671 Winkler Dr. Wooster, Ohio 44691

Why You Need a Financial Coach, Not a Broker

Let’s say you want to lose weight, but you aren’t exactly sure how. So, you seek out some experts on dieting. You come up with two options.

  • Option 1: You can hire a person to shop for you. This person buys food for you based on what he or she thinks is healthiest at the moment. But here’s the catch: every time you make a purchase, this person gets paid a commission by his/her company.
  • Option 2: You can hire a dieting coach. You pay this person a pre-determined fee to weigh out all of the options and help you make the best food choices for your lifestyle. No matter how many purchases you make, this person gets paid the same.

You would go with option two, right? The coach is clearly looking out for your best interest. With the coach, you–not his or her company–are the customer. The same is true in the world of investing. A coach will always be more worthwhile than a broker.

In the words of William Bernstein, “Brokers service investors the same way Bonnie and Clyde service banks.” I’m not saying that brokers are bad people…or even that they have bad intentions. Like just about everything else, it’s not an issue of intentions; it’s an issue of incentives. Brokers are compensated by their firms when you invest greater amounts of money at more frequent intervals.

Contrast that with coaches, who get paid by you–not their companies–based on what is the best amount of money to invest at the best intervals. Again, it’s not that brokers are bad people and coaches are good people. They’re both human beings. They both are working to support families, pay for college tuitions, give to charitable causes, and so on. But they have very different incentives in regards to how they get compensated. And, when the money is coming out of your pocket, that distinction matters a great deal.

When you hire a coach, you are hiring an advisor. You are paying someone to use his or her expertise to give you honest, straightforward, non-partisan financial advice. When dealing with your money, you need someone who will give it to you straight. A good coach will…

  • Motivate you to be proactive about your investment strategy.
  • Help you stay disciplined in your investment behaviors.
  • Provide you with useful tools and strategies.
  • Guide you in reviewing your investment objectives.
  • Lead you to experiencing a life of abundance.
  • Focus your vision to help you see through the clutter.
  • Generate financial and personal growth that leads to an all-around better life.

You aren’t likely to get the same kind of commitment from broker. To a broker, you are just a number. You’re just a means to an end. To the coach, you are the end. A broker sees you as a commission; a coach sees you as a mission. Contact us to learn more about how a coach can help you develop a sound investment strategy.