Tech Professional Financial Planning Errors: The Top 5 | Error #5

Working in the IT industry is one of my favourite things to do. Since my early days at Microsoft, I’ve been intrigued by the inventiveness and creativity of people working in technology firms of all sizes. When dealing with tech workers, I get to assist them in negotiating the myriad of perks that are typically only offered at tech businesses, which I like doing. A three-star Michelin-rated restaurant’s menu of perks may be found in the RSUs, ESPPs, Non-Qualified Stock Options, Mega Backdoor Roth 401(k)s, Deferred Compensation, Legal Services, and even Pet Insurance.

I’ve discovered some of the most common financial planning blunders that may hold the tech community back from reaching financial independence and success via my personal experiences as a tech employee and now as an adviser dealing with tech employees.

5 – Failing to Hire an Advisor

Yes, I understand it now. Paying a charge to an adviser is a given. Because of this, employing a lousy adviser might be more detrimental than beneficial. There are, however, a lot of benefits to engaging the expertise and resources of a professional. Aside from the fact that I don’t like cutting my own hair, I wouldn’t conceive of defending myself in a legal case. For those of you who have a firm grasp on the financial aspects of your organisation and the know-how to make the most of those advantages, I say go for it, my fellow financial-planning geek. In my experience, it’s uncommon to come across a person who doesn’t require guidance in at least one significant financial planning area.

If you decide to engage a financial adviser, be sure that they are fee-only fiduciaries. Asking this question directly is necessary, and if the response is no, I strongly advise that you leave immediately. Also, if you’re wary about making a long-term commitment, inquire about the procedure and costs of ending a partnership with an adviser if you don’t find benefit. Avoid an advising business that would make it difficult or costly for you to discontinue your connection. Without strong impediments to abandoning the relationship, your adviser will be driven to ensure that you are receiving excellent service and will want to be a client for many years to come. ‘ Consider reading our advisor profiles if you’re trying to find a match.

You may learn more about common blunders made by IT professionals in our past blog pieces.

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