What’s in a name?

Nov 1

Coach, planner, advisor, financial representative? What do all these titles mean and what type of professional might make the most sense for you today?

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Sharpies and hello my name is tags — *Photo credit: Jon Tyson @jontyson* *on Unsplash*

If you are on the hunt for a financial professional, you might be a bit overwhelmed by the amount of titles you are finding. Money coach, budget coach, financial planner, financial advisor, financial representative, accountant, attorney, life insurance agent, property and casualty agent - just to name a few! (And that doesn’t even touch on any designations such as a Certified Financial Planner or Certified Money Coach!)

How do you know which one is right for you and what the heck they all do or don’t do??

Here is a breakdown of some of the common differences. The specifics may vary depending on the professional and their credentials, so it probably makes sense to chat with more than one to see if they offer the services you are looking for. In my personal opinion, it’s very important for you to trust the people you are working with when it comes to your finances. You need to be able to feel comfortable with them and share financial details, as well as your goals. If you don’t find the right fit on the first go, that’s ok! Keep interviewing until you do.

Money/financial/budget coach – someone who can help guide you with the emotional and money mindset side of things. These coaches may also focus more on the basics of finance – budgeting, debt management, or basic savings. Anyone can legally call themselves a money or financial coach, no specific training is required at this time. While there are designations out the wazoo in the financial services industry, a couple good ones to look for would be a Certified Money Coach® or an Accredited Financial Counselor®. For budgeting specifically with YNAB, you can look for a YNAB Certified Budget Coach.

Financial planner or financial advisor – the person in this role generally provides more specific advice on comprehensive financial planning and/or investments. Not all financial professionals in this area are equal either! (Trust me, I know it’s confusing!) Be sure to check qualifications here as well. While more specialized training is required than for a financial coach, someone may only have a Life & Health Insurance License, which doesn’t provide any training for financial planning or investments. Anyone with this qualification is now legally only able to call themselves a financial ‘professional’ rather than a ‘planner’ or ‘advisor’. Fully licensed planners or advisors should have a minimum of a Series 7 and 66, or Series 65 license, or be a Certified Financial Planner®. Licenses can be verified through FINRA's BrokerCheck or through the SEC website (in the US; depending on how the firm is registered).

Accountant – this person can do more than just file your tax return each year! There are ways to plan for taxes, when appropriate, and an accountant, Certified Public Accountant (CPA) or an Enrolled Agent (EA) can help you in those areas. Most financial planners have some basic tax knowledge but will refer you to an accountant for the more complex topics. Some planners are also open to the opportunity to plan together with a clients’ accountant.

Attorney – while this doesn’t seem like a need for financial matters, it is actually an important one. An attorney can prepare your estate planning documents (will, Power of Attorney and living will), which can be crucial in planning and emergency situations. The gist of it is, these documents can lay out exactly who you want to get your money when you pass away. By doing this, you may save your heirs a bunch in taxes. Just trust me that it’s important so add it to your list of financial healthcare items!

Life insurance agent – while this can be the same person as your financial planner, not all planners offer the service. But again, such an important piece of your financial puzzle to understand! There is a specific license you must obtain to be able to sell life insurance (at least in the US).

Property and casualty insurance agent – this is the person who can help determine the correct coverages for your home and cars. How does this relate to your financial health? Again, in those times of emergency (car accidents or home fires, for example) it could mean the difference of many dollars to your pocketbook. While you can buy your insurance online (like everything these days!), it’s helpful to have a local contact person who can talk to you about your specific situation.

Again, since money is such a personal topic, you need to know, like and trust the team you are working with. You need to feel comfortable enough to tell them everything about your finances (especially your financial planner or coach!). Take the time to seek out someone you trust. Having these people in your corner, knowing you are able to reach out to them at any time, can help ease some of the money burden.

Remember, you don’t have to go at this alone. True, trusted advisors will want to help you succeed, no matter what.