By Alex Levin
As opposed to a financial adviser who specializes in the business of managing wealth that has already been accumulated, financial coaches help clients create wealth that is within their reach – yet which has thus far eluded them. Whether helping an entrepreneur turn a successful business into a source of personal wealth or advising a retired couple on how to invest properly to ensure lifelong returns, financial coaches provide otherwise floundering individuals with the expertise and motivation to make money.
Todd Tresidder is an established financial coach and the founder of the website financialmentor.com, and he says that in order to understand a coach’s work, it’s important to make a distinction between a financial advisor and a financial coach.
What is the difference between a financial adviser and a financial coach?
In a nutshell, financial coaching helps you build wealth whereas financial advisers are about managing the wealth you already have. If someone is not clear on that difference, they can call a financial adviser and tell him you have nothing to invest – they will hang up on you. They are in the business of managing your wealth not getting you get wealthy. We often call them used product salesmen because they’re selling you stocks. And the reason I use analogies is to set a genuine context… the reality is they sell financial products.
What kind of people can benefit from a financial coach?
When I started financial coaching I accepted clients that wanted help. What I learned was that there’s a specific profile that benefits from coaching and you should only buy it if it will put more money in your pocket than what it cost you. So I don’t accept get out of debt clients. They are better served by a low cost product. Coaching is personal handholding and I walk through the process of making money with you, so there has to be a fair amount of money on the line to be ideal. It’s a no brainer decision for the right client because if they make one smart decision than it can pay for years of coaching and the rest is learning for free. If you have money at risk then it’s a fairly no brainer proposition.
Very common clients are entrepreneurs because they’re very busy and don’t have time for learning how to manage their wealth, and so they’re not doing well or maximizing their wealth. I will often have an entrepreneur that has a successful business, but can’t convert that into personal wealth. That’s very common. Another is somebody who is about to retire, and they almost have enough but not really sure.
They’re sort of getting to the point where they’re almost independent, but they’re not confident and don’t know how to make the transition into retirement. So I make a lot of work with new retirees and how to manage their finances. I also help people with their careers. I have an attorney in California who settles million dollar settlements, and so I’m helping him transition to next stage of career.
Also, one of the things I try to help clients with is their mental “garbage.” There’s a reason they’re not where they want to be – there is garbage that stands between us and our goal. Between working for the goal garbage will come up and it’s about working through that debris to get to the goal. There’s roadblocks, setbacks, emotional barriers, mental blocks, belief structures and on and on. There’s a reason some people routinely get success time and again. Pick a Steve Jobs – he could go from one setback to another and get back on his feet. Some people can’t get out of their own way.
What is the process you take with coaching clients?
The first thing we do is a strategy session call. It’s a free strategy call and I work through with them whether it makes sense to use my services. I find out what their goals are and whether coaching is the best value for them. I’m really big about accepting clients that make sense. Not everybody benefits equally from a coach — who should be learning from a book? What about an online course? When I do a strategy session I have that criteria in mind and try to work for the best value.
Next, once we know they have goals that make sense and I can deliver value we go into the intake session and that follows the base-building for what coaching is. Usually in the beginning of coaching it’s about getting clear on the goal and where you are and then mapping a plan from point A to B. So we’ll find out what’s the goal and the objective.
What lessons do you try to leave your clients with?
It varies and is dependent upon the client’s needs. Different clients require different amounts of time. I have clients that have been with me years — multiple clients have been with me five years, some even 9 years. There’s not one lesson – there are people with unique issues and I try to help each person with the lesson they need.
Alex Levin is a writer for Lance Surety Bonds Associates, a bond agency offering hassle-free surety bonds.
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- Publisher: The National Underwriter Company
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