How is Financial Planning Different From Financial Coaching?

The unstated goal of financial planning is to sell a product or service.  If a financial advisor obtains enough information, he or she can usually show how purchasing their product will help you attain your goals.  A financial plan is just that – a dream or goal where the assumptions are managed to produce the desired result.  You may not be able to test the validity of those assumptions until too much time has elapsed to recover from faulty assumptions.

The role of a financial coach is different.  A coach helps to bring out the best in you; helps you achieve your best financial results without regard to personal compensation or gain for the coach.  The reward is in seeing you succeed.  The coaching process is product neutral, not product driven.  A good coach will guide you using sound economic principles to help you achieve the best possible results for your financial situation.

As your financial coach, I will help you create strategies for success.  I would rather help you create 30 one year financial plans with regular reviews than one 30 year plan that is never looked at again.

Comments for this post are closed.