Call us on 1300 794 893

Your Money

Are financial advisers a worthy investment?

How much should I pay to go to a financial adviser? I keep hearing conflicting views and some advisers have low costs but want me to sign up for ongoing service. What’s a fair price?

For full advice, a planner usually has to do 10 to 15 hours work to understand your goals, your financial circumstances and your appetite for risk. The law makes plans more expensive for people with a need for a simple plan but given the hours, a cost between $3000 and $5000 is believable. The more work they have to do, the more expensive the plan.

Some planners will charge one per cent fees and so if you have $500,000 to invest you could be charged $5,000 but if you have $1 million to invest then the charge could be $10,000. You should resist this higher charge unless you are going to be demanding and complicated for the adviser.

Some advisers will undercharge you but take commissions. In these cases, ask and check the total payment going to the adviser and remember the total cost is sheeted back to you.

I believe financial planners can offer a great and valuable service but some overcharge and under-deliver. Some simple advice can be given but many advisers worry about potential legal problems down the track. Some advisers will charge an hourly rate in these cases. Remember, industry funds often have in-house advisers for simple advice but always be careful with simple advice — it might have complex implications.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Thursday, May 20, 2010

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300