How not to choose a coach
And how to choose the right one
I guess we all use advisers or coaches for help – from time to time – in different areas of our lives.
But how do you choose a good one?
Well, before we get into that – if you’re not completely sure if a coach could be useful to you – then you might want to start here.
That done, let’s explore how a lot of people choose the wrong coach – by falling into a classic behavioural trap.
Just knowing this could save yourself thousands of pounds in costly mistakes.
So, what’s the trap?
Well, it’s right here in this brilliant observation from Teddy Roosevelt.
Or rather it’s in the flip-side of that quote.
Sorry, am I being ‘obscure’ again ? 😉
Well, the thing is . . . we can all agree with Teddy’s idea here.
It’s so true – that what really matters to most people – when dealing with others – is getting a ‘feeling’ that the other person cares.
And that’s true in our personal lives too right?
But there’s a dangerous flip side to this ‘need for care’ tendency – and it’s this.
If you don’t care how much people know until you know that they care . . .
. . . you might NOT care to check
if they know much at all
as long as you ‘think’ that they care !
Sound about right?
Well, if you’ve not experienced this – have a think about your friends and family.
Who do they follow for advice or guidance on important issues around health and wealth?
Are their advisers all competent – or do they sometimes lean on people just because they think that they care?
Or have they chosen their coach or adviser – based upon how confident that person is?
These are really NOT good approaches – are they ?
So, please, don’t choose your suppliers that way – and don’t let your friends make this mistake either.
Known and Liked
The thing is – that anyone in business these days will have read that to win clients – you must be known and liked.
And let’s be honest – some advisers and coaches think it’s okay for ‘competency’ and ‘trust’ to come a distant second – but that’s no good to you.
Nor might it might serve you well to choose a coach because:
- You – or your children – went to the same school or
- You share the same passion for Golf or
- Sailing or
- Rugby or
- Designer clothes
- Fast cars or
- Baking or
- Anything else.
You get my point – these are simply NOT good reasons for selecting ANY kind of supplier.
But I’ve seen a lot of people choose their adviser this way – and are then be surprised when they get ‘hurt’ with bad advice.
So, how about a checklist?
Right, well if you want to ‘buy in’ some expertise or get a good coach, you really must check their:
- Knowledge and Skills
- Testimonials and
- Value for money
And you can use this ‘fun’ way to remember the list
And be sure to ask yourself that question about communications too . . .
Can you really understand a word that they say?
Some of the ‘so called’ experts out there will try to hide their ignorance behind a load of old gobbledygook.
So, you need to beware of that.
Just because it sounds complicated – or they quote some ‘Nobel’ prize winning idea that allegedly supports their work – does not necessarily make it ‘right’.
You see, when it comes to matters of money and economics there’s one thing we know for sure.
The economics profession is truly confused about how things work.
They even issue Nobel prizes to people who hold opposite views.
Yes, seriously – take a look here
And if your adviser sounds like they’re trying to baffle you with science – they might just by trying to hide the fact that they don’t really understand the issues themselves.
So, demand a plain English explanation – every time.
Extra checks on financial advisers
In addition to the factors listed above, if you’re talking to a potential investment adviser, ask them to explain their approach to investment risk management.
And get them to put it in writing.
Sadly, too many advisers use flawed models of risk and you really don’t want to be one of their clients at the wrong time!
Remember what Warren Buffet said about hidden risks.
And given that the tide (markets) is well and truly in (high) at the moment . . .
. . . you might not be able to see your risks right now.
You can learn more about that at various places on this site.
Make sure you understand the risks of any investment you’re getting into – before you commit to it.
Those risks should be clearly described in the key features and other documents you’re given before you sign on the dotted line.
And if you haven’t heard about the ‘risks’ – then something’s gone badly wrong with the advice process.
So apply the brakes.
Stop the sales process and demand to be told about the risks – in full – however well you know these advisers.
Of course, if you’re sure that your adviser is highly capable . . .
. . . and he or she just happens to share an interest or hobby with you as well . . .
. . . then fine – that’s a win win 😉
But do, please take care out there
And if you’re still not sure if you need a coach at all . . . take a look here
Who do YOU rate as a coach
Can you help others avoid these problems?
Well, if you know a good coach – you probably can.
Just give them a shout out – on my ‘IRATE wealthbuilders’ Facebook Group here.
Join my Facebook group
Or, if you’d like to learn more about my kind of coaching – head over here
Or you could sign up for my newsletter
and get my ‘5 Steps for planning your Financial Freedom’
and the first chapter of my book, ‘Who misleads you about money?’
All for free
And I’d love to hear your thoughts in the comments below.
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