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Here's a chart to help illustrate the difference between coaching and financial advice.

Coaching

Financial Advice



Follows the client's agenda. Follows the advisor’s agenda.


No specific advice given. Clients have unique portfolios. Client’s portfolios look similar based on adviser’s recommendations.


Client is the expert. Advisor is the expert.


Independent relationship created Dependent relationship created


Client is accountable and responsible. Advisor is accountable and responsible.


Asking questions. Telling directions.


Not dependent on knowing client’s financial numbers. Dependent on knowing client’s financial numbers.


Focuses on learning and growth of client. Focuses on growth of the client’s portfolio.


Goal is to create a fully functional, educated, independent client. Goal is to create a portfolio for a dependent client.


No specific securities recommended. Specific securities recommended.


Teaches responsibility. Takes away responsibility.


Paid for eliciting, educating, expanding, and drawing out. Paid for financial expertise applied to the client portfolio.


Draws out the clients values. Imposes the advisor’s values.


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