What is the difference between financial planning and coaching?

Traditional financial planning is the source of much of the distress that people feel in their financial lives. Why is this the case when it seems so logical to hire a planner to escape our financial difficulties? The root of the problem lies in the way planning is carried out.

First, financial planning it is often used as a marketing tool to sell financial products. The reason? To generate commissions on the recommendations. The individual working with the planner generally has little way of knowing whether the recommendations are in their best interest or the best interest of the planner. They also have little way of knowing whether the products could have been obtained elsewhere at lower cost.

The majority of planners actually work for a brokerage firm or a broker/dealer and don't really work for the client. The brokerage firm actually controls what products can be recommended.

Second, the traditional planning process does little to educate investors and help them deal with the instincts and emotions that are at the root of the poor investment returns that they experience.

How can you tell if your advisor is helping you avoid these problems? Simply take the "Investing Quiz" on this website. Being able to answer these questions is the key to having true financial peace of mind in an uncertain world.

A coach has a process in place to help clients answer these questions. If you would like a second opinion about your investment choices, call for a complimentary initial consultation. 561-784-8181