Financial Planning For Tech Professionals

What is Financial Planning?

Financial planning is a continuous journey, not a one-time event. True financial planning goes beyond selecting investments or building wealth. It’s a comprehensive approach that considers both the qualitative and quantitative aspects of your life.

The qualitative aspect encompasses your unique story: your values, beliefs, priorities, family, career, vision, and goals. Money can be an emotionally charged topic—especially among partners, who may have different beliefs and habits about it. We prioritize understanding what money means to you and what it represents in your life before building a financial strategy. After all, your money should support your life; your life shouldn’t revolve around supporting your money!

The quantitative aspect focuses on numbers: your past (such as tax returns and financial choices), present (net worth, investments, cash flow, and equity compensation decisions), and future (retirement savings, post-tech career plans, and other financial goals).

As you can see, real financial planning treats you as a whole person. It’s a long-term relationship, not a short-term transaction.

An Ongoing Process

Financial plans are like flight plans—they become outdated the moment you take off. Consider a commercial airline flight: every pilot makes a flight plan, but real-time adjustments are inevitable due to turbulence, storms, and other factors. Financial planning is similar. As soon as you make a plan and move forward, life happens! Promotions, pay raises, new equity awards, relocations, real estate purchases, inheritances, or unexpected life events—these changes can have significant financial impacts, often creating new planning needs or opportunities.

The goal of financial planning isn’t to create a perfect plan to shelve. Instead, it’s about clarifying your current situation, identifying where you’d like to go, and taking steps in that direction. As new information becomes available, we adjust—just like a pilot adjusting for weather. Financial planning is an iterative, adaptable process, not a one-time event.

Why Financial Planning Matters for Tech Professionals

Financial planning is essential for tech professionals because there’s a lot at stake. Equity compensation can be complex, high earnings lead to unique tax considerations, and concentrated company stock can pose a risk. Protecting your family from unforeseen events is also a top concern. These are just a few of the challenges tech professionals face. Financial missteps can significantly impact your savings and your ability to reach other financial goals, making them hard to recover from.

At TwoTen Planning, we believe financial planning is crucial for navigating these challenges. Engaging in ongoing financial planning can help you:

• Feel confident about optimizing equity awards and making informed decisions on selling or exercising options.
• Feel reassured by proactive tax planning and thoughtful management of concentration risk.
• Feel prepared knowing you’re financially organized, with a plan in place for your family’s future.
• Gain clarity about your purpose, values, and goals.
• Feel optimistic that your money is diversified, wisely invested, and aligned with your financial plan.

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If you would like to have a conversation with TwoTen Planning about financial planning, schedule your FREE ASSESSMENT.

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The foregoing content reflects the opinions of TwoTen Planning and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as financial, legal, tax, or investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee or assurance that diversification, strategies based on Nobel prize-winning research, or any investment plan or strategy will be successful. Consult an estate attorney or qualified tax professional for specific advice relating to those respective areas.