Financial Coach vs Financial Adviser: What's the Difference and Which Do You Need?
Updated: 2 days ago
The short answer: a financial adviser is regulated by the Financial Conduct Authority (FCA) and recommends specific products, like which pension, investment or mortgage to choose. A financial coach isn't regulated and doesn't recommend products. A coach helps you get clear on what you want your money to do, make the big decisions with confidence and actually follow through. When you're facing a big money decision, many people find it helps to start with a coach and then see an adviser knowing exactly what they want.
I spent 25 years in stockbroking and wealth advice before becoming a financial coach, so I've sat on both sides of the table. Here's how the two compare, and how to work out which one you need.
What does a financial adviser do?
A financial adviser is qualified and authorised to recommend specific financial products for you. That might be how to invest a lump sum, which pension to use, how to draw an income in retirement, or what protection you need. Because it's regulated, you have the protection of the Financial Ombudsman Service if something goes wrong. Advisers usually charge a fee, often including a percentage of the money they look after.
What does a financial coach do?
A financial coach helps you think clearly before you act. We look at your whole situation, the numbers and how you feel about them, and work out what you want life to look like and what the money needs to do to get you there. You come away with a written plan, clear priorities and the right questions for your adviser, solicitor or accountant. A coach doesn't recommend products or tell you where to put your money.
Financial coach vs financial adviser: side by side
Financial adviser | Financial coach | |
|---|---|---|
Regulated by the FCA | Yes | No |
Recommends specific products | Yes | No |
Main question | What should I do with my money? | What do I want my money to do, and what's getting in the way? |
Focus | Products, investments, pensions, tax | Your goals, your decisions and a plan you'll stick to |
How you pay | Fees, often a percentage of the money managed | A fixed fee for sessions |
How long | Often an ongoing relationship | Usually a few sessions |
Which one do I need?
You probably need a financial adviser if:
you want a recommendation on a specific pension, investment or mortgage
you need help arranging products, such as moving pensions or investing a lump sum
you want someone to manage your investments for you
A financial coach is likely to help more if:
you're facing a big money decision, like divorce, selling a business, retirement, an inheritance or a career change, and you're not sure yet what you want
you've lost someone close and need to work through the finances at your own pace
you know roughly what you should do but keep putting it off
you've had advice before but didn't act on it
you want to go into a meeting with an adviser or solicitor knowing exactly what you want
Why coaching first often makes sense at big decisions
At the big moments, the hardest part usually isn't choosing a product. It's working out what you actually want. What does life look like after the divorce, or after the business sale? How much is enough? What matters most to you and your family? When you've answered those questions, advice becomes quicker, clearer and better value, because the adviser is working to your plan rather than guessing at it.
Questions people often ask
Is a financial coach the same as a financial adviser?
No. A financial adviser is regulated by the FCA and can recommend specific products such as pensions, investments and mortgages. A financial coach isn't regulated, doesn't recommend products, and helps you get clear on what you want your money to do and make the big decisions with confidence.
Will a financial coach tell me where to invest?
No. A coach won't tell you which fund, pension or product to choose. That's the job of a regulated financial adviser. A coach helps you work out what you want, what matters most and what to ask an adviser, so you get more from that advice.
Do I need a financial coach or a financial adviser?
If you need a specific product recommendation, you need an adviser. If you're facing a big decision such as divorce, selling a business, retirement or an inheritance and aren't yet clear what you want, a coach is often the better first step. Many people use both.
How much does a financial coach cost?
It varies. With me, the first 20-minute call is free, a single Clarity Session is £199 and the three-session Financial Clarity Programme is £799.
Can I see a financial coach in Manchester or Stockport?
Yes. I see people face to face in Cheadle, which sits between Stockport and Manchester, and by video anywhere in the UK. Here's more about working with a financial coach in Stockport.
Talk it through
When something big happens in life, a divorce, a business sale, retirement, an inheritance, losing someone close, a growing family or a change of career, I'm the person to come to. Whether you're in Manchester, Stockport, Cheadle or anywhere in the UK, book a free 20-minute call. No obligation, just a chance to talk it through. You can also read more about how I can help or my story.
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