You Might Get Answers Faster

Professionals can often help you answer complex questions with remarkable efficiency because they have encountered similar situations many times before. While they may not be able to tell you exactly what to do since that reflects your preferences and priorities, their advice can help short-circuit the decision-making process.

You'll Get an Unbiased Point of View

Let's get real: it's tough to give objective advice to people we care about. For example, your parents may encourage you to go into a particular field because it would make them proud, although it may not necessarily be the best fit for your desired lifestyle. Or your friends might encourage you to save up to buy a house because they want you to stay in the area, but they haven't considered your other financial goals. Because professionals are emotionally removed from your situation, they are generally better positioned to provide unbiased guidance that will help you get where you want to go.

You Can Avoid Blind Spots

It wasn't until after I became a Certified Financial Planner and had been working with planning clients for some time that my wife and I decided we should hire a financial planner ourselves. While I've gained a great deal of knowledge through my training, I don't know everything. I recognize that enlisting a professional can help ensure I'm not overlooking an important detail, even when it comes to my own field.

Career Coaches

While all career coaches help people improve one or more aspects of their careers, they can have different areas of expertise, techniques, and service offerings.

Career coaches may specialize in a particular industry, such as finance, technology, or marketing, or a specific situation, such as career exploration for recent college graduates, mid-career changes, or executive leadership training. Some coaches focus on the tactical aspects of a job search once you've already identified the type of work you're targeting; for example, they might help you polish up your resume and LinkedIn profile, guide you on how to find opportunities, provide interview tips, and assist with salary negotiation. Other coaches may primarily help you navigate the exploration phase by working with you to connect your interests and skills with possible jobs.

Nearly anyone can call themselves a career coach because the title has no certification or licensing requirements. You may be able to find more qualified coaches by looking for those who have past experiences in recruiting or human resources functions, or who have attained certifications through organizations such as the International Coach Federation (ICF), the Professional Association of Résumé Writers & Career Coaches (PARW/CC), or the National Résumé Writers' Association (NRWA).

Financial Advisors and Planners

Like career coaches, financial advisors and planners can differ based on their areas of specialization, service offerings, and price structure.

Financial planners commonly work with a particular set of clients based on life phase or circumstance. For example, you can find planners who specialize in working with young professionals, new couples, retirees, divorcées, business owners, doctors, and teachers. Their services can include one-time sessions focused on answering your most pressing questions, comprehensive planning packages, and long-term engagements that include managing your investments on an ongoing basis.

The types of services a financial planner offers impacts the fee structure they use. In particular, financial planners who offer one-time sessions often charge by the hour, while planners who develop financial plans over one or more meetings typically charge a flat fee. Financial planners who work with clients on an ongoing basis have traditionally charged a fee based on the investment balance they're managing, known as an assets under management fee (AUM). However, a growing number of financial planners are now offering these services for a flat recurring monthly fee instead that may be based on the amount of your income or net worth, or the complexity of your financial situation.

While the requirements to become a financial planner are minimal, you may come across planners who have achieved certain designations, such as Certified Financial Planner (CFP), Certified Public Accountant (CPA), or Chartered Financial Analyst (CFA), which could give you clues into a provider's expertise. CFPs usually provide guidance on several aspects of a client's financial situation, while CPAs have a particular focus on taxes and CFAs have an expertise in investment management.

Life Coaches and Therapists

If you're looking for assistance with broader life topics, life coaches and therapists may be a helpful resource.

Caitlin Magidson, who works as both a career and life coach and a licensed therapist, explains, “While both types of providers focus on helping people achieve greater happiness and emotional stability, they typically use different approaches. Life coaches often serve as a motivating force by helping you create an action plan for a specific goal, and then monitoring your progress. Therapists, on the other hand, can work with you to process emotions, understand behaviors and thoughts that come up associated with past or current experiences that are preventing you from pursuing your goals.”

Life coaches and therapists also have different licensing requirements. Similar to career coaches, life coaches do not have to have a master's-degree-level training or licensure, although some choose to attain a coaching certification through ICF-approved or ICF-accredited programs. The licensing requirements for therapists are more stringent, and include a bachelor's degree, a master's degree, and a certain number of hours of supervised therapy.

According to Magidson, both coaches and therapists may be able to help you with a specific personal issue, or they can work with you more broadly on topics related to your future life direction and purpose. For example, some coaches focus on relationships and love, while others may focus on your finances. Similarly, some therapists run general practices treating anxiety and depression, while others specialize in a specific area, such as trauma, grief and loss, or relationships, or specific populations, such as children, adults, couples, or families.

Experience and Credentials

The amount of experience a service provider brings to the table will help shape your work together, with both newer and more seasoned professionals having their pros and cons. For example, newer practitioners may be more attentive and responsive, and less expensive. However, they may not be able to leverage experiences from many other client situations and may not have dealt with your situation before. More experienced providers, on the other hand, will likely have seen a variety of client situations, which can benefit you. However, they may be more expensive and less responsive or accessible.

You should also review the provider's credentials, particularly if you're deciding between a life coach or therapist. Magidson explains, “I'd caution people to always check into a life coach or therapist's professional qualifications and education. A lot of people put up a shingle as a ‘life coach,’ but really have no training. I'd say when in doubt, it's better to go with a therapist who has more training if you are experiencing any mental health issues.”

Expertise

You'll want to know if the provider you're considering specializes in a particular type of client or situation. For example, if you're in your 20s and seeking a financial planner, a provider who primarily works with retirees is probably not an ideal fit for either of you. Ask yourself: What makes this provider uniquely qualified to serve me?

Fit/Rapport

In most cases, you'll interact with the service provider via email, on the phone, and/or in-person before committing to work with them. In those initial interactions, ask yourself:

• Did we have a good rapport when we communicated?
• Would I actually look forward to meeting with this person, and likely for multiple sessions?
• Did I get a good vibe from this person?
• Do I feel like they understood me, that I could trust them, and that I'd feel comfortable sharing very personal details about myself with them?

Fees

Certainly, you'll also want to know how much the services will cost you. But beyond the basic numbers, you should also find out the following:

• How does the service provider charge (e.g., hourly fees, flat fees, or fees based on some other formula)? Most therapists charge hourly fees, while coaches (financial, life, career) charge hourly or flat fees. Financial planners generally charge hourly fees or flat fees, or based on a percentage of assets managed.
• Does the service provider receive compensation in other ways? For example, financial planners could get fees from clients only (i.e., fee-only), from clients and commissions (fee-based), or be paid on commission only.

Deliverables

You'll want to know what deliverables you'll actually receive for what you're paying. Deliverables may vary depending on service provider type. For example, therapists and certain life coaches may not be able to offer a straightforward or uniform deliverable because every client has different needs. Financial planners, however, typically offer clearer deliverables, such as a financial plan, ongoing supervision of your investment portfolio, and/or a certain number of check-in meetings throughout the year.