Real Reasons to Hire a Financial Advisor

If you believe much of the media, you hire a Financial Advisor to try to outperform the stock market. Never mind that this can have very little bearing on whether you can live or retire as you would like. Never mind that research has shown that even the hottest hedge fund managers struggle to outperform the markets. (Ok, they don’t struggle to; they don’t.)

The better reasons to hire one are to:

Press you to answer questions you don’t want asked, like how you plan to take care of your aging parents if you need to, whether your will is up to date, how you are going to send your kids to college, what you will do if you lose your job. These are the types of questions that make most of us too uncomfortable to ask ourselves.

Put together a financial plan. Very few people ever, ever do this on their own. And most drag their feet on doing it with their Financial Advisor, too. It takes time and it can hurt. But it matters.

Identify risks in your portfolio that you might look right past, like being overweight the US (which is most of the us in the US) or being mostly invested in tech stocks, when you’re in the tech industry.

Talk you through market volatility. Most of us energetically claim we don’t need this. It’s hard to project forward an image of ourselves being nervous or scared, and our recollection of past pain has been shown to fade over time. (Just ask any woman who has been through childbirth more than once!) But another voice besides your own during tough markets can be invaluable.

Identify your biases. This is a biggie. Many of us think we don’t really have any…which is exactly the point. One big one: women tend to be more risk-averse than men. That is neither good or bad of itself but it is something that should be tested and pushed a bit, given that women as a group also earn less and live longer than men. As a result, they could perhaps tolerate a bit more risk.

Yes, Financial Advisors cost. But if they are able to provide the services above — and particularly if they can do it earlier in one’s investing life — their value can be meaningful.

 

 

SOURCE: http://www.wealthmgt.com/resources/the-5-real-reasons-to-hire-a-financial-advisor.html

financial coaching vs. financial counseling

What is financial coaching? Is it the same as financial counseling or financial planning? Are those different from financial education?

It’s a pretty basic question of financial terminology, but an important one. After all, these terms – financial coaching, counseling, education and planning – are often used interchangeably. A recent paper on the topic by Dr. J. Michael Collins at The Center for Financial Security helps to set the terms straight.

The field identification guide helps clarify what service an organization or professional is delivering. It also helps potential clients understand what service to seek out. Someone who needs financial coaching but calls a financial planner won’t get the right help – and may only be frustrated by the interaction.

Of course, much of the fault lies in the interchangeability of terms used by organizations and professionals. Also, the paper does not tackle the various certifications, standards, licenses and accrediting organizations that define each role and title. Although the CFP designation is well known and understood, other titles like “financial coach” are used more generically and certification, training and experience can vary widely.

Here’s how Money Habitudes is used in each scenario:

Financial Coaching:

• Used to build rapport; a good way to make a first interaction feel less threatening.
• Helps financial coaches understand clients’ financial habits, attitudes, values, behaviors and emotional triggers.
• Allows clients to pinpoint their own strengths and challenges and identify changes they want to make; goal-setting
• Used one-on-one or with couples.

Financial Education:

• Used in financial class settings, often as a first full class or as an ice breaker activity as part of another class (on a topic like budgeting).
• Done individually with class activities or group discussion after.
• Often used as a lead-in to identify issues so people decide on other classes to attend (reducing debt, investing, etc.) or as a foundation for financial counseling or coaching.
• Acts as a hook to get people to engage on the topic of money without the stress of dealing with numbers, how-much-you-make, examining expenses, etc., right away.
• Sets a tone of engagement, fun, conversation and sharing in a class environment.

Financial Counseling:

• Helps identify issues and establish rapport.
• Helps client take ownership; decreases focus on prescriptive solutions to some degree
• Get partners to start a non-threatening dialogue.

Financial Planning:

• A good, non-threatening way to have a “getting to know you” conversation or as a supplement or other intake and discovery tools.
• Serves as a method to understand investing styles, comfort zone, and to tailor plans to a client.
• Also used to help couples align their financial goals.

Additionally, Money Habitudes is often used to train all of the above professions. It’s typically used to help people understand how different clients see and use money and to help people talk about habits and attitudes as opposed to just talking about skills and facts. It’s also used as a sensitivity training tool: to help people who are, for example, very comfortable with financial plans and numbers and spreadsheets to work with people who are not like them, but who have other strengths.

 

 

 

SOURCE: http://www.moneyhabitudes.com/blog/financial-coaching-financial-counseling-vs-financial-planning-vs-financial-education/

Why people hire Financial Coaches

You’d hire a personal trainer if you wanted to lose weight…

You’d hire a cleaner if you wanted someone professional to have your house sparkly-clean (or simply, because you didn’t have the time to do so yourself!)

If you wanted your teeth cleaned, you’d go to a dental hygienist..

If you were struggling with your furry friend’s bad behaviour, you’d find a dog trainer…

And if your backyard needed a face lift, you’d get a landscaper in sort it out.

Why? Because these people are professionals in their field. Hopefully, (if you picked the right one!) accredited by the governing institution within their industry, or supported by education. But ultimately, people hire these professionals because they get better results from doing so. If you’re not successfully doing something yourself, or, you don’t have the time to dedicate the hours to do so, you hire help.

So then, why wouldn’t you hire a financial coach to assist you in getting your finances sorted?

Well, there’s quite a few reasons people hire Sort My Money to take care of their finances, here’s a few…

People invest in Sort My Money’s financial coaching because…

1. Financial coaching services provide peace of mind.

Say goodbye to worrying about due dates and making repayments. If you hire a personal budgeting service to take care of your finances, they ensure you have money set aside for every expense. One reason so many of our clients enjoy Sort My Money’s services, is that they enjoy not having to worry about their money. They know their bills are paid on time, every time. And they know their budget is optimised, so that they are working towards their financial goals.

2. Clients don’t lose control of their finances, they gain them!

People often believe hiring financial coaches means losing control of what goes on with their finances. But that couldn’t be further from the truth! A personal budgeting service manages your budget for you on a daily basis, and uses its financial expertise to get your finances on track, but they don’t take over, they help.

The financial coaches at Sort My Money give clients regular updates on their progress, as well as giving them tips to further optimise their finances. At any point, clients can make changes, notify their coach of unexpected expenses, or ask for assistance on a matter. Plus, Sort My Money’s clients have a bank account opened for them which allows them 24/7 internet-banking viewing access, so they know what’s going on at all times.

3. Clients stop living week-to-week and start living their dreams.

When people decide to hire a financial coach, they stop focusing on bills and expenses and start looking towards the bigger picture. When clients start using Sort My Money’s financial coaching expertise, they are asked a range of questions about their finances. One of the most important? Their financial goals.

Wanting to buy a house? Start a family? Travel? Build a business? Invest? Because Financial Coaches are qualified and experienced in their field, they know the best way to optimise your budget, by paying down debts in order of priority and building up a healthy level of savings. Our cash flow system helps you sustainably increase your standard of living without increasing your earnings or debts. So with a financial coach, you stop counting your pennies and start focusing on your financial goals.

4. Financial coaches teach you healthy habits.

If you don’t have the time to organise your finances, it’s like not having time to eat properly… You end up in a ‘fast-food’ way of life, which is unhealthy and detrimental to your finances. You may not even realise you have some unhealthy financial habits, but a financial coach puts your on the right track and helps to keep you accountable.

5. It really saves people time, and money.

When employing financial coaching services, it’s obvious that people save time. What people generally don’t realise however, is that employing Sort My Money’s personal budgeting services also saves them money, rather than costing them money.Most importantly, at initial consultation, Sort My Money discusses income and outgoings with potential clients before starting a relationship, to establish whether they can, in fact, successfully assist them. An optimised budget shows clients how to improve their cash flow, reduce expenses and ultimately, save money. Sort My Money charges the lowest fees of any personal budgeting company in Australia, so it’s not an exorbitant cost to get your finances on track.

 

 

SOURCE: https://sortmymoney.com.au/financial-coaching/

What’s the difference between a Financial Advisor and a Financial Coach?

I have been asked this question many many times, it’s time for me to write a post to hopefully answer for everyone!

Most people are familiar with Financial Advisor, also known as Financial Planner or Investment Advisor. FAs are licensed and registered by FINRA and regulated by the Security Exchange Commissioner or by the state in which they operate.  With their training and experience,  FAs recommend investment strategies and help manage clients’ assets. They do so by utilizing various financial instruments such as stocks, bonds, mutual funds, insurance products, etc.

 

Financial Coach, on the other hand, focuses on helping clients explore, understand, and re-build their relationship to money so that they can lead a satisfying financial life with a sense of peace. Sometimes also known as Money Coach or Personal Finance Coach, FCs cover a wide range of services, depending on the level of experiences and professional background of the individual coach. There isn’t a regulatory agency that oversees the coaching industry, although there are coaching companies that provide coaching training and they issue certifications upon completion.

Why is it important to work on your relationship to money?

Because money is in all parts of our lives and our day-to-day decisions are driven by our money psychology. Think about the last time you tried to decide whether to take job A vs job B or whether you should start a new business like you have always dreamed of? Was money part of that dilemma? Maybe a relative asked to borrow some money and you felt uncomfortable but didn’t quite know how to respond? Or every time you and your spouse discuss retirement it ends in despair because you want A and he wants B? How do you decide whether to keep your savings for your own retirement or to use it for your children’s college tuitions? The answers to these questions depend on your value of money, your view of others through your own money lenses and your view of yourself in relation to money.

So, Who Do You Call?

When you have a money related question, how do you know who to call? Here are some guidelines:

1. If the question is “how can I make more money to support the lifestyle I want?”, then a Financial Coach can help your explore why you don’t feel like you are making enough? What’s blocking you? What is enough? What is your ideal lifestyle? How do we bridge that gap?
2. If the question is “I’ve been making good money for most of my adult life, but I don’t have much to show for. I’m now worried about how I’m going to retire?”, then a Financial Coach can help explore your spending habits, your priorities in life, and a clear vision of your retirement.
3. If the question is “I’ve been a stay-home mom for the last 10 years to take care of the kids and the family, now I’m in a divorce. How do I regain confidence and control over my financial life moving forward?”, then a Financial Coach, preferably someone who specializes in divorce situations, can work with you on building your confidence back while sorting through your finances. This may be done in conjunction with a Financial Advisor depending on the amount assets there are.
4. If the question is “I have some assets but I don’t have the time and capacity to actively manage them myself. What should I do? Where should I invest my money?”, then a Financial Advisor can working with you by managing your assets and making investment recommendations based on your life goals.
5. If the question is “I would like to plan for my retirement, I have X number of years left to work, how much should I put away each month?”, a Financial Advisor can help you with savings/investment strategies and asset allocations in order to meet your retirement goals.

A few other tips:

When selecting a Financial Coach/Money Coach, be sure to check on the specific experiences and background of the coach in the field of finances. If you only need help in bringing more abundance into your life, then a Money Coach who specializes in law of attraction or removing blocks may help you achieve that. But if you also need help in improving your budget or you wonder “even if I attract all the money I want, how do I effectively manage them so that I don’t lose them”, then you need a coach who also has a financial background. As I mentioned before, the field of financial coaching is not regulated so there is no minimum standards of credentials. The key is to find the right match between what you are looking for and what the coach can bring to the table.

When selecting a Financial Advisor, check both the advisor as well as the company he/she works for. Get a good understanding of the company’s investment philosophies and make sure that they are in line with your personal philosophy. Don’t be afraid to ask questions when they present something that you don’t understand. How they answer your questions can be a good indicator of your future working relationship.

Lastly, FC and FA don’t have to be mutually exclusive. There are many instances where it makes sense to work with both as they each address a different need.

If you are curious if Financial Coaching is right for you, click here to book a Complementary Discovery Session.

 

 

SOURCE: http://www.projectm-mindmoney.com/financial-coach-vs-financial-advisor-whats-difference/

 

Financial coaching, the missing link

WASHINGTON — When Danita Wadley talks about her clients, she often uses “we.”

Wadley is a licensed financial coach in Houston whose job is to help people navigate various personal finance issues. When I talked to her about 49-year-old Traci McMurtry, I could hear the pride in her voice.

“We cleaned up her credit,” said Wadley.

She said “we” but was quick to point out that McMurtry did the work to boost her credit rating. When they first checked her FICO score through TransUnion, it was in the high 400s — on a scale of 350 to 850. Two years later, McMurtry said her score had jumped to just over 700.

“We paid off some collection accounts,” says Wadley, regional director of education and self-sufficiency for Volunteers of America Texas.

McMurtry increased her score so dramatically because she was able to settle some debts and got creditors to update her credit reports and remove negative information. She paid her bills on time and participated in a loan program at the center specially designed to help clients build up their credit.

“I did it, but she walked me though a whole lot of stuff,” says McMurtry, an ex-offender and recovering drug addict. She says she’s been clean for 5½ years.

The women formed a bond as they worked together to clean up McMurtry’s credit and help her buy a dump truck so that she could be self-employed. “She helped me build my confidence in being able to pull it all off,” McMurtry said in an interview. “I’ve been though some things and a lot of obstacles in rebuilding my life. Addiction is a horrible confidence destroyer.”

Wadley works at what’s called a “financial opportunity center,” where trained personnel help low-income clients, most enrolled in job training and placement programs, manage their finances.

The Local Initiatives Support Corp. developed the centers. The community development nonprofit, which puts almost $1 billion every year into low-income neighborhoods, has partnered with other nonprofits to open 75 financial opportunity centers in 33 cities, according to an spokeswoman.

LISC’s program is innovative. I believe financial coaching has been the missing link in job training and placement programs. It’s not enough to help people get a job. Many also need help changing certain financial behaviors that get in the way of using their income to build real net worth.

“Millions of families face financial insecurity due to circumstances such as loss of housing wealth, long-term unemployment, high levels of debt, or poor credit,” wrote Alicia Atkinson, a policy analyst at the Corporation for Enterprise Development, in a report about the merits of financial coaching. “Financial coaching can help families and individuals regain their financial footing by helping them learn how to navigate our financial system more successfully and build habits that lead to financial security.”

“Folks who receive financial coaching really begin to think about their goals,” said Seung Kim, who supervises the national network of financial opportunity centers.

Coaches help people set up budgets. They get them to open their bills, Kim said.

Traditionally, job placement centers offer financial workshops or classes with a strong emphasis on saving, opening a checking account and homeownership, Kim said. But telling people what they should do is not enough. Programs like what LISC offers realize that people need somebody they can regularly call for guidance or when they hit a financial snag. They benefit from someone who will hold them accountable.

Kim said that with the addition of financial counseling, the centers are finding people who get coaching have a higher rate of job placement. Clients are more likely to improve their net income, net worth, and credit profile.

That’s what happened with McMurtry. She was able to purchase a used dump truck with cash. She hauls dirt and sand. Improving her credit helped lower the insurance premiums for her truck. Her next goal is to buy a home. And the center is helping her with that, too, through a matching savings program.

I believe that the financial opportunity centers have struck on the right formula to help low-income families pull out of poverty. Help them train and get jobs paying a living wage. Help them access public programs that will supplement their income until they can stand on their own financial feet. And provide them with financial coaching to better manage their money.

 

 

SOURCE: https://www.bostonglobe.com/business/2015/01/25/financial-coaching-missing-link/N9XSOgm5RXXtVFVvDkGnLL/story.html

Why It Is Important To Hire A Coach Along With Your Financial Advisor

Over the past couple of months, I have collaborated with my friend Jonathan Wright, a world Marketing Director for World Financial Group on presenting his Retired Inspired financial planning series. Jonathan is an excellent economic master, and he knows money and the importance of planning. He also recognizes that there is an emotional piece attached to goal setting when it comes to personal finances. Which is why he outsourced the goal setting and vision board portions of his training to a professional certified coach. Me.

You may be asking yourself, if I have a financial planner, advisor or a Certified Public Accountant (CPA), why do I need you? Quit simply, because my concern isn’t focused on how much money you have to invest, whether or not you have a 401K, or even if you have universal life or an umbrella policy. Our coaching partnership is focused on how you are spending what you have, thoughts going into your spending practice and if what you are doing now is aligned with your personal goals and vision.

Financial Advisors are significant in terms of assisting you with managing investment portfolios and retirement funds; however, they normally are not able to educate you on how to manage all areas of your finances. In other words, while specialized financial planners and CPA’s see only your financial problems from the macro level of budgeting to investing, coaches are viewing the big picture. Below are areas to consider from a coaching aspect and why it is wise to invest in a Financial or Empowerment Coach, such as myself, and how we can help:

• Financial coaching is all about holding yourself accountable for what you want to do with your finances, and the decisions you make. Essentially, in coaching you are responsible for your self-identified outcomes, not your financial advisor;

• You work with the financial/empowerment coach to explore what you truly want out of life and how to either use the disposable finances you have to support it or identify ways to become more efficient with your spending to make more of your current funds available. You explore your decision-making methodology when it comes to money and how to be more practical or efficient in the process;
• A Financial Coach will help you understand the emotions tied to your finances and how you arrive at each decision that you make about your money that you are looking to invest;
• Lastly, a Financial Coach helps you define what and who you are taking into consideration regarding your finances. One question that helps shape how you spend is who you are prioritizing in your spending. Are you placing yourself first in the process or are you only considering what others want for your money (estate planning, investments, budgeted money, etc.)? Coaching not only helps you understand the emotional impact of your spending mindset, it helps you shift to an empowered mindset when dealing with your finances.

You probably have a lot of questions about how financial/empowerment coaching works. Therefore, I have addressed below a few of the most common questions I’ve gotten from individuals. Keep in mind these answers are in general and not the same for every coach:
How much time will Financial/Empowerment one-on-one coaching take? Most coaches will spend a minimum of 60-90 minutes assessing your particular financial situation based upon your goals. The way that you learn will be evaluated along with your specific needs, goals, and most pressing financial problems. Your coach will then set up a specific coaching schedule designed to fit your lifestyle. Both you your significant other, or spouse and your coach will sign a Coach/Client Agreement.

What is the normal commitment time for Financial/Empowerment coaching? Coaches normally request a minimum of three to six months of coaching commitment. It takes at least this much time to set up a working relationship with your coach and to follow and work through your spending and borrowing habits, get them under control and see results of you moving towards the goals you have set.. I have seen Coach/Client Agreements last for nine months to a year in situations, when needed.

How much of my time every week will be required to receive coaching? Coaching sessions usually take between 45 to 60 minutes. Assignments and specific tasks to be completed may take further time throughout the week or month to complete. My recommendation is to begin coaching when you can devote continuous time to getting your financial life in order.
Why would I hire a coach when my finances are already out of order—I cannot afford one? If you are not able to get the emotional spending under control on your own, you cannot afford not to hire a coach. Right now, you are not accountable or responsible to anyone for how you spend your finances. This is normally the main reason you haven’t been successful at saving. By having a coach as your accountability partner and help, you stay focused. It will actually cost less than the way you are operating right now.

Can I do coaching on my own or should my mate be included? If you are married, engaged or living with a significant other, I recommend that you receive coaching with your partner. The Financial/Empowerment Coaching is intended to address highly charged emotional issues surrounding money and cannot properly help clients apply the program unless both partners are on board and fully committed.

Just keep in mind that there all kinds of coaches and anyone can call himself or herself a coach, however it is extremely important to find a coach that is right for you so you can achieve your goals. Also, check the coach’s credentials before signing any agreement and verify that they are Internal Coaching Federation (or equivalent) certified or have a proven success track record. If you are going to pay $125 an hour and up to hire a coach, you’ll want to invest in a person that is legitimate. Many say hiring a coach isn’t for everyone, and I am incline to agree. You need to be coachable, understand there is more to your financial situation than cash flow issue, and believe in the process when you invest in a coach else you will waste money and time. People with specific money questions might be better off with a certified financial professional, but they still only work on how much or how little funds you have available to invest. The value of coaching is that you address not only your finances, you also address why you spend the way you do, so that you can save more money.

 

 

 

SOURCE: http://www.noomii.com/articles/7135-why-it-important-to-hire-a-coach-along-with-your-financial-advisor

The Financial Advisor as Life Coach

How to add value to the top three stages of a business owners’ life cycle

Many younger advisors today start their books looking for so-called “HENRY” clients (“High Earners, Not Rich Yet”) in the hopes that building relationships with successful younger professionals will eventually yield sizable assets. For clients in professions like law or medicine that have a relatively stable upward income curve, this formula works in a straightforward way.

For the most lucrative potential long-term relationships, though—those with new business owners—younger advisors must keep in mind that they themselves have a role to play in the client’s success or failure. For business owners, there is no such thing as a “career track,” only a series of escalating and evolving challenges that continually place different demands on their personal financial lives. Unless they can successfully adapt, problems can quickly crop up in their own financial planning, and potentially carry over to impact their businesses.

Advisors who can help entrepreneurial investors make the right adjustments to their personal finances as they transition from one stage of a business’ life cycle to the next may very well find themselves with a prosperous and loyal book of long-term clients.

However, if you have never built a company yourself, how can you coach someone through these crucial financial transitions? Following are the three areas of a business owner’s life cycle where an advisor can add considerable value:

1. Start-Up Phase: Many new business owners fail to anticipate that, as soon as initial financing questions regarding the business are resolved, crucial personal financial planning questions enter the picture. I’m referring specifically to the issue of equity ownership.

Faced with the typical startup cash shortage but still needing to attract and retain talented employees, many entrepreneurs turn to stock options (or outright equity grants) as an easy and convenient compensation solution. Business owners in this position need to remember, however, that apportioning equity is not simply a matter of control. It is a matter of financial planning that will impact them and their heirs for years and possibly for generations.

Entrepreneurs can navigate this tricky balancing act by first focusing on the value of the equity itself. Is there a strong likelihood that a key employee or group of employees will be able to offset the financial consequences of diluting the founder’s stake by expanding the overall value of the company? If so, a more generous approach to allocating stock may be in order.

Second, business owners should be honest with themselves about the benefits of broad employee equity ownership. It may be possible to strengthen morale and employees’ sense of common purpose without diluting the founder’s control of an asset that—if the business succeeds—could be his or her most lasting legacy.

2. Expansion Phase: Once a business moves from the roller coaster ride of the startup phase to generating more predictable and sustainable cash flow, a new set of personal planning considerations emerges. At this point, the company will likely begin to hire more established professionals with higher expectations for stable benefits. The company founder will likely want to take advantage of opportunities to shift some of his or her planning needs to the business, as well, via company healthcare plans and retirement benefits.

The important thing for entrepreneurs to remember at this point is that there is no need to jump into all the myriad benefits programs available right away. The best approach may be to roll out a more affordable suite of offerings to employees first, then phase in more ambitious programs once it becomes clear the company can support them over the long term.

Group disability and life insurance plans, for example, can provide solid value to both the business owner and his or her employees at a reasonable cost. At the same time, enhanced payroll deduction options to fund vehicles such as 529 educational savings plans can enable both the business owner and his or her employees to save for important upcoming expenses on a straightforward basis.

3. Maturity Phase: Business owners need to be constantly focused on the future. For the owner of a mature company, this means thinking realistically about retirement expenses and planning an exit strategy. Entrepreneurs may want to take advantage of the relative stability of this stage in their company’s life cycle to examine incentive programs that can help them meet their own projected retirement expenses (including costs such as entertainment and auto payments that may currently be handled through the business) while also keeping the next generation of leaders in place within the company. This may mean taking a look at vehicles such as defined benefit pension plans and deferred compensation programs.

The maturity phase is also the ideal time to obtain a professional valuation of the business if a sale of the company is a likely potential exit strategy. As entrepreneurs begin to think about exiting, an initial valuation that factors in the tax impact of a sale can provide a crucial reality check for their plans for the future.

Successful entrepreneurs are adept at spotting shifts in the business environment and adapting to them for the benefit of their businesses. Unfortunately, many of these same leaders have difficulty identifying changes in their own personal financial planning needs that may arise as their businesses move from one stage of growth to the next. By helping business owners identify and navigate the important personal planning challenges that are likely to arise as their companies evolve, however, younger financial advisors can put themselves and their clients where an entrepreneur always wants to be: one step ahead of the trend.

 

 

SOURCE: http://www.wealthmanagement.com/client-relations/financial-advisor-life-coach

Who Should Hire A Financial Coach?

The following is a guest post from Deacon Hayes. He’s a financial coach and explains the difference between a coach and a financial planner.  I learned a lot about the coaching aspect of the business and I think you might find this information quite useful.

People often wonder whether a Financial Planner or a Financial Coach is the best choice as they work to make a solid plan for their finances. In this post we’ll talk about the differences between a Financial Coach and a Financial Planner, and how you can decide if you need a Financial Coach or if a Financial Planner is a better choice for your financial needs.

Financial Coaching vs. Financial Planning

There are several differences between a Financial Coach and a Financial Planner. It’s important for people to know and understand these differences before making a decision about which type of financial help is best for them and their individual situation. Here are some of the differences between a Financial Coach and a Financial Planner:

Financial Coaches

• Help put together a budget
• Help make a plan to pay off debt
• Help find ways to increase income
• Help determine ways to decrease expenses
• Talk broadly about investments, but do not give advice on what to invest in

Financial Planners

• Educate and give advice on investment options
• Help manage financial investments
• Are licensed and regulated by the government
• Help clients with retirement, insurance and other investment planning

As you can see, Financial Coaches and Financial Planners provide two completely different types of services. While the financial coach covers the basics of money management and wealth building, the financial planner gives specified advice on investments that they believe to be the best choice for their clients.

Neal’s Notes:   The other thing a good planner does is create an overall financial plan.  This is crucial.  Coaches don’t do this but they work with people on their budgets and paying off debt and that’s not something most advisors do.

How Can I Know Whether I Need a Financial Coach or a Financial Planner?

It can be a daunting task to determine whether a Financial Coach or a Financial Planner is best for you as you determine how to reach your financial goals. Truth be told, there’s likely a benefit to having both in your life as you work on growing your wealth.

A Financial Coach might be best for you if:

If your financial needs center around needing someone to help you with the day-to-day management and planning as you learn how to earn, manage and spend your money wisely, and help you look at broader decisions regarding investing, a Financial Coach would likely be the best choice for those tasks.

A Financial Planner might be best for you if:

If you are looking for someone to help you learn about the specific details on different types of investments and to help you determine which types of investments are best for you, a Financial Planner would likely be the best choice for those tasks. Another benefit of going with a Financial Planner is that they can help you purchase the investments you decide are best for you as well.  Good planners also should help you put together a comprehensive financial plan which is something most people really need.

As you can see, there are vast differences between a Financial Coach and a Financial Planner, and both have valuable skills that are immensely helpful in different areas for people as they look to solidify their financial situation.

It’s wise to consider taking advantage of the services of both of these financial professionals as you work to reach your financial goals.

 

SOURCE: http://wealthpilgrim.com/who-should-hire-a-financial-coach/