Advisors charge in various ways, and understanding these structures is key to knowing what you’re paying for:
1. Fee-for-Service
This model charges a set fee for specific services, whether that’s a one-off financial plan or ongoing advice. It’s highly transparent, letting you see exactly what you’re paying for.
2. Percentage of Assets Under Management (AUM)
Here, you’re charged a percentage of the assets managed on your behalf (usually 0.5%–1.5%). The upside? Advisors are incentivised to grow your wealth. The downside? Fees can climb quickly as your portfolio grows, even if the service remains the same.
3. Hourly Rate
Some advisors charge by the hour, typically $275–$550. This model works well for specific, one-off needs but can feel expensive if you need extensive planning or ongoing support.
4. Commission-Based
While largely phased out, some advisors earn commissions on insurance products. In these cases, the insurer pays the advisor directly, so you may not face additional fees.
How to Measure the Value of Financial Advice
Here’s the deal: great advice isn’t about what you pay—it’s about what you get. Before you sign on with any advisor, ask yourself:
- Are they helping you plan for the future? A good advisor does more than manage your super—they help you create a strategy for everything from debt reduction to retirement planning.
- Can they show you the real impact of their fees? They should prove, with hard numbers, how their advice benefits your wealth long-term.
- Will they hold you accountable? The right advisor doesn’t just tell you what to do—they make sure you do it.
The Hidden Value of Accountability
One of the most overlooked benefits of quality advice is accountability. Life is busy, and it’s easy to push financial plans to the backburner. A great advisor makes sure:
- Your strategies are executed.
- You stay on track toward your goals.
- Every decision aligns with your long-term plan.
They don’t just create a plan—they make it happen.
Why Financial Advice Fees Vary
Not all financial advice costs the same—and that’s a good thing. Here’s what influences the price:
- Complexity of Your Situation: The more intricate your needs, the more time and expertise are required.
- Type of Service: Comprehensive planning costs more than one-off advice but delivers far greater value.
- Experience of the Advisor: Highly qualified advisors with proven track records may charge more but bring a level of expertise that pays off exponentially.
Are Financial Advisors Worth It?
Let’s flip the script: the question isn’t how much you’re paying but what you’re paying for. If the advice helps you achieve your financial goals, reduces your stress, and secures your future, isn’t it worth it?
Make Informed Decisions About Your Financial Future
Choosing the right advisor isn’t about finding the lowest fee—it’s about finding someone who adds measurable value to your financial journey. Whether it’s saving you thousands in tax, creating a sustainable retirement plan, or keeping you accountable to your goals, real advice transforms your future.
📞 Book a free consultation today and discover how the right advice can move you closer to your dreams.
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