Investment Advisor vs Investment Coach

Man leaning back in his chair with his hands behind his head looking at investment data like candlestick charts on his computer monitors.

You've worked hard, had success, and now you want to pump up the jam on your retirement savings. But where do you turn?

In this article, we'll compare and contrast the traditional choice with a modern one: investment advisor vs investment coach.

Here is a breakdown of each of their approaches and motivations in helping you successfully grow your retirement portfolio.

There are major differences between the two that you should be aware of before making a commitment.

Investment Advisors

There are plenty of investment advisors out there.

But, most of these “experts” have a bias since their living depends upon selling certain products or services.

Granted, there are regulations to follow and certifications to earn in order to be qualified to sell investments, but once licensed these folks need to find a company to work for.

Sometimes companies help their employees go through training and receive the proper licenses. 

In either situation, their job is to earn their company money by managing your money.

So, your Spidey sense should already be going off at this potential conflict of interest.

Banks & Credit Unions

Of course, everyone needs a bank account.

But this is just as beneficial for the bank as it is for you. Probably more so.

Banks and credit unions have the advantage of seeing how much money flows through your account and they would rather manage your investments than have you withdraw your funds to invest elsewhere.

As a result, every bank and credit union has an investment department.

These departments are staffed with licensed investment advisors who will manage your money.

This offers convenience for the busy investor, but like any other bank service, you pay for this convenient service.

Typically, this is in the form of commissions or fees based on a percentage of the portfolio value.

Brokerage Firms

I think it's wise to separate your bank account from your investment account.

This makes it a bit less tempting to dip into investments whenever you feel an urge to spend a whole lotta cash.

However, you're once more facing a similar dilemma; these folks are still depending on your money to make them their money.

If it still sounds a bit off-key and filled with the potential for misuse, you're sharp.

Many of the brokerages and robo-advisors have investment advisors to help you invest your money.

Of course, they'll also charge big fees and give preference to the in-house investment products and funds.

Investment Coaches

You're a successful person, either having built a business or become a key employee of a company.

You are smart enough to know that having skill, knowledge, and experience in your specialty doesn't magically or logically translate into similar expertise in the ever-evolving world of investments.

You're also smart enough to realize that relying upon biased investment advisors is a bit like asking your dog to keep an eye on the New York strip you bought for dinner.

Finally, you are smart enough to know that because no one else will ever care more about your money than you do, you should learn about investments and financial planning.

That is, provided you have the right resources and support.

For you, there is another important and practical alternative to old-fashioned money management methods: working with an investment coach.

First, let's splash a few major differences right across the screen…

No Commissions, No Fees

That's right, you don't pay a commission or fee based upon your portfolio value.

You pay to learn from an investment coach who provides you with the skills and knowledge to manage your investments intelligently, unemotionally, and safely.

The first thing you will learn is that planning and investing for retirement is a long game.

Of course, spectacular gains are exciting, when they occur, but keep in mind the big ones are the exception and not the norm. #ThatsWhatSheSaid

No Churning

The next difference, which is truly a breath of fresh air compared to traditional advisors, is coaches don't play with other people's money to earn their living.

Most investment advisors practice churning, to the detriment of the investor and to the benefit of the advisor.

Churning occurs when an investment advisor encourages their client to regularly buy and sell different investments.

This typically occurs with stocks and bonds that are easy to convert to and from cash, instead of buying and holding for long term growth and income.

Of course, each transaction generates a commission or fee, which is what advisors rely upon for their monthly income.

Investment coaches, on the other hand, show you how to evaluate potential investments and manage your investment portfolio.

You'll learn when to buy and sell.

And most importantly, you'll get coached on how to manage your mindset to avoid making big mistakes when your emotions try to get the best of you.

No Speculations

Investment advisors, anxious to impress and tempt their clients to make new investments, often recommend risky, speculative, volatile investment opportunities.

Unfortunately, too often these hot tips cool off fast taking your cash and any hope of profit.

Once more, investment coaches take an entirely different, long-term approach to practical investing.

Modest, steady annual returns may not sound exciting until you hear your friend complain about the bundle they dropped in the market on the latest hot tip that turned cold and died.

And when you crunch the numbers of an income investment strategy, you may be surprised how wealthy you can get when you opt to get rich slow.

Our Case is This:

Investment advisors want to sell you lemonade; whereas, investment coaching teaches, mentors, and supports you to learn how to grow your own lemon trees so that you can drink all the lemonade you want for the rest of your life.

Heck, we'll even show you how to grow oranges, apples, and other juicy fruits to keep quenching your thirst without worrying where the next glass is coming from. 

Ready to learn what to do? Get started with our free Income Investing mini-course that includes a copy of our Personal Profit Planner here.

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