My Clients Crave Principal Protection

Meaningful conversations with good clients are the highlight of any money coach’s day. These conversations are like snowflakes, no two are alike, and are as different as the clients themselves, each with their unique goals, relationship and family situations, level of knowledge, level of wealth, specific goals, and the list goes on.

We work with a more elderly clientele, and have noticed a common theme, regardless of their differences: virtually all of them want protection.

Older clients want to protect their lives, their health, their family and their money.

The days of risk and growth are long gone, having surrendered to the days of safety and income. Cryptocurrency is for the young, risk has become a four letter word, and the paychecks are over, so when it comes to money, you cannot afford to lose it.

Wealth preservation and the need for a solid, tax-friendly income generation plan are the most relevant solutions, and many times a protected growth strategy that eliminates risk of loss while maintaining growth of assets are required solutions. Creating lasting legacies through a formalized insurance and estate plan are necessary to complete the picture.

In working with any financial professional, they must be conversant on the strategies and instruments that will satisfy their elder client’s need to have safe income and capital preservation. 

A money coach’s role, on part, is to help their clients identify and eliminate their destructive money behaviors, elevate their financial literacy and hold them accountable to achieving their greatest goals in life.

Never. Lose. Money.

 

What is a Money Coach?

Money coaches are not investment brokers, but they could be!

Money coaches are not financial planners, but they could be!

Money coaches are not necessarily already in the financial services business, but they could be!

So what the heck is a money coach?

Before we seek a definition, let’s first contemplate the human condition for a moment, and consider what people really want in terms of a happy life.  

We know that money doesn’t equal happiness, but when we think about money, we generally want to know a few things: how can I make more, how can I keep from losing it, how can I be a better investor, and how can I best manage my life, financial and otherwise, so that my family and I can live a healthy, worry-free life.

Face it, living life means learning how to deal with risk. Catastrophes and mistakes have a price tag. Everybody’s price tag is different. Most of us don’t sit around worrying about things like stock picking and market volatility. We think about what hazards might come our way that could make our lives more volatile. The health and safety of our spouses and children, losing our jobs, getting a serious illness, dying too soon, and yes, even living too long, all of it, costs money.

On top of all those things, add in the need to plan for a secure retirement, a plan to send the kids to college, a plan to insure the risks of getting sick, dying too soon and living too long, bulging credit card debt, not having enough cash to deal with an emergency, living within a budget…whew! Now that’s a pretty full plate.

And if that were not enough to make us cry uncle, we’re often fighting a war. With ourselves. That’s right, we all have the potential to be our own worst enemy. Low financial literacy, bad habits and wonky behavior will kill even the best laid plans. 

So, most people aren’t looking for a better stockbroker; they’re looking for help and guidance to better deal with both the risks and opportunities ahead, which means getting a better handle on their emotions, their behaviors, their money biases, their knowledge and their skill.

A money coach is less a teacher and mentor, and more a guide, helping his or her client find the answers within, and helping them move toward reaching their most significant goals in life, and then holding them accountable to achieving them.

That’s what a money coach is.

Never. Lose. Money.

Even a dummy can make money. Timeless words from Warren Buffett..

“I want to be in businesses so good even a dummy can make money.” – Warren Buffet, 1988

Mr. B followed four basic tenets when deciding to buy a company:

  1. Business Tenets-Basic characteristics of the business itself,
  2. Management Tenets-Important qualities that senior management must display,
  3. Financial Tenets-The financial decisions the company must maintain, and
  4. Value Tenets-Interrelated guidelines about purchase price.

Want to know more? Then don’t be a dummy…buy this book.