Whether you decide to work with a financial coach or advisor, or maybe both, will depend on what you are looking to do when it comes to money and your financial plans and goals.
What is a financial coach?
A financial coach joins you on your financial journey. A financial coach works with clients to help them learn money management skills, such as budgeting, paying down debt and or saving, as well as your money thoughts and beliefs. They can help you make a financial plan, but won’t offer investment recommendations as a financial advisor would.
A financial coach can hep provide strategies and ways to organize your finances that align with where you want to go, and help you make wise decisions for and in the future. You don’t have to be in a financial crisis to work with a financial coach. Working with a coach even when things are going well can be beneficial. We all can continue to learn ways to improve our money management skills.
When it comes to your money, it can be a very emotional topic. A coach can help you uncover and work through the emotions related to money, and your financial habits. We all have beliefs around money, understand and seeing what our beliefs are, and what emotions we are creating because of them. Understanding our money mindset and financial habits is an important step toward improving your financial life and living the life you truly want.
What does a financial coach do?
A financial coach works with a client for a period of time. Typically, the coach and client will meet monthly, but can be more often than that if the client desires.
A financial coach can help you:
- Understand our spending habits.
- Help you uncover your financial goals
- Create a budget
- Learn the importance and how to establish and emergency fund.
- Help you change your beliefs and behaviors around money
- Be an accountability partner and cheer you on in your small and big achievements
A financial coach will offer education, tools and resources, not financial advice. Financial coaches give clients information, support, and tools they can use to make their own money management decisions.
What is a Financial Advisor?
A financial advisor will give advice on money management, investing and more. Financial advisors can also manage your finances for you, if you so choose. They will typically assess your current financial situation and identify areas for improvement. They will need a clear picture of your current assets, debts, and expenses so they can help you create a financial plan.
What does a financial advisor do?
A financial advisor can help you:
- Help manage your investment portfolio
- Plan and save for long-term goals
- Retirement planning
- Life insurance and disability insurance policies
- Explain differences in types of investment products and help you with which ones would best serve your situation and goals.
- Tax optimization
For me personally, as a financial coach I still turn to and have a financial advisor. Working with a financial advisor has helped me understand my options when it comes to the details and types of investing. What different investing types are available and what the investing options are. A financial advisor will help you decide what kind of investor you are as well as help you know how much to invest over certain amount of time, to reach your goals.
Here are a few of the types of accounts a financial advisor will help you with:
- Stocks
- Bonds
- Mutual Funds
- Educational accounts, such as 529
- 401K, IRA, Roth accounts
- Broker accounts
- CDS
- High yield savings accounts
Should I hire a Financial Coach or a Financial Advisor?
Deciding to hire a financial coach for a financial advisor will depend on your financial goals.
If you are looking for guidance to improve credit, pay down/eliminate debt, build and emergency fund, buy a house or want support and accountability in your financial decision, a financial coach would be the better choice.
A financial coach will give you the support, encouragement, and tools you need to build skills to improve your financial situation.
If you are looking to achieve big investment goals, building, and managing our investment portfolio, retirement, working with a financial advisor would give you advice and help so you can allocate your money and manage your portfolio.
If you are interested in learning more about working with a 1:1 financial coach
Click HERE to schedule your free consultation call. We will discuss what it would look like to work together.