Financial Professionals abound. Looking for help can feel like an unnavigable sea of options. There are so many professionals with so many offerings, service types, and hooks. But which is right for you? How do you match your needs with the provider to make sure you are getting what you need?
Let’s explore a few of the broad categories of providers.
Money Coaches
Also called financial coaches, money coaches tend to provide guidance with budgeting and debt repayment. Some also approach the more emotional aspects of money, helping individuals to work on their “money mindset.” These individuals rarely have financial training outside of the budgeting and financial literacy realm. Their work on the softer side of finances is based in coaching techniques rather than having mental health credentials.
These individuals can educate you, help you set goals, and provide guidance on how to achieve them. They are legally unable to provide any financial advice. They are coaches not advisors.
Financial Therapists
As the name implies, financial therapists are licensed mental health professionals who focus on emotions surrounding money. A rare few may be both a licensed therapist and a registered financial advisor. I am a huge proponent of therapy and most of us have issues regarding money that we would benefit from addressing.
Financial therapists provide therapy which is vital and also is very distinct from providing specific, practical, financial advice.
Financial Planners
Financial Planner and Financial Advisor are two different terms for the same profession. (Yeah, not at all confusing) These individuals are able to provide specific investment advice.
Advisory services include portfolio construction and investment recommendations. They also includes items that are less explicitly “advice”. For example, recommending if someone should be saving to a bank or a brokerage account or instructing on whether a rollover from a 401(k) to an IRA is appropriate.
Financial advisors may also provide coaching on money topics, but do not provide therapy unless they are licensed mental health providers.
My Style of Financial Planning
As you likely know, I am a financial planner and have been working in this industry for many years. I consider the attempt to entirely remove feelings from finances a common shortcoming found within my field. As a planner, I believe it is vital that we consider the whole person by recognizing and valuing emotions. A primary reason I started my firm, to move away from the conventional capitalist values promoted by most firms.
I provide multiple services including retirement planning, investment recommendations, and one time or ongoing advice. I strive to do it in a compassionate, forthright way. If you know that you could use some outside help, but are not sure which type of provider is right for you reach out and I can help point you in the right direction, be that me or another person or company.