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Do You Need a Financial Advisor or a Financial Coach?
So, this has been up for debate for a while now.
What’s the difference? For those of you in search of Financial assistance of some kind, you probably need to look at whether you need a Financial Advisor or a Financial Coach.
Financial Advisors usually work with people that usually already have money, helping them to build more wealth. Advisors are typically licensed and have to pass a test regulated by the Financial industry. In most cases they will have some kind of college degree. They can give you advise on investments, taxes, estate planning and long term care planning
Financial coaches do not have to be licensed. They can help you understand basics of personal finance and help to create good money habits. They can help you with creating a budget, saving money, paying off debt and help get you started towards getting in a better position to create initial wealth.
Legally, Financial coaches cannot give you advice on how and what to do with your money or for example tell you what stocks to buy. They can help you see your particular situation more clearly and help reduce financial stress.
Financial coaches don’t have to go through any formal training, but there are certifications that some do go through that at least gives them more knowledge than a just anybody claiming to be able to help you. You are ultimately responsible for your own decisions. Financial coaches are more of a guide.
Financial advisors are licensed and can provide fact based and experienced based recommendation. But be aware, that if they are paid based on commission, be advised that although they are supposed to have your best interest in mind, they could try to guide you towards investments that tend to make them more money, so get as much education and information as you can.
Costs for Financial coaches can vary on average from $75 – $600 for a one hour session or offer packages based on a few sessions. Financial advisors can work on a fee only structure in which they charge by the hour, or Commission based, for example 1% of the value of your assets or a combination of the two.
Do you due diligence in trying to decide whether you should pick a Financial Advisor or a Financial Coach.
I decided to take the Dave Ramsey Financial Coach Master Certification and I found it a very valuable investment.
Contact me for more information.