Written by Anthony Piccininno
February 3, 2019
Before we begin, it may be helpful to cover the difference between a financial coach and a financial advisor or planner. These two provide totally different types of services. A financial coach covers money management and wealth building while a financial advisor or planner gives specific advice on financial situations and investments to which they believe to be the best choice for their clients. Financial planners may work with their clients to develop an overall financial plan. Coaches focus on pre-plan items such as working with clients on their spending plan (i.e. budget) and paying off debt.
If you haven’t built a lot of wealth, or if you want to focus on building more wealth, and you don’t know how to get there, a financial coach might be best for you. Their strength is to help you learn how to earn, manage, and spend your money more wisely than you a currently doing and help you find resources and tools that are ones that you need to get there. Their job includes helping clients identify goals they have in life, developing a plan to get there, and helping to motivate them to execute the steps needed to be successful in achieving those goals.
On the other hand, if you want to learn more about different types of investments or need assistance with determining which might be the best to accomplish your specific goal, a financial planner or adviser might be best for you. Because a financial planner or advisor is going to be responsible for recommending investments, they fall under regulatory oversight from FINRA and/or the SEC. A financial coach does not recommend investments and almost never has anything directly to do with your finances. Instead, they help you analyze your life, look at the day-to-day choices your making relating to money, and make suggestions on how you can improve these areas, what tools you can use to be successful, and provide you with resources with which you might not otherwise be familiar.
There may also be times where it is wise to consider taking advantage of the services of both a financial planner or advisor and a financial coach as you work on maximizing your financial future.
Updated on February 3, 2018 by Anthony Piccininno
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