TE&MN #12 Mastering Wealth: Why Your Financial Success Demands a Specialist Team

Why You Need a Specialized Team for Your Portfolio

Ever wondered why some portfolios flourish while others flounder? 

It's not just about the investments or the portfolio themselves but the team behind them that does the work.

You're the CEO of your financial fortress, and like any successful CEO, you need a top-notch team. This team is your arsenal in the complex world of wealth management.

I learned quickly after my first IPO there was a lot that I didn’t know.   The complexity explodes when you build wealth above seven figures and have many different asset types:

• Stock Compensation

• Venture Capital Investments

• Real Estate

• Business Holdings

• Stock Portfolios

• etc 

A team of specialists is needed to move you forward.

If not for my team and their contributions, I would not have been able to leave corporate in August of 2022. 

Today, I will show you the team of experts I assembled to accelerate my financial education and wealth building. 

Here are the members that make up my team: 

Stock Options Lawyer

The First Line of Defense in Your Financial Arsenal

Do you fully grasp the intricacies of your stock options or the stock agreement?

Many don't, and that's where a stock options lawyer becomes indispensable. They demystify complex clauses and optimize your assets. 

When I got my stock agreement, I had no idea what it was and just signed it and moved forward.   As I invested hours of my time and realized that the equity was a critical part of my compensation, I engaged a stock options lawyer to educate me on what the agreement said and its covenants.    The four hundred dollars I spent on that hour was well worth it as he showed me the key clauses I needed to review. 

This experience gave me the confidence to understand these agreements and how to evaluate them going forward.   Any tech employee working for equity should have a relationship with a stock options lawyer.  

Your first move toward financial mastery starts here.

The Tax Team

Your Secret Weapon for Financial Growth

Is your tax strategy working as hard as you are?

The right tax team goes beyond tax filing; they're architects of your financial future. As you work for equity, you will soon gather a lot of different types of equity from Restricted Share Units (RSUs) to Incentive Stock Options (ISOs) and Employee Stock purchase programs (ESPP). 

You will find that the most critical question is how do I get this to cash without paying a ton of taxes on it.   This is where Certified Tax Planners come in.   They turn complexities into opportunities.    My Tax Planners have saved me hundreds of thousands of dollars over the years by partnering with us to build divesting plans in the most tax-efficient ways possible. 

Today, we continue to work with our Certified Tax Planning team of a Certified Tax Planner and Tax Attorney to decrease our yearly tax exposure. This team should be able to show you the ROI of their fees by the dollars they save you.

To learn more about Certified Tax Planners and how they differ from CPAs, listen here. 

Certified Tax Planners are the unsung heroes of your financial narrative.

Investment Management

Navigating the Investment Maze

How do you ensure your investments align with your financial goals?

Whether managing investments personally or with a wealth manager, strategy is key. 

I built out a diverse portfolio to provide income and growth and act as my own investment manager.   This is an essential part of my wealth-building journey.  I observed that the ultra-wealthy in organizations like Tiger21 manage their portfolios.  I chose to adopt that framework.

By building my skills as an investor, I knew I would reach my goals. Ultimately, it’s about creating a diverse portfolio that aligns with your long-term vision.  This may involve you finding specialists or filling that role yourself.  I am the Investment Manager for my team. Find my portfolio management strategy here.

A well-planned investment strategy is your roadmap to financial freedom.

Risk Management

The Unsung Hero: Risk Management

Have you ever considered the true value of your insurance policies?

Beyond just ticking boxes, risk management is about safeguarding your hard-earned wealth.  You need to consider all of the insurance you need beyond just home and auto.

You need:

• Long and Short Term Disability Insurance

• Umbrella Policy for Liabilities

• Long-Term Care Insurance

• Life Insurance

Investing in long-term care insurance for our elderly parents has proven to provide great value.  While I don’t like paying the terms as I go, when we need critical services to provide for aging, we do love it.  Your insurance portfolio is as crucial as your investment portfolio.   Insurance is your defense so that you can focus on offense. I have two teams for this: one for home, auto, and umbrella and a separate team for life, disability, and long-term care insurance.

It's your shield against life's unpredictability.  

Estate Planning

It is More Than Just a Will

What legacy will you leave behind?

Estate planning is often an afterthought, but it shouldn't be.   It will be how your portfolio is managed and allow your legacy to thrive for future generations.   

When I first engaged an Estate Planning attorney, I thought it would be a will or trust and not much more.  I found out that your estate plan is a sophisticated plan with a lot of scenario planning.  It needs to be written well, and you want to invite your children to participate in the plan as they age.   Getting a great attorney on your team is essential because they are the guardians of your life's work. I have an estate planning attorney on my team with whom we meet every six months.

Your legacy deserves meticulous planning and execution.

Asset Protection

Your Financial Fortress: Asset Protection

Ever thought about how vulnerable your assets might be?

Asset protection is about creating a financial fortress.  As your portfolio grows and you need to align with your estate planning, you will need different vehicles for protecting your assets.   I have found you can use your Estate planning team for this or have another team help out.  This will be your decision to make.  I have an asset protection attorney, but I use him infrequently.

 This is your strategy for enduring stability.

Bookkeeping

The Art of Financial Order

Is bookkeeping the missing piece in your financial puzzle?

A bookkeeping team brings much-needed order to your finances, freeing you to focus on the bigger picture. 

Too many tech execs and engineers are willing to outsource their wealth management and do the bookkeeping.    

Looking at ultra-high-net-worth individuals like those in Tiger 21, you will find they outsource the bookkeeping and manage their portfolios.   I chose this path to keep my eye on the larger picture. 

Empower yourself by delegating the details.

Mastering Your Financial Domain

Are you ready to be the CEO of your financial future?

Building the right team in the correct order is critical. 

After my first IPO, I met with several all-inclusive financial advisors and money managers who wanted to convince me that I needed just their services to reach my goals.    I quickly realized that they only knew the surface level of the different disciplines and were not experts.   My decision was to build a team of experts in their discipline and manage them.

The benefits of having separate team members are as follows:

• Deep expertise to drive deep value

• One person or team doesn’t have too much control

• Deep efficiency built in

While this strategy may cost more, it has produced more value on the upside.

Your financial fortress is waiting to be built.

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040 🎙️Beyond Commissions: The Rise of the Fee Only Financial Advisor

Today on the podcast, Max Pashman and I discuss the benefits of fee-only advisors.

Fee-only Advisors were so helpful when I started to build wealth and wanted to get smart quickly.

In the second half of the episode, we highlight the five common mistakes technology employees make with their equity and finances.

Listen or Watch Now!

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Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.