7 Questions Every Tech Executive Must Ask Before Hiring A Financial Advisor
True Root Financial is a fee-only financial advisor and financial planner based in San Francisco, CA. We serve clients across the globe.
As a high-earning tech executive, founder, or senior leader, your financial life is anything but simple. Between escalating compensation packages, concentrated equity positions, complex tax exposure, and long-term wealth planning, even small missteps can cost millions over time.
If you are a tech professional interested in learning how we can help you claim your financial independence by investing wisely, minimizing taxes, and maximizing your equity compensation, please book a no-obligation call here.
Selecting the right financial advisor is one of the most important decisions you will ever make, not just for today, but for your future, your family, and your legacy. Yet many high-net-worth professionals choose advisors based on brand recognition or referrals without truly understanding incentives, expertise, or conflicts.
Key Takeaways
- Fee-only fiduciaries are conflict-free and legally required to act in your best interest
- Commission-based advisors may have incentives to sell products that are not always optimal for you
- Fee-based advisors combine fees and commissions, which can create conflicts of interest
- Ask about experience, investment philosophy, process, costs, and client minimums.
Comprehensive financial planning is as important as investing, especially for tech executives with stock options or RSUs. Before you entrust someone with eight-figure wealth, ask these seven critical questions.
1. Are You a Fee-Only Fiduciary or Commission-Based Advisor?
Trust is everything when it comes to money. Understanding how your advisor is compensated is crucial because it influences the advice they provide. Financial advisors typically fall into three categories:
Fee-only Advisors:
- Paid exclusively by you, the client
- Do not earn commissions from product sales
- Held to a fiduciary standard, meaning they must act in your best interest
- Advice is generally conflict-free, so they are focused on recommending the best options for your financial goals.
Commission-based Advisors (Broker/Dealers):
- Earn money through commissions on products like mutual funds, annuities, or insurance.
- Advice may be influenced by the products that pay them the most.
- Held to a suitability standard, meaning the products must be suitable for you, but not necessarily optimal.
- Can still provide good advice, but there is potential for conflicts.
Fee-based Advisors:
- Combine fees and commissions.
- Often work at large firms or on Wall Street companies.
- Can create multiple conflicts of interest due to different business lines and products.
- Your interests may not always align perfectly with the advisor’s incentives.
Bottom line: For San Francisco tech executives with equity compensation and complex financial needs, fee-only fiduciaries are generally the safest choice to ensure unbiased guidance.
2. Have You Worked With Clients Like Me?
Advising mass-market investors is not the same as advising ultra-high-net-worth tech leaders. Your advisor should have a proven track record with clients who have similar income levels, careers, and financial goals. For example, guiding tech executives on stock options, RSUs, or early retirement requires a nuanced understanding of equity planning and tax optimization.
Ask for specific examples of clients with similar backgrounds. A seasoned advisor will have strategies tailored to your lifestyle and professional circumstances.
3. What Is Your Investment Philosophy And Approach?
It’s not just about past performance. Your advisor’s investment philosophy shows how they’ll manage your portfolio going forward.
Passive approach: Long-term, diversified strategies that rely on market trends.
Active approach: Tactical decisions, including stock selection and market timing.
Diversification is key. Ask how they balance equities, bonds, sectors, and geographies to reduce risk while maximizing returns, especially for clients with concentrated stock positions from tech companies.
4. Do You Provide Comprehensive Financial Planning?
With around $10M+ net worth, wealth management is about far more than picking funds. Comprehensive financial planning helps you:
- Optimize taxes on RSUs, stock options, and other equity compensation
- Plan for early retirement or flexible work schedules
- Assess cash flow, assets, and liabilities
- Protect your family and future with insurance or trusts
If your advisor only talks about investments, you’re missing half the equation. Tech executives often face unique planning challenges, and a fee-only fiduciary can provide guidance that integrates both investments and long-term financial planning.
5. How Much Will It Cost, And What’s Included?
Transparency is non-negotiable at your level of wealth. Financial advisors charge differently. Some charge a flat fee, others a percentage of assets under management (AUM), typically around 1–2% annually.
Be sure to ask for the all-in fee, including underlying fund expenses, to understand exactly what you’re paying. Fee-only fiduciaries typically offer the most transparent and conflict-free structure.
6. What Is Your Process If We Work Together?
Every advisor works differently. Some take a hands-on approach with quarterly check-ins and proactive planning, while others act as a resource for specific questions.
Ask about their onboarding process, how often you’ll meet, and how they communicate updates. The right process should align with your time, involvement, and expectations.
7. Are There Clients Or Portfolio Minimums?
Many advisors have minimum asset requirements. For high-income tech executives, knowing this upfront ensures you can access the services you need without limitations. Ultra-high-net-worth planning requires deeper expertise, tighter coordination with CPAs and attorneys, and more advanced financial architecture.
Your Next Steps
Finding the right financial advisor in San Francisco isn’t just about credentials; it’s about alignment, expertise, and trust. Asking these seven questions will help you find a fee-only fiduciary who can guide your financial decisions with clarity, integrity, and personalized insight.
If you’re a tech executive ready to take control of your investments and financial plan, book a free consultation today:
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