6 Key Differences between a Finance (Money) Coach and A Financial Adviser/Planner.

Financial Advisers and Planners have been around for a long time but Financial (Money) Coaches are a newer entity recently achieving mainstream recognition. Both can be mistaken to sound alike, but they perform different functions in assisting individuals to make decisions about their money, and financial future.

Money Coach/Finance Coach

1. They focus on their client’s current financial situation in preparation for the future by helping their clients to organize finances, create budgets, eliminate debts, save more, and prepare to build wealth.

2. They offer neutral coaching services and do not sell products that are tied to companies.

3. They focus on improving your money management habit so you can save regularly for retirement.

4. They do not require a formal training or certification, but some may go the extra mile to get one.

5. They teach you long term behavior changes with money.

6. They help you become financially healthy.

7. They are more hands-on in their approach and they meet with clients more frequently.

Financial Adviser/Planner

1. They focus on investment planning for the long term & future.

2. They are licensed to sell products and investments on behalf of the companies they work for, so sometimes they can be biased or in it for the benefits or commission they get if you purchase products or investments from them.

3. They focus on advising you how to invest your retirement and tax free savings money efficiently.

4. They require a formal training or certification at all times.

5. They focus on helping you grow your assets for the long term so you don’t run out of money in retirement.

6. They help you stay and remain financially healthy and wealthy.

7. Their approach is a bit hands-off and they meet with clients less frequently.

Sometimes, financial advisers double as financial coaches and offer both services with the intention that they believe and hope the client will invest in the product or service they offer at some point in time.

Neither are in competitive spaces with one another; rather they complement each other based on the differences above.