Financial Planner vs. Financial Coach vs. Financial Advisor: The Right Fit For You | Credit Raters post

Financial Planner vs. Financial Coach vs. Financial Advisor: The Right Fit For You

14 Oct 2019
Approx Reading time: 4 minutes

Life has its fair share of worries and uncertainties. Financial planning and prosperity are some of the concerns that occupy most people’s minds. How well one gets to manage their finances and wealth determines a great deal their lifestyle as well as the kind of life they get to live upon retirement.

Just as is the case with any life challenge, there are always professionals on dial, ready to provide much needed financial help and advice. Financial planners, financial coaches, and financial advisors are some of the most sought after professionals when it comes to financial matters.

Financial Coach

A financial coach is a professional who strives to provide valuable information for developing and maintaining healthy financial habits. These are the people to go, to gain an insight on personal finance and nurture a habit for financial prosperity.

Empowering and nurturing financial goals is their responsibility. Therefore, if you wish to save money, create a budget, let alone develop a framework for paying off debt, these are the people to talk to.

 Financial Coach Pros

  • Financial coaches’ advice can help alleviate financial stress and confusion
  • Financial coaches can help develop better saving habits leading to personal growth
  • Financial coaches advice and encouragement can be the driving force for accomplishing financial goals

Financial Coach Cons

  • Difficult to find a certified financial coach as there is no professional training
  • Can be difficult to find the right financial coach based on needs at hand
  • Financial coaches are not the best when dealing with complex financial matters

Financial Planner

A financial planner is a professional whose main responsibility is to help clients and corporations meet their financial goals and aspirations. Their work entails consulting clients about their goals and their risk tolerance, to identify possible investment plays.

People turn to financial planners when faced with financial dilemmas such as buying a home, paying children’s college, or saving for retirement. Certified and experienced financial planners are specialists in tax planning, risk management, and estate planning.

Financial Planner Pros 

  • Financial planners can save you a lot of time when planning your financial goals
  • Financial Planners have deeper and broader knowledge for money management and wealth-building
  • Financial planners are ideal for figuring out savings strategies and retirement options

Financial Planner Cons

  • A financial planner may not have your best interest in mind especially when conflicts of interest pop up
  • Financial planners cost money that at times can be costly
  • Choosing a wrong financial planner can be detrimental

Financial Advisor

Financial advisors, on the other hand, are professionals that strive to impact knowledge for building and developing wealth. Such professionals provide valuable insights on investment opportunities that last a lifetime.

Financial advisors are the people to go to gain valuable insight on how to manage, build, and develop investment portfolios. Years of experience and knowledge on financial matters makes them ideal for estate planning as well as taxes management.

Financial Advisors Pros

  • Being licensed professionals, they are the best for gaining insight on money management and advice
  • They provide unbiased strategic advice ideal for complex financial issues
  • Financial advisors can be relied upon to manage an investment portfolio, therefore, avert financial stress

Financial Advisors Cons

  • Financial advisors services does not come cheap
  • There is no guarantee that the financial advice provides would be commensurate with returns

Difference Between Financial Planner vs. Financial Coach vs. Financial Advisor

There is no big difference between the three. However, financial advisors specialize in providing valuable information for building wealth that already exists. Most Financial advisors also boasts of certifications that give them the mandate to offer financial advice.

In contrast, financial planners and financial advisors are only ideal in situations where one is starting to build wealth. When faced with bad financial habits, then a financial coach or advisor would be ideal. Most financial coaches are not trained, as it is a new field.

Who should be hired for what job?

Financial coaches and financial planners are ideal for situations that deal with financial issues or habits. The two work on people’s perceptions and habits around money and wealth.

Financial advisors on the other hand offers services that are hands-off and product based. They are the people for gaining access to investment opportunities or managing a larger financial estate.

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Rebecca White

Rebecca White is chief editor at CreditRaters.com. Rebecca has an extensive amount of knowledge on financial subjects including short-term loans & debt consolidation in the UK and USA. Rebecca has wrote for many publishers such as Debt Secret, My Money, VL and more.