Jump to content

How much do financial planners charge?


  • Please log in to reply
3 replies to this topic

#1 ~Nic~

Posted 01 February 2013 - 11:25 AM

DH and I have been thinking for a while now that we need to see a financial planner - nothing drastic, just need to decide whether we should lease v's buy a new car, possibly refinance home loan, how to pay off credit card sooner, how much extra we should be paying towards super etc etc. I don't want him to be writing out detailed budgets etc for us, just a basic overview. My brother is a small business banker with one of the big 4 banks and he suggested a guy that he uses himself for his own finances and he recomends for his clients for their personal banking, so I called him today to get an idea on charges. He doesn't charge anything upfront for the first appointment, but he doesn't give any actual advice then either - it's basically just a meet and greet type of appointment so we can explain what we hope to gain and he tells us the types of services he can actually offer. He will then give us a fixed price, one off quote - we only pay it once and it depends on how much advice he needs to give and how detailed it is. If we accept the quote and then wind up going in a few more times for follow ups, we don't pay any extra. He said the quote will be on the lower end of the scale, but it normally ranges between $500 and $3000. Does this sound about right? I've got the financial planner from the bank that we use calling me back later today so I can chat to them as well, but to be honest, I'm not keen on using them as they are probably only going to promote their own products, whereas this other guy is independent from the banks - he probably has deals set up with certain institutions, but at least it won't be limited to one bank.

So, does that price sound reasonable?

#2 MrsLexiK

Posted 01 February 2013 - 12:29 PM

This is the issue that I have when they changed the law to fee for service for financial planners as opposed to commission.  When it was commission based planers didn't charge upfront the commission was paid by the company (and you had to detail to your client the commission you received from said company) and it was swallowed up and the client was not aware.  

You are right that the bank will only be able to offer you advice on the products they have but I personally don't think that all of them are that bad. If you can get free advice from your bank manager I would take that first and see how that went before meeting with some more.  If all where going to charge me to give me advice I would meet with them all and get their quotes and ask for it detailed.

I think you will find there are plenty out there who are not charging to just give advice.  Also some of the questions might be better to speak to an accountant about? when it comes to leasing and super there are tax implications and benefits.  I have found that alot of accountants now have planners in their offfices.

ETA: the amount is fair depending on the advice you accept and your portfolio (ie simple straight forward nothing being set up $500 is fine, setting up new accounts and managing all this etc I would def expect $3K if not more) but my issue is charging before you have any advice.  (unless the quote is actually an SOA which will give you advice and then you accept the quote/SOA and the advice is carried out)

Edited by MrsLexiK, 01 February 2013 - 12:52 PM.


#3 Escapin

Posted 01 February 2013 - 12:31 PM

$3k is about right. Especially if you've got loads of inter-related issues to work through, as you do. And the last thing you want is 'cheap' financial advice. Re the bank guy or the other guy, most products really aren't that different from each other (bit like toothpaste!!!), so I wouldn't be too worried about only being sold products from one bank.

#4 balancing.act

Posted 01 February 2013 - 01:25 PM

I've had both good and bad experiences with financial planners.

One was free but I ended up being quite intimidated by them when I chose to only purchase one of the two products they recommended. After a bunch of emails from them I ended up buying both and then cancelling one six months later because, as I knew at the beginning, we could not afford it. Basically it was an exercise in selling income protection insurance and a kind of trauma/illness insurance.

More recently my husband and I had an excellent experience. We agreed that we would pay $3300 (including GST) for an analysis of our financial situation, our medium and long term goals and for them to tailor some advice to us. They were GREAT. It took a while to fill out the forms and was a bit eye opening looking at our budgets during the process but the team were wonderful - following up to get extra information or clarity about some aspects.

We were given a set of options and investment strategies we could take up. We discussed with them the pros and cons and the impact it might have on us as well as how we could adjust out plan if our circumstances change. They didn't give us a set of automated budgets but instead a really good analysis taking into account tax and a number of other variables. We feel much more in control of our plans and have a better understanding of our finances - if all goes to plan we're going to be in a really good position in a few years. And remember that in some situations (if it directly relates to investment advice/income generation) the fee is tax deductible which can lessen the pain a bit.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Trying to speed up the inevitable

As the waiting game of late pregnancy continues, this mum considers a few things that might hurry things up a little.

One month later: where is William Tyrell?

It has been a little over a month since William Tyrell disappeared from his grandmother's home, 33 long sleepless nights for his family as they mourn the absence of their cheeky young boy.

Winter's child less likely to be moody: study

Babies born in the summer are much more likely to suffer from mood swings when they grow up, while those born in the winter are less likely to become irritable adults, scientists claim.

Single mum of two creates award-winning baby app

Suddenly single with a baby and an 11-year-old son, Tara O?Connell developed an app to improve the lives of mothers who were similarly overwhelmed.

Food for thought: looking after yourself as a new mum

As soon as your baby enters the world, everything else takes a back seat - even the necessities of daily life such as eating are severely compromised, right when you need energy the most.

'Grabbable guts' campaign aims to cut toxic fat

The Live Lighter campaign will take people inside the human body to show the internal dangers of being overweight.

The best and worst month of my life

A new mum's first month of motherhood didn't pan out as expected when she lost a family member weeks after her baby's birth.

Facebook and Apple offer to pay female staff to freeze their eggs

Facebook and Apple are hoping to provide women with the freedom to build their careers without the added pressure of having children at or by a certain age.

How a pregnancy contract could work for you and your partner

The idea of making a 'pregnancy contract' with your partner may sound a bit silly at first, but it can help make the transition to parenthood a lot smoother.

Finding a mum-friendly personal trainer

Burping babies vs burpees – yes, new mums and personal trainers live in different worlds. But they can work together - once you find the right match for you and your lifestyle.

Ambulance service under fire: baby seats to go, response times 'worse than ever'

The NSW Ambulance Service is removing child-safety seats from ambulances, while the Victorian service is facing criticism over lengthy response times following the death of a three-year-old.

Alleged baby snatch incident a ?misunderstanding?, say police

Police say that an incident in which a man pulled on a woman?s pram while walking a popular Sydney route late last month was a misunderstanding.

Ebola killed my aunt and is shutting down my country

Three weeks ago, my auntie, a midwife, developed a fever. Sitting here in Sydney basked in Australian sunshine, that shouldn't be big news.

The night my ovary burst

One mum shares her frightening experience and vows to never take her health for granted again.

Is e-reading to your toddler story time or just screen time?

When reading increasingly means swiping pages on a device, and we're advised to read to their children early and often, should parents be turning to e-readers for storytime?

Community mourns inspiring young dad

A young dad who fought a five-year battle with cancer has been remembered for his inspiring legacy at a funeral service attended by hundreds of family and friends this week.

Meningococcal kills Queensland toddler

Public health authorities say the death of a toddler in north Queensland from meningococcal disease highlights the danger the illness poses.

Nicole Kidman: 'I hope every month that I'm pregnant'

Nicole Kidman is hoping to add to her family, but says she's doubtful it will happen.

Recall: Aldi Wooden London Bus play set

Aldi has announced a recall of their popular Wooden London Bus play set.

Great gift ideas for first birthdays

From soft toys to balance bikes, here are some great ideas for first birthday gifts.

Mum learnt she was pregnant hours before giving birth

Kim Walsh arrived at the doctor with abdominal cramps. Hours later, she was cradling the baby experts told her she could never have.

How cancer has made me a better, happier person

I'm a far better person post-cancer than I ever was before. The goal now is to stay around long enough to find out who I can become, and what I can achieve.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

16 parenting truths you won't find in the baby books

I am five years into this parenting gig and I’ve learnt that sleepless nights and changing dirty nappies are child’s play.

Win 1 of 5 Canon Powershot D30 cameras

Capture life more easily with the Canon Powershot D30. Shockproof, waterproof and dustproof, you can take it almost anywhere and shoot beautiful images, time after time. Enter now!

Best and worst potty party cakes

It's nice to celebrate a child making the shift from nappies to 'big kid' undies, but do we really need a semi-realistic used toilet cake to do it? Here are some of the best and worst cakes parents have used at 'potty parties' around the world.

7 tips for a financially festive Christmas

Plan ahead - and do it now - to ensure festive season expenses don't break the bank.

'Go the F*** to Sleep' author's new book for frustrated parents

A sequel is coming soon to the 2011 hit book 'Go the F*** to Sleep' - and this time, it's about mealtimes.

Great birthday party buys from Etsy

Handmade crafts to decorate and personalise your child's next birthday - from banners to cake decorations, we've got gorgeous party finds from Etsy.

Creative storage ideas for the kids' rooms

Creative and practical storage ideas for the kids' toys and books can also add some stylish decor to your home. Visit babyology.com.au for more stylish modern finds for hip kids & parents.

Warnings over child pain relief doses

The Therapeutic Goods Administration has warned parents and carers over a "confusing" pain relief dosage system.

To the mum in the doctor's waiting room

Maybe the mum I saw in that waiting room, seemingly disconnected from her baby, doesn’t have the support she needs.

10 space-saving nursery ideas

Starting a family doesn't always mean moving into a bigger house - not yet, anyway.

 

What's in a name?

Baby Names

Looking for a classic name, or an unusual name? Our Baby Name Finder is for you, search or browse to refine your shortlist.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.