We regularly get asked all sorts of questions about financial planning and financial advice. Here are a few of the most common questions we hear and our responses.
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Is it worth paying for a Financial Advisor?
Is it worth paying for a Financial Advisor?
The worth and value of professional Financial Advice is subjective and will be different for every client.
It is easy to find a wide variety of opinions, advice and products relating to financial advice and financial planning. Some financial opinion/advice is available for free and others are fee based. Financial advice can be found via family & friends, online, through various organisations and via qualified financial planning professionals.
A qualified professional Financial Advisor is legally liable for the advice they dispense. The approach is more strategic and comprehensive, taking a holistic view of your entire financial health. This highly personalised and strategic approach looks at your investments, tax planning, debt management, cash flow, insurance, retirement planning, estate planning, working with your business and more.
The qualified financial advice should be in your best interest and free of conflict remuneration.
Assigning a value to qualified financial advice will therefore factor in the highly personalised nature of the service including analysis, strategy and outcomes. The overall worth or value of financial advice is revealed over a longer period of time, rather than through instant gratification. And the value derived from the financial advice can be vastly different for every individual based on their personal wealth and life objectives.
Should you get a Financial Advisor?
Should you get a Financial Advisor?
The best way to find out if you need the services of a qualified Financial Advisor is to have a conversation with one.
We recommend finding a local fee for service Independent Financial Advisor (remember this type of Financial Advisor does not receive conflict remuneration and commissions from selling products).
During this first consultation you can discuss your financial goals, where you are at, where you want to go and what’s important to you in life.
The qualified Financial Advisor will then help you understand what value they can bring to your financial health. This will differ from person to person as everyone is different.
There may be a small fee associated with the first consultation. More often than not, “free” financial planning consultations are usually offered by Financial Advisors that intend to sell you something in return for commissions.
How much should I pay a Financial Advisor?
How much should I pay a Financial Advisor?
A good Independent Financial Advisor should be able to give you an exact quote once you sit down with them to discuss your situation.
Professional financial advisory fees or financial planning fees tend to differ from person to person – driven by individual needs, requirements and goals.
A professional Independent Financial Advisor will provide you a clear and transparent advisory fee for service. In the case of a financial advisor that is not independent, you usually will pay behind the scene in ways that are not transparent and obvious to you, ending up costing you a lot more in many ways.
Pay attention to the Financial Services Guide (FSG). If it is more than 1 to 3 pages long, it is generally not a good start.
Are Financial Advisors fees tax deductible?
Are Financial Advisors fees tax deductible?
The best thing to do is to discuss this when you first sit down with your professional Independent Financial Advisor. They will be able to tell you if any fees are tax deductible and what portion you could expect to claim.