Advisor vs Planner vs Coach

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Advisor vs Planner vs Coach

We provide a comparison between Financial Advisors, Financial Planners and Financial Coaches in the attached spreadsheet. In our research we focus on an overview of the position, areas of focus, target demographics, qualifications and certifications, and average revenue, as average pricing information was hard to come by, for the services offered. We did, however, provide a few examples of financial institutions' charges for financial advising, financial planning, and financial coaching.

OVERVIEW

Financial advisor is an intermediary or an agent between providers of financial products (banks, insurance companies, other financial institutions) and customers. Financial advisors that specialize in managing investments have to be registered with either the state or the U.S. Securities and Exchange Commission (SEC). An additional recommended license is the Certified Financial Planner credential from the Certified Financial Planner Board of Standards (CFP Board). According to Forbes, advisors charge their customers using flat fees, hourly payments, or a yearly retainer fee. The flat fee is usually a one-time fee of a $1000. Advisors can also choose to charge an hourly fee for their services, with fees ranging between $250 - $500 per hour. They could also a charge a yearly retainer fee, ranging between 0.75% and 1.5% on $1 million, considered as the universal minimum amount for opining a portfolio.

A financial planner is a person who works for a bank or investment company and is responsible for advising individuals on how to make most of their money by suggesting investment plans or making investment decisions on behalf of their clients. Planners handle estate management, wealth management, retirement plans, tax returns, budgets, and overall investments. We were not able to find any relevant information regarding an average fee for a financial planner, but we were able to provide examples from two companies located in New York City as references.

A financial coach is also known as a financial counselor. The role description for coaches is targeted towards identifying authorization processes, conducting credit report checks, and keeping accurate records of client interactions. Financial coaches need a minimum of a high school diploma or equivalent. Previous experience is also preferred. No additional certifications are needed. The average cost of a financial coach was estimated to be $257 per hour.

CONCLUSION

A comparison between Financial Advisors, Financial Planners and Financial Coaches has been compiled in the attached spreadsheet.
Sources
Sources