🔍 How to Spot a Financial Planner Worth Their Fee (and Avoid Costly Mistakes)

☕ Good morning!

Managing finances as a high-earner can feel like running a marathon while juggling flaming torches—there's risk, complexity, and, let’s face it, a lot to lose if you drop the ball. 

But finding the right financial planner to help shoulder that load? 

That’s a different challenge altogether.

The truth is that not every financial planner is created equal. 

Some dazzle with impressive credentials but need to deliver meaningful value. 

Others might be brilliant strategists but struggle to connect with your unique goals. 

Today, we’re exploring identifying a financial planner that provides sound judgment and peace of mind by meeting and understanding your specific needs. 

🧠 Picture a financial planner as your personal CFO, someone who optimizes, protects, and grows your wealth while you focus on earning it. 

They don’t just advise; they strategize. 

For high-earners juggling equity compensation, tax planning, or estate management, the right planner can distinguish between treading water and thriving in retirement. 

Financial planners handle everything from managing RSUs (restricted stock units) to creating efficient retirement withdrawal strategies. 

🧭 Think of your financial planner as a guide, but you need to know where you want to go. 

Before sitting down with potential advisors, ask yourself: Where am I trying to go? What obstacles do I face? 

Really sit and journal on it– the more clarity you bring, the better they can tailor solutions to your unique financial landscape.

Are you wrestling with the tax hit from a massive bonus or the confusing equity compensation rules? Maybe your daydreams swing between a beachfront vacation home and ensuring your kids’ education is covered. Or perhaps you’re laser-focused on leaving a legacy that spans generations.

Your goals are a north star in selecting a financial planner– they’ll help you evaluate which planners truly align with your needs, so you’re not paying for services that won’t move the needle for you.

🥇 Finding your perfect planner.

Would UFC heavyweight champ Jon Jones train with a personal trainer who’s never coached an MMA athlete? 

Absolutely not. 

Similarly, as a high-earner, you deserve a financial planner experienced in your “sport.”

Look for expertise in your field, a collaborative mindset, and proven Results. You want someone seasoned, not someone learning on the job at your expense.

With specific, niche experience comes a network of other professionals they can refer you to for all sorts of nuanced requests, such as high-earner health insurance programs, HSAs, LIRPs, or trusts and estate planning. 

🚩 Watch for These Warning Signs

Lack of transparency can be a major red flag. 

If a planner hesitates to explain their fee structure or acknowledge potential conflicts of interest, it’s a sign they might not have your best interests at heart. 

Similarly, beware of cookie-cutter solutions. 

Generic advice like “just invest for the long term” might sound sensible but falls flat when applied to the unique complexities of a high-earner’s financial life. 

You deserve strategies tailored to your goals, not one-size-fits-all recommendations.

🏆 Making Sense of Finding the Right Planner

Trust your instincts. 

If something feels off, whether it’s a vague response, overconfidence, or a lack of clear action steps, don’t ignore it. 

However, it helps to acknowledge that something might not “feel off,” but the whole notion of working with another professional to dig around your finances, suggesting courses of action can feel foreign.

That’s why trust is paramount; whatever it takes to establish that trust, it’s generally worth it. Whether through candid conversations, transparent processes, or proven expertise, a trustworthy planner acknowledges this is new for many people and will work to establish confidence and earn your business. 

Don’t hesitate to ask pointed and specific questions to build that trust. These help you gauge their experience and compatibility. For example:

How have you used a Backdoor Roth IRA to save a client in my income bracket on taxes? Can you walk me through the exact steps, including timing and coordination with other tax strategies?

Can you show me a portfolio you’ve built for a client with a risk tolerance similar to mine? Walk me through how you adjusted it during the 2020 market crash.

What’s the most complex equity compensation scenario you’ve managed, and how did your strategy maximize short-term cash flow and long-term tax efficiency for the client?

 A successful partnership rests on what I call the “4 P’s”:

1. People: You need to get along with your planner and have a good personal connection.

2. Philosophy: You need to align on values, priorities, and the approach to wealth management. 

3. Process: You should feel comfortable committing to their process and understand your role in it.

4. Price: Transparency is crucial—know what you’re paying, how they’re compensated, and ensure the value exceeds the cost.

Your financial health is too important to gamble on uncertainty. The right financial planner isn’t just another service provider—they’re a partner in crafting the life you want. 

Stay savvy, stay proactive, and keep your financial future bright.

Until next week!

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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