Planner vs. Coach

Planner vs. Coach

Did you ever ask yourself what’s the difference between a Broker/Planner versus an Investment Coach?  The differences are striking!

What does your money really have to do to bring you peace of mind?  Coaching helps you focus on your values and creates a powerful vision for the future that can be used to transform your life and expand your experience of money and investing to abundance.

The most common result I see from the traditional commission-driven financial planning process is fear, anxiety, confusion, complexity, and a reduced ability to take action on your own behalf.  A coach helps you to wade through all of these very complex issues and maintain long-term discipline around the investing process.  Ultimately, investing is a people problem not necessarily a portfolio problem.  Another thing that a coach will do is to make independent recommendations.  These are not based on commission but based on doing what is in your best interest.

Coaches provide the discipline necessary to be a successful investor.  There will be times in the future where your emotions will be tested.  A coach will keep you on the right track.

The THREE SIMPLE RULES of investing demand discipline:

•  Own Equities (and reduce risk to the extent necessary by increasing exposure to high        quality shorter term bonds around the world)

•  Diversity (Broad based diversification around the world in free markets)

•  Re-balance (A forced sell high buy low discipline)

Coaches solve the problems financial planners and brokers create

Financial planning used by brokers is often just a disguise to sell high commission inferior financial products that are not truly in your best interest.

How can you tell?  Did you get your “plan” for FREE?  Were you sold all commission based products?

•  The financial plan is not for you (the client)… it’s for the planner to sell product.  More often than not, free financial plans are marketing schemes to sell commission products that may not be in your best interest.
•  Planning is most often product driven.
•  Garbage in garbage out – Know that the planner can manipulate the numbers with just a few small adjustments to help sell his product.
•  Financial planning is only a snap shot in time.  You can’t trust Uncle Sam to not change the rules.
•  The financial planning industry is in alliance with the media due to huge advertising dollars.
•  Commission driven planning is a huge potential conflict of interest.  Even when dealing with planners with good intentions, when forced to choose between you and their own self interests (mortgage, bills, college savings, etc…….) they sometimes choose their own self interests over yours.
•  Selling pushes past performance and or hot products because they are easier to sell.  this can unknowingly increase your risk.
•  Financial planning is not designed to produce peace of mind.  You are often left in a constant state of flux.
•  Traditional planning does little to educate investors and help them deal with the instincts and emotions that are the root of the poor investment returns that many investors experience.  Emotions often cause investors to buy high and sell low.

A good coach will provide you with continuing education and coaching each and every year throughout the year.

Here is a quick list of things you should make sure you get when selecting a Financial Coach

A Financial Coach is someone who:

  1.  You trust and feel that your coach has your best interest in mind (you have to go with your gut on this, but a good place to start is with someone who has a good reputation with other successful investors.)
  2. Makes you feel confident about what you are doing and gives you the information or education you need to fully understand your investment strategy – you don’t have to be the expert but you shouldn’t be in the dark either…make sure you get the information you need.
  3. Gets paid fees, not commissions.  Advisers or Brokers who make commissions from selling a particular product often have other motivations besides your best interest – be aware.
  4. Makes you feel like an individual – not a number.  You are an individual and deserve individual attention and consideration.  Make sure you get it.
  5. Will watch your back and stick with you and your strategy for the long haul.  You want your adviser to be a true advocate for your financial success, who will stick with you and keep you pumped about your strategy.
  6. Has conviction about the products and strategies that he recommends and can back it up.  Make sure that there is solid, believable evidence for the strategy that your professional recommends and that he can deliver it to you.
  7. It’s much easier to have someone else do the hard work for you who can look clearly and objectively at your current situation and find out where you think you want to go.  In short, someone who can tell you what is realistic and what isn’t.