I wanted to answer each question.  I would end up with an outline of my answer for most questions, and then from there it was just a matter of filling in the detail and making it flow.

30 days for the IA is plenty of time.  I spent 35-40 hours on it, so you can portion out the time spent as you choose.  I preferred to take full days off from work to work on the bulk of it, as I found it easier to keep going for many hours once I got in the groove.  I also had a handful of nights where I spent 2-3 hours working on an additional question or touching up my answers.  As long as you figure out a way to get 40 hours in, you will have enough time.

As for the FA, you have 4 days from the time you download it to submit your final answers.  This is barely enough time!  Given that this blog is from the middle-aged career changer’s standpoint, if you have a family, it will be tough to find the time to do this.  I took 4 days off from work, worked every minute of those days outside of 3-4 hours a day spent on family obligations (ie taking care of my kids), and it was a race to the end.  I am lucky I decided on day 1 to start very fast, expecting to rest and just watch movies on my last day.  There was no resting or watching movies available by day 4, I was still working as furiously as I was on day 1!

All in all I spent about 40 hours on the FA, and I could have spent more.  Taking notes throughout the Modules really paid off at this point.  I would think anyone who didn’t do the readings would be very handicapped when attempting to give competent answers to the FA questions.  I’m not saying it is impossible, but if you did not take notes you will spend a lot of time going back through the books or slides.  That time would have been better used writing your answers on the FA!

How long does this take?
If you follow these strategies, each module should take 20-30 hours (most less than 25).  I spent 35-40 hours each on the IA and FA.

Good luck!

Post MLC Wrap Up

MLC went pretty well.  I ended up able to answer 20 questions with a high degree of confidence.  There were 2 that I SHOULD have been able to answer, but I never could figure out the solution, and 3 which I made an attempt at but got nowhere fast and in the end totally guessed on.  One of the questions I should have been able to answer I figured out the solution a couple of days later – I was making a simple mistake.  How frustrating!  I spent a lot of time on that question towards the end of my exam (after I was already confident on the 20 questions) knowing I knew how to do it.  I DID know how to do it, but was making a silly mistake in the process of solving it.  Oh well!  Regarding the other question I really thought I should have been able to figure out, I don’t remember all the factors or the answer choices, so I can’t go back and figure it out on my own.  Hopefully they will release the exam and I’ll be able to take a look at it.

Given those results, I am pretty confident of passing MLC, and will be finishing a VEE in the summer and then taking my first FSA exam in the fall!  Oh yeah, I should have my ASA in the fall as well.  It is a little crazy to think 3 years ago I was studying for P and starting this blog, and now I am done with the prelims!
 
I’ll keep this blog updated with my progress for the fall, but it might be pretty quiet for a while.  I have two “guide” type posts brewing in my head, one for prelim exams in general and one for FAP modules.  I want to write them before the ideas and start to fade, so hopefully they will be up pretty soon!

Good luck on your exams!

T minus 2 to MLC, FAP Modules update

As seems to often happen in the blogging world, it has been a long time since my last update!  While I often thought of updating, finding the time has been pretty hard recently.

Let's get up to date:  While I was studying for MLC last summer, I was also doing the FAP Modules.  I passed all the modules, the IA and the FA on the first attempt, and got a 4 on MLC.  I was not surprised to fail MLC, the time divided between Modules and MLC made it tough to get fully prepared for that exam.

Hopefully I can make some time to do a post on strategy for the FAP Modules.  I have some opinions on how to best approach them that are, while seemingly entirely logical, different than what I find on the Actuarial Outpost.  Very short version: read everything, take detailed notes, don't try to rush, actually try to learn something, and you will be fine.

As for MLC last fall, I never got fully prepared.  I was able to do some questions from a first principles basis, but for questions that required knowledge of specific formulas, I hadn't gotten to the point in my study where I was able to recall those formulas.  On one hand, I tried to do too much last summer and fall.  On the other hand, I did that on purpose, knowing I would probably sacrifice a good shot at MLC, but at least having a good familiarity with the material to set myself up for the Spring.

So, where are we now??  As you may have seen in previous posts, I am a big believer in buying multiple study manuals.  Between fall and spring I have purchased Actex, ASM, BPP and the TIA seminar.  Each has their strengths and weaknesses.  I love the ability to watch someone talk through problems in the TIA videos, but I need material to read as well.  The ASM manual probably rates as the most comprehensive, but sometimes it is so dense and it tends to avoid using plain english to explain anything.  The BPP manual actually uses plain english, and has pretty good answers for their practice problems (they don't skip as many steps as other manuals, which can be confusing).  I have also gone back to my Actex manual a few times over the months as a review.  It is a little shorter and is presented somewhat differently, which is good to get a different look at the material.

As with any exam, studying this sitting has been tough.  There have been times of hopelessness and times where ideas have come together.  One thing I am finding different about MLC is that I know 95% of the formulas pretty well, but still have a hard time with some questions.  Whereas with MFE if you knew the formulas most of the questions weren't too bad, with MLC I find even if you know the formulas the questions are rather tricky.

I was originally using BPP as my practice question set, but switched to TIA a while back.  I made it above 65% in the TIA practice questions, which is about where I have been with the other exams I have passed.  I then focused on the TIA practice exams and the Fall and Spring 2012 exams in order to review the material. The TIA practice exams are very difficult, I am getting maybe 50% of the questions on those.  The Fall and Spring 2012 exams seem fair at this point.  I can answer 60-70% of the questions.  I have never really been above 50% on practice exams in the past, so based on my style of self grading (I don't count guesses, if the question takes me too long I don't count it), this puts me at about par with previous exams sittings where I have passed.

So, the exam is in 2 days, and I feel like I could have any result from passing by a mile to failing by a little bit.  Hopefully I can fall in the middle there and pass by at least a little bit!

As for my chances of passing, I'd put it at about 8 out of 10.

8/14/12 - T minus 84 to MLC

I’ve changed strategy since developing my original study schedule.  While I had planned to get through one topic a week, I found that getting through the foundational topics of this exam (Survival Rates, Insurance, and Annuities) very tough to do.  I have decided to keep focusing on those until I had a pretty strong comfort level with them, as the rest of the topics build on those.

This is quite different from my usual strategy of going through the entire course a few times before really getting a comfort level, but I feel it is the best one given that the material in this exam builds on itself going forward.  I will admit to being a little nervous about this strategy, as by now I usually have been through the material and at least have a slight level of comfort with the concepts and terms.

Given that I have found the first few sections difficult, it has shaken my confidence in passing in November a little bit.  I am used to this feeling by now, and I am never confident towards the beginning of an exam, but this feels like it is lasting longer, and I am on a shorter timeframe.

I am also doing something else I have never done before – I am creating my own flashcards.  I sometimes buy the pre printed flashcards, but I didn’t this time around.  I am finding creating the cards myself helps me remember the topics I specifically want to work on that day, and also helps me to structure the cards in a way that helps me learn.

I am glad to see I can be flexible in my approach and make the decisions to change strategy if things aren’t working.  As I get to upper level exams, I imagine the ability to be flexible will help me pass those exams.  For now, we will focus on MLC!

It is tough to assess my chances of passing at this point.  Last week I would have said 0, today I will say 4 (out of 10).

Passed C, starting MLC!

I passed C!  Yay!

I thought the exam was pretty tough, but fair.  I was able to answer 24 confidently, make a somewhat confident guess on 5, and I made pure guesses on 7.  Yes, I know that adds up to 36 questions, I must have double counted one in there!

I have been starting to study for MLC in the fall.  The spring sitting was super tough, only about 30% passing.  I'm not sure what that means for fall - I could see the SOA both leaving it at the same level, but also I can see them dialing down the difficultly a little bit.  I just have to prepare for the high difficulty level!

One thing I did learn from C (and MFE as well) is that you really have to prepare for the second tier of exams (MFE, MLC and C) so much more than you had to for P and FM.  I plan to put in the same level of dedication I put into C, but I am a little short on time this time (4 months), so hopefully I can get to the point I need to be at in time!

After reviewing the samples available for various study material, I decided to purchase the Actex book, the ASM book, and the TIA seminar.  While that might seem like a lot of material, I have really found having multiple sources to be a big value add.  Being able to refer to another source when you are having difficulty with a concept really helped me with C.  In retrospect, I wish I had done this for MFE as well.  The $200 extra cost for another study manual is small compared to the value of time saved studying and increased chances of passing.

I am currently on TIA section B, and plan to do about one section per week (the sections are A-J) through the week of Sept 8, leaving the next 2 months for intense problem working and solidifying the concepts.  While I always start with the intention of doing problems as I first review the material, I know at some point I will want to rush through all the material so I can get to purely problem working.  We'll see how that goes!

It will be awesome to be done with the prelims, assuming I pass of course.  I am looking forward to taking the FSA exams and seeing the light at the end of the tunnel!

My current MLC schedule (according the the TIA sections) looks like this:

Section	Week Ending
A. Prerequisite Review	7/7/2012
B. Survival Models and Life Tables	7/14/2012
C. Insurance Benefits	7/21/2012
D. Life Annuities	7/28/2012
E. Premium Calculation	8/4/2012
F. Reserves	8/11/2012
G. Markov Chains	8/18/2012
H. Multiple-Decrement Models	8/25/2012
I. Multiple-Life Models	9/1/2012
J. Other Topics	9/8/2012

T minus 1!

Wow, this has been a trip.  Actually a trip isn’t nearly the best word, as that makes it sound fun.  A challenge?  An obstacle?

I can definitely say I’ve never worked this hard for this long at anything before, and it has been a tremendous challenge.  I worked really hard in Feb and March in anticipation of being ready a few weeks early, and it is a good thing I did so, because this exam required a lot more work than I anticipated.  Even at this point, I’m not overly confident of passing.  I think I have a good shot, but there are still a lot of questions I know I can’t answer.  I know I’m never going to be able to answer 100% of questions on any exam, so we’ll just have to see how it shakes out tomorrow.

The road to this point has been very challenging.  I don’t know that I could ever tell someone to try to prepare for this exam without giving them a lot of caveats.  Although each piece of the material by itself isn’t too hard, there is a TON of it, and for much of the material you have to know a few alternate ways to approach things, exceptions, etc.  As I have been taking practice exams, I have rarely been able to score above 50%.  I have been learning from the things I missed, but it is really discouraging to put in over 400 hours of study and still have a ton of trouble with a practice exam!

I’m not exaggerating when I say over 400 hours.  Since I took MFE, I have studied approximately 5 out of every 6 nights for 2 hours or more.  That doesn’t include some extra long sessions I got in, entire days I took off to study, time I spent during lunch, study time at work, etc.  After the exam, I will have to look back and think about whether all the time I spent was effective.  I plan to write a post exam post outlining the schedule I followed and my thoughts on it.

As for my overall confidence, I really don’t know what to think.  I know I know a TON of the material.  I am pretty well versed in almost every topic, I know almost every formula, and I have been through every type of available practice question.  That being said, there are still approaches I struggle with, and certain questions that just stump me.  I have to keep in mind I don’t need to know 100% of everything, but that being true is part of the reason I never feel that comfortable going in to an exam.  If I had to rate my chances of passing on a 1-10, I’d want to say a 7, but I’d bump it down a little bit to 6.5.  Realistically, it could be as high as 8 and as low as 3.  That is part of the fun of this process!