5 Reasons NOT to Hire a Money Coach
Many people who approach us can benefit greatly by hiring a money coach. Some, however, need to work with a different professional. The following are 5 reasons NOT to hire a money coach.
Investment or Retirement Advice
If you need guidance with your investments or retirement plan (i.e. your 401(k) plan) then a money coach is not going to be the best fit for you. A better resource is a financial advisor or a Certified Financial Planner. A financial advisor can give you advice in areas such as investments, insurance, taxes or retirement planning. She can also run retirement projections to determine how much you should save. A money coach can work with you to find areas within your spending where you can save money. You can then allocate the savings toward your investments or retirement goals.
If you need tax advice or recommendations on what to do to minimize your tax bill, a money coach is not the right person for you. A better option would be a local tax professional… whether he is a CPA or an EA. A tax professional knows the ins and outs of the tax code and can guide you to make the appropriate decisions for tax purposes. A money coach can help you create a tax savings strategy to save for potential tax bills in the future. However, a money coach is not qualified to tell you exactly how much to save for taxes.
If you need someone to help you fix your credit, don’t reach out to a money coach. A better option is to talk to a credit repair specialist who knows the nuances of how to improve your credit. A money coach can guide you with how to allocate your income toward paying down your debt, which can have the positive side effect of improving your credit. A money coach is not trained in all the complexities of improving your credit.
Debt Consolidation or Settlement
If you need someone to help you consolidate your debt or give you advice on debt settlement, a money coach is not the person to call. You will have to seek out a debt consolidation company or a debt settlement attorney to assist you with that. If you have good credit, another option could be a 0% credit card balance transfer offer, but beware of the pitfalls associated with doing that. A money coach can assist you in creating a debt repayment plan and determine which debts to pay off first. These strategies, in turn, can help you avoid debt consolidation or debt settlement in the first place.
If you need legal advice, please consult with an attorney. Sometimes we receive questions about incorporation or other legal needs, but a money coach is not qualified to give such advice. A money coach can help keep you organized with your finances, but cannot help you with legal questions.
These are my 5 reasons NOT to hire a money coach. Alternatively, if you want someone to show you how to achieve your short-term financial goals, such as paying off debt, saving for a house, or building up your cash reserve fund, then a money coach is a perfect fit. If you or someone you know wants to talk to a money coach, please click here to schedule a complimentary consultation today!