Building a Financial Advisory Team

Very few people in tech work solo. Most are very familiar with the idea that success comes from the collaboration of talented professionals with expertise in their domain.

The same concept applies to the development of your personal financial future. You can achieve greater success faster, and with fewer missteps, if you enlist a team of expert specialists to collaborate on the goal of achieving your financial ambitions.

In a recent survey done by Morning Consult for the Certified Financial Planner BoardCFP Board: <a rel="noopener noreferrer" href="https://www.cfp.net/knowledge/reports-and-statistics/consumer-surveys/2019-retirement-preparedness-survey" target="_blank" aria-label="">2019 Retirement Preparedness Survey</a> , they found that two out of three adults do not receive retirement savings advice from a financial professional. Of those who are not utilizing a financial professional, over half say they think they would benefit from receiving retirement savings advice (54%).

In the ever-evolving technology sector, having a financial advisory team is crucial for navigating the unique financial challenges and opportunities that tech workers face. Whether you’re an independent tech consultant, have reached a vesting milestone or are nearing a new life stage such as starting a family or retirement, here’s a comprehensive guide to the key financial professionals you should consider having on your team.

A financial advisor is essential for creating a comprehensive financial plan tailored to your specific needs and goals. They can help with budgeting, saving, investing, and planning for major life events. For tech workers, a financial advisor can also provide guidance on managing stock options, RSUs, and other forms of equity compensation.

Qualities to look for:

• Relatability and reliability: Wealth planning is personal and technical. Work with an advisor whose ability and insight you trust.
• Sophisticated skill and support: Your advisor should offer broad knowledge and full-scale resources to identify and implement appropriate investment and wealth management strategies.
• Objectivity: Financial plans shouldn’t be one-size-fits-all. Look for an advisor who prioritizes your best interests.

Questions to ask:

• Tell me about your qualifications and professional experience. Have you pursued continuing education or specialized certifications?
• How are you compensated?
• What is your process for working with clients?
• Will I work directly with you or with a team? What will the meeting cadence be?
• What experience do you have working with financial situations like mine (e.g., significant wealth, complex income sources, business ownership)?
• What systems do you have in place to support information privacy and business continuity?

Tax planning is critical, especially for tech workers who may have complex compensation packages. A tax accountant can help you navigate the intricacies of stock options, capital gains, and other tax implications. They can also assist in optimizing your tax strategy to minimize liabilities and maximize returns.

Qualities to look for:

• Current knowledge: Your accountant should be well-versed in the latest policy developments and strategies available to help you maximize tax efficiency.
• Strong communication: Look for a professional who responds promptly, keeps you informed in a language you understand, and will collaborate closely with your other professional advisors.
• Proactivity: Your accountant should lead the tax strategy conversation and offer actionable ideas early.

Questions to ask:

• Tell me about your qualifications and professional experience. Do you hold any professional licenses, designations, or memberships? Do they require continuing education?
• What is your process for working with clients?
• Will I work directly with you or with a team? How will we work together throughout the year?
• What monthly and annual reporting do you provide?
• What experience do you have with tax situations like mine (e.g., investments in private companies, business ownership, multiple income sources, international holdings)?
• What systems do you have in place to support information privacy and business continuity?

As your career path and financial journey advances, consider adding estate planning to your team. An estate planning attorney is vital for ensuring that your assets are protected and distributed according to your wishes. They can help you set up wills, trusts, and other estate planning tools. This is particularly important for tech workers who have accumulated significant wealth or have complex family situations.

Qualities to look for:

• Trusted reputation: Seek recommendations from loved ones, your financial advisor, professional associations, or even the state bar association to help you identify candidates.
• Specialization: Engage counsel who specializes in this unique area of the law.
• Accreditation and experience: Your attorney should be licensed with the state where your trust(s) or estate reside, have applicable training and experience, and maintain their skill through continuing education and membership in professional associations.

Questions to ask:

• Tell me about your qualifications and professional experience. Do you have specialties within estate planning?
• What is your fee structure? (e.g., hourly, flat fees based on the size of the estate or the nature of the planning involved)? Are there costs in addition to these fees?
• What is your process for working with clients?
• Will I work directly with you or a team? What is the anticipated timeframe for completion?
• What experience do you have working with estate situations like mine (e.g., significant assets, multiple properties, complex family dynamics, elder law, business ownership)?
• What systems do you have in place to support information privacy and business continuity?