Why do you need a financial coach?

The other day I was talking with a friend who I hadn’t seen in in a long time. This friend started telling me about one of his investments which had gone badly which is something quite normal if you invest in the Italian stock exchange and you only use upside strategies.


Now with the threat of bankruptcy from Deutsche Bank, the German giant, the stock exchange is experiencing more activity than usual.

The truth is if you invest using put options (which allow you to earn even with downward market movements) the Deutsche Bank crisis is a gigantic earning opportunity.

Would you like an example? The put option strike deadline, 10th March 2017, doubled in value in the last two weeks of September when the difficulties of the largest German banks were already known. The gain exceeded 100%, but the shares dropped from 13 € to under 11 €. But that’s another story for another day and another article.

Anyway I was telling you about my friend. I asked him whether, before investing, he had attended a good course concerning how to invest or, even better, if he had entrusted a reliable financial coach to assist him with his investments. I bet you can guess what his reply was. Yes, you guessed right. He replied that he hadn’t even considered doing it.

I don’t understand it. If you want to learn how to ski, you have to find a good ski instructor, don’t you? And if you want to improve your English level, you have to find a good language coach, right? But for something as important as your savings, you go ahead and invest blindly without even consulting someone who has already achieved concrete results in this area?

Find the best coaches available

Pay close attention because this is a very important point. If you who want to improve your ability regarding a different sport, for example to fix that golf swing, or brush up on some skills in a foreign language, you need to rely on an expert coach in that field.

Think about how you act regarding your health. When it comes down to this subject, you find the most experienced doctors and diet specialists who can give you the best advice about how to stay fit and healthy and achieve the optimum results possible.

I have never understood why people find it strange to apply the rules that govern learning sports and languages to the field of finance. In order to make your money work for you, and in order to learn how to obtain results that will truly have an impact on your life, aren’t you willing to find the number one in the sector? This is what I call financial coaching and finding a reliable financial coach is an essential investment in this day and age.

But how do you know if a financial coach is good or not? The answer is simple. Verify what this person has actually done in their life. Let’s go back to the previous example. Would you ever take ski lessons from someone who had never even seen the snow before? Of course not! So the first thing to do is verify if the financial coach you choose is a millionaire himself with a high cash flow.

The financial coach you select must have finalized at least a dozen real estate operations with documented results. He must have experience with trading and be used to managing loss. Ask him how much he has gained, which financial instruments he has used and, above all, how much he has lost. This will give you a good clue about his true experience.

If you are an entrepreneur, find out if your financial coach has set up companies himself and if he managed them himself. Don’t be satisfied because he has a training company. Make sure that he has companies in other sectors as well. If he is only operating in one sector, he only has a profession and not a real job and therefore doesn’t have the necessary experience for which you are looking.

I have spoken about the difference between a profession and a job and I will speak more about this concept in further articles.

With a reputable financial coach you can seriously amplify your financial education, as well as learn to understand the rules that are the basis of making money. Understanding these rules is something that you cannot afford to ignore.

Learn how to use your financial situation to create a plan in order to define your goals and establish what steps you need to take in order to achieve them.

Now you know: in order to build your financial freedom you should choose to be helped by a financial coach.

To your financial freedom

Alfio Bardolla

 

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