"I am interested in getting advice to look at my overall financial situation, but I’m confused by complicated advice fees.
Can you explain what to expect generally in regard to fees and anything I should look out for?"
Top answer provided by:
Welcome to financial advice. Where everyone uses different words for the same thing. Here is a simple rundown of what you should be expecting;
- An initial phone call or intro meeting with an adviser – some businesses provide this at no expense to you; others may charge a nominal fee to stop ‘time-wasters.’
- An initial project fee – generally a one-off investment for you of anywhere between $4,000-15,000, depending on the complexity of your situation, that includes;
- Getting to know you more than the intro call
- Understand what your goals are, what your experiences are with money & what you are trying to achieve (& the time frames)
- Get a complete understanding of your current personal & financial situation and how you got there
- Work with you to reframe & prioritize your goals so they are clear & concise (& realistic)
- Prepare a plan with the strategies that the adviser believes will help you achieve your goals
- Work through that plan with you to ensure it looks/sounds/feels suitable for you
- Work to implement the agreed changes from start to finish
- Ongoing engagement/relationship fee – generally between $2,000-10,000 annually, once again including the type of relationship you want, the scope of the advice & how much time it will involve. These fees can often be partially paid from your super fund, so it’s worth broaching that with the adviser
When it comes to an ongoing relationship with your adviser, the best analogy I can think of is like the dentist.
Either way, the ball is in the clients' court. Most advisers should be happy & able to engage either way.
I hope that helps!
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