Current or aspiring financial advisors seeking to boost their grasp of the behavioral side of the profession and the techniques for addressing it may want to become certified coaches.
Earning the Sage Financial Solutions-overseen "
So it's not surprising that the CFP Board, which added
Coaching is "complementary to, and a firm foundation for, the other models" of services across planning and advice, Davis said in a recent information session she led ahead of the launch of this fall's three-course curriculum for the APFC mark.
"People may come to you, and they don't really know what they're seeking," said Davis, who is also the director of the Financial Planning Programs at Golden Gate University. "And so one of the things that's so important to me about this is that we ensure access along the continuum, that it's not just reserved for people who have investable assets, that it's not just reserved for people who are ready to change their behavior, that we can meet people wherever they are."
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A plethora of coaching credentials
In addition to the APFC, other coaching credentials for advisors include the "accredited financial counselor" (AFC), the "financial fitness coach" (FFC) and the "behavioral financial advice" (BFA) designations, according to
"Financial coaching and financial planning are both meaningful careers," the post said. "They serve different needs, require different training and attract different kinds of people. Neither is a stepping stone to the other, and neither is more important than the other. In fact, we at Amplified Planning think that to be a great planner requires some coaching."
One important distinction between the two involves a time element, according to Brandy Baxter. She's an AFC and APFC certificant who works with dual-income families as the founder of Living Abundantly, and she spoke in the information session with Davis, too.
"One of the ways I like to look at it is, as a financial counselor, I work with clients on their today," Baxter said. "What does their 'today' money look like, the things coming in and out of their household. Financial planners work with clients on their tomorrow — what do you want your tomorrow to look like, and how can we prepare to make sure you have the tomorrow that you want?"
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Establish someone else's trust in you by trusting them
For Cherie Stueve, who is an AFC and a CFP and previously taught aspiring planners as a professor in the Personal Financial Planning Department at Kansas State University, coaching skills help planners in "being able to establish trust within a minute," and the resulting communication abilities leave space for clients to reveal their fears and motivations.
"Saundra's approach is, you have to trust the client," Stueve said. "You have to do less, and, the more they do, the more magical it will be, but you have to trust that you are not the star here. … Saundra's program and her approach are more relevant than ever."
To demonstrate how the skills apply in practice, Davis spoke at length with one participating member of the audience who discussed the fear and uncertainty connected with two goals: paying off student loan debt and buying a home one day. Rather than recommending a course of action, Davis asked for more information.
"I know you know the technical stuff," she said. "I know that you could run an amortization schedule, right? Yeah, you know that stuff. What I'm going to ask you to consider is what happens for you when you think about just allowing the debt to be there and doing what you know about that."
After the volunteer audience member said that could be "both scary and frustrating," due to dealing with risk aversion, the loan servicer and possible actions by the government, Davis asked further questions about the feelings that connected to those concerns. At the end of the session, she suggested a "decision balance sheet" to add up the potential costs and benefits of taking action toward the two goals.
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Class is in session next week
But the instruction for the APFC covers a lot more ground, with the first course, "Financial Coaching Foundations," starting as soon as next week, followed by "Deepen the Learning" and supervised fieldwork experience, mentoring and a performance evaluation in order to qualify for the credential. The courses start at a price of $600 and candidates can get a discount of $1,900 off the total rate by signing up for all three at once. Sage also provides a "financial well-being rate" that gives users the option to state an amount they feel is feasible for them to pay as their registration for the program.
"We don't want anyone to be excluded," Davis said. "We're particularly interested in serving those who are new to the field. Maybe they don't have a job at one of the firms, or you're not having consistent income on your own, and you're trying to serve people who are similarly situated to you. So, our goal is to make sure you have access, in hopes that you're making sure that other people have access."
Established advisors and other professionals who already have designations could "
"I would encourage you to explore how you can use this skill of coaching in your practice," she said. "When I first learned about coaching, I approached it as if it were another certification, another credential, and it really, in my mind, didn't quite make sense. But, when I unlocked that it was a skill that allowed me to be with my clients in a different way, I saw the value in it."
