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How to Find Affordable Financial Advice Solutions

Tom Haigh

Founder and Financial WriterUpdated on June 19, 2023

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Who do you ask for help when you need to figure out how to handle your income and finances?

  • A family member
  • A close friend
  • A financial adviser

People often think that a financial adviser is a service only for the rich. It’s time to put an end to that.

Financial advisers aren’t just for people with a lot of money; anyone who needs to get their finances in order can use them.

If you need help to set your retirement goals, decide on the best super fund, get the best deal on a home loan, or get clarity on confusing financial products, you can always get feedback and support from a financial planner.

This article aims to help you overcome the challenge of how to find affordable financial advice solutions to your needs.

Jump straight to…

What is Considered Affordable Financial Advice?

SIMPLE, ACCESSIBLE and PERSONALISED

The best way to describe affordable financial advice is that it’s simple and personalised. It is easy to understand, and designed specifically for your needs and objectives. 

With affordable personal advice, you can start looking into your finances that you may have neglected due to lack of time and the perceived high cost of a financial adviser.

You also don’t need to worry about a long term financial advice agreement. 

Furthermore, you can choose when or what to seek or not to seek financial advice. It is flexible, competitive, cost effective, personalised and can maximise the return of your investment.

How Do I Seek Affordable Financial Advice?

Looking for free information online can often give you off-the-shelf, general advice. However, advice not tailored to your specific needs might end up jeopardising your financial future.

And that is why it’s worth considering paying for your money’s worth by asking for help from professionals.

Here are 3 Ways to Get Affordable Financial Advice:

  1. Get a Referral
  2. Check Professional Association Websites
  3. Speak to My Money Sorted

3 Ways to Get Affordable Financial Advice

1

Get a Referral

If you have friends and family who have engaged the services of an affordable financial adviser, you can ask: 

  • How was your first-hand experience working with a financial adviser?
  • What factors did you consider in choosing the right financial adviser?
  • What qualifications do I need to look for when vetting advisers?

Remember: 

Happy, satisfied and loyal customers are indicators of a service provider’s good track record.

2

Check Professional Association Websites

You can also check for financial advisers with the Financial Planners Association of Australia (FPA), Profession of Independent Financial Advisers (PIFA), and the Association of Financial Advisers (AFA).

Each of these associations have a list of financial advisers by location which makes it easier for you to find one in your area.

3

Speak to My Money Sorted

Save time and stress less when looking for an affordable adviser that’s right for you by speaking to My Money Sorted for free. 

A quick chat with My Money Sorted will help you get paired with the right financial adviser for your personal circumstances wherever you are in Australia.

Oh, and one more thing. 

When seeking affordable financial advice, you must ensure that the adviser: 

  1. has an Australian Financial Services (AFS) licence, 
  2. has the necessary qualifications, experience and more importantly 
  3. is registered with the Australian Securities and Investment Commission (ASIC).

You can ask for these credentials during your initial meeting with the financial adviser or check it yourself in the ASIC registry.

What is the Normal Fee for a Financial Advisor?

You don’t have to worry about paying a fee on your initial meeting with a financial adviser.

Typically, the first meeting with a financial adviser is free. This includes discussions about your financial situation, your financial goals and the financial advisor’s investment philosophy.  

Generally, having the same investment philosophy with an adviser creates a good working relationship.  

If you agree to take up the services of the financial advisor, then a financial plan will be created according to your financial needs and this entails a fee.  

The Adviser Ratings 2022 Financial Advice Landscape Report reflects the median ongoing fee for financial advice is $3,529. This figure includes affordable advice up to comprehensive ongoing advice. Comprehensive ongoing advice can cost about $5,000 a year on average.

Do keep in mind that the cost of the financial advice will depend on the type of financial advice you obtain and the agreed fee.

Affordable Financial Advice Models: How Does It Work & How Do Affordable Financial Advisors Get Paid?

In general, the fees that financial advisers charge depend on the type of advice and services they are providing. 

Also, there are different ways financial advisers charge for their services.

Some advisors may charge a fixed fee per hour or per project, a one-time fee for financial advice, or opt for financial plan packages. You might also find that they use a combination of these.

Most of the time, you will be given a document called a “statement of advice”, which will include a breakdown of the fees for the advice.

Different Ways Financial Advisers Charge Fees

Fixed Fee Advice

The common way financial advisers charge for advice is by fixed fees. This means that they charge a fixed price for a certain service. 

For example, a fixed fee to: 

  • prepare a statement of advice; 
  • put financial advice into action; or 
  • give ongoing financial advice.

Some advisers may charge a fixed fee per hour, but this isn’t as common.

Regardless of the payment scheme, most financial advisers present a list of services they provide as well as the corresponding fixed fee for clients to choose from.

One-Off Financial Advice

One-off financial advice is also known as situational, episodic or event-driven advice.  

As the name implies, it is one-time, specific to a particular situation or life event like getting married or divorced, receiving an inheritance, retirement, and having kids.

It can also involve recommending financial products such as life insurance, a mortgage, or savings accounts.

Financial Plan Packages

A financial plan is an overall view and breakdown of your finances, your financial goals, and how you plan to achieve those goals.

Financial Plan Packages

There are different ways of paying for a financial advisor depending on your agreement.

Flat or Fixed Rate – Usually $3,300 and up

Hourly Fees – Usually $100 to $400

Percentage of Assets – Usually 1% to 2%

Normally, a financial plan package would entail designating your financial planner as your authorised representative to manage your investment portfolio, especially if their fee is a percentage of your account.

Whichever payment system you agree upon, the fees will be determined by the scope of advice (i.e. the areas of advice you would like assistance with). 

For example, if you only need simple advice on how to invest $100,000, the cost will be lower than if you need more comprehensive advice on investments, superannuation, debt management, insurances, cashflow, estate planning, and so on.

The best way to get proper pricing from financial planners is to communicate your needs.

Is it Worth Paying for Affordable Financial Advice?

It’s important to remember that fees are just one thing you should think about.

Here’s a quick list of what to ask yourself when considering financial advice:

  • Is finance my cup of tea?
  • Is it easy for me to make sound financial decisions?
  • Do I know how to plan and start my financial growth?

If your answer to one or more of these questions is NO:

It is worth considering paying for affordable financial advice.  

If financial advisers listen to you, align with your goals, and consider your best interest, they will most likely be worth paying for.

If you’re still uncertain about where to find an affordable financial adviser or still have questions about financial planning, think about this:

What if you could tap into the wisdom of an experienced finance expert instead of taking the all too common ‘hit-and-hope’ approach?

Many people may be unaware of this…but just like you, 41% of Aussies intend to get financial advice rather than going it alone, according to an Australian Securities and Investments Commission (ASIC) report.

Find the right Financial Adviser for you with the help of My Money Sorted

When you book a call with My Money Sorted, you’ll:

get a better understanding of your personal finance and investment options

have an idea of the experts you can call on to help you reach your goals

be matched with the right financial adviser who can help simplify your financial options  

My Money Sorted is your stress-free pathway to getting ahead with your money. Here’s what your journey will look like:

Step 1: Start off with a quick money matters session with My Money Sorted

Step 2: Get matched with a licenced Finance Adviser that’s right for your money situation

Step 3: Take the first step towards your money goals with a clear and sound roadmap prepared by an experienced Financial Adviser.

It’s that easy!

Need to Get Your Money Sorted, But On A Budget? Chat to My Money Sorted to Learn More About Getting the Right Financial Advice for You.

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