If you were thinking of building a castle in a hostile land, what would you build first? Most people I talk with would start with the moat or the walls for protection. Why is it that we don’t approach planning for our financial future the same way? All too often we put all our efforts into growing our wealth before giving thought to protecting what we have in the way of assets, income, and wealth. I turn the traditional financial planning model upside down so as to address protection needs first. If I can protect you from loss with some amount of certainty, that seems better than pursuing the possibility pot of gold at the end of a rainbow. Using various types of insurance for protection engages others to share your risk of loss.
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.