I’m often asked, “Todd, I already have a financial advisor. Why would I want a financial coach?” If you look behind this question you will see an underlying premise that assumes financial coaching and financial advice are similar enough to be substitute services for each other. The truth is they are as different as night and day.
In a newly published article titled “Financial Coaching vs. Financial Advice” I explain in detail how each profession operates and what you can reasonably expect from each service. In a nutshell, financial advice seeks to sell you a fish so you can eat for the day; whereas, financial coaching teaches you how to fish so you can independently get all the fish you want for the rest of your life.
In this new article on financial coaching I show you how:
- Traditional financial advice has failed to serve consumers adequately.
- Financial coaching is focused on your education; whereas, financial advice is focused on investment product sales.
- Traditional financial advice has an inherent conflict of interest that biases the information you receive; whereas, financial coaching has no such conflict of interest.
- and much more…
In fact, I provide a table detailing 14 key differences between financial coaching and financial advice. This table has been copied on other web sites and cited in magazines (it came from my old web site years ago) so you may want to check it out. In one glance you can become clear on the differences between financial advice and financial coaching so that you can decide how to best utilize each service.
I hope this helps, and please let me know your thoughts by leaving a comment below.