I’m a big fan of the IT community. As a Microsoft employee, I was fascinated by the creative and brilliant brains of people working in the computer industry of all sizes. It’s also rewarding to work with tech workers since I get to assist them to navigate the variety of perks that are typically exclusively accessible at tech organisations. In terms of employee perks, choosing from a menu of a Michelin three-star restaurant is as easy as choosing between RSUs, ESPPs, Non-Qualified or Incentive Stock Options, Mega Backdoor Roth 401(k)s, Deferred Compensation, Legal Services, and Pet Insurance.
I’ve learned a lot about financial planning blunders that IT workers make, both as a former tech employee and now as an adviser who helps other tech professionals to financial freedom and success.
Poor risk management is the fourth mistake.
The following are some interesting tidbits for your next dinner party with a group of strangers. There is a statistical probability that two of the 100 40-year-old males in a room with you will die before their 50th birthdays if they are all male. Seven more people will die before they become 60, and a further thirteen will die before they turn 70. About a quarter of men in their forties die before they are 70. Is there anything I can do for you?
I’m not trying to terrify you with these bleak stats. Due to my own experience, I bring them up because I’ve witnessed firsthand how a lack of financial planning at an already emotionally traumatic moment has the potential to do severe financial damage. Death and disability are two topics that no one loves discussing, yet they are inevitable in our lives. Everyone deserves a little financial safety net for the people they care about.
For those who have not engaged with a financial adviser, estate planning and insurance planning are two of the most often disregarded components of a financial strategy. Most financial advisers would agree that this is the area where their customers tend to put off making important decisions. Life is full of things that seem urgent but aren’t really necessary.
Important things like creating an estate plan are often postponed in favor of more pressing concerns like getting our emails answered or getting things done around the house. No matter how urgent the task seems, take a moment to consider the ramifications of failing to finish your will or acquire enough life insurance in the event that your time is running short. Please don’t hesitate to get in touch with us if you’re searching for an accountability partner and support during this time.
Additional blunders to avoid as an IT professional may be found in our prior and forthcoming blog pieces.