Today on MYM360- Money Coach vs Financial Advisor: What’s the Difference? I get asked this question a lot. So I thought it was time to clear this answer up for my audience. I did some research and I found an article that says it really well if not better than I could so I want to share that with you along with my personal twist.
Stephen Gardner’s article, For Maximum Returns, Hire a ‘financial coach’ to train your money to Grow, (who happens to be a financial advisor), he spells out the difference between a financial advisor and a financial or money coach. He says, “Most advisors have been trained to sell, not educate and mentor. In most cases, you don’t need a salesman, you need someone with greater insight and time to guide you and support you. This is what a coach does. A coach is hired to tell you the truth, not sell you a product!”
Here’s one example a coach shared with him. He had a cattle ranching client that did very well but he wanted to learn about other areas of investing. The coach and client discussed risk vs. reward, his time frame, his expectations, what the money would be used for and how much time he had to dedicate to watching the money. After fully understanding his goals, it made the most sense for this rancher to buy more cattle. A stock broker who makes his living selling stocks wouldn’t likely make this same recommendation because he or she is too biased to his own products.
A coach, he says is also important for helping you understand your emotional relationship with money and is excellent at holding you accountable with your goals and commitments. They offer a full financial planning experience with more detailed insight, will hold you accountable and will continually guide you for as long as you desire their services. Now here is my twist, I am also a financial advisor so I offer my clients the best of both worlds.
Want to learn more about what I do and if I might be able to help you? If so, visit http://www.psworth.com/consult and sign up for a mini strategy session with me. I offer sessions for business owners as well as individuals and couples. You can find a link to the article referenced here at www.mym360.com Episode 836.
Thanks so much for listening and as always remember that minding your money really is the path to a richer life!