Financial Coach VS Financial Adviser

Graph courtesy of Financial Mentor

Today you will know the big gap between the two. You might be confuse with the term but coaching process and giving financial advice is like a night and day.

Financial Advisers want to take care or manage the funds that you already accumulated while Financial coaches help you to be accountable and build your wealth your own way thru your knowledge and skills set.

This is the principle  financial advice is like giving a man a fish and expect  he will be  hungry again in an hour. If you teach him to catch a fish you do him a good turn and that is the impact of financial coaching process.

Financial coaching is driven by goals of the client, coaches help people develop skills and behaviors they can improve upon independently. The benefits of financial coaching are improves financial capability and increase savings.  According to center for financial security, coached clients are more likely to have a financial goal and be more confident in their ability to achieve that goal compared to those who do not work with a coach. You are in control of your finances because you are smarter and have skills in making a better informed decisions

Financial advice  focuses on your portfolio by providing specific securities and investment advice. The financial adviser business model is all about managing the money you already have. You give them control of your assets and they do the work for you. (Todd, financial coach, owner of the Financial Mentor  Website)

Investopedia defined financial adviser as professional who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement, depending on what the client requests. Some financial advisors are paid a flat fee for their advice, while others earn commissions from the investments they sell to their clients. Fee-only arrangements are widely regarded to be better for the client.

Traditional Financial Advice will always fail you – and the Statistics Prove It

In a changing world and economy if you will follow the  old advice of your friend who is not well verse financially you might end up retiring without dignity. Not all advice will be good to you and not all financial products will be suitable to your needs.  

In a research based study the issue with retirement shows that 2 out of 100 can retire very well and live comfortably. Imagine yourself believing those money myths that you have now and I can guarantee that it will cost you a lot. Financial coaches and financial advisers can help you make sound financial decisions but you have to choose whether you will be the authority or not.

Getting personal

1.      What do you think is superior for you and why?

2.      Who do you prefer to have a collaboration when it comes to your wealth habit?

3.      Why do you need financial adviser and financial coach in your life?

4.      What particular character would you like to see from your financial coach and financial adviser?

David Isaiah Angway is a Financial Evangelist