MAKING CENTS: Everyone needs a financial coach

Head coaches of teams make their livelihood analyzing performance and results with an eye toward doing whatever it takes to accomplish the objectives of the owner.
 

In your world of personal finance, you are the owner. It is your responsibility to chart direction and clearly state your objectives. Most people have some semblance of a team around them – attorney, a CPA, an insurance agent, an investments or benefits person – to serve as assistant coaches.

Each of these professionals is asked to fill a specific role in your financial world. And just as in sports, sometimes your coaches get along and perform well, and other times they don’t even know who the others are.

Sometimes you receive conflicting advice from them, which leads to confusion, indecision or worse.

This confusion can create decision making that leaves team members scratching their heads. Or, you do nothing because you are so confused about the conflicting advice. Neither situation is good.

What would be ideal is for you to thoroughly understand all of your options. Each assistant coach’s advice probably has some validity, but the advice needs to be reconciled with a customized action plan.

If your money is your life’s work, then being your own head coach may be the ideal role for you to play. But first ask yourself some gut-check questions. Can you name one professional team where the owner is also the head coach? While there may be a time or two in history when this has happened, there isn’t a single championship team that can stake that claim.

The second question is one of knowledge. Do you really believe that you are competent to judge all of your options and coordinate a team of experts to get your financial house in order? Many people believe that they are indeed competent enough to be the owner and head coach, and maybe what they don’t know will never hurt them. But the smart money move would be to find a seasoned personal financial head coach and let that person do the driving for a while. You may like the ride.

John P. Napolitano is CEO of U.S. Wealth Management in Braintree, Mass., and 2012 president of the Financial Planning Association of Massachusetts. He may be reached at jnap@uswealthmanagement.com or on Facebook as JohnPNapolitano and US Wealth

John Napolitano is a registered principal with and securities offered through LPL Financial. Member FINRA/SIPC. He can be reached at 781-849-9200.

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