As technology increases in prevalence, so does the need for technology professionals to invest in their long-term financial health. Wealth management for IT specialists includes saving money, growing your business, and becoming more financially literate.
Sadly, only 51% of professionals chose to participate in a retirement plan with their employer last year. But, retirement isn’t the least of their problems. 50% of Americans feel that their financial health is only getting worse, with unemployment playing a vital role in their failing financial health.
In this article, you’ll see the essence of financial planning for IT professionals and the role of a technology financial advisor in your financial wellbeing.
Why is financial planning for tech professionals different from other industries?
Financial planning for tech professionals comes with different challenges that include:
Volatility of careers in the industry
Most tech engineers work as contract workers. They are hired to work on specific projects and do not take permanent employment positions. Thus, they have to secure their own retirement savings, among other things.
Complex income tax planning
Due to high career volatility, tax planning can be a bit challenging. There is a need to learn methods for minimizing income taxes. This can take a lot of years.
Reliance on stock-based remuneration
In some cases they get paid through company stocks. There is a need for expert financial assistance to know how to manage your equity-based remunerations. Not everyone has this financial knowledge.
Additionally, the stock-based incomes means they end up putting their eggs in one basket. Their investments are solely in the tech sector.
Saving versus Spending
Usually, people in tech receive income that varies widely from year to year. Their stock values and bonuses also vary depending on the performance of the companies. That said, it's hard to effectively plan for the future to some extent.
Extremely busy schedules
Technology professionals are mostly buried in work, daily. They work long hours, with ridiculous deadlines, and unbearable pressure, which can make it difficult to maintain a healthy financial life.
While Financial planning to IT professionals may seem complicated and even intimidating, it doesn’t have to be. After all, isn’t financial planning simply all about making informed financial decisions? If you’re a tech professional looking to take the next step in your career and take control of your future, then, a well-thought-out financial plan may be a good investment for the long-run.
What are your options?
A decent, well-paying job as a tech professional opens up endless opportunities. You can do the following:
- open a savings account,
- purchase long-term assets,
- agree on a retirement plan with your employer,
- set up a retirement fund with the help of your financial advisor for retirement planning.
Interactive Wealth Advisors can provide help in regards to financial planning. You can always reach out and benefit from our vast experience and expertise. Individuals who seek help from our organization have testified of acquiring comprehensive insights that assisted them to focus on their financial goals.
Get a seasoned financial planner in Portland, Oregon, and look no further, we would love to hear from you. In addition to financial planning, we also offer Transition Planning, Retirement Planning, and investment management in Portland, OR.
Financial planning tips for IT professionals to make the most of your possibilities
When you are earning good money, smart financial decisions have to be made. Below are tips that will help you to make the most out of it.
Keeping all your eggs in one basket is never a good idea. It's tempting if your investments are doing pretty well, but that's a risk. In our experience, it would be wise to branch out and spread your investments across multiple platforms. In case one investment goes down, it won’t leave you bankrupt.
You don't want the rest of your hard-earned money to disappear so easily.
Now to diversify your investments, you need all the help you can get. A financial planning and wealth management expert can help you navigate the waters and steer clear of avoidable risks.
Set financial targets
You’ve probably heard it many times; "if you fail to plan, then you plan to fail,".
Planning helps you narrow your focus and execute your goals within a specific time frame. When setting financial targets, you should consider both short-term and long-term goals. A professional financial planner will also come in handy to help you narrow down your long-term and short-term targets.
Lower your financial burden
Tax deductions and better management of daily expenses can be a game-changer for your financial health. Freelance and self-employed tech professionals can also benefit from this as they spend a lot of revenue on regular daily expenses. These include technology tools, promotion, advertising costs, legal services, office supplies, home offices, etc.
A good financial adviser will help you lower the financial burden with a calculated approach. A good tax financial adviser will help you take advantage of the tax deductions and help you make informed choices with knowledge and insight from the financial world.
Maximize your Benefits
Companies use employee benefits and perks such as healthcare, health insurance, and paid vacations to keep their employees happy. Others use these benefits to attract the best professionals in the game.
Some companies also offer all-expense-paid wellness programs, seminars, conferences, vacations, and feeding allowance, depending on where you work.
The point is, that you should strive to optimize every benefit provided by your employer to achieve your financial goals.
Find answers to these questions:
- How can I maximize my company benefits to my advantage?
- How many percent of my income goes to investment?
- How should I allocate my assets and retirement plans in my savings?
- Why should I invest in company stocks, and how much?
- What is the best way to maximize my savings?
Getting a certified finance expert on wealth management should get you on the right track when it comes to maximizing your benefits.
Purchase a home
Although purchasing a home might not be top of your to-do list, it’s a good way to plan for the future.
If you work as a full-time IT professional for a company and receive monthly paychecks, you should probably start thinking about buying a home.
However, freelancers may not have the financial capacity to buy a home just yet. A freelancer’s fluctuating paycheck makes it difficult to secure proper documentation to facilitate your mortgage process.
Nonetheless, hiring a finance expert can help you find a way around the mortgage problem and save for your long-term investment.
Why is now a good time for financial planning for tech professionals?
With the changing needs of the tech industry and rising costs, now is a good time to start financial planning as a tech professional.
Financial planning provides a sense of security that can be hard to find in today's world. Technology professionals tend to be very busy with their jobs, but the good news is that you don’t have to do it alone.
A good financial planner will be able to help you develop a solid plan to better manage your wealth.
Financial planning for IT professionals is an excellent way to track your money and boost your financial health sooner. Make the smart move and start working with Interactive Wealth Advisors today.