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Financial Coach or Financial Advisor

I get asked all the time, "So are you a Financial Advisor?" The term "financial advisor" is definitely more common than "financial coach" so it makes sense that I get asked this, but my answer is always the same: "No."

Here's a quick game! I'll write out some job activities & before you read the answer, see if you can guess whether the statement applies to a Financial Coach or a Financial Advisor.

  1. I take a deep dive into someone's retirement accounts & give them information on when they can retire & with how much. ~ Financial Advisor

  2. I can rollover someone's 401K from a previous company to an IRA. ~ Financial Advisor

  3. I support someone with putting together a personalized budgeting plan. ~ Financial Coach

  4. I provide clients with the tools needed to develop good money habits so they can reach their financial goals such as paying off debt & increasing their savings. ~ Financial Coach

  5. I guide clients to make informed financial decisions so they can make their money work best for them. ~ Trick question - BOTH!

I know these were pretty simple, but honestly the difference between a Financial Coach & a Financial Advisor is pretty simple. A Financial Advisor focuses on an investment strategy & wealth management for your future. A Financial Coach supports you with your day-to-day finances by offering education & guidance that allows you to manage your money in a confident & effective way.

Financial Coaching tends to be more hands on, focuses on your money mindset & requires you to put in some work in order to feel more in control of your finances. Financial Advising tends to be more of an annual follow up where you can sit back & watch your money work for you, without you putting in much effort.

You may wonder which one is more important - my answer to this is always BOTH! I truly believe that most people could benefit from a Financial Coach & a Financial Advisor. If you are wondering which one is right for you, or which one you should reach out to first, you need to ask yourself if you currently have money you are ready to invest right now. If so, I would encourage you to start with a Financial Advisor to get that money invested in a place where it will create more money for you. If you aren't yet at that place, then starting with a Financial Coach can help you get to the point of having extra money to invest for your future.

This is definitely an overview and not a full picture of what these two careers involve, but I hope it has given you a bit of clarity. Whichever direction you do decide to go in first, I promise that reaching out to either a Financial Advisor or a Financial Coach will not be something you regret. Getting your finances organized and in a place where your money is working best for you will alleviate stress and create more happiness in your life. Good luck in your financial journey!

Rachel Durci | Financial Wellness Coach | Effortless Budgeting | Financial Advisor


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