By Joel Chouinard, CFP®
May 8th, 2025
Do you ever wonder if you’re missing out on opportunities simply because you don’t know they exist? As they say, “you don’t know what you don’t know.” And these oversights, especially those missed early in your career, could translate into thousands of dollars less in your pocket down the road. For example, a 35-year-old not contributing to their Backdoor Roth IRA (because they think they make too much money) could end up losing out on over one hundred thousand dollars of tax-free benefits over their lifetime. This is true for all aspects of your finances, from investments to insurance, and everything in between. The best way to ensure you don’t miss out is to build your financial management dream team. Think of yourself as the head coach of your household—you call the shots, and your team is there to support you by providing the knowledge you need to make smart financial decisions.
This article will discuss the three most important professionals Big Law attorneys should consider hiring: a tax professional, an insurance agent, and a financial planner.
Tax Professional
As you know, there are two certainties in life: death and taxes. Although we don’t have much control over the first one, partnering with a qualified tax professional can ensure you minimize the amount of taxes you pay to Uncle Sam. The key to finding a good one is to find someone who will help you with tax planning, not just tax preparation. Let me explain the difference.
Tax preparation is gathering all your tax documents during tax season and filing your return. Think of it as looking in the rearview mirror of your car (i.e., you’re looking backward). In most cases, you’ve already passed the end-of-the-year deadline to make any strategic moves. Essentially, you deal with what happened.
Tax planning is taking a proactive approach to minimize your taxes today, but also in the future. Think of it as looking through the windshield of your car (i.e., you’re looking forward). For example, a good tax professional should ensure you are withholding enough taxes each paycheck, so you aren’t subject to underpayment penalties.
Tax Professional for Big Law Partners
When you make partner in Big Law, your taxes become much more complex, and working with a qualified tax pro who has experience working with Big Law partners becomes even more important. They should work closely with you to ensure you are putting aside a portion of your income for quarterly tax payments, while not creating a cash flow crunch in your personal finances.
Insurance Agent
The next professional that Big Law attorneys should consider hiring is an insurance agent. Sure, as the gecko in the famous Geico commercial says: “15 minutes could save you 15% or more on your car insurance.” But do you really think you can make an enlightened decision about a 50-page insurance contract filled with provisions and endorsements in 15 minutes? My guess is not.
The good news is you don’t need to become an expert at reading insurance policies’ fine print. You can simply partner with an insurance agent whom you trust to educate you about the pros and cons of each decision you need to make. There are two types of insurance agents, and the difference is important to understand.
Captive Agent
On one hand, captive agents are typically employees of a large insurance company who are tasked to sell the company’s products. Although captive agents can gain a deep understanding of the product’s features, they have an inherent conflict of interest because they can only sell their company’s product. This means that their recommendation might not always be in your best interest.
Insurance Broker
On the other hand, insurance brokers are licensed with several different insurance companies and can shop around to find the best coverage for you. This doesn’t completely remove the conflict of interest (they may receive incentives from the insurance companies to push certain products), but it gives you more options to choose from. However, since they are licensed with several different companies, they may not know every little detail of every insurance policy they sell, so that’s why it’s important to partner up with someone who has experience.
Moreover, insurance agents can specialize in one or more lines of coverage. For example, Property & Casualty agents focus on home, auto, umbrella, and business insurance, while Life & Health agents focus on life, disability, and long-term care. Make sure you find someone who specializes in what you’re looking for.
Financial Planner
The first two types of professionals help with things that are mandatory in our society: taxes and insurance. Therefore, seeking their help might be natural. However, last time I checked, it’s not mandatory to save for retirement or college, and the government won’t put you in jail if you rack up a mountain of credit card debt.
But that doesn’t mean you shouldn’t seek help from a financial planner. Think of a financial planner (a good one) as the glue that holds your finances together. Because they have a deep understanding of your finances, they ensure nothing slips through the cracks with your investments, taxes, insurance, estate plan, etc.
For example, I can’t tell you how many times I’ve caught errors on my clients’ tax returns. Not because the tax professionals they work with are incompetent, but because they simply didn’t know the client’s full financial picture. And that’s not the client’s fault either. Again, you don’t know what you don’t know. Your financial planner should be communicating regularly with your accountant to ensure nothing slips through the cracks.
Plus, financial planners can be a good sounding board for every financial decision you make. Thinking about buying a new car, but don’t know if you should finance it or lease it? Call your planner. Thinking about switching careers? Call your planner. Thinking about this new investment that will skyrocket to the moon? Call your planner.
How to Find a Good Financial Planner
When it comes to finding a good financial planner, it might be more difficult than you think. The title financial planner is not regulated, so basically anyone in the financial services industry can call themselves one. But not all financial planners are created equal. To help you with your search, below are some questions you should ask yourself.
- How are they compensated? Are they receiving a commission when I buy a product, or do I pay them a fee directly for their service? For example, a fee-only financial planner is paid only by you, the client, and receives no compensation from third parties, such as insurance companies. This ensures their interests are aligned with yours. You can find a list of fee-only financial planners here.
- Do they have experience working with people in my situation? A planner who works in a niche (e.g., young Big Law attorneys, young doctors, etc.) will have a much deeper understanding of the intricacies of that profession/situation.
- Do they provide comprehensive financial planning or just investment management? Many old-school planners were brought into the industry as stock brokers, so they’ve focused their services mainly on portfolio management. Although investments are a big part of a financial plan, they’re only one component, and your planner should look at each component as a whole. This is especially true for folks in the wealth-building phase.
- What are their credentials? Your planners’ credentials show their dedication to gaining more knowledge. Designations, such as the Certified Financial Planner® and the Chartered Financial Consultant®, require extensive training and examination across the various areas of personal finance.
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Other professionals to consider:
Life coach/therapist
The high-pressure environment of Big Law can take a toll on mental health. Having a trusted life coach or therapist provides a confidential space to process stress, anxiety, and other emotional challenges.
Mortgage Broker
As a high-earning professional, you may change homes multiple times in your lifetime. Plus, with interest rates fluctuating, there may be opportunities to refinance your mortgage to lower your payment. A mortgage broker is a licensed professional who acts as an intermediary between borrowers and mortgage lenders. They work with multiple lenders to find the best loan terms and rates for their clients, rather than lending their own funds directly.
Estate Planning Attorney
Every adult, especially those with children, should have a plan for the management and distribution of their assets after their death or incapacitation. An estate planning attorney is a lawyer who specializes in doing that. They draft legal documents like wills, trusts, and powers of attorney to ensure their clients' wishes are carried out and to minimize taxes and legal complexities for their loved ones.
Final Note
In conclusion, as a busy Big Law attorney, proactively building a team of trusted professionals (a.k.a. your dream team) is essential for long-term financial well-being. Engaging a skilled tax professional, a knowledgeable insurance agent, and a comprehensive financial planner will provide invaluable expertise, allowing you to navigate complex financial decisions with confidence and avoid costly oversights, ultimately securing a brighter financial future.
SharpEdge Financial LLC is a registered investment adviser registered with the State of Texas. Registration does not imply a certain level of skill or training. The views and opinions expressed are as of the date of publication and are subject to change. The content of this publication is for informational or educational purposes only. This content is not intended as individualized investment advice, or as tax, accounting, or legal advice. Although we gather information from sources that we deem to be reliable, we cannot guarantee the accuracy, timeliness, or completeness of any information prepared by any unaffiliated third-party. When specific investments or types of investments are mentioned, such mention is not intended to be a recommendation or endorsement to buy or sell the specific investment. The author of this publication may hold positions in investments or types of investments mentioned. This information should not be relied upon as the sole factor in an investment-making decision. Readers are encouraged to consult with professional financial, accounting, tax, or legal advisers to address their specific needs and circumstances.