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Why Financial Planning Is Important for Tech Professionals

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    In today’s ever-evolving digital world, tech professionals are in demand. They’ve largely escaped widespread job losses so many other industries have faced.

    That’s great news, but you never know what tomorrow will bring. It’s smart to start financial planning as early as possible in your career.

    When you’re always working, it’s easy to put off personal matters like financial planning. Don’t wait. Now is the best time for you to make your finances and your future a priority.

    Here’s a look at the benefits of financial planning for tech professionals.

    Minimize the Risk

    Is all your wealth tied up in one company? If the answer is yes, it’s time to branch out. 

    It may seem like a good idea to keep your money with just one company. Even if the company is a major success, you’re taking a risk. 

    If something happens to the company, you could lose your money. That’s why is a good idea to talk with a financial planner about distributing your wealth among multiple companies.

    The earlier you get started managing your wealth, the better. Investing while you’re a young tech professional is the best way to start on the path to lasting wealth.

    Set Goals and Make Plans

    When you’re constantly on the go, it’s hard to set financial goals. But for a strong financial future, you must have a plan to save and grow your money.

    That’s where an experienced financial planner comes in. They can help you create actionable financial goals.

    You’ll be amazed at what you can achieve. When you know what you’re working towards, you’ll be less inclined to spend frivolously and more inclined to work towards your goals and a strong financial future.

    Give Your Dollars a Purpose

    If you’re working constantly and always on the go, chances are you’re overspending, just like 75% of the population. You may not even know how much you’re spending or saving each month.

    Do you have the cash reserves for a job loss, illness, or any of life’s little emergencies? Do you know how much you’re spending on housing, bills, food, or entertainment?

    If you don’t, it’s time to speak with a financial planner. A cash allocation plan can bring peace of mind and save you from worrying about your financial situation now and in the future.

    Plan for Protection

    There’s nothing like a pandemic to make us stop and think about the importance of insurance coverage. Now is a great time to make sure you have the health insurance, life insurance, and estate plan you need just in case.

    Although it’s easy to procrastinate when it comes to these decisions, it’s important to think about protecting yourself and your loved ones in the face of illness or death.

    Life insurance gets more expensive as the years go on, so it’s best to purchase it as soon as possible. Having an estate plan in place helps ensure a smooth transition of your assets.

    You can ensure that your end-of-life wishes are respected. Knowing that you are protecting your children or loved ones is priceless.

    Make the Most of Your Benefits 

    As a tech professional, you may receive a generous salary and a variety of benefits, including health and life insurance, stock options, and a 401k.

    Depending on the company, you may receive your fair share of perks as well. Some companies offer generous perks to attract top talent, including all- expense-paid seminars and conferences, paid vacation days, wellness programs, and food allowances.

    Do you make the most of what your company offers? A financial planner can help you make the most of your benefits and all the perks at your disposal.

    They may help you answer important questions, such as:

    • How much of my income should I invest for retirement?
    • How can I maximize my savings through my employer?
    • How do I allocate investments in my savings and retirement plan?
    • Should I invest my money in company stock?
    • Should I diversify my holdings?
    • How can I use my company benefits to my advantage?
    tech professionals buy a home | Bogart Wealth

    Buy a Home

    As a busy professional, buying a home may not be on your radar right now. A home is a great investment, and you want to make sure you’re in a good position to purchase one when the time comes.

    If you work for a tech company and receive a steady paycheck, you may be in a good position to buy a home. If you’re a contract employee or a freelancer, you’ll need the proper documentation to purchase a home.

    A financial planner can help you determine the best time to buy a home. They can guide you through the mortgage process and paperwork and help you determine a housing budget that works for you and your lifestyle.

    Save for Retirement 

    Many tech companies offer generous retirement savings plans. If your company offers a 401k and will match your contribution, take advantage of it. 

    A financial planner can help you save and invest money for a comfortable retirement. Programs like Traditional IRAs or Roth IRAs are other options for retirement savings.

    Your financial planner can help you determine the best financial vehicles to maximize your retirement savings. They can help you answer questions, including:

    • What brokerage firm should I use?
    • What are the tax advantages of various retirement accounts?
    • What is the ideal investment strategy for me?

    Keep More of Your Money

    Your financial planner can help you determine the best ways to lower your tax burden as a tech professional. As a self-employed tech professional or freelancer, you can deduct many of your day-to-day business expenses. These include:

    • Your home office
    • Technology tools
    • Office supplies
    • Professional and legal service fees
    • Advertising and promotion costs

    Although there are fewer deductions available for full-time tech workers, there are ways to maximize your tax deductions. A financial planner can help you determine what deductions you’re eligible for.

    They can help you connect with a CPA if you don’t already work with one.

    financial planning for tech professionals | Bogart Wealth

    Begin Financial Planning Now 

    As a tech professional, the best time to begin financial planning is right now. The sooner you begin working with a financial planner, the better.

    If you’re busy working all the time, let your financial planner do the heavy lifting and start you on the path to successful wealth management.

    At Bogart Wealth, we provide financial planning for professionals in tech every day. Our mission is to help all of our clients achieve financial peace of mind.

    We’re here to help you with all your financial planning needs. Contact us today to learn more. 

    Work with a financial advisor who puts your needs first.

    Want to talk first? Call us at
    (866) 237-0121

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