Wealth coaches are not financial advisers – let me get that out of the way first. The guy who manages your brokerage account is not a financial coach and the person who answers the phone when you call your discount stock broker is definitely not a wealth coach.

A Wealth Coach Does Not Give Financial Advice

Well, this statement isn’t exactly true. A financial coach is actually a source of unending financial advice, it is just a bit different than the advice you receive from a broker or a portfolio manager. You can ask your broker about the stock of XYZ company, but you really can’t ask him or her about proper household budgeting techniques, or how to begin saving for retirement, or how to learn about the intricacies of investment allocation so you can eventually make your own investment decisions.

Wealth Coaches are Not Financial Advisers

Most of you have heard the old proverb: Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.

To paraphrase this old saying: Financial advisers give you the fish, but wealth coaches teach you how to fish so you can continue to fish and eat bountifully for the rest of your life.

Here are a few of the differences between wealth coaches and financial advisers:

• • Financial coaches don’t provide analysis of specific stocks or investment vehicles.
  • A wealth coach doesn’t offer stock tips on the next big stock market winner.
  • Wealth coaches don’t provide specific asset allocation recommendations.
  • A financial coach won’t analyze your portfolio and make specific recommendations on a continual basis.
  • Financial coaches provide education about budgeting, investment, additional income streams, retirement investment choices, and a host of other financial related issues. Does your broker do that?

Wealth Coaches Can Help You Build Wealth

Can a financial adviser help you build wealth? Sure, if the stocks suggested go up, wealth is built. But, they only deal with a few of the building blocks of wealth. Their job description doesn’t include helping you become a more involved and educated investor and money manager.

A wealth coach is more of a big picture person. Wealth coaches see the forest through the trees – they look at the entirety of your financial picture and help you learn how to manage your own financial future.

Wealth and financial coaches always focuses on you and your education. They want to help you become your own financial adviser and not have to pay someone else to do that job. Financial coaches want you to be in control of your money and financial future.

Why You Need a Wealth Coach

Two studies, one by the U.S. Department of Health, Education, and Welfare, and another from the American Council on Life Insurance have found that close to 95% of the population is facing retirement without financial security. A recent survey from the Federal Reserve found that 20% of Americans have zero money saved for retirement. Zero!

Another study, this one by the National Institute on Retirement Security found that, among people between 55 to 64, average household retirement savings was only $12,000. That won’t last very long once you’ve reached your golden years!

Unless you are one of a shrinking percentage of people who are putting enough away to comfortably enjoy your golden years, you just may need a wealth coaching expert. As soon as possible! Right away! Now!

Hope you took some great value out of this post today! I’d love to hear your feedback, so make sure you leave a comment with your thoughts or questions. And also, you can click on the Twitter button below to retweet this article… Thank you!

Fred Philips
Business Coach
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