What is the Difference between a Financial Coach and a Financial Adviser?

You may think that a Financial Coach and a Financial Adviser are similar, but they are light years apart.It is important to know the difference between the two so that you know which one is best for you at your present situation.

A financial adviser focuses on your portfolio and provides specific advice for your investments. You give them control of your investment assets and they manage the money you invest with them.

A financial coach does not manage your investments for you. Instead, they focus on your education and help you make financial decisions so that you can build the skills you need to manage your own money. You always remain in control of your money, but you learn how to make better financial decisions and manage your money in a way that works for you. They will provide a Financial Plan and road map to get you from where you are to where you want to be. Many consider a good financial coach as a great personal financial planner.

Which one is a better fit for your needs?

Do you want someone else to manage your funds for you or do you want to learn how to make better informed decisions and manage your money yourself? You need to be better educated about your financial options. You need to be able to trust the advice you receive from a financial adviser and understand what you’re being told. So, educating yourself with a financial coach should be a must whether you hire a financial coach or a financial adviser.

Differences

With a financial adviser, it’s important to understand that they will be making most of the decisions about your investment for you, with your permission. They will discuss the options available to you and do their best to help you understand what your choices are. But if you don’t already have a fair understanding of your financial options, you may feel challenged to make the right decision leading you to depend on a financial adviser too much.

In working with a financial coach, you need to understand that they will never provide specific advice about how to allocate your investment funds or where to move your assets. Their sole purpose is to educate you so that you can make well informed decisions on your own. They will help un-muddy the waters of the investment world and provide pros and cons of the different types. This way you are armed with knowledge and understanding when you get to the point of working with an investment professional.

A financial coach does not receive a percentage of your investments as payment so they are completely unbiased about how you should invest. Instead, they help you develop the skills you need to choose an adviser that is a good fit for you. They also help you to understand the differences between working with an adviser and managing your money on your own.

Based on your current financial position and your financial goals, a financial coach can help you understand the different approaches you can take to reach your goals and how you can work toward those goals on your own.

Working with a financial coach first will help you be better prepared for working with an adviser and it will help you feel more confident about the advice the adviser is offering.

How do I pay for coaching when I live paycheck to paycheck?

Financial Coaching gives you the highest level of detail and individual attention. The cost reflects the increasing scope of resources devoted specifically to your situation. For most, the investment they spend in coaching is quickly recouped once they implement some of the action steps discovered in the coaching session. If one also considers the cost of bankruptcy or credit counseling that can run up to thousands of dollars each, our fees are a bargain compared to these options, plus you'll have a plan to change your financial future! Using a financial coach is an investment in you and your financial future, not an everyday purchase. Many find that when addressing their financial situation with a plan reduces the daily stress levels and improves their quality of life and relationships.

Will you set up a payment plan for my coaching fee?

I do not require contracts or a large sum up front, and almost 100% of the time, I am able to find enough savings monthly to more than cover the investment cost of monthly coaching sessions. Financial coaching is the most detailed service offered and focuses on your unique situation.

If I am married and my spouse will not come, can I still work with a Coach?

We have learned that when coaching only one spouse more often than not, coaching is not as effective. We understand that sometimes it is just impossible to coach both spouses and we realize that one spouse is better than none.  If you are experiencing this in your situation, please schedule a free consultation and we can discuss some options and actions that might produce positive results.

I'm not married, would I benefit from coaching?

Most definitely! If you are a single professional trying to determine where your passions are leading you in the career and job of your dreams - We can help you put together a game-plan so that you are able to get that dream job and be able to have more flexibility and personal fun freedom. If you are widowed, going through life solo can be a little bit scary. We can help provide that guidance and support in your personal finances. Divorced? More than likely your finances have changed dramatically, and the future may look very fuzzy and bleak. We can help bring clarity and direction.

What products does a Legacy Financial Coach sell?

Absolutely nothing! A great financial coach does not sell any third-party products like investments or insurance. We have zero financial incentive to recommend any specific financial product so that we can  provide unbiased laser focused guidance. We will come along side with you in your present situation, right where you are today while also taking into consideration your long term goals and dreams. Think of coaching as the GPS of the financial world.

What is the difference between small group financial stewardship classes and Financial Coaching?

Small group financial classes and seminars like those that Dave Ramsey, Compass, and Crown Financial Ministries are great and provide a great overview and a broad spectrum awareness, at a 30,000 foot level. Financial Coaching brings down the expertise and detail from a 30,000 foot level and gets eye to eye with your personal financial situations. Financial Coaching is the most comprehensive, detailed and quickest method available to get you from where you are to where you want to be.