Depending on your unique financial situation, experiences and challenges you face, there are different options available to you when it comes to getting expert support.
This article explains the differences between financial coaches, financial advisors and other service providers such as debt advisors, and how they fit in with regards to decisions about your financial wellbeing.
The good news? You can find vetted, trustworthy experts in all areas you need via your Maji platform.
Firstly, let’s summarise the different financial expert options
1. Financial coaches
We like to see financial coaching as the starting point in your journey to financial wellness. A financial coach is a certified expert, who will work with you to develop a plan to achieve your goals, while addressing your current challenges and providing support along the way.
In addition to providing expert guidance through your journey, enlisting the services of a financial coach can benefit you in 3 ways:
Having access to a financial coach enhances your overall financial confidence and literacy, helping you develop healthy money habits through personalised support.
This personalised support empowers you to craft your own financial roadmap, ensuring the journey is by your own design.
A financial coach will keep you accountable and invested in your own plan.
Remember, coaching sessions may be paid for by your employer, in which case you have unlimited access to your coach. If coaching is free, you’ll see a banner telling you so. If coaching is not free, you’ll see pricing for each coach at the bottom of their profile. If you’re experiencing concerns about your financial status or have specific questions about investments or financial products, keep reading to learn how a financial advisor or debt advisor could be more suited to you.
2. Financial advisors
A financial advisor is someone who helps you build wealth and prepare for your future through long-term financial planning, and/or choosing specific financial products. An advisor’s role is to provide you with a tailor made plan with specific and personal recommendations to consider. ‘Independent’ financial advisors are independent of any particular banks or product providers. This means they can look at all of the products on the market and recommend what they think is best for you.
Many financial advisors specialise in certain areas such as pensions, investments or estate planning. Others focus on financial planning - taking a more holistic look at your long term financial situation.
Financial advice has to be given by a qualified, regulated individual (this regulation is provided by the Financial Conduct Authority) as they are responsible for the accuracy and suitability of the recommendation they make for you. Because of the time and money they need to spend to get certified, they tend to charge higher fees for their service.
3. Debt specialists and other types of expert
Debt specialists
Debt specialists assist individuals struggling to manage their debt, helping them find affordable repayment solutions. They also offer guidance on managing the broader impacts of debt on their financial and personal wellbeing.
Check the bottom of this article for specific debt support services.
Will writers
Will writing services fall under estate planning and are a crucial aspect of financial security that’s often overlooked. Will writers provide an essential service that not only ensures your assets are distributed according to your wishes but also offer peace of mind for you and your loved ones.
A professional will writer helps you create a clear, legally binding document that outlines how your estate, including money, property, possessions, will be handled after your death. This reduces the likelihood of disputes and costly legal battles for your family.
As part of a holistic financial wellbeing strategy, creating a will is just as important as budgeting, saving, and investing. By working with a professional will writer, you can ensure that your financial planning not only supports you throughout your life but also safeguards your family’s future.
Now, let’s see where they fit in to the bigger picture
Different financial experts are best suited to help you solve different challenges that might arise in your financial journey. Here’s a useful summary of common financial challenges and outcomes that different experts might best help with:
Financial challenges examples | Questions you may be asking | Financial expert ‘best fit’ |
Understanding aspects of personal finances | How do pensions work? Why does it matter if I am in debt?
How do I know if I am retirement ready? | Financial coach can explain financial concepts and topics to increase your understanding.
A financial advisor could help with this but they’d be much more expensive. |
Changing attitudes or behaviours that relate to money | I keep getting into debt - how can I stop doing this?
I want to build the habit of saving £100 per month. Can you help me look at my finances to work out how to do this?
How do I build an emergency fund? | A financial coach can explore how and why you make decisions, put in place strategies and help you keep commitments.
A debt specialist can talk you through products and services that might reduce the amount you pay. |
Choosing financial products | I want to invest some money, where should I put it?
Should I combine my pensions?
| A financial coach can talk you through options and help you feel confident to make your own decisions.
A financial advisor can recommend a specific course of action and a specific product suited to your needs.
|
Financial planning | I want to send my children to university and retire at 60, how can I plan my finances to get there?
Should I buy a house or put my money into an investment fund? | A financial coach can talk you through options and help you feel confident to make your own decisions.
A financial advisor can recommend a specific course of action and specific products suited to your needs. |
Estate planning | Can you help me to create a will?
Can I have help to put in place a Power of Attorney to protect my estate if I become unable to make my own decisions?
How can I optimise my tax arrangements to pass on more of my money to my dependents? | A certified will writing service can help with wills.
A financial advisor with specific expertise in estate planning or tax planning would be best. |
Let’s talk about costs
Financial coaching: typically upwards of £60 an hour if you choose to pay for this independently. If your employer subscribes to this service with Maji, it is free and unlimited for you.
Financial advice:
General advice: the UK average is £150 an hour but this could vary from £75 to £350 an hour, or cost a set fee for a piece of work (which could be several thousand pounds), or an ongoing fee for regular check-ups.
Financial planning: a financial plan is usually a one-off fee of £1,500 or more, with the option of longer-term check-ups for additional fees. Remember, you can create your own financial plan for free on Maji!
Debt advisors: many debt advisory services are available for free and a few of these services are listed on Maji.
Who can help with debt issues?
A financial coach is always the best place to start, but there are other services that can also help with debt. Here are a few free services you can use today if you are in need of support:
Citizens Advice
Citizens Advice provides comprehensive debt and consumer advice. Many of their branches have specialist caseworkers to assist with a wide range of debt issues, including repossessions and negotiations with creditors.
Tel: 03444 111 444
StepChange Debt Charity
StepChange offers a full debt help service across the UK, including an online tool where you can create a budget and receive a personalised action plan with practical next steps.
Contact StepChange here on their website
Tel: 0800 138 1111
National Debtline
National Debtline provides free advice, resources, and tools to help manage your debts. You can access support over the phone, online, or through webchat.
Contact National Debtline here on their website
Tel: 0808 808 4000
These services are designed to give you the support you need, offering confidential advice on managing debt and getting back on track financially.
In summary:
Start with a financial coach. It not only helps to form the foundations for your financial future, but is a great way to learn, understand and build healthy habits from the get go.
Address your financial concerns sooner rather than later. If you’re worried about your debt or lack of retirement planning, consult with an expert and start correcting your path today. You won’t regret it!