7 Things to Look for in a Financial Advisor If You Work in Tech

7 Things to Look for in a Financial Advisor If You Work in Tech

You've crushed your FAANG interview. You signed the offer letter. Now you're about to get an equity grant that could change your life—or destroy it, if you don't know what you're doing with RSUs, ISOs, and the thousand ways a tech salary differs from a regular paycheck.

Most financial advisors don't get it. They think a stock is a stock. They've never heard of a mega backdoor Roth. They have no idea what happens when 60% of your net worth is locked up in your company's shares.

Finding an advisor who specializes in tech wealth isn't just nice-to-have. It's the difference between building generational wealth and making six-figure mistakes.

1. They Understand RSUs, ISOs, NSOs—and Your Tax Bill When Vesting Hits

If your advisor doesn't immediately talk about RSU vesting schedules, tax withholding, and the brutal surprise of ordinary income on vest dates, walk.

Here's what separates specialists from generalists: your advisor should explain that RSUs vest as regular income, ISOs may qualify for long-term capital gains treatment if you hold them, and NSOs trigger short-term gains. They should know the difference between a 83(b) election and letting it expire. They should be able to model your tax liability before it hits your bank account.

This is not theoretical. A tech employee in California vesting $200K in RSUs can owe $80K+ in federal, state, and FICA taxes on the vesting date alone. If your advisor doesn't build this into your tax plan, you're flying blind. Advisors like Malcolm Ethridge at Capital Area Planning Group specialize in exactly this—mapping RSU tax impact and building a proactive tax strategy before you see the bill.

2. Ask If They've Worked With People at Your Company or Level

Generic advice is worthless. Your situation is specific: you're at Series C and vesting $60K per year? Different problem than a Google L5 with $400K in annual equity. Different problem than a founder with a secondary sale coming up.

The best questions are surgical: "Have you worked with engineers at my company?" "Have you managed wealth for people at my level?" If they hedge, that's a red flag. If they say yes, ask specifics. What was the biggest tax surprise they helped someone navigate? What's the most common mistake they see?

A specialist in tech wealth will have stories. Real ones. They'll have seen every permutation of founder liquidity, secondary sales, and IPO lock-up expirations.

3. Fiduciary Duty Matters More Than You Think

Not all advisors are fiduciaries. Some are only required to recommend "suitable" products—which is a much weaker standard. A fiduciary advisor is legally required to put your interests ahead of their own, every single time.

Ask directly: "Are you a fiduciary 100% of the time?" Listen for caveats. If they say they're a fiduciary only on "certain accounts" or "certain services," you've identified a conflict of interest. Stop talking and move on.

This is non-negotiable. Tech professionals with significant equity and tax complexity need someone whose legal obligation aligns with your interests, not their revenue targets.

4. They Explain Mega Backdoor Roth Opportunity Without You Asking

If your advisor doesn't mention mega backdoor Roths unprompted, they're not thinking about your situation comprehensively.

Here's why this matters: as a high-income tech professional, your traditional 401(k) contribution room maxes out fast ($23,500 in 2024). But mega backdoor Roths let you contribute up to $69,000 per year into a Roth account—completely tax-free growth forever.

Your company has to offer it (many do, especially larger tech firms). Your advisor should be mapping this out in your first meeting. If they wait for you to ask, they're reactive, not strategic. You're paying for strategy.

5. They Make Compensation Concentration Risk a Core Topic

You own $300K in your company's stock. Your salary comes from the same company. Your health insurance, retirement plan, and professional network all depend on the same paycheck.

That's concentration risk, and it's the reason tech employees blow up financially.

A good advisor doesn't tell you to dump your shares immediately. That's not thoughtful. But they *do* have a systematic plan: diversification timeline, tax-efficient sell-off strategy, how much company equity is prudent to hold long-term. They factor in lock-up periods, blackout windows, and the behavioral psychology of "holding for the moon."

Your advisor should also model what happens if your company implodes. What's your net worth without the equity? Can you absorb that risk? Most tech employees can't, which means diversification isn't optional—it's survival. (Note: appropriate diversification varies by individual risk tolerance, time horizon, and personal circumstances. Your advisor should build a customized plan, not follow a template.)

6. They Address Your Entire Financial Picture, Not Just Investments

Tech compensation is weird. You need an advisor who gets that and builds recommendations around it.

That means:

• Tax planning as the foundation—not an afterthought. RSU vesting, ISO exercise timing, charitable giving coordination, state tax optimization for remote work.
• Equity strategy that maps out your grant cycles, vesting schedules, and diversification plan across multiple years.
• Insurance needs that reflect your situation. You likely have disability insurance through work, but do you have enough? What about life insurance, liability coverage if you're a board member?
• Estate planning that handles your equity, beneficiary designations, and what happens if you die with unvested shares.

If your advisor talks only about asset allocation and mutual funds, they're missing 80% of your actual financial life.

7. They Explain Their Compensation Model and Acknowledge Conflicts

Ask how they make money. Do they charge a fee based on assets under management (AUM)? A flat retainer? Per-service fees? Commissions?

All models can work, but they all create incentives. AUM-based advisors have a reason to make your portfolio as large as possible. Commission-based advisors have a reason to recommend certain products. You need to know what game is being played.

For tech professionals managing equity compensation and six-figure wealth, fee-only advisors (fee-based on a percentage of assets or flat retainer, no commissions) tend to work best. No product sales. No hidden incentives. You pay for advice, and advice is all you get. When vetting advisors, check credentials: CFP, CPA, Series 65, or Enrolled Agent status. Look for most reviewed advisors on Sam's List in your area—advisors with real track records managing tech executive wealth.

The Advisor You Need Actually Exists

Finding an advisor who understands tech wealth, equity compensation, and tax strategy isn't luck. It requires asking the right questions and insisting on fiduciary accountability.

Interview multiple advisors. Ask about their experience with tech professionals at your company or level. Request references. The right match will clarify your tax picture, build a diversification roadmap, and align their incentives with yours. It usually pays for itself on your first tax season.

Disclaimer: All investments involve risk, including possible loss of principal. This article is for educational purposes and does not constitute investment advice. Past performance does not guarantee future results. Consult with a qualified financial professional before making investment or financial planning decisions.