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One of the most important financial decisions you’ll make in your 60s is when to claim Social Security. Claim at 62 and you’ll receive benefits for more years, but at a permanently reduced amount. Wait until 70 and you’ll receive 77% more per month for the rest of your life.

The math seems straightforward, but the emotional reality is harder. Watching your savings decline while you wait for a larger benefit feels uncomfortable. Many people claim early simply because they can’t stomach drawing down their retirement accounts.

There’s a better approach. The Social Security bridge strategy uses your retirement savings strategically during your 60s to fund a delay in claiming benefits. For many retirees, especially those who live into their 80s and beyond, this strategy can add hundreds of thousands of dollars to lifetime income.

At MJT & Associates, we help clients model this decision carefully, accounting for taxes, other income sources, and individual circumstances. Here’s how the bridge strategy works and when it makes sense for your situation.

Understanding Social Security’s Claiming Rules

Before diving into the bridge strategy, you need to understand how Social Security benefit amounts change based on when you claim.

You can start claiming Social Security retirement benefits as early as age 62. However, claiming before your full retirement age results in permanently reduced benefits. Your full retirement age depends on your birth year. For most people currently approaching retirement, it’s between 66 and 67.

If you were born in 1960 or later, your full retirement age is 67. Claiming at 62 means accepting a 30% permanent reduction in your monthly benefit. That reduction lasts for your entire retirement, not just until you reach full retirement age.

The real opportunity comes from delaying benefits past full retirement age. For each year you delay claiming between full retirement age and 70, your benefit increases by 8% per year. These are called delayed retirement credits. If your full retirement age is 67 and you wait until 70, your monthly benefit will be 24% higher than your full retirement age amount.

Combined with the reduction for claiming early, the difference between claiming at 62 versus 70 is dramatic. A person entitled to $3,000 per month at age 67 would receive only $2,100 at 62, but $3,720 at 70. That’s a 77% difference in monthly income.

The question becomes: is it worth depleting your savings to access that higher benefit?

What Is the Social Security Bridge Strategy?

The bridge strategy is straightforward in concept. Rather than claiming Social Security early because you need the income, you draw more heavily from your retirement savings during your 60s. This “bridges” the gap between when you stop working and when you claim Social Security at 70.

Here’s how it works in practice. Suppose you retire at 62 with $800,000 in retirement savings. Your Social Security benefit would be $2,100 per month if claimed immediately, or $3,720 if you wait until 70. You need $5,000 per month to cover your living expenses.

Under the traditional approach, you might claim Social Security at 62, getting $2,100 per month, and withdraw the remaining $2,900 monthly from your retirement accounts. That’s $34,800 per year from your savings.

Under the bridge strategy, you delay claiming Social Security and withdraw the full $5,000 monthly from your retirement accounts during your 60s. That’s $60,000 per year from savings. Yes, you’re drawing down your accounts more quickly in the short term. But at age 70, your Social Security benefit starts at $3,720 per month instead of $2,100. That extra $1,620 per month continues for the rest of your life.

The higher Social Security benefit means you withdraw less from your retirement accounts after age 70. Over a typical retirement lasting into your 80s or 90s, research shows you’ll usually end up with more assets using the bridge strategy than claiming early, assuming you live to average life expectancy or beyond.

The bridge strategy essentially trades short-term account depletion for long-term income security.

The Math Behind the Bridge Strategy

Understanding the numbers helps clarify why this strategy often makes financial sense.

Let’s use realistic figures. Assume you’re 62 with $1 million in retirement savings. Your Social Security benefit is $2,500 per month at 62 or $4,425 per month at 70. You need $6,000 monthly for expenses.

Scenario 1: Claim at 62

  • Social Security: $2,500/month ($30,000/year)
  • Withdrawal from savings: $3,500/month ($42,000/year)
  • By age 70, you’ve withdrawn approximately $336,000 from savings
  • From 70 onward, you still need $1,500/month from savings ($18,000/year) since Social Security doesn’t cover all expenses

Scenario 2: Bridge Strategy (Claim at 70)

  • Ages 62-70: Withdrawal from savings: $6,000/month ($72,000/year)
  • By age 70, you’ve withdrawn approximately $576,000 from savings
  • At 70, Social Security starts at $4,425/month ($53,100/year)
  • From 70 onward, you need only $1,575/month from savings ($18,900/year)

At first glance, Scenario 1 looks better because you’ve preserved more savings by age 70. But here’s what happens over time.

The key is that Scenario 2 provides $1,925 more per month in Social Security income starting at 70. That’s $23,100 more per year in inflation-adjusted, guaranteed income. If you live to 85, that’s an additional $346,500 in Social Security benefits. Even accounting for the extra $240,000 you withdrew during the bridge period, you come out significantly ahead.

Moreover, because Social Security benefits are taxed more favorably than IRA distributions (at most 85% of Social Security is taxable, and many people pay taxes on much less), the after-tax advantage of the bridge strategy is even more pronounced.

Research from the Bipartisan Policy Center confirms this finding. For people who live to average life expectancy or beyond, using assets to delay Social Security claiming results in more wealth preservation than claiming early.

Tax Advantages of the Bridge Strategy

One often-overlooked benefit of the bridge strategy is the favorable tax treatment.

When you withdraw from traditional IRAs and 401(k)s, every dollar is taxed as ordinary income. If you’re in the 22% federal bracket, a $50,000 withdrawal costs you $11,000 in federal taxes alone.

Social Security benefits receive preferential tax treatment. Depending on your income, anywhere from 0% to 85% of your benefits are taxable. Many retirees pay taxes on only 50% or even 0% of their Social Security income, especially if they manage their other income sources carefully.

This creates a tax arbitrage opportunity. During your bridge years (ages 62-70), you pay full ordinary income tax on larger IRA withdrawals. But starting at 70, you receive much more income from Social Security with better tax treatment and withdraw less from IRAs.

There’s an additional tax planning opportunity here. The bridge years, when you’re taking larger IRA distributions, can be ideal years for Roth conversions. You’re already in a higher tax bracket due to larger withdrawals, and you don’t have Social Security income yet to push you into even higher brackets.

After you start claiming Social Security at 70, your IRA withdrawals drop significantly, potentially moving you to a lower bracket. You’ll be glad you did Roth conversions during the bridge years when your effective tax rate made conversions advantageous.

We explore this strategy in depth in “Is a Roth Conversion Right for You?” and show how coordinating Social Security timing with Roth conversions can save substantial taxes over your lifetime.

When the Bridge Strategy Makes Sense

The bridge strategy isn’t right for everyone. Here are the situations where it makes the most sense.

You’re in good health with family longevity. The bridge strategy pays off when you live long enough to collect the higher benefit for many years. If both your parents lived into their 90s and you’re in excellent health, the strategy becomes very attractive. Life expectancy for someone who reaches 65 is now 84 for men and 87 for women, and many people live considerably longer.

You have adequate retirement savings. You need sufficient assets to fund the bridge period. As a general rule, if you have at least 15 to 20 times your annual expenses in retirement savings (not counting your home), the bridge strategy is feasible. For someone needing $60,000 annually, that means $900,000 to $1.2 million in investable assets.

You’re retiring early or your spouse is younger. If you retire at 55 or 60, you have more years to bridge before claiming at 70. This makes the strategy more complex but potentially more valuable. Similarly, if you have a younger spouse who could be collecting survivor benefits for decades, maximizing your benefit becomes even more important.

You want to maximize survivor benefits. When you die, your spouse receives the higher of their own benefit or your benefit. If you delay claiming and maximize your benefit, you’re also maximizing the survivor benefit your spouse will receive for the rest of their life. This is especially important if you were the higher earner.

You sold a business or received a windfall. For entrepreneurs who recently sold their business, you may have the liquid assets needed to fund a bridge strategy comfortably. The sale proceeds can support your lifestyle while you delay claiming, resulting in significantly higher lifetime income from Social Security.

This scenario is common among our clients, and we address the full range of post-sale financial planning in “The Entrepreneur’s Exit Plan: How to Retire from Your Business on Your Terms.”

When You Should Claim Earlier

There are also clear situations where claiming earlier makes more sense than employing a bridge strategy.

You have serious health issues. If you have a condition that significantly reduces your life expectancy below average, claiming earlier allows you to maximize total benefits received over your shorter retirement. The break-even point for delaying from 62 to 70 is typically somewhere in your late 70s to early 80s. If you’re unlikely to reach that age, claim earlier.

You have insufficient assets for a bridge. If your retirement savings are modest and you need Social Security income to cover basic living expenses, you may not have the luxury of waiting. Claiming at 62 or full retirement age becomes necessary rather than optional.

Your spouse has their own substantial benefit. If both spouses have worked and earned similar amounts, the survivor benefit advantage becomes less important. You might choose to have one spouse claim early while the other delays, creating a diversified claiming strategy.

You face job loss and can’t find work. If you lose your job in your early 60s and despite your best efforts cannot find employment, claiming Social Security may be necessary to bridge the gap to Medicare at 65 and provide essential income.

You’re recently divorced. After divorce, claiming decisions become more complex. You may be eligible for benefits based on your ex-spouse’s record if you were married at least 10 years. Understanding these rules and coordinating your claiming strategy with your divorce settlement is essential.

We address many of these considerations in “Gray Divorce: 5 Financial & Tax Considerations for Couples Over 50.“

Coordinating the Bridge Strategy with Other Retirement Decisions

The bridge strategy doesn’t exist in isolation. It must coordinate with several other important retirement planning decisions.

Healthcare coverage before Medicare. If you retire before 65, you need healthcare coverage until Medicare begins. COBRA coverage from your former employer typically lasts 18 months. After that, you’ll need coverage from the ACA marketplace, a spouse’s plan, or private insurance. Factor these costs into your bridge period expenses.

Required Minimum Distributions. RMDs begin at age 73 for those born in 1951 or later. If you’re using the bridge strategy and reach RMD age before claiming Social Security, your required distributions might push you into higher tax brackets. Plan for this by modeling different scenarios or consider Roth conversions before RMDs begin.

Pension considerations. If you have a pension, understand how the claiming age affects your benefit and how it coordinates with Social Security. Some pensions reduce at certain ages assuming you’ll claim Social Security. Others offer different payout options that might influence your Social Security timing.

Part-time work. Some retirees work part-time during their 60s, either for income or personal fulfillment. If you earn above certain limits before full retirement age while claiming Social Security, your benefits will be reduced temporarily. This is another factor favoring delay. Once you reach full retirement age, earnings no longer affect benefits.

Spousal coordination. If you’re married, your claiming decisions should be coordinated. Often, the higher earner delays to 70 while the lower earner claims earlier. This provides some current income while maximizing the survivor benefit for whoever lives longer.

How to Implement a Bridge Strategy

If you’ve determined the bridge strategy makes sense for your situation, here’s how to implement it effectively.

Step 1: Model your specific situation. Use online calculators or work with a financial advisor to model claiming at different ages. Include your savings, expected returns, taxes, other income sources, and estimated longevity. The Social Security Administration’s website offers helpful tools, though they don’t account for taxes or other assets.

Step 2: Identify which accounts to draw from. Generally, draw from taxable accounts first, then traditional retirement accounts, saving Roth accounts for last. However, your situation might benefit from a different sequence. Tax planning during bridge years is critical.

Step 3: Consider Roth conversions. The bridge years offer a potential window for strategic Roth conversions. You’re already taking larger distributions and paying taxes. Converting additional amounts from traditional to Roth might make sense before Social Security income starts and potentially pushes you into higher brackets.

Step 4: Plan for sequence of returns risk. If you retire right before or during a market downturn, taking large withdrawals from declining accounts can be dangerous. Consider keeping 2-3 years of expenses in cash or short-term bonds to avoid selling stocks at depressed prices. Alternatively, have a plan to reduce spending or generate income if markets decline significantly.

Step 5: Review and adjust. Your bridge strategy isn’t set in stone. If your health changes, markets perform differently than expected, or tax laws change, you can adjust your claiming age. Up until the month you file for benefits, you can change your mind. Even after filing, you have a brief window to withdraw your application.

Step 6: File at the right time. Social Security benefits begin the month after you reach your target age. If you want benefits to start in January after turning 70, file in December. Applications can be filed up to four months before you want benefits to begin. Don’t miss your target date due to processing delays.

Special Considerations for Different Situations

Business Owners and Entrepreneurs

If you’ve sold your business or are planning an exit, the bridge strategy often makes excellent sense. Sale proceeds give you the liquid assets needed to fund the bridge period comfortably. The significantly higher Social Security benefit provides a guaranteed income floor that reduces pressure on your investment portfolio.

Many business owners are accustomed to controlling their income and may feel uncomfortable letting go of immediate Social Security income. However, think of delaying as making an investment with an 8% annual guaranteed return (the delayed retirement credit) that’s also inflation-adjusted and lasts for life. That’s a better return than most fixed income investments offer.

Divorced Individuals

Divorce complicates Social Security planning significantly. If you were married at least 10 years, you may be eligible for benefits based on your ex-spouse’s record. You can claim these benefits as early as 62, and your claiming doesn’t affect your ex-spouse’s benefits or their current spouse’s benefits.

The rules are complex. You can switch between your own benefit and an ex-spousal benefit at different times to maximize lifetime income. This requires careful planning, and a bridge strategy might apply to either or both benefits.

If you’re recently divorced and rebuilding financially, you may not have adequate assets for a bridge strategy. In this case, understanding which benefit to claim and when becomes even more critical. Consider consulting with a Social Security expert as part of your post-divorce financial planning.

Surviving Spouses

If your spouse has passed away and you’re deciding when to claim survivor benefits, the same general principles apply. Survivor benefits can begin as early as 60 (or 50 if you’re disabled), but they’re permanently reduced if claimed before your full retirement age.

You can claim a survivor benefit early and then switch to your own benefit later if it’s higher, or vice versa. This sequential claiming strategy can be valuable, but it requires understanding the complex rules around switching between benefit types.

The Role of Professional Guidance

Given the complexity of Social Security claiming decisions and their interaction with taxes, investments, healthcare, and other retirement income sources, professional guidance often pays for itself many times over.

A comprehensive financial advisor can model different scenarios specific to your situation, accounting for all relevant factors. They can show you the break-even ages, after-tax income, and total lifetime benefits under different claiming strategies.

They can also help you coordinate Social Security timing with Roth conversions, required minimum distributions, healthcare planning, and estate planning. All these pieces work together, and optimizing one without considering the others can lead to suboptimal outcomes.

At MJT & Associates, we take what we call a holistic approach to retirement planning. We don’t just look at Social Security in isolation. We consider how it fits with everything else in your financial life: your savings, your taxes, your estate plan, and your goals.

Frequently Asked Questions

What is the break-even age for delaying Social Security benefits?

The break-even age is when the total benefits received from delaying equal the total from claiming early. For delaying from 62 to 70, break-even is typically around age 78 to 82, depending on your specific benefit amounts. However, this simple calculation ignores several important factors: taxes (Social Security is taxed more favorably), inflation protection (Social Security includes annual cost-of-living adjustments), survivor benefits (your spouse may collect for decades), and investment returns on your portfolio (the bridge strategy can actually preserve more wealth long-term). The true “break-even” analysis is more complex than it first appears.

Should I take Social Security at 62 and invest it for better returns?

This strategy sounds appealing but rarely works out mathematically. First, delayed retirement credits provide an 8% annual increase that’s guaranteed and inflation-adjusted, which is difficult to beat after-tax in fixed income investments. Second, taking benefits at 62 means a permanent 30% reduction that affects you for life, including cost-of-living adjustments on that lower base. Third, behavioral research shows that people who receive Social Security typically spend it rather than invest it. Finally, the tax treatment of Social Security income is more favorable than investment returns from taxable accounts. Unless you’re exceptionally disciplined and skilled at investing, delaying usually produces better outcomes.

How does the bridge strategy affect my spouse’s survivor benefits?

This is one of the bridge strategy’s most powerful advantages. When you die, your surviving spouse receives the higher of their own benefit or yours. By delaying to age 70 and maximizing your benefit, you ensure your spouse receives the highest possible survivor benefit for the rest of their life. If your spouse is younger or in better health than you, this could mean decades of higher income. For a couple where one person was the significantly higher earner, maximizing that person’s benefit through delayed claiming is often the single most important retirement planning decision they’ll make.

Can I change my mind after I start claiming Social Security?

You have limited opportunities to change your mind. Within 12 months of first claiming, you can withdraw your application, pay back all benefits received, and reapply later. This option is available only once in your lifetime. After 12 months, you cannot withdraw your application. However, if you’re at full retirement age or older, you can voluntarily suspend your benefits to earn delayed retirement credits, then restart them later at a higher amount. This doesn’t undo the reduction from claiming early, but it allows some correction. The best approach is to plan carefully before claiming to avoid needing these do-over provisions.

What if markets crash right after I retire and I’m using the bridge strategy?

This is a real risk called sequence of returns risk. If you retire at 62, plan to delay Social Security until 70, and markets drop 30% in year one, you’ll be withdrawing from a declining portfolio. To protect against this: maintain 2-3 years of expenses in cash or short-term bonds so you’re not forced to sell stocks at depressed prices, consider building flexibility into your spending plan so you can reduce withdrawals temporarily if markets decline severely, have a backup plan such as part-time work or accelerating your Social Security claim if absolutely necessary, or purchase an income annuity to guarantee a portion of your bridge income needs. A good financial plan accounts for this possibility and builds in protections rather than assuming markets will cooperate with your timeline.

Conclusion

The Social Security bridge strategy represents one of the most powerful retirement planning tools available, yet relatively few retirees use it. The emotional difficulty of watching savings decline during your 60s prevents many people from capturing hundreds of thousands of dollars in additional lifetime benefits.

The key to successful implementation is careful planning that accounts for your complete financial picture: your savings, your health, your tax situation, other income sources, and your goals. The bridge strategy isn’t right for everyone, but for those with adequate savings and reasonable health, it often provides the highest lifetime income.

At MJT & Associates, we help clients navigate this complex decision by modeling different scenarios, stress-testing assumptions, and integrating Social Security planning with Roth conversions, tax planning, and estate planning. We’ve seen firsthand how proper Social Security timing can add hundreds of thousands of dollars to a family’s wealth over retirement.

The decision of when to claim Social Security is too important to make based on gut feeling or general rules of thumb. Your situation deserves individual analysis that accounts for all relevant factors.

Ready to explore whether a Social Security bridge strategy makes sense for your situation? Contact us today for a comprehensive analysis. We’ll model your specific circumstances, show you the numbers, and help you make this critical decision with confidence. Your Social Security claiming strategy could be the difference between a comfortable retirement and an exceptional one.

This article was originally published here and is republished on Wealthtender with permission.

Headshot of Mitchell J. Thompson, CFP®, CDFA®, ChSNC®, AEP®
Mitchell J. Thompson, CFP®, CDFA®, ChSNC®, AEP® Family | Fixer | Fiduciary | Advisor | Wealth Manager

Mitchell J. Thompson, CFP®, CDFA®, ChSNC®, AEP® | MJT & Associates Financial Advisory Group

🔗 Website | Wealthtender Profile

[Asset managers and wealth management firms have a lot of data, but much of it is inconsistent, unstructured, or duplicated. It has been contended that the majority of these data issues are actually symptoms of a lack of proper governance from the very beginning of the data lifecycle and are the root of many technology challenges. Governance must be established at the point of data inception, not just as a management layer after the data has been collected. This is because, ultimately, it is governance that determines – or should determine – the process for how to create, clean, and structure the data.

Take, for example, AI agents. They already do useful work, but poor inputs (e.g., messy RFP libraries, fragmented CRM notes, inconsistent client records) limit accuracy and trust. This supports the idea that advanced modern technology like AI, in its application to our industry, is only as good as the data behind it.

To better understand the foundational importance of data governance, we reached out to JT Tripple, Enterprise Sales and Microsoft Cloud specialist at HSO – a global IT services and consulting firm with a rare combination of financial business application and data expertise. The firm was recognized for delivering transformative customer engagement solutions powered by Microsoft Cloud and AI technology by winning the “2025 Microsoft Dynamics 365 Sales & Customer Insights Partner of the Year Award” for demonstrating excellence in innovation and implementation of customer solutions. We asked JT to share their knowledge and data expertise with us.]

Hortz: Can you more fully explain the concept of data governance? What exactly is entailed and why is it of such foundational importance?

Tripple: When I think about data governance, I think of it as a combination of decision rights plus accountability over the data. It outlines how data is being defined within the firm – who owns the data and who can use it – and also how compliance is being enforced across the organization.

Data governance should also align with business outcomes. Firms should always be thinking in terms of how data impacts what the business is actually doing, not in a vacuum. Policies need to be consistent across the entire organization – the front, middle, and back offices. This is obviously critical in financial services with its regulatory and client trust requirements.

But what I think is most important about data governance is that it is foundational, because everything else sits on top of it. AI, reporting, compliance, analytics, risk management…all of these areas will fail or stall without well-defined and well-controlled data.

Data governance is outcome-based. It is not the data itself that ultimately matters; it is the outcomes that we get from it, the AI it informs, and the reporting it drives. If your data is not well-governed, all of the outcomes are put at risk and are questioned because the data underpinning them cannot be trusted.

For example, if you are developing a chatbot using AI to interact with your data, but you can’t trust the answers the chatbot is giving you, what’s the point of even investing in the tool in the first place? That’s what we are always trying to ensure – that the results of what we are doing with the data can be trusted.

Hortz: What are the most common data quality failure points? Why do they tend to persist and are often rooted in governance problems?

Tripple: To address the issue of data quality failures, there must first be agreement on how terms are defined. There are many terms that are used inconsistently within an organization, which can lead to problems. Take, for example, the word, “client”. What does that mean? Who is considered the client in each area of the business? That can mean different things to different teams, which sets up distrust between groups who believe other groups are not correctly representing the conversations happening on the ground.

Another reason for quality failure is fragmented data. People talk about how data is “siloed” – the idea being that data within the organization is spread across different business applications and functions. There are different lines of business and products or services being offered. Because of this, you can have product data sitting in one place, operational data sitting in another, and risk data in yet another, with no accountable owner driving consistent standards across it all. A significant challenge and potential failure point arises when data is not integrated and governed consistently across the firm.

Data entry itself is another point of failure. For example, if a wholesaler is not accurately entering data into the CRM, that’s a point of failure. Key data not being captured accurately has the potential to hinder the entire organization’s ability to operate at speed, at scale, or most effectively.

These data failures tend to persist and are often rooted in governance problems because manual workarounds become the norm. What I mean by that is that many firms use spreadsheets to fix problems with data coming from CRM and finance instead of addressing the issue at the point where the data is captured. For example, someone in sales ops uses their own spreadsheet to get some reporting they need, but cannot get it natively because of the way the data is structured. This approach gets the job done for the moment, but it becomes an institutionalized workaround that ultimately causes bigger problems down the line. 

Hortz: Could you walk through the first practical steps a firm should take to start establishing a foundational data governance framework?

Tripple: First and foremost, I want to emphasize this: You have to start with a business priority. You start with a business outcome, and then you go from there. You do not start with policy; you don’t start with rules. You start by asking, “What are we trying to do with our data? What are the priorities of the business?” And then you work your way into a governance model. Governance needs to be anchored in a real initiative. It could be regulatory reporting, it could be on AI, it could be getting a 360-degree view of your client. Whatever it is, whatever that priority is, you start there, so what you are doing with governing your data actually drives tangible value.

Next, determine the critical elements of your data and assign accountable owners to those elements. Keeping with the theme of business priorities, you want to focus on high-impact data – client data, product data, transaction data, or performance data. Those are different high-impact data domains. And you want to have someone in place who is truly responsible for that data. In this context, we call that stewardship – someone who has ownership of that particular data, someone who is fully accountable.

The next practical step from there is to set up an operational model. It can start with establishing a governance council, a team responsible for making decisions around data quality and determining escalation paths for issues around how the data is being organized. It is very important to involve people in mastering data, not depending solely on tooling and technology, thinking they alone are going to solve those problems. You need to have people in the cycle, making decisions and establishing guidelines, rules, and policies.

It’s challenging to govern data. It’s not fun. Nobody wants to wake up and go in and put out a bunch of policies and rules in place around data, but doing so matters when it comes to strategically reaching goals for the business and high-level engagement with clients.

Hortz: How do you advise your financial services clients to measure the ROI on improving data governance? Are there tangible metrics beyond AI project success that firms can point to?

Tripple: Asking how you can tell if your data efforts are working is the right question, but a really hard one to answer. It is hard to get stats that show demonstrable ROI on data governance. There is no benchmark to work off of. But we know this much: bad data leads to bad decisions. IBM did a study estimating that US businesses are losing over $3 trillion a year due to bad data. But a Gartner study found that 60% of firms do not even measure the effect of poor-quality data. Think about it. That’s over half of the firms out there that are not even trying to figure out the ramifications of using poor-quality data.   

There was another study that showed that data scientists spend 60% of their time cleaning data. That’s the wrong place to be spending their time. They should be analyzing data. They should be exploiting the data for the tool that it is, but they are spending the majority of their time – over half, to be specific – just trying to get the data shaped in a way that they can even begin to use it. 

But there are ways firms can measure ROI. One way is to reduce what I will refer to as operational friction. With well-governed, clean data, operational friction is reduced. There are fewer reconciliations needed between different aspects of the business. There are fewer manual adjustments needed. The number of audits that need to take place can be reduced.  

Another way is measuring ROI based on risk mitigation – fewer compliance exceptions, lower regulatory remediation costs, and so forth. One of the most valuable and interesting ways to mitigate risk is around revenue enablement. Think about how much faster you can launch a product if you have good data. How much faster you can get to market, reduce time to market from an analytics standpoint. You can improve your cross-sell and upsell with better client data.

Those are just a few of the ways you can determine how governing and managing data more effectively is driving ROI.

Hortz: What does “AI-ready” data look like? What is needed to transform data into an “AI-ready” state?

Tripple: To be AI-ready, you need your data to be consistent, and it needs to be well-defined. It cannot be siloed. It needs to have a consistent structure. It needs to be what we call “lineage traceable” – that is, you can explain where the data came from. What’s the source of this data? How did this data get transformed so that it is now consistent, and who owns the data? That’s the stewardship piece of data management.

Those are the key areas we talk about around having data in an AI-ready state. It is organized and clearly labeled. It is tagged and structured so AI can understand what it means. Data is not just being stored in a big bucket; we have actually done the hard work of cataloging the data.

And then the last thing I would say that makes data AI-ready – and the most important piece – is that it is accessible. Teams trying to develop AI use cases must be able to get to the data. If they cannot get to it, nothing else matters. You have to be able to open the door to give access to data, but in a controlled way. And that’s the key caveat; access must be controlled. But once that data is clean, well-defined, and well-governed, you can make it available to your AI teams, and they can run with it.

Hortz: With data governance in place, can you share your perspectives on building real-world AI use cases that feel concrete to asset managers and wealth management firms?

Tripple: The first and most important thing I want to communicate when we talk about AI use cases is that it is so critical to have what we refer to as a “human in the loop”. AI is incredibly powerful and has the potential to deliver powerful outcomes and execute complex tasks for you, but people must be involved. It is essential to have people play a role in most, if not all, AI use cases, critiquing the results to make sure they align with reality and with policy.

Getting into some specific use cases for asset managers, assistance with investment commentary is an area where firms could really benefit. AI can draft performance narratives using well-governed performance data, pull that data from various sources, and put together a thorough commentary narrative.

For institutional firms, RFP responses can be largely automated. Document intelligence and knowledge management can be brought to bear on existing RFP libraries, and that data can be used to shape and craft responses to future RFPs – and do it in a much more efficient way.

For both asset management and wealth management firms, meeting summarization is a huge use case. Agentic CRM can be very powerful for wholesalers. With Agentic CRM, instead of logging into a CRM platform and doing your work there – which most salespeople do not want to do – you use a chatbot, which enters the data into the CRM. You can use an app on your phone to record a meeting you had with an advisor or a client, then have the AI summarize notes, capture follow-up items, suggest next best actions, draft follow-up communications, and create opportunities and leads in the CRM system. AI can then draft personalized ongoing communications based on what’s in the CRM, based on portfolio data, what’s happening in the market, and people’s specific interests and risk tolerances. It could also identify tax loss harvesting opportunities, concentration risk, or even rebalancing portfolio opportunities using well-governed household-level data. With an agentic model like this, you can have all those tasks without ever having to go into the CRM platform. And it can really accelerate and help you scale your outreach.

Also, for wealth management firms, another concrete AI application would be around client onboarding acceleration. Consider all the forms that clients must fill out and the documents they have to provide. AI-driven document ingestion and extraction is one way to speed things up. And then KYC – Know Your Customer validation – can be streamlined through AI and the new account setup.

Hortz: It was noted that HSO has a rare combination of business application and data expertise. How does this dual perspective change the way you approach a problem for a financial services client?

Tripple: At HSO, we start with the business process. We ask business what outcome we are trying to drive to, not the data model itself. Because we look at dealing with challenges through an industry lens, we understand common issues like front office workflows and compliance challenges and constraints. We know what the revenue levers are. That’s a great start, but then we dig deeper to fully understand the client’s business, their unique challenges and requirements, before we look at designing a data architecture.

We also have the ability to bring an accelerated point of view to a firm’s data. While all financial firms are not the same, there are some consistencies between them. We can bring a perspective that is true across the industry, in addition to understanding firm-specific particular business drivers and outcomes.

Another thing we prioritize is connecting application configurations to governance. When we “stand up” a CRM platform, an ERP platform, or a data platform, everything is aligned to a common data model and an operational framework. This way, AI is consistent with the organization’s larger data model.

We have also developed separate business accelerators for asset managers and wealth management firms to bring a data model to the table that can work for them. There are two sides of the coin. On the one side, there are the bespoke business needs and requirements. The things that matter. The priorities. On the other side of the coin is the fact that all financial firms have similar needs for their data. Because we understand these needs and have worked with many firms, we are not starting from scratch with each engagement. Our accelerator process and structure expedites the design of a bespoke data model for financial firms to govern their data.

And finally, we are very good at translating between stakeholders. What I mean by this is that we help the chief information officers, the chief data officers, people on the technology side of the house, and the business leaders on the other side of the house to come together and align on outcomes. Governance is a growth enabler, not a restrictor; a partnership between the business leaders and the technology leaders drives better outcomes for the firm as a whole.

Hortz: Since many financial firms still require education on implementing advanced AI solutions, how do you engage them so that it resonates across the enterprise?

Tripple: As I said before, we operate on an industry-first basis – we are in the financial services industry, not just serving it. I think it’s very important that we are viewed in that way. We want to be a contributing member to the industry, which is why we participate in industry groups like the SME Forum where we participate as a vendor partner, contributing to discussions around developing AI use cases and sharing what we and other industry firms are doing with AI and data and how they are driving better analytics and better outcomes.

I think it would be valuable to point people to the assets we have created that demonstrate our commitment to providing education and resources to the financial industry – white papers that share our research; workshops that educate firms on AI use cases and building AI agents; self-assessments and other tools; and ongoing social media and blog posts.

This article was originally published here and is republished on Wealthtender with permission.

About the Author

A middle-aged man, Bill Hortz, with short dark hair wearing a dark pinstripe suit, white dress shirt, and a maroon tie, posing against a plain gray backdrop. He has a slight smile and is looking directly at the camera.

Bill Hortz

Founder Institute for Innovation Development

Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.

Technology professionals often face complex financial decisions, from managing stock options and RSUs to navigating taxes and building long-term wealth. Working with a financial advisor who understands the tech industry can help you make more informed decisions. Below, you can find trusted financial advisors who specialize in serving technology professionals, read real client reviews, and learn how to choose the right advisor for your needs.

In today’s world filled with digital innovation online and rapid technological advancements in almost every industry, there’s a significant need for technology professionals. If you work in tech, you may reap a variety of benefits along with a fast-paced work environment, including competitive pay, frequent opportunities for career growth and development, remote work, and flexible hours. 

While a career in technology can be very rewarding, it can also be quite demanding and prevent you from tending to personal matters like financial planning. Since healthy finances are key to a high quality of life, it’s important to make them a priority. 

Challenges of Financial Planning for Technology Professionals

Just because you’re tech-savvy doesn’t mean you have the time to gain the knowledge and skills required to plan for your financial future. After all, technology and finance are two different worlds (though the rapid growth of fintech and wealthtech startups is quickly bringing these worlds together!). The good news is you don’t have to tackle financial planning on your own. 

We’ve created this useful guide to help you get started. And you also have access to a growing number of financial advisors who specialize in supporting technology professionals with their financial goals. These specialist financial advisors are well-versed in the unique opportunities and challenges likely to arise throughout your technology career. 

This guide, paired with professional support from a financial advisor, can help you reach your goals so you can live a fulfilling life with minimal to no financial stress. 

Find Financial Advisors for Technology Professionals on Wealthtender

📍 Click on a pin in the map view below for a preview of financial advisors who specialize in working with technology professionals. Or choose the grid view to search our directory of financial advisors with additional filtering options.

📍Double-click or pinch pins to view more.

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Financial Planning for Technology Professionals

There are a number of topics to consider and questions you’ll have when you’re planning your finances as a technology professional. Here’s a brief overview:

Living Well on a Technology Salary

According to the Bureau of Labor Statistics, the median annual salary for computer and information technology occupations in 2019 was $88,240. While you can earn great money with a technology job, you’ll still need to budget for the things that matter most to you.

If early retirement is one of your goals, for example, you may have to live in a smaller home or spend less on travel or entertainment. This way you’ll be able to allocate more of your paycheck to your 401k or other retirement accounts. 

As you advance in your career and potentially cross the six-figure mark, you’ll find it easier to meet multiple short and long-term goals. Here are a few questions a financial advisor can help you answer to make the most of your technology income: 

  • How much should I have saved today in order to retire comfortably at my desired retirement age?
  • If I don’t have enough saved today, what steps can I take to get back on track?
  • What financial planning insights have you gained working with other technology professionals like me?
Are you a Woman Working in Technology?

Employers located in major tech hubs like Silicon Valley near San Francisco and Silicon Hills in Austin have made strides in hiring more women in technology roles. But as evidenced by Google’s agreement in 2022 to settle a pay equity lawsuit for $118 million, many technology firms have more work to do to ensure compensation for female professionals is on par with their male counterparts in similar roles. A financial advisor specializing in working with women in technology can help evaluate your compensation plan and offer guidance to help you ask for what you deserve.

Repaying Your Student Loans as a Technology Professional

While some technology professionals bypassed college or completed a training or certificate program, most hold at least a bachelor’s degree in a field like computer science or management information systems. 

If you went the college route, and especially if you also earned a graduate degree, there’s a good chance you’ve been left with the burden of sizable student loan debt. Regardless of how much student loan debt you have accrued, it is in your best interest to design an appropriate repayment plan. 

It may be a good idea to pay off your student loans as soon as possible. Or, it may make more sense to take advantage of your low interest rate and prioritize paying other debt instead. A financial advisor can help you make the right decision. 

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Steven Engle, CFP® Asbury Capital Helping the Tech Community Optimize their Equity Compensation.
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Making the Most of Your Employee Benefits as a Technology Professional

If you’re a full-time technology professional, you likely receive more than a generous salary. You may qualify for healthcare coverage and life insurance as well as paid sick and vacation time. You may also enjoy a retirement plan like a 401k with a company match and stock options. 

Depending on the company you work for, you may benefit from other perks like free food and snacks, all-expense paid seminars and conferences, wellness programs, and bonuses. Technology companies are known to go above and beyond for their employees to attract the brightest talent. 

It’s important that you become familiar with all of the benefits at your disposal so you take full advantage of them all. When you meet with a financial advisor, you’ll discuss how to make the most of your employee benefits. Examples of questions a financial advisor will help you answer include:

  • How much of my income should I invest in each of the retirement and savings plans available through my employer to maximize my benefits?
  • How should I allocate the investments in my retirement and savings plans?
  • Should I invest in my company stock, or in fact, diversify away from my company stock?
TJ van Gerven CFP headshot

TJ van Gerven, CFP

Modern Wealth Builders

Q: As a technology professional with incentive stock options (ISOs), how should I be optimizing the exercising and sale for taxes?

TJ: “When it comes to optimizing ISOs, most people’s first inclination is to exercise and hold to try and achieve long-term capital gains (LTCG). In order to achieve LTCG, you need to exercise your options and hold one year from the exercise date and two years from the grant date. Although the tax savings from LTCG can be substantial if the share price continues to rise, you should always be mindful of your concentration risk. Keep in mind the tax savings from LTCG can be completely wiped out if the share price drops by the same amount (or more) as the tax savings. Making taxes the primary factor in when to sell a concentrated stock position is ‘the tail wagging the dog’. If you’ve diversified your assets and solidified a path to financial independence, optimizing for LTCG can be substantial tax savings. However, you’ll want to work with a tax professional to project potential alternative minimum tax (AMT) liabilities so that you’re not caught in a cash flow crunch come tax time.”

    Buying a House as a Technology Professional

    As a technology professional with a steady paycheck, you shouldn’t have an issue getting approved for a mortgage. If you’re a freelancer or contract employee, however, it may be more of a challenge because you won’t have pay stubs and a W2 to show your consistent income. You’ll need to provide additional documentation to prove your earnings. 

    A financial advisor can guide you through the mortgage process and help you save for a down payment. You can also trust them to help you figure out a housing budget that allows you to live in a home that’s right for your lifestyle yet still allows you to meet other goals. 

    Saving for Retirement as a Technology Professional

    If your employer offers a 401k retirement plan, you’ll be able to deduct money from each paycheck and save for retirement. Ideally, they match your contribution and essentially give you “free money” so you can maximize your retirement savings. 

    You may also save for retirement without an employer-sponsored 401k if you open an account such as a Roth IRA or Traditional IRA. With a financial advisor’s support, you can determine the ideal retirement vehicles for you as well as how much you’ll need to save to live your preferred lifestyle. 

    They may also answer questions such as: 

    • What are the tax advantages of my retirement accounts?
    • What brokerage firm should I use?
    • What is the ideal investment strategy for my situation?
    Professional man sitting confidently on steps with a slight smile, dressed in business attire.

    Jeff Schlotterbeck, CFP

    Water Street Wealth Management

    Q: My company offers a 401k plan with target-date funds. Should I just allocate all of my contributions to a single target-date fund or consider other investment options available to me?

    Jeff: “For most employees, investing in a target-date fund within their 401k is usually a decent strategy, but it is not always the best strategy. Using a target-date fund is typically better than just picking a few funds within a plan. A lot of times investors will just pick a few funds based on their name or historical performance. When they do this what tends to happen is there is no diversification within the account and the portfolio ends up being heavily weighted in one particular asset class. Using a target-date fund instead allows for instant diversification through one simple position. This is one of the reasons they are so attractive and frequently chosen they are simple and convenient.

    There are however some disadvantages to using target-date funds within your 401k as well. One of the big reasons I tend to shy away from recommending targe-date funds is that they don’t factor in outside assets that you may hold. When managing your investments, you need to make sure your total portfolio (401k and outside accounts) is allocated appropriately. The second reason I don’t like target-date funds is because of the expense ratios. They tend to have a higher overall expense ratio than the other fund choices available within plans. Some target-date funds are layered with expenses because they are a fund made up of funds each with its own cost and expense ratio. Finally, not all target-date funds are created equal. For example, even though two funds may have a target date of 2045, the overall allocation and glide path could be completely different. Meaning potentially different objectives and levels of risk. When helping clients my typical recommendation is to review all of the investment choices available to them and build out a customized plan and allocation, suited to their overall goals and situation.”

      Expenses and Deductions: Keep More of Your Income

      When you file your taxes, you may choose the standard deduction or itemize your expenses to lower your tax burden. If you determine that itemizing is the better option, you’ll need to consider which deductions you may be eligible for. 

      As a freelancer or self-employed technology professional, you can deduct your home office, tech tools, and office supplies, legal and professional service fees, and even advertising and promotion costs. Unfortunately, there are fewer deductions available to full-time tech workers. 

      Since taxes can be complex, especially if you don’t have a typical 8 to 5 job, a financial advisor is an invaluable resource. They can help you answer a number of questions like: 

      • Does it make sense to take the standard deduction or itemize?
      • Which deductions am I eligible for?
      • Is it better for me to be a 1099 contractor or a W2 employer?

      Certain questions may be better answered by a Certified Public Accountant (CPA) and your financial advisor can help connect you with a CPA if you don’t already work with one.

      Your Insurance Needs as a Technology Professional

      If you’re a technology professional with a salary or hourly wage, there’s a good chance you can meet many of your insurance needs through your employer. Most tech employers offer health, dental, and vision insurance as a benefit. Some even go the extra mile and provide life insurance, short-term disability, and other insurance options.

      In the event you perform contract or freelance work, you’ll need to take care of insurance needs on your own. Fortunately, there are a number of insurance plans you can choose from. Also known as the Health Insurance Exchange, the Health Insurance Marketplace can give you valuable information on your eligibility for various plans and how you can cover premium costs and minimize out-of-pocket expenses. 

      A financial advisor can help you navigate your insurance needs and select the plans you need to protect yourself and your family from the unexpected. Their advice may save you thousands of dollars down the road. 

      Confident woman with a subtle smile against a white background.

      Jane Mepham

      Elgon Financial Advisors

      Q: Should I sign up for the HSA account, especially with my high income?

      Jane: “If your company offers the HSA (Health Savings Account), typically a part of a HDHP (High Deductible Health Plan), seriously consider it due to the benefits you get. The money goes in tax-free (lowering your taxable income), grows tax-free and comes out tax-free if used for medical expenses. You own the account outright, so if you change jobs (which is typical in the tech field) you take the account with you. You are also able to invest the money in the market, which allows it to grow. One of the best ways to use the account is to treat it like a retirement account and leave the money in the account until you need it during retirement. The account can be used to pay for medical expenses abroad.

      If you are facing very expensive medical expenses, it may not be ideal or you, but a good financial planner can help you weigh the pros and cons of the account in your specific situation.”

        Financial Planning is a Necessity

        Working in technology requires highly specialized skills that the average person simply doesn’t possess. If you work in the field, it’s important that you realize your value and use your career to thrive in your personal life. 

        A customized financial plan can help you keep your debt levels down, make the most out of your earnings and benefits and live the life you desire. You’ll find that a financial advisor may help you accomplish all of this and so much more. They’ll be there for you any time you have a financial question or concern.

        Enjoy a Secure Financial Future 

        Financial planning leads to financial security. When you’re secure with your finances, you have enough money to live the way you want to and simultaneously save for your future. You don’t have to worry about an unexpected life event or expense ruining your finances. No matter what happens, you have the means to provide your family with the peace of mind you all deserve. 

        How To Find The Best Financial Advisors for Technology Professionals

        While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by near your neighborhood, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

        As a technology professional, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common among technology workers. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with technology workers that could benefit your own financial planning needs.

        Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

        In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

        You’ll find a growing number of financial advisors on Wealthtender who serve technology workers, including advisors specializing in working primarily with technology professionals. In fact, we’re happy to introduce you to the financial advisors showcased just below who are experienced in serving technology employees. To learn more, simply click on a preview card to view their profile page.

        🙋‍♀️ Have Questions About Financial Planning for Technology Professionals?

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        FAQs

        Will I Have to Pay Tax on My Qualified ESPP?

        According to Todd Pouliot, a fee-only financial advisor and President of Gateway Financial, you should consider the tax implications of investing through your ESPP to determine what the taxable consequences will be upon the sale of stock acquired through the ESPP.

        Watch the video below and visit this page to learn more:
        Will I Have To Pay Tax On My Qualified Employee Stock Purchase Plan ESPP?

        What is the job outlook for technology professionals?

        According to the Bureau of Labor Statistics, employment in computer and information technology occupations is projected to grow 11 percent from 2019 to 2029, much faster than the average for all occupations. These occupations are projected to add about 531,200 new jobs. Demand for these workers will stem from greater emphasis on cloud computing, the collection and storage of big data, and information security.

        Are there financial coaches who specialize in working with technology professionals?

        While financial advisors are generally best suited to help technology professionals who need investment advice and guidance, many financial coaches have experience working with technology workers whose hectic schedules have meant day to day budgeting and financial habits could use improvement.

        Use the Wealthtender Financial Coach Directory to find the best financial coach or counselor for your individual needs.

        The Best Finance Blogs and Podcasts for Technology Professionals

        With over 250 personal finance blogs and financial podcasts featured on Wealthtender, you’ll find several that regularly publish articles and episodes with financial planning insights useful to technology professionals.

        Finance Blogs and Podcasts for Technology Professionals Featured on Wealthtender
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        Engineer Seeking FIRE A Software Engineer’s Path To Financial Independence And Early Retirement (FIRE)
         
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        You’ll also find a list of popular blogs and podcasts for technology professionals at the below links offering articles and interviews on a range of topics including financial and career advice:

        Do you have a favorite blog or podcast for technology professionals not featured above? Let us know in the comments section below or by email at yourfriends@wealthtender.com.

        About the Author
        A headshot of Brian Thorp, the founder and CEO of Wealthtender

        About the Author

        Brian Thorp

        Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

        Military members face unique financial decisions, from managing deployments and housing allowances to navigating pensions, TSP accounts, and long-term planning. Working with a financial advisor who understands military life can help you make more confident decisions. Below, you can find trusted financial advisors who specialize in serving military members, read real client reviews, and learn how to choose the right advisor for your needs.

        There are many reasons you may have chosen military life. Perhaps it’s a family tradition, or you simply had a calling to serve your country. And from a career perspective, there are ample benefits available to military officers and enlisted members but more risks and unknowns than just about any other profession.

        Since life in the military often involves frequent deployments, moving expenses, and even spousal job loss, it’s important not to let your finances fall by the wayside. By keeping them top of mind, you can relieve unnecessary stress and achieve a fulfilling lifestyle for yourself and your family. 

        Financial Planning Challenges for Military Officers & Enlisted Members

        Whether you’re deployed overseas or stationed within the U.S., managing money can be a real challenge despite the various online tools and on-base resources at your disposal. The unpredictable nature of your work and relocations that often come with volatile living expenses may also take a toll on your financial planning efforts. 

        Fortunately, we’ve compiled this useful guide to help you plan for your finances, no matter how challenging your situation may be.  And with several organizations and a growing number of financial advisors specializing in helping military officers and enlisted members take on their unique challenges, you have many great options for hiring a professional who has experience working with situations like your own.

        We’ll help you understand important topics to consider and questions you’ll want to ask to create the best financial plan for your individual needs. This guide, paired with professional support from an experienced financial advisor, can help you take control of your financial situation and lead a higher quality of life. 

        Find Financial Advisors for Military Officers and Enlisted Personnel on Wealthtender

        📍 Click on a pin in the map view below for a preview of financial advisors who specialize in serving military officers and enlisted personnel. Or choose the grid view to search our directory of financial advisors with additional filtering options.

        📍Double-click or pinch pins to view more.

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        Financial Planning for Military Officers & Enlisted Members

        There are a number of topics to consider and questions you’ll have when you’re planning your finances as a military officer or enlisted member. Here’s a brief overview:

        Living Well on a Military Salary

        Military salaries vary greatly and depend on rank, time in service, location of duty, and job specialty. In 2021 according to official Defense Finance and Accounting Service pay tables, enlisted members just starting out can expect to earn about $21,420 a year, while general and flag officers will earn between $113,000 and $200,000 depending upon their pay grade and years of service.

        Regardless of how much money you make as a military officer or enlisted member, you’ll need to consider your financial priorities. This is particularly true if you have a family to support and/or are living on one income. If you hope to buy a house someday or cover your child’s college, for example, allocating a large portion of your income toward savings will be important. 

        Here are a few questions a financial advisor can help you answer to make the most of your military income: 

        • How much should I have saved today in order to retire comfortably at my desired retirement age?
        • If I don’t have enough saved today, what steps can I take to get back on track?
        • What financial planning insights have you gained working with other military clients like me?

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        Karen Koenig KK Financial Solutions Empowering women and divorced people to understand and grow their money
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        Jon McCardle, AIF Summit Retirement Advisors AIF® helping individuals attain their needs, wants, and wishes in life.
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        Repaying Military Student Loans

        The federal government and non-profit organizations like the American Legion, AMVETS, and Veterans of Foreign Wars help veterans, active duty personnel, future military personnel, and others in the military community pay for the cost of college. A few examples of education benefits you should be aware of include:

        • Reserve Officers’ Training Corps (ROTC) Scholarships: Awarded based on merit rather than financial need, these scholarships are available at more than 1,000 colleges.
        • Department of Veterans Affairs (VA) Education Benefits: The VA offers education benefits for veterans as well as widows and dependents.

        It’s also crucial to understand the Servicemembers Civil Relief Act. The law states that if you took out student loans prior to entering the military or being called to active duty, your federal and private student loans will be capped at a 6% interest rate.

        A financial advisor can explain which benefits may apply to you so that you don’t pay more than you have to for your college education. If you are left with student loans, they may work with you to design a realistic payoff strategy. 

        Making the Most of Your Military Benefits

        When you join the military, you receive incredible benefits that you simply won’t find anywhere else. As a military officer or enlisted member, you may enjoy access to advanced and specialty training, a generous paid vacation policy, tax-free room, board, and allowances, travel, health benefits, and so much more. 

        When you meet with a financial advisor, you’ll discuss how to make the most of your military benefits. Examples of questions a financial advisor will help you answer include:

        • Which benefits am I currently not taking advantage of that I should?
        • How much of my income should I save each month?
        • How should I allocate the investments in my retirement and savings plans?
        A professionally dressed man with a friendly smile, wearing a blue suit with a red tie, standing against a blurred natural backdrop.

        Erik Baskin, CFP®, MBA

        Baskin Financial Planning

        “I think the Thrift Savings Plan (TSP) is underutilized by most military members.

        Many can contribute much more than they do, and they get sidetracked by other consumption expenses, especially at a young age.

        Understanding the power of tax-free or tax-deferred compounding for decades in the TSP is key to having the motivation to contribute more every month.”

          Buying a House as a Military Officer or Enlisted Member

          If you’re not living in government quarters, you’re entitled to the Basic Allowance for Housing (BAH), which provides uniformed Service members with compensation to pay for housing based on costs in local civilian markets.

          If you’re ready to buy a house, it’s a good idea to look into the VA home loan. While a conventional mortgage requires a down payment that may range from 3% to 20%, a VA loan does not. You may be able to buy a house with 0% down and no private mortgage insurance or PMI.  

          Also, a VA home loan comes with more lenient credit requirements so you can get approved even if you don’t have the best credit. In addition, you can score a competitive interest rate and save thousands of dollars over the life of your mortgage. 

          Since your BAH is not taxable as income, you should consider the potential benefits of not living in military housing, including tax benefits and the opportunity for appreciation when you apply your BAH towards mortgage payments on a home you’ve purchased.

          A financial advisor can help you figure out if you’re a good candidate for the VA home loan and establish a price range based on factors like your income and interest rate. They can help you avoid a situation where you’ve bought more house than you can comfortably afford. 

          Confident man in a casual blue shirt posing against a white background.

          Mike Cavaggioni, RA

          Average Joe Finances

          “Military personnel can really take advantage of their tax-free pay. Allowances such as Basic Allowance for Housing (BAH) and Cost of Living Allowance (COLA) are tax-free income.

          Military personnel can use their BAH to pay down a mortgage that they put 0% down on (VA loan) and deduct the interest from their taxes. It’s a double-dipping tax benefit that many military personnel do not think about.

          If you’re active duty and serving the country, take advantage of the benefits you have rightfully earned.”

            Saving for Retirement as a Military Officer or Enlisted Member

            To save for retirement, you can use the Thrift Savings Plan (TSP), which is essentially the federal government’s version of a 401k. You can deduct contributions from your pay and enjoy tax advantages today (traditional TSP account) or in the future (Roth TSP account).

            You may be eligible to earn a military pension in your late 30s or early 40s. However, you should realize that a military pension may not be enough for your retirement on its own. Therefore, planning and saving for retirement as early as possible is important. If you work with a financial advisor, they can help you answer questions such a: 

            • How much do I need to save to meet my preferred retirement lifestyle?
            • What options should I consider to supplement my military pension?
            • Where should I keep my retirement savings?
            • What is my long-term investment strategy?

            Expenses and Deductions: Keep More of Your Income

            As a member of the U.S. Armed Forces, you’re eligible for special tax breaks. For example, the IRS will exclude your income from taxation during months when you’re serving in a designated combat zone or if you’re hospitalized as a result of wounds, disease, or injury while serving in a combat zone. If you serve in a combat zone, you’ll also have more time to file your tax return and pay your taxes. 

            You can use IRS Form 3903 to deduct some of your reimbursed moving costs if you’re moving because of a permanent station change. If you’re a reservist with duties that take you more than 100 miles away from home, you can deduct your unreimbursed travel expenses on IRS Form 2106.

            In addition, you may deduct the costs of certain uniforms you’re unable to wear while off duty and choose to include your nontaxable combat pay in your income so you can owe less tax and receive a larger refund. 

            If you work with a financial advisor, they can help you address questions such as: 

            • Which tax benefits apply to me?
            • Is some of my income exempt from taxes?
            • How do I make the most of my deductions?

            Your Insurance Needs as a Military Officer or Enlisted Member

            You likely receive free medical and dental care through TRICARE as an active-duty service member. If you have a spouse and dependent children, they may enroll in your plan as well for a small enrollment fee and potential deductible. 

            Also, you may choose to enroll in Service Group Life Insurance (SGLI) and automatically deduct a small premium from your paycheck. If you need other insurance products like car insurance, you may qualify for special rates and discounts from organizations like USAA. 

            🙋‍♀️ Have Questions About Financial Planning for Military Officers & Enlisted Personnel?

            Financial Planning is a Necessity

            You work hard to serve our country day in and day out. Therefore, you deserve a solid financial plan that sets you and your family up for success. Financial planning may help you overcome the financial challenges that many military personnel face, keep you out of debt, and ensure you’re rewarded financially for your relentless commitment to serving our country.

            An experienced financial planner can guide you through this process so you can make smart financial decisions for years to come. 

            Enjoy a Secure Financial Future 

            A financial plan is sure to give you the confidence you need to live life on your own terms. Whether you’d like to stay in the military indefinitely or transition to life as a civilian, it can offer much-needed peace of mind to you and your loved ones. By working with a financial planner to help you make sense of your current finances, you can strategically plan for the future. 

            How To Find The Best Financial Advisors for Military Officers and Enlisted Personnel

            While you may find a great financial advisor to work with through the referral of an acquaintance, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

            You may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common among military officers and enlisted members. These specialist financial advisors often have a military background along with considerable experience working with military personnel that could benefit your own financial planning needs.

            Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

            And, of course, if you don’t know where you’ll be stationed next, it’s even more important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

            You’ll find a growing number of financial advisors on Wealthtender who serve members of the military, including advisors specializing in working primarily with military officers and enlisted members featured on this page.

            FAQs

            Are there financial coaches who specialize in working with military officers and enlisted members?

            Yes. While financial advisors are generally best suited to help military personnel who need investment advice and guidance, many financial coaches and counselors have considerable experience working with military officers and enlisted members whose uncertain schedules have meant day to day budgeting and financial habits could use improvement.

            Use the Wealthtender Financial Coach Directory to find the best financial coach or counselor for your individual needs.

            You may also want to consider hiring an Accredited Financial Counselor, many of whom have a military background or even work on base exclusively with military personnel.

            The Best Finance Blogs and Podcasts for Military Personnel

            With over 250 personal finance blogs and financial podcasts featured on Wealthtender, you’ll find several that regularly publish articles and episodes with financial planning insights useful to military officers and enlisted members.

            Military Finance Blogs and Podcasts Featured on Wealthtender
            Maximize your savings - increase your wealth.
            Stack Your Dollars Hello! As a certified cheapskate and military spouse, I love helping others learn how to…
             
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            Average Joe Finances Budgeting and Money Management
             
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            Average Joe Finances Podcast Beat Debt, Build Your Wealth and Control Your Future.
             
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            You’ll also find a list of popular blogs and podcasts for military personnel offering articles and interviews on a range of topics including financial and career advice on The Military Leader and Military websites.

            Do you have a favorite blog or podcast for military personnel not featured above? Let us know in the comments section below or by email at yourfriends@wealthtender.com.

            About the Author
            A headshot of Brian Thorp, the founder and CEO of Wealthtender

            About the Author

            Brian Thorp

            Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

            Federal employees have unique financial planning needs, from navigating FERS pensions and TSP investments to optimizing benefits and planning for retirement. Working with a financial advisor who understands the federal system can help you make more confident decisions. Below, you can find trusted financial advisors who specialize in serving federal employees, read real client reviews, and learn how to choose the right advisor for your needs.

            There are a variety of federal government jobs that come with many perks. Whether you’re a postal mail carrier, program manager, mathematician, administrative judge, securities compliance officer, or any other type of government employee, there’s a good chance you love what you do.

            Not only does your work enhance the lives of people in the U.S. and other countries, but you’re also likely eligible for professional development and advancement opportunities as well as stellar benefits that are unheard of in the private sector. 

            As a federal government employee, it’s important that you prioritize financial planning. By doing so, you can meet your short and long-term goals while leading a comfortable lifestyle you’re proud to call your own. Hiring a financial advisor who specializes in working with federal employees can be a smart move to help you enjoy life more with less money stress.

            How To Find The Best Financial Advisors for Federal Employees

            While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by on your daily commute, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

            As a federal government employee, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common in the public sector. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with federal government employees that could benefit your own financial planning needs.

            Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

            In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

            You’ll find a growing number of financial advisors on Wealthtender who serve public sector professionals, including advisors specializing in working primarily with federal government employees.

            Get to Know Financial Advisors for Federal Employees

            📍 Click on a pin in the map view below for a preview of financial advisors who specialize in serving federal employees and can help you reach your money goals with a personalized plan. Or choose the grid view to search our directory of financial advisors with additional filtering options.

            📍Double-click or pinch pins to view more.

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            How Much Does a Financial Advisor Cost?

            ➡️ How Much Does a Financial Advisor Cost? Read the Article

            Challenges of Financial Planning for Federal Employees

            While you’re a pro at your job in the public sector, you may be unsure of how to plan for your financial future. You might not have time to gain the knowledge or training required to learn the best ways to put your money to work for you. In addition, your career in government has its own set of unique opportunities and challenges to consider when you design a financial plan.

            Fortunately, we’ve created this guide to put you on the right path to planning your financial future. And with an increasing number of financial advisors who specialize in working with government employees, you’ll be in good hands to tackle the unique financial planning challenges that come with a government career.  

            Our guide will open your eyes to important financial topics and steer you toward the right plan for your particular situation. If you pair it with the professional advice of a financial advisor, you’re sure to thrive with your finances. 

            Financial Planning for Federal Government Employees

            There are a number of topics to consider and questions you’ll have when you’re planning your finances as a federal government employee. Here’s a brief overview:

            Living Well on a Federal Government Employee Salary

            Many government salaries are comparable to those in the private sector. The caveat, however, is that there is a pay ceiling for federal positions. This means you may end up with a lower salary than you’d earn in the private sector. The top government jobs come with annual salaries that cap out between $117,000 to $177,000.

            To live a good life on a federal government salary, you’ll need to think about what matters most to you. Do you value travel? Early retirement? Paying for college? Once you establish your needs and wants, you’ll want to design an appropriate budget. You won’t be able to spend frivolously if you want to meet your financial goals as a government employee. 

            Here are a few questions a financial advisor can help you answer to make the most of your salary as a government professional. 

            • How much should I have saved today in order to retire comfortably at my desired retirement age?
            • If I don’t have enough saved today, what steps can I take to get back on track?
            • What financial planning insights have you gained working with other federal government professionals like me?
            Jump to Financial Advisors for Federal Employees

            Repaying Your Student Loans

            While not all federal government jobs require education beyond a high school diploma, many employees have taken higher education coursework and graduated from college or hold an advanced degree. If you’ve earned a college or graduate degree and work for the federal government, rest assured you may be eligible for student loan forgiveness. 

            The Department of Education’s Public Service Loan Forgiveness of PSLF program allows public service employees, including military personnel and federal employees like you, to qualify for federal student loan payment reduction. In addition, your debt may be forgiven after you make 120 payments. 

            Unfortunately, private student loans do not apply to this program, so if you have them, you’re responsible for repaying them in full. A financial advisor can help you determine if you may benefit from the PSLF program. You can also work with your financial advisor to establish a student loan repayment plan for your debt that isn’t forgiven.

            Making the Most out of Your Federal Government Employee Benefits

            While you may not get rich as a federal government employee, the benefits you’ll earn are sure to make your life easier. Your benefits package may include health insurance, a flexible spending account, basic benefit plan, thrift savings plan, and/or life insurance. You may also have access to an employee assistance program as well as child and dependent care. 

            You’ll find that many of these benefits make up for a salary lower than what you might earn in a similar private sector position. That’s why it’s important to make yourself familiar with your benefits and figure out how you can use them wisely.  Examples of questions a financial advisor will help you answer about your benefits include:

            • How much of my income should I invest in each of the retirement and savings plans available to me to maximize my benefits?
            • How should I allocate the investments in my federal retirement and savings plans?
            • Which federal government benefits could save me money on my monthly expenses? 

            Buying a House as a Federal Government Professional

            Buying a house as a federal government professional is usually a seamless process since you have a steady paycheck with W2 forms and pay stubs to prove it. However, you may still want to work with a financial advisor to determine the answers to questions like:

            • What type of mortgage should I take out?
            • How much house can I afford?
            • Where can I land the best interest rates?
            • Am I eligible for any home buying programs?

            If you work for the government, you may be eligible for the FHA Good Neighbor Next Door Loan. This program comes with perks like lenient credit requirements, down payment assistance, and reduced closing costs. 

            There are other similar programs for government employees that are certainly worth considering. In addition to answering the questions above, a financial advisor can help you discover if you qualify for a special home loan program. 

            Saving for Retirement as a Federal Government Professional

            As a federal government professional, you likely have access to several unique investment and retirement plans as part of the Federal Employees Retirement System (FERS). The Thrift Savings Plan or TSP, for example, offers very low fees and allows you to diversify with five index funds and a target date fund. It comes with a Roth option as well. 

            Regardless of whether or not you contribute to a TSP, the government will automatically match one percent of your salary. If you do contribute, they may match up to five percent of your salary each pay period. This can do wonders for your retirement savings. 

            When you partner with a  financial advisor, you’ll work together to design a strategy to help you retire when and how you’d like. You’ll discuss questions such as: 

            • How much do I need to save to meet my preferred retirement lifestyle?
            • Should I contribute to a TSP or another retirement plan?
            • What is the best long-term investment strategy for me?
            Jump to Financial Advisors for Federal Employees
            Sam Gov Worker FI

            Are You Making the Most of your FERS Benefits?

            “Unfortunately, many federal employees do not fully understand all of the benefits they receive as federal employees. Most employees make the mistake of thinking that FERS (Federal Employee Retirement System) is just a pension. However, FERS includes many more benefits.Federal employees can keep their health insurance in retirement and continue paying only the employee portion of the premium. This benefit alone can be worth $500,000.Beyond health insurance, FERS includes death and disability benefits as well as a supplemental pension for employees until they reach social security age.It is important that federal employees understand these benefits thoroughly so that they can make smart decisions about their finances and retirement.”– Sam at GovWorker
            (As a federal employee since 18, I blog about my experiences navigating the federal system and my personal finance journey.)

              Expenses and Deductions: Keep More of Your Income

              Even if you work for the government, you’re responsible for taxes. Just like private sector employees, you must withhold and pay federal income tax, Social Security, and Medicare taxes. Therefore, you’ll need to be aware of any deductions that apply to you as well as whether you should take the standard deduction or itemize. Unless you keep up with the ever-evolving tax law, you’ll benefit from the help of a financial advisor to help you answer questions like: 

              • Does it make sense to take the standard deduction or itemize?
              • Which deductions am I eligible for as a federal government employee?
              • How can I save as much money as possible on taxes?

              Your Insurance Needs as a Federal Government Professional

              When it comes to insurance, you’ll have access to a wide selection of health insurance plans. Hundreds of plans will be available to you, so you’re sure to find one that is ideal for your unique budget and healthcare needs. 

              Although each plan has its own set of benefits, no plan requires a medical exam or waiting period to enroll. Also, there are no age or condition-related restrictions. In addition to excellent health insurance, you may enjoy the Federal Employees’ Group Life Insurance or FEGLI program.

              The FEGLI program is known as the largest group life insurance program that covers millions of active and retired federal employees. Through this program, you’ll be enrolled in a life insurance plan automatically unless you opt-out. A financial advisor can help you determine if there are any other insurance products you’ll want to invest in. 

              🙋‍♀️ Have Questions About Financial Planning for Federal Government Employees?

              Financial Planning is a Necessity

              Even if you take advantage of all the great benefits you’re eligible for as a federal government employee, there’s no guarantee you’ll succeed financially. Therefore, financial planning is essential. It can help you make the most out of your benefits package and monetary compensation so you can lead the life you love. 

              It’s wise to partner with a financial advisor to come up with a solid financial plan that works well for your particular situation. A financial advisor can also help motivate you to stay on course and focus on your financial goals. 

              Enjoy a Secure Financial Future 

              There is a strong correlation between financial planning and financial security. To ensure you have enough money to live your ideal lifestyle and save for the future you desire, a financial plan must be in place. It can change the way you think about and spend your money, leading to a happier, more fulfilling life for you and your family. 

              Jump to Financial Advisors for Federal Employees

              Smart Tips for Finding a Financial Advisor for Federal Employees

              Before hiring a financial advisor, here are a few quick tips to help you find the best advisor for you.

              1. Decide Which Services You Need

              Before hiring an advisor, determine what services you need from them. Whether it’s full-service investment management or a plan focused on a specific area of your finances, put together a list of what you’d like help with before contacting an advisor.

              Though most people use a financial planner simply to invest for retirement, this is only a small part of what many advisors offer. Here’s a quick rundown of potential services a financial advisor may offer you:

              • Budgeting and money management
              • Debt management
              • Insurance planning
              • Retirement planning
              • Other investment planning
              • Inheritance planning
              • Estate planning
              • Tax planning

              As you can see, financial advisors can help you with your entire financial picture, not just investing. As you start to plan for life’s bigger milestones, you should consider finding a financial advisor that specializes in those areas.

              Finding the right advisor can help you minimize risk, maximize gains and take advantage of tax breaks while investing for your future. They can also help you protect your assets with the right kinds of insurance and help you pass on your financial legacy with a proper estate plan.

              2. Consider Your Budget and Payment Preferences

              Once you have a list of services you would like, review the fee structures financial advisors offer. Finding a balance between the services you need and the cost of those services will help narrow down the field of advisors you may want to work with.

              If you are looking for a full-service advisor to manage all of your investments, consider searching among fee-based financial advisors. If you want to manage your money yourself, consider the flat fee and monthly subscription advisors for ongoing support.

              3. Interview Multiple Financial Advisors

              Once you have chosen the services and fee structure you prefer, it’s time to contact a few advisors and interview them. Here are questions to ask financial advisors:

              • What services do you provide?
              • What are all the ways you get paid? (fee transparency)
              • What is your investment strategy?
              • How do you measure investment performance?
              • How do we communicate about my plan?

              Interview multiple advisors to get a feel for who you want to work with. A combination of fees, services, and customer service will help you determine the best fit for your financial advice.

              4. Review Financial Advisor Credentials

              Once you find an advisor (or two) you feel comfortable with, it’s always a good practice to check their credentials and the firm’s details. You can do this at the Investment Adviser Public Disclosure (IAPD) website. 

              You can check both the individual and the firm to view their background and experience details, as well as any disciplinary action taken against them or their firm.

              As licensed financial professionals, there is oversight into how financial advisors conduct business, so running a quick (free) check on them is recommended.

              For additional information about advisor credentials, read our article to learn the most popular designations held by financial advisors, as well as specialized credentials which may be important to consider if you have unique financial planning needs.

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              Federal Employee Financial Planning FAQs

              What is the Federal Employees Retirement System (FERS)

              Created by Congress in 1986, the Federal Employees Retirement System (FERS) is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.

              The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period, your agency deposits into your account an amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account, and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.

              For more information about TSP, see their website. See the SSA website for more information about the Social Security portion of your retirement benefit. And click here to learn more about the Federal Employees Retirement System from the US Office of Personnel Management. 

              Are there financial coaches who specialize in working with federal government employees?

              Yes. While financial advisors are generally best suited to help federal government employees who need investment advice and guidance, many financial coaches have considerable experience working with public sector employees whose day-to-day budgeting and financial habits could use improvement.

              Use the Wealthtender Financial Coach Directory to find the best financial coach or counselor for your individual needs.

              About the Author
              A headshot of Brian Thorp, the founder and CEO of Wealthtender

              About the Author

              Brian Thorp

              Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

              Frequently Asked Questions About Hiring a Financial Advisor & Additional Resources

              How do I know if I’m ready to hire a financial advisor?

              You should strongly consider hiring a financial advisor if you have a significant amount of money available for saving or investing. This could occur after years of making annual contributions to a retirement plan like a 401(k) through your employer or suddenly if you receive a large inheritance or sell your house for a large profit.

              But even if you don’t have a lot of money saved, many financial advisors and planners provide reasonable pricing options and valuable services you should consider, especially if you’re facing a significant life event. For example, if you’re starting a new job, getting married, starting a family, getting divorced, lost your job, starting or selling a business, or approaching retirement age, working with a trusted financial advisor or planner may prove worthwhile.

              Before I hire a new financial advisor, should I fire my current advisor?

              You don’t need to fire your current advisor before beginning your search for a new financial advisor. In fact, your new advisor can help coordinate the transition of your assets from your previous financial advisor.

              Where can I read reviews about financial advisors written by their clients to help me decide if I should hire them?

              After 60 years of regulatory prohibition of financial advisor reviews in the US, a rule issued by the Securities and Exchange Commission (SEC) became effective on May 4, 2021 that means both financial advisors and directory websites that help consumers search for a financial advisor can collect and display financial advisor reviews, an important factor worth considering when choosing who you’ll hire to manage your investments and life savings. 

              Wealthtender is the first independent advisor review platform designed to be fully compliant with the new SEC rule, and we look forward to helping you evaluate financial advisors based on reviews written by their clients.

              I’m a financial advisor interested in being featured in this guide. How do I get started?

              Thanks for your interest. We look forward to learning more about your practice and helping you attract your ideal clients where you may be a good fit based on their individual needs and circumstances. Please click here to learn how you can join local financial advisors featured on Wealthtender.

              Educators face unique financial considerations, from pension plans and student loan forgiveness to managing a steady income and planning for retirement. Working with a financial advisor who understands the education profession can help you make more confident financial decisions. Below, you can find trusted financial advisors who specialize in serving educators, read real client reviews, and learn how to choose the right advisor for your needs.

              As an educator, your students are your priority. Every day, you work hard to provide them with the knowledge and skills they need to succeed in life. Whether you work in a local school, regional college, university, or an online education platform, you have the opportunity to make a positive and enduring impact on the lives of others. 

              But even though you may have holidays and breaks to tend to your personal matters, it’s all too easy to place financial planning at the bottom of your to-do list. After all, you want to use your time off to relax and participate in hobbies you may forgo when school is in session.

              If you’d like to live a fulfilling life free of financial stress, financial planning is crucial. In between teaching, grading papers, supporting extracurricular activities, and relaxing on your days off, it’s important to make time for your personal finances. 

              Challenges of Financial Planning for Educators

              Unless you teach personal finance, there’s a good chance you’re new to or unfamiliar with financial planning. After all, you specialize in other subjects, and it’s impossible to be an expert at everything.

              That’s where this informative guide comes in. We designed it to help you jumpstart your journey to financial security. You’ll find it addresses the unique money-related opportunities and challenges you face as an educator. 

              In addition to this guide, it’s in your best interest to seek the guidance of a financial advisor. Fortunately, there are a growing number of financial advisors who specialize in helping educators take on the special financial planning challenges of your profession.  

              How To Find The Best Financial Advisors for Educators

              While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by near your neighborhood, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

              As an educator, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common among teachers and education professionals. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with educators that could benefit your own financial planning needs.

              Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

              In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

              Today, you’ll find a growing number of financial advisors on Wealthtender who serve teachers, including advisors specializing in working primarily with educators.

              Find Financial Advisors for Teachers on Wealthtender

              📍 Click on a pin in the map view below for a preview of financial advisors who specialize in serving educators. Or choose the grid view to search our directory of financial advisors with additional filtering options.

              📍Double-click or pinch pins to view more.

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              Financial Planning for Educators

              There are a number of topics to consider and questions you’ll have when you’re planning your finances as an educator. Here’s a brief overview:

              Living Well on an Educator Salary

              Your education level and years of experience, as well as the location of your school and whether it’s public or private, will determine your monetary earnings. According to the U.S. Bureau of Labor Statistics, here are the average salaries for several of the most common types of educators:

              Of course, there are opportunities for you to earn extra income by managing extracurricular activities or picking up other employment like tutoring or working at a summer camp during the holiday breaks and summers.

              While you may not get rich on an educator’s salary, you can lead a comfortable lifestyle. To do so, however, you must figure out your financial priorities and budget accordingly. If you’d like to travel as much as possible, for example, you may need to settle for a smaller home and a less expensive car. 

              Here are a few questions a financial advisor can help you answer to make the most of your educator income: 

              • How much should I have saved today in order to retire comfortably at my desired retirement age?
              • If I don’t have enough saved today, what steps can I take to get back on track?
              • What financial planning insights have you gained working with other educators like me?
              Jump to Financial Advisor Directory

              Repaying Educator Student Loans

              A college degree is frequently a requirement if you’d like to work as an educator. In fact, many teaching jobs require more than a bachelor’s degree. If you’d like to advance in education, a graduate degree or even a doctorate may be necessary. 

              To meet these educational requirements, you may find yourself with student loans. It’s no surprise that teachers with graduate degrees hold an average of $50,000 in student loan debt. If you’re facing student loan debt, no matter how large or small it may be, there are loan forgiveness programs at your disposal. 

              The Teacher Loan Forgiveness Program states that if you teach full-time for five years at a low-income school or educational service agency, you may qualify for up to $17,500 of forgiveness on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans.

              Other loan forgiveness programs you may want to consider include Public Service Loan Forgiveness (PSLF) Program, Perkins Loan Cancellation for Teachers, and State-Sponsored Student Loan Forgiveness. A financial advisor experienced working with educators can help you determine which programs you’re eligible for and advise you on an appropriate student loan payoff strategy for your situation. 

              Making the Most out of Your Educator Employee Benefits

              Most educators receive certain benefits unavailable to professionals in other fields. As a teacher, you’re likely entitled to medical, dental, and vision insurance for yourself and your family. You may also receive sick days and paid leave, as well as opportunities to cash in on a number of teaching grants. And defined-benefit pension plans can be a valuable tool to help you reach your retirement planning goals.

              If you’re a public school teacher, there’s a good chance you’re a member of a teacher union like the National Education Association or the American Federation of Teachers. Your union works with your school district to negotiate your salary and benefits. Your teaching career may also open the doors to summer vacation and holiday breaks. 

              A financial advisor can help you ensure you take full advantage of your benefits. Here are a few questions they may help you answer. 

              • How can I ensure my finances are in good shape in the summer and other times when I’m off?
              • How much of my income should I invest in each of the retirement and savings plans available through my school district, university, or state to maximize my benefits?
              • How should I allocate the investments in my retirement and savings plans?

              Buying a House as an Educator

              The home-buying process is usually straightforward for educators. As long as you have a steady job at a school, university, or related facility, you shouldn’t have a problem getting approved for a loan. The question will come down to how much house you can and want to afford. 

              It’s important to consider your current salary and situation rather than anticipate raises in the future. You should also figure out other financial priorities you have and ensure your housing choice doesn’t get in their way. Unfortunately, many educators buy too much house and find they have to pick up extra work in the summers and other vacation periods to cover their mortgage. 

              A financial advisor can help you come up with a budget for your house and recommend the right mortgage type for your situation. With their support, you can turn your dream of home ownership into a reality without taking a toll on your finances. 

              Saving for Retirement as an Educator

              If you work in a public school, you may be able to take advantage of a defined benefit pension plan, which promises a specific payout when you retire. Rather than investment returns, this type of plan uses a formula to figure out how much you’ll receive. 

              The plan usually requires you to teach a minimum number of years and pay a portion of your salary into the pension. It takes your final average salary and multiplies it by the number of years you’ve worked. Therefore, the amount you collect will depend on when you decide to retire. 

              In the event you work in the private sector and a pension is unavailable, you may be eligible for a 401k or 403b plan, which is investment based. You’ll need to deduct money from every paycheck so that you can invest in your account. 

              When you partner with a financial advisor, you’ll work together to design a strategy to help you retire when and how you’d like to. You’ll discuss questions such as: 

              • How much do I need to save to meet my preferred retirement lifestyle?
              • How can I make the most of a defined benefit pension plan?
              • How should I save for retirement if I’m not eligible for a pension (or to supplement my pension)?

              Expenses and Deductions: Keep More of Your Educator Income

              Just like other professions, you’ll be required to pay taxes as an educator. Fortunately, you may be able to deduct unreimbursed school, trade, or business expenses of up to $250 on your federal tax returns. This number will increase to $500 if you and your spouse are both educators and married, filing jointly.

              If you choose to take this deduction, it’ll be your responsibility to keep all your purchase receipts. Some of the most common examples of deductible educator expenses include fees for books, computer equipment, and other teaching supplies, expenses for professional development courses, and the costs for special equipment and supplementary materials used in the classroom. 

              In addition, you may save up to $2,000 yearly on taxes via the Lifetime Learning Credit as long as you’re pursuing a master’s degree or enrolled in courses to improve your skills. Lastly, if you live in a state like Ohio or Iowa, you may qualify for a tax credit or deduction if you use your own money on school supplies. 

              If you work with a financial advisor, they can help you address questions such as: 

              • How can I reduce my tax liability as an educator?
              • Which federal and state deductions am I eligible for as an educator?
              • Should I take the standard deduction or itemize?

              Your Insurance Needs as an Educator

              It’s highly likely that your state or school district offers several health insurance options. In most cases, you’ll be able to choose from an HMO, PPO, EPO, or HDHP. The plan that works for your co-worker isn’t necessarily right for you, so it’s wise to ask a financial advisor for their assistance. 

              They can help you evaluate your current health situation, needs, and budget so you can make the best decision. An advisor may also assist you with other types of insurance like life insurance and professional liability insurance. 

              Financial Planning is a Necessity

              Although you lead a busy and fulfilling life as an educator, financial planning should be top of mind. If you let it fall by the wayside and fail to take full advantage of all the benefits you’re entitled to, you may steer yourself into debt and financial stress. A solid financial plan can ensure your earnings as a teacher works for you and your family for years to come. A financial advisor can help you create a personalized plan so you can meet your unique goals. 

              Jump to Financial Advisor Directory

              Enjoy a Secure Financial Future 

              Even if you qualify for a pension, you’re not guaranteed financial security. There are many steps you need to take to achieve your goals and live a life of happiness that’s free of financial worry and uncertainty. Financial planning is essential for leading the life of your dreams today, tomorrow, and years down the road. 

              🙋‍♀️ Have Questions About Financial Planning for Educators?

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              FAQs for Teachers

              Are there financial coaches who specialize in working with educators?

              Yes. While financial advisors are generally best suited to help educators who need investment advice and guidance, many financial coaches have considerable experience working with educators whose busy schedules have meant day-to-day budgeting and financial habits could use improvement.

              Use the Wealthtender Financial Coach Directory to find the best financial coach or counselor for your individual needs.

              The Best Finance Blogs and Podcasts for Educators

              With over 250 personal finance blogs and financial podcasts featured on Wealthtender, you’ll find several that regularly publish articles and episodes with financial planning insights useful to educators.

              Finance Blogs and Podcasts for Educators Featured on Wealthtender
              Expansive blue ocean under a wide sky with scattered clouds, waves rolling towards the shore in a serene rhythm.
              Educator FI Career educator focused on financial independence.
               
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              Mr. Jamie Griffin Helping Families Learn to Budget, Save Money, and Get Debt Free.
               
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              You’ll also find a list of popular blogs and podcasts for educators at the links below, offering articles and interviews on a range of topics including financial and career advice:

              Do you have a favorite blog or podcast for educators not featured above? Let us know in the comments section below or by email at yourfriends@wealthtender.com.

              About the Author
              A headshot of Brian Thorp, the founder and CEO of Wealthtender

              About the Author

              Brian Thorp

              Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

              Business executives often face complex financial decisions, from equity compensation and tax strategy to long-term wealth planning. Working with a financial advisor who understands executive compensation and high-income planning can make a meaningful difference. Below, you can find trusted financial advisors who specialize in serving business executives, read real client reviews, and learn how to choose the right advisor for your needs.

              As a business executive, you have a lot on your plate. You likely juggle multiple responsibilities at once and work long hours, day in and day out. While your career is demanding, it’s also very fulfilling. Without your leadership, a company’s growth and success wouldn’t be possible.

              Even though it’s easier said than done, it’s essential you don’t forget about personal matters like financial planning. By keeping your finances top of mind, you can ensure that you and your family reap the rewards of your hard work for years to come. 

              Challenges of Financial Planning for Business Executives

              You know the ins and outs of your company. After all, you are recognized as a leader within your organization. However, that doesn’t mean you have extensive experience with financial planning, especially on a personal level. If you’re new to it, you may be unsure where to start and longing for guidance.

              That’s where financial advisors come in. There are an increasing number of financial advisors who specialize in helping business executives with the particular financial planning challenges you may come across as a leader at a mid to large-sized firm. 

              If you read this guide and decide to hire a financial advisor with experience helping business executives like you, you can put yourself and your family on the path toward financial security. You may also avoid the common money mistakes that many people in leadership positions at large organizations have a tendency to make.

              Find Financial Advisors for Corporate Executives on Wealthtender

              📍 Click on a pin in the map view below for a preview of financial advisors who specialize in executive financial planning. Or choose the grid view to search our directory of financial advisors with additional filtering options.

              📍Double-click or pinch pins to view more.

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              Executive Financial Planning

              There are a number of topics to consider as well as questions you’ll have when you’re planning your finances as a business executive. Here’s a brief overview of several of them.

              Living Well on a Business Executive Income 

              Your experience level, the company you work for, and the industry you’re in all play a role in how much you earn. Chances are, however, you’re rewarded with a high salary that continues to go up every year. According to the Bureau of Labor Statistics, top executives in 2021 earned an average of $98,980.

              While your income as a business executive may make it possible for you and your family to live a very comfortable lifestyle, you still need to pay attention to how you spend and save your money. After all, a high income doesn’t guarantee financial success and stability. 

              Here are a few questions a financial advisor can help you answer so you can make the most of your income as a corporate leader. 

              • How much can I afford to spend on my everyday expenses and luxuries each month?
              • Can I afford to maintain my current lifestyle and still meet my financial goals?
              • What financial planning insights have you gained working with other business executives like me?

              Advisors in the Spotlight This Month (Randomly Selected):
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              Repaying Your Student Loans

              Not all business executives have a college degree, as some use their experience and years of promotions to climb the corporate ladder. But many executives have attended college and may have earned a graduate degree like an MBA. If this sounds like you, you may have student loans to repay. 

              No matter how large or small your student loan debt burden is, it’s smart to come up with a realistic repayment plan. With a financial advisor’s help, you can figure out whether you should repay your student loans quickly or focus on paying down other debts you may owe.

              Making the Most of Your Business Executive Benefits

              As a business executive, you’re likely a candidate for a number of benefits in addition to a sizable salary. You may be eligible for a company-sponsored retirement plan with a matching contribution from your employer, a supplemental retirement plan exclusively for executives, paid time off, insurance, and even stock options. 

              Your company may also take care of you through other valuable perks like a company vehicle and cell phone plan, an expense account, tuition reimbursement, and training opportunities. With so many benefits at your disposal, you may struggle to take full advantage of them. A financial advisor can help you navigate your benefits plan and answer questions like:

              • When and how should I exercise my stock options?
              • How much of my income should I invest in each of the retirement and savings plans available through my employer to maximize my benefits?
              • Are there special tax considerations I should know about if I buy or sell shares of my company stock?

              Buying a House as a Business Executive

              If you’d like to buy a house, you’re in luck. Since you probably have a history of W2s or pay stubs to prove your ability to repay a home loan, getting approved for a mortgage shouldn’t be an issue. While you may opt for a government-backed mortgage with a low down payment requirement, you’re likely better off with a conventional loan and 20% down payment so you can avoid private mortgage insurance (PMI). 

              A financial advisor can help you decide on the ideal mortgage situation and determine a budget for your new home. They may save you from overspending and becoming “house poor” as this is widely seen with many business executives. Just because you get approved for a sizable home loan amount doesn’t mean you can comfortably afford it and meet your other financial goals. 

              Saving for Retirement as a Business Executive

              The more you earn as a corporate executive, the more you’ll need to save to be able to maintain your lifestyle throughout your retirement years. While you’re in your peak earning years, you’ll want to build up a substantial nest egg for your future. 

              In addition to funding your 401(k) or another employer-sponsored retirement plan, you need to figure out how to make the most of your stock options. You generally don’t want to end up in a situation where you have a disproportionate amount of your net worth tied to the stock of the company you work for. Diversification is essential, and a financial advisor can help. 

              With a financial advisor’s insights, you can receive answers to important retirement questions such as:

              • How much do I need to save to meet my preferred retirement lifestyle?
              • Where should I keep my retirement savings?
              • What is my long-term investment strategy?
              • How do I reduce exposure to company stock?

              Expenses and Deductions: Keep More of Your Income

              You’ll be able to take the standard deduction or itemize your expenses when you file your taxes. If the itemizing route is the best option, you may be able to write off some of your fringe benefits or other forms of compensation besides your salary. 

              Unfortunately, not all fringe benefits are deductible. To deduct a fringe benefit, you must show the IRS that the benefit was “ordinary and necessary” to the business. If you work with a financial advisor, they can help you address questions such as:

              • Does it make sense to take the standard deduction or itemize?
              • Which deductions am I eligible for?
              • Can I deduct any fringe benefits?

              Your Insurance Needs as a Business Executive

              In addition to health insurance that your company will likely provide to you and your family, you may need life insurance. Since you likely earn a high income, you’ll probably require a larger death benefit than what your employer-sponsored life insurance policy offers. 

              With the right life insurance policy, you can protect your loved ones and allow them to maintain the same lifestyle in the event you pass away. A financial advisor can help you weigh the pros and cons of the various life insurance options available to you. 

              Financial Planning is a Necessity for Corporate Executives

              Not everyone has what it takes to succeed as a business executive. In fact, many people lack the work ethic, ambition, and drive required to land and keep a high-level position.

              To make the most of all you’ve accomplished in your career, a financial plan is a necessity rather than simply an option. A financial planner can guide you through the financial planning process so you can lead a fulfilling life and future. 

              Enjoy a Secure Financial Future 

              With a solid financial plan in place, you can ensure your money works for you and your family. You’ll be able to live the life of your dreams outside of the workplace and avoid many of the financial obstacles that business executives are known to experience. 

              How To Find The Best Financial Advisors for Business Executives

              While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by on your daily commute, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

              As a business executive, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common among business leaders. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with other business executive clients that could benefit your own financial planning needs.

              Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

              In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

              You’ll find a growing number of financial advisors on Wealthtender who serve business executives, including advisors specializing in working primarily with business executives.

              🙋‍♀️ Have Financial Planning Questions as a Business Executive?

              FAQs for Business Executives

              What is a business executive?

              A business executive is an employee and member of the management team at a mid to large-sized firm generally responsible for leadership and oversight of one or more departments. Business executives often have considerable experience working within their industry and are frequently recognized as experts in their field.

              Are there financial coaches who specialize in working with business executives?

              Yes. While financial advisors are generally best suited to help business executives who need investment advice and guidance, many financial coaches have considerable experience working with business leaders whose busy schedules have meant day-to-day budgeting and financial habits need improvement.

              You’ll find several financial coaches featured on Wealthtender who have experience working with business executives.

              Financial Coaches for Business Executives Featured on Wealthtender
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              The Best Finance Blogs And Podcasts For Business Executives

              With over 250 personal finance blogs and financial podcasts featured on Wealthtender, you’ll find several that regularly publish articles and episodes with financial planning insights useful to business executives.

              We’ve also curated a list of popular blogs and podcasts for business executives offering articles and interviews on a range of topics including financial and career advice:

              Do you have a favorite blog or podcast for business executives not featured above? Let us know in the comments section below or by email at yourfriends@wealthtender.com.

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              About the Author
              A headshot of Brian Thorp, the founder and CEO of Wealthtender

              About the Author

              Brian Thorp

              Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

              Attorneys often face complex financial decisions from managing high income and student debt to navigating tax strategies and long-term wealth planning. Working with a financial advisor who understands the legal profession can help you make more confident decisions. Below, you can find trusted financial advisors who specialize in serving attorneys, read real client reviews, and learn how to choose the right advisor for your needs.

              Your path to becoming a successful attorney likely included countless hours in the classroom, more than a few sleepless nights studying for the Bar Exam, and a handful of moments when you questioned your decision to become a lawyer. But with persistence, grit, and potentially several thousand dollars in student loans later, you walked across the stage proudly accepting the law school diploma that launched your career in the legal profession.

              If you’re now working in private practice or at a BigLaw firm, your above-average compensation trajectory may feel like just reward for years of blood, sweat, and tears. But financial planning for attorneys can often be complicated by outsized student loan debt, lofty lifestyle aspirations, and a desire to retire comfortably, perhaps at a younger age, so you can travel the world or make up for lost time devoted earlier in your career to late nights in the library and internships you’d rather forget.

              Fortunately, financial advisors who specialize in working with attorneys understand the unique financial obstacles and opportunities commonly faced by lawyers throughout their careers. These specialist advisors can work with you to develop a personalized plan tailored to your individual circumstances and provide the guidance you need to achieve your financial goals in both the near and long term.

              You’ll likely find dozens of financial advisors in your community well-suited to help you reach your money goals with a general financial plan. But it may be more difficult to find a financial advisor with the experience, credentials, and dedicated focus serving BigLaw and private practice attorneys who truly understands what it took for you to get here, and what it will take for you to enjoy a comfortable lifestyle and retirement.

              Today, many financial advisors offer virtual services so you can meet online no matter where you (or they) live. This means you can choose to hire a financial advisor who lives hundreds of miles away if you decide their specialized knowledge working with BigLaw and private practice attorneys could help you achieve better outcomes.

              Financial Advisors for Attorneys Featured on Wealthtender

              📍 Click on a pin in the map view below for a preview of financial advisors who specialize in working with attorneys. Or scroll down to the grid view to search our directory of financial advisors who work with lawyers with additional filtering options. Click to view advisor profiles to read online reviews written by their clients, learn which credentials they hold, and contact them directly for a preliminary conversation to decide if you may be a good fit to work together.

              📍Double-click or pinch pins to view more.

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              ⚖️ Smart Money Insights for Attorneys

              This page is organized into sections to help you quickly find the information you need and get answers to your questions:

              1. Q&A with Financial Advisors for Attorneys
              2. Get Answers to Your Questions About Financial Planning for Attorneys
              3. Browse Related Articles

              – Financial Advisors for Attorneys –

              Get to Know:
              ✅ Matt Smith | ✅ Eric Scruggs

              Three Questions with Matt Smith

              We asked Houston-based financial advisor Matt Smith to answer three questions based on his work providing financial planning services to attorneys.

              Q: What is a common financial planning challenge unique to attorneys that you frequently encounter when working with your clients? How do you work with them to overcome this challenge?

              Matt: The most common challenge I see with BigLaw attorneys is trying to balance three things: 1) the desire to pay down student loan debt; 2) the desire to save for short-term and long-term goals like buying a house and retirement, respectively; and 3) the need to mitigate the tax burden that comes along with their high incomes.

              I help clients sort all this out by organizing the sometimes-competing goals into a manageable framework that they can view in its entirety so they can weigh the pros and cons of a few different strategies. Unfortunately, there is not a “right” answer in most cases, and instead, each person has to make a decision based on their own preferences, which typically lean toward the cold hard math of things or the more intuitive side of things.

              Examples of the strategies include things like maximizing pre-tax benefits to lower the tax bill while treating high-interest rate debt like the bond allocation of their investment portfolio to pay the debt down faster and still save aggressively via their investment accounts. Others may prefer to refinance high-interest-rate federal loans into relatively low-rate private loans, pay the minimums, and leave more free cash flow to save for near-term goals.

              Get to Know Matt:

              Headshot of Matt Smith, CFA®, CFP®
              Concert Financial Planning Matt Smith, CFA®, CFP®
              Houston, Texas
              Serving Clients Nationwide
              Financial Advice for BigLaw Attorneys
              8 Certified Advisor Reviews™
              Areas of Focus
              Financial Planning Investment Management Student Loan Advising Student Loan Repayment Plan Advising Taxes

              Book Intro Call with Matt

              View Matt’s profile page on Wealthtender or visit his website to learn more.

              Q: How do the services you offer distinguish Concert Financial Planning from other advisory firms an attorney may have been referred to by a colleague?

              Matt: The difference is both personal and professional. From a personal standpoint, I’m married to an attorney who is a Partner at her firm but was a 2nd Year Associate when I met her. I have firsthand knowledge of the sacrifices and work required to hit the hours, earn the paychecks, and make it to Partner. I also have firsthand knowledge of what that Associate to Partner transition looks like and how to plan for it.

              From a professional standpoint, I market my firm to BigLaw and Private Practice Attorneys and therefore have developed deeper experience with these types of clients as compared to a firm that may be more generalist in nature. I have also developed my own financial planning tools that cater to younger clients (non-retirees) in this profession because the traditional “financial planning” software is mostly geared to answering questions for wealthy retirees.

              Finally, I think the attorney clients I work with appreciate the degree to which I’ve focused on building my knowledge via high-caliber accreditations like the CFP® and CFA®, which are fairly rare for one individual to hold. Attorneys know what it means to study hard and appreciate when their advisor has done significantly more than the bare minimum to advance their knowledge.

              Q: For attorneys who are unsure whether or not they should hire a financial advisor at the current point in their career, what guidance can you provide to help them make a more informed and educated decision?

              Matt: Most of the attorneys I speak with are aware that the financial advisory industry is opaque and riddled with conflicts of interest between the advisor and the client. They’ve read enough to know that the average person will probably do just fine with some basic financial knowledge, disciplined saving, and avoiding people that want to “sell you how to make it rich”.

              However, BigLaw attorneys are not the average person. The higher income, taxes, debt load, and work/life balance that comes with the profession are among the highest and most demanding out there. It means that there are significant opportunities for proper planning that can make a real difference in the financial outcome of their life. I try to remind people that they’ve worked so hard to get where they are and they should not jeopardize their financial future by making serious financial mistakes, particularly if they can get on the right track early on in their careers.

              In my opinion, the best way to start is to look for a financial planner (somebody that does more than just investment management) that is held to the fiduciary standard, by law, via online resources like Wealthtender, XY Planning Network, NAPFA, Fee-Only Network, and/or BigLawInvestor.com. 

              Four Questions with Eric Scruggs

              We asked Boston-area financial advisor Eric Scruggs to answer four questions related to his experience guiding lawyers on their path to financial independence.

              Q: When you first speak with an attorney, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals? 

              Eric: In initial meetings, I like to focus my questions on three primary topics.

              First, I aim to get a clear understanding of what motivated the potential client to set up the meeting. Since most people don’t randomly decide to look for a financial planner, it is important to understand the pressing concerns that made them reach out. Knowing this will inform whether I can help and what should be prioritized in the planning process.

              Second, I try to learn more about the potential client’s financial purpose or why money matters to them. Getting some insight into this allows the potential client to explain what their high-level financial values are and will set the overarching mission that we use to ensure we are setting the right financial goals at the outset.

              Lastly, I want to learn about the expectations the potential client has when working with a financial advisor. With a clear understanding of expectations for the relationship, we can quickly see whether there is alignment between what the potential client wants to achieve and my service model.

              Tackling these three questions allows for a quick assessment to determine whether we are a fit to work together, sets clear priorities, and provides a high-level vision to set up the framework for determining goals and next steps.

              Q: For attorneys thinking about leaving their current employer to accept a job elsewhere or launch their own practice, what actions do you recommend they take before resigning and shortly thereafter? 

              Eric: When planning to leave your current employer, it is important to plan for the financial changes that come with the move.

              If you are leaving big law to go in-house, for example, you should start living on a lower income as soon as possible to give time to adjust your lifestyle to the reduced income level. Additionally, as you are leaving, keep in mind that the legal community can be fairly small, and you never know when you will interact with your former coworkers again, so try as best you can to leave on good terms. Those former coworkers could be future clients, referral sources, or outside counsel for you. 

              Get to Know Eric:

              Headshot of Eric Scruggs, CFP®, EA
              Covenant Wealth Advisors Eric Scruggs, CFP®, EA
              Richmond, Virginia
              Serving Clients Nationwide
              Financial Planning for Attorneys
              Areas of Focus
              Education Funding Financial Life Planning Investment Management Retirement Planning Taxes

              Book Intro Call with Eric

              View Eric’s profile page on Wealthtender or visit his website to learn more.

              Q: For attorneys approaching retirement age, how do you recommend they prepare to make the transition from living off employment income to relying upon other sources of income? 

              Eric: Transitioning from saving to spending your investment accounts can be a hard mental shift for many people to make.

              A few strategies to consider include slowing down your work before fully stopping so that you phase down your earned income and slowly start tapping into your income from other sources. Additionally, start taking funds a month or so before you need them so that you can get comfortable that the funds will show up in your accounts when you expect them.

              This transition is a bad time for surprises, so testing before you really need the money can substantially reduce the stress that comes in those first few months.

              Lastly, realize that this transition is more than about where you get money from. In addition to financial changes, there are psychological and emotional changes you want to prepare for.

              Think about how you will spend your time each day – even those who love to golf or fish, for example, are unlikely to want to do those activities all the hours they were working each week. How will you find connection to others now that you are not connecting with colleagues each day?

              Before finally starting to retire, perhaps consider taking a few months off to try out retirement life, see what activities you enjoy doing (like volunteering, serving on a board, or pursuing a hobby), and determine how you will make connections and stay in touch with others in a meaningful way. 

              Q: What questions do you recommend attorneys ask financial advisors they’re considering hiring to help them decide if they’re a good fit? 

              Eric: When looking for an advisor, I think there are a few key factors to consider.

              First, consider whether they have the right qualifications for the level of complexity your plan needs.  Unlike attorneys who typically have 3 years of specialized education and need to pass a bar exam to be an “advisor,” all one has to do is pass a relatively easy exam, the Series 65. But what else has the advisor done to build and demonstrate his/her expertise? Is the advisor a CERTIFIED FINANCIAL PLANNER™ practitioner, or does he/she have some other advanced training in financial planning?

              Second, ask about what experience the advisor has working with people like you and in similar life circumstances.

              Third, you should determine whether the advisor is a fiduciary like you are to your clients.

              Lastly, consider how the advisor is compensated. Understanding the way(s) an advisor is compensated can help you understand potential conflicts of interest and talk with the advisor about the ways he/she attempts to mitigate those conflicts. 

              🙋‍♀️ Have Questions About Financial Planning for Attorneys?

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              About the Author
              Brian Thorp, Founder and CEO of Wealthtender profile picture

              Brian Thorp

              Founder and CEO, Wealthtender

              Brian and his wife live in Texas, enjoying the diversity of Houston and the vibrancy of Austin.

              With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress.

              Connect with Brian on LinkedIn

                Registered nurses face unique financial challenges, from managing student loan debt to making the most of employer benefits and planning for retirement. Working with a financial advisor who understands the nursing profession can make a meaningful difference. Below, you can find trusted financial advisors who specialize in serving nurses, read real client reviews, and learn how to choose the right advisor for your needs.

                As a nurse, you’re used to putting other people’s needs in front of your own. Whether you work in a hospital, nursing home, urgent care center, doctor’s office, or another facility, you spend long hours taking care of others. 

                The demands of your job may cause you to put your personal needs, including financial planning, on the back burner. Since your finances can have a significant impact on your current life and future, it’s essential that you prioritize them. By doing so, you can relieve unnecessary stress and lead the happy, fulfilling life you deserve. 

                Challenges of Financial Planning for Nurses 

                While you’re a pro at patient care, you may be unfamiliar with how to plan for your financial future. After all, nursing education does not usually offer financial literacy, requiring you to learn it on your own or hire a professional. Further, a nursing career comes with unique opportunities and challenges important to consider when building a financial plan.

                Fortunately, we’ve prepared this guide to help you get started. We’ll also discuss the growing number of financial advisors who specialize in helping nurses tackle the unique financial planning challenges of your profession.  

                We’ll help you understand the most important topics to consider and questions you’ll want to ask an advisor to create the best financial plan for your individual needs. This guide paired with professional support from a financial advisor, can help you reach your goals so you can enjoy life more with less money stress.

                How To Find The Best Financial Advisors for Nurses

                While you may find a great financial advisor to work with through the referral of an acquaintance or whose office you drive by on your daily commute, it’s important to consider several factors to improve your odds of hiring the best financial advisor for your individual needs.

                As a registered nurse, you may decide the best financial advisor for you is one who specializes in understanding the unique financial planning challenges and opportunities common among nurses and other healthcare professionals. These specialist financial advisors may hold credentials that demonstrate their expertise along with considerable experience working with healthcare workers that could benefit your own financial planning needs.

                Because many financial advisors can work with you online, you’re not limited to hiring a financial advisor in your neighborhood when the best financial advisor for you may live hundreds of miles away.

                In other words, whether you choose to hire a financial advisor who lives near or far, it may be most important to hire a financial advisor who truly understands your individual needs based on their education, experience, and commitment to helping people just like you.

                This year, you’ll find a growing number of financial advisors on Wealthtender who serve healthcare professionals, including advisors specializing in working primarily with nurses.

                Find Financial Advisors for Nurses on Wealthtender

                📍 Click on a pin in the map view below for a preview of financial advisors who specialize in working with nurses. Or choose the grid view to search our directory of financial advisors with additional filtering options.

                📍Double-click or pinch pins to view more.

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                Financial Planning for Nurses

                There are a number of topics to consider and questions you’ll have when you’re planning your finances as a nurse. Here’s a brief overview of several of them.

                Living Well on a Typical Nursing Salary

                According to the Bureau of Labor Statistics, the median annual salary for a registered nurse in 2021 was $77,600. Whether you earn around that figure or more or less, you can lead a comfortable lifestyle. While you may not have the funds to buy a fancy home, drive a luxury car, eat out every night, and travel whenever you feel like it, you’ll be able to allocate your money to the things most important to you. 

                To live well on a nursing salary, you’ll need to prioritize your wants and needs. If driving a nice car matters to you, for example, you may have to save money on other areas of your life such as housing or education. 

                Here are a few questions a financial advisor can help you answer to make the most of your nursing income: 

                • How much should I have saved today in order to retire comfortably at my desired retirement age?
                • If I don’t have enough saved today, what steps can I take to get back on track?
                • What financial planning insights have you gained working with other nursing clients like me?
                Jump to Financial Advisors for Nurses

                Repaying Your Nursing Student Loans

                To become a registered nurse, you earned a nursing diploma or degree at the associate’s or bachelor’s level. Of course, your degree type and where you went to college will dictate how much student loan debt you may have accumulated. On average, nurses graduate with anywhere from $40,000 to $55,000 in student loan debt. 

                No matter how much student loan debt you have, it’s important to develop a repayment plan that’s right for you.  In many instances, it may be preferable to repay the loan as quickly as possible so you can focus on other financial goals like buying a house, saving for college, or paying for retirement. 

                In other instances, a very low-interest rate on your student loans may make it preferable to prioritize the payoff of another debt or savings strategy. A financial advisor can work with you to determine the best payoff strategy for your individual circumstances.

                Additionally, there are a number of loan forgiveness programs available to nurses. If you’re eligible for any of them, it’s very likely worth your time and money to go through the application process. A few of the most popular loan forgiveness programs include the Public Service Loan Forgiveness Program (PSLF) and Nurse Corps Loan Repayment Program (NCLRP).  A financial advisor experienced working with nurses can help you decide which programs to consider and help you navigate the application process. 

                Making the Most out of Your Nursing Employee Benefits

                If you’re a full-time nurse, you likely receive more than just a good salary. Chances are you’re eligible for medical, dental, and vision insurance. Depending on your employer, you may also enjoy long-term care and life insurance. 

                You may also receive sick time and accrue vacation with each hour you work. If you don’t use all of your vacation days, they’ll either expire or be converted to monetary compensation. In addition, you can enjoy a retirement package like a 401k or 403b, with or without an employer contribution. 

                We can’t forget one of the greatest nursing benefits that employees in other fields may not receive: overtime pay for working scheduled holidays. It’s essential to familiarize yourself with all of your benefits so you can come up with a game plan on how to take full advantage of them. 

                When you meet with a financial advisor, you’ll discuss how to make the most of your employee benefits. Examples of questions a financial advisor will help you answer include:

                • How much of my income should I invest in each of the retirement and savings plans available through my employer to maximize my benefits?
                • How should I allocate the investments in my retirement and savings plans?
                • Are there special considerations about my overtime pay when it comes to my benefits?

                Buying a House as a Nurse

                If you’re a staff nurse with a consistent paycheck, qualifying for a mortgage to buy a house shouldn’t be a problem. In the event your income fluctuates because you work extra hours, are a travel nurse, or PRN, it may become more difficult. It’s your responsibility to provide additional documentation that gives a lender a good idea of your entire income. 

                When it comes time to buy a home, be careful not to overspend. You don’t want to spend the next 15, 20, or 30 years picking up extra shifts and working overtime just so you can make your mortgage payments. A less expensive home may give you greater flexibility in your career.

                A financial advisor can help you develop a plan to save for a down payment and establish a price range based on factors like interest rates and taxes to ensure you’ll be able to maintain your desired quality of life.

                Saving for Retirement as a Nurse

                As a nurse, you may save retirement through a 401k or 403b, depending on whether your employer is a non-profit or for-profit organization. You can determine how much money you’d like to deduct from each paycheck and put in your retirement account. If you’re lucky, your employer will match your contribution and help you save even more for retirement. 

                In the event you don’t receive a 401k or 403b, you can open up a Roth IRA or Traditional IRA and stash your retirement savings there. Your lifestyle and preferred retirement age will allow you to determine the amount you’ll need to save. 

                When you partner with a  financial advisor, you’ll work together to design a strategy to help you retire when and how you’d like. You’ll discuss questions such as: 

                • How much do I need to save to meet my preferred retirement lifestyle?
                • Where should I keep my retirement savings?
                • What is my long-term investment strategy?

                Expenses and Deductions: Keep More of Your Income

                When it comes to taxes, you’ll have two options: take the standard deduction or itemize your expenses. If the itemizing route makes more sense, you’ll be able to write off the money you spend on uniforms like scrubs, equipment such as your stethoscope, licensing fees, and continuing education costs. 

                Keep in mind that you’ll qualify for more deductions if you work as a 1099 contractor instead of a W2 employer. However, you’ll also be on the hook for paying your own taxes and may not receive the stable paycheck you desire. 

                If you work with a financial advisor, they can help you address questions such as: 

                • Does it make sense to take the standard deduction or itemize?
                • Which deductions am I eligible for?
                • Is it better for me to be a 1099 contractor or a W2 employer?

                Your Insurance Needs as a Nurse

                Since you work in the medical field, it may make sense to invest in professional liability or malpractice insurance as your employer’s coverage may not be enough. This way you can protect yourself if you make a mistake or an accident arises when you care for a patient. Lawsuits are not uncommon in nursing so professional liability insurance may be essential for your peace of mind.

                Jump to Financial Advisors for Nurses

                Financial Planning is a Necessity

                If you’d like to ensure your commitment to the nursing profession benefits you and your family personally, financial planning isn’t an option. It’s a necessity. With a solid financial plan in place, you’ll be able to keep your debt to a minimum (or even avoid it), make the most out of your monetary earnings and benefits, and most importantly, meet your short and long-term financial goals. 

                A financial advisor can help you come up with a solid financial plan that is ideal for your unique situation. In addition, they’ll motivate you to stay on course and focus on making smart financial decisions. 

                🙋‍♀️ Have Questions About Financial Planning for Nurses?

                Enjoy a Secure Financial Future 

                Once you embark on your financial planning journey, you’ll feel more confident in your finances. You’ll have the information you need to spend your money wisely and live life the way you want to. Financial planning is truly the key to a secure financial future as a registered nurse. It can change your life for the better, as long as you do it strategically. 

                FAQs for Nurses

                As a nurse, what questions should I ask a financial advisor to determine if they truly understand my unique needs?

                We asked Will Salazar, a financial advisor who specializes in serving nurses, for his thoughts on this question. Here’s what he suggests:

                “There are four asks I highly recommend. This will help you determine if you can build trust while working with a financial professional. It will also help determine if you like them or not.

                1. Ask about “their why”.
                2. Why do they help nurses specifically?
                3. Ask about their most embarrassing financial decision. A good professional will share it and be honest about it.
                4. Ask if they live by the advice they give? If they do, then it shows conviction in what they do. While it may not make sense for you, at least they practice what they preach.

                – Will Salazar, Financial Advisor

                What is the job outlook for nurses?

                According to the Bureau of Labor Statistics, employment of registered nurses is projected to grow 7 percent from 2019 to 2029, faster than the average for all occupations. Growth will occur for a number of reasons, including an increased emphasis on preventive care; increasing rates of chronic conditions, such as diabetes and obesity; and demand for healthcare services from the baby-boom population, as this group leads longer and more active lives.

                Are there financial coaches who specialize in working with nurses?

                Yes. While financial advisors are generally best suited to help nurses who need investment advice and guidance, many financial coaches have considerable experience working with healthcare professionals whose hectic schedules and frequent overtime have meant day-to-day budgeting and financial habits could use improvement.

                Use the Wealthtender Financial Coach Directory to find the best financial coach or counselor for your individual needs.

                The Best Finance Blogs and Podcasts for Nurses

                With over 250 personal finance blogs and financial podcasts featured on Wealthtender, you’ll find several that regularly publish articles and episodes with financial planning insights useful to healthcare professionals.

                We’ve also curated a list of popular blogs and podcasts for nurses offering articles and interviews on a range of topics, including financial and career advice:

                Financially Intentional Stop living paycheck to paycheck and get Financially Intentional.
                 
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                The MoneyRx for CRNAs Podcast A retirement and financial planning podcast for CRNAs
                 
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                Do you have a favorite blog or podcast for nurses not featured above? Let us know in the comments section below or by email at yourfriends@wealthtender.com.

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                About the Author
                A headshot of Brian Thorp, the founder and CEO of Wealthtender

                About the Author

                Brian Thorp

                Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian