There are only three things you can do with your money:
A Financial Coach focuses on the first two and a Financial Planner focuses on the third. Think of the Financial Planner as a specialist, somewhat like a brain surgeon. You wouldn’t see the surgeon for a sprained ankle? So if you want to organize your finances, increase your cash flow, and learn how to save properly, see a Financial Coach.
The difference is a Financial Planner invests your money into equities, like stocks, bonds, mutual funds, or variable annuities. They focus on investing and rarely anything else. A Financial Coach focuses on everything else. This includes things like debt elimination, cash flow, and money being unnecessarily given to financial institutions. A coach takes the time to guide you through the quagmire of financial decisions like mortgages, credit cards, automobile financing, 401(k) participation, 401(k) exit strategies (how are you going to get the money out?), and life insurance (term vs. whole life vs. universal).
A Financial Coach equips his clients with the tools, knowledge, and experience to have financial peace of mind and clarity not only for the present, but for the future as well.
A coach's job is to simplify your financial world and empower you with the tools necessary to make progress. A Financial Coach will not tell you what you need to do, or try to sell you a product, but instead helps you discover what it is you want. Once you know what you want, its the coach's role to hold you accountable for making sure you get what you want.
Along with accountable, a Financial Coach adds a great amount of expertise to your situation that will simplify, clarify, and empower you to make progress in areas that you were struggling with before.
Think of your favorite athlete: Michael Jordan, Michael Phelps, Tiger Woods. What does each of them have in common? They each have a coach. A coach brings accountability, neutrality and a firm direction to your goals and visions.
How do you feel when you hear the words: “Life, liberty, and the pursuit of happiness?” I take pride thinking that my nation, over 200 years ago set a pattern that ‘Wealth & Happiness’ are legal pursuits.
Yet what steps are you currently taking to get you closer to what you want? If you really want greater wealth and happiness, perhaps learning from the greats is appropriate. If you want happiness, study it, learn it, and pursue it. Wealth is the same.
Investing in the stock market is not a logical pursuit of happiness. Too much is left to chance and passivity. Take an active role in your pursuits and the results are more favorable and rewarding.
This concept is not for everyone. If you are committed to getting your financial future in order, the Balanced Living System™ is for you. If you want to go it alone, then this idea won’t work for you.
The system holds you accountable for what YOU want. The Balanced Living System™ gives you the tools to accomplish what you want.
Since money is allegedly the #1 cause of marital discord (divorce, separation), we've learned that it is important both husband and wife get on the same page. We look at your future from two points of view: 1) What if you live? And 2) What if you die?
What if you live? This is retirement preparation, planning for the future. Working as a team requires both parties to be present and unified. We teach you the difference between conflict and contention and how to overcome the first and avoid the latter.
What if you die? A major segment of Americans filing for bankruptcy is widows. They are unaware of their financial picture before the death of their spouse, and it doesn't matter if they are left with little money or millions of dollars. If a widow does not spend sufficient time to understand the workings of her estate, she will often receive poor advice from family and friends who mean well, but don't understand her situation any better than she does.
A Financial Coach focuses energy on spending and savings, two aspects that carry little to no risk. A Coach will help you gain control over your finances and prepare your household for the future. You are in charge and your Coach gives you the clarity of direction and the peace of mind that most Americans have never been taught.
A Financial Planner places most of your money into a potential position, it could go up, but it could go down. There is very little discussion about your debt, your spending habits, your communication tools or your life during retirement.
Active income means you are doing something to earn the money, working for example.
A large majority of working Americans today will need some type of active income during their retirement years. Social Security and 401(k) programs will not be sufficient. Consider the many seasoned citizens you see working at McDonalds and Walmart each day. Rather than coming up with employment after the matter, we get you working on your future today.
Passive income occurs whether you work or not. What plans are you making to increase your passive income today? The income may be passive, but it requires a lot of action on your part long before the check is in the mail.
It's taken you years (depending on your age) to arrive where you are today. As a general rule, you've never been taught any of these tools in school or at home. We've designed a 1-year plan for you to get control of your spending, saving, communication tools and direction.
It is broken down by quarters. Each quarter has a punch list of things to do, to learn, to study, and to practice. Since each couple comes with a unique set of circumstances, you may be working on tools and items from the 3rd quarter during your first month. It's your plan. Your Coach will work with you to determine how to proceed.
$1,995 for one year.
Most financial professional will quote you return averages. For example, have you ever heard a Financial Planner or Stock Broker explain that you should keep your money in the market because it always averages out over time?
Let's do an example to explain this concept: Let's pretend you have invested $100,000 with Stock Broker Sam. At the end of the 1st year, S.B. Sam proudly calls you with the results. Your account has grown by an amazing 10%.
Year 2 isn't as productive, the market was crazy and Sam's isn't as excited about his phone call. He informs you that the account lost 10%. Bummer, you say. Yeah, Sam agrees, well at least we broke even over the past two years; we averaged a 0% return. Given how bad everyone else did, breaking even isn't that bad, you think.
Did you really break even? Sam quoted you an average rate of return, but did he accurately portray your portfolio's performance? Let's do the math:
If you actually averaged 0% with your money, why is your new balance less than your starting point?
Yes and No!
We have a handful of clients who are paying over $40,000 for a mentoring program with other professionals. The mentor flies in every now and then and helps them purchase property etc. After the mentor leaves, our clients comes in to learn how to do what they have been taught.
Self help books and mentoring programs are great, but Coaching gives you the financial foundation on which to operate.
Coaching teaches you how mortgages work, how life insurance works and what's the best kind for you, how the 401(k) works, how to get money out of it without paying the full amount of taxes, how to protect your IRA rollover from a risky stock market, how to save money on car purchases and how to get rid of your credit card debt, just to name a few.
Here is an easy way to view the difference in approach. You have $100,000 in an investment portfolio. After meeting with a Financial Planner you are tempted to move your funds to her professional management care. She charges a fee of 1% to manage your account and you only pay her transaction costs when she buys or sells. Your current portfolio has been mediocre with a 6% rate of return over the past few years.
The new Financial Planner shows you how she has averaged about 7% over the same period of time, or a full 1% higher. Wow! She's got to be good.
Before you make the decision however, you meet with a Financial Coach. After looking at your cash flow situation, she informs you that you could save $250 per month using her system. You're not impressed, especially when she indicates you could put the money in a safe position at 5% (cd, money market, indexed product). You express your position and she shows you the following numbers:
The Financial Planner earning 1% more than you are currently earning over the next 20 years will earn you $35,408.17 additional interest.
The Financial Coach saving you $250/month over the next 20 years will accumulate $60,000 if you put it into your mattress. At 5% it will be worth $102,758.42.
