Jump to content
How much do financial planners charge?
3 replies to this topic
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?
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.
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.
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
Two-year-old Quincy finished his potty training last week, and as part of his reward he was able to meet his idols.
I will never deny the fact that grief has a place when you give birth to a child who brings a set of circumstances very different to what you imagined. Because for nine months, I thought I knew my Georgie.
There was nothing Erica and Carlos wanted more than a baby.
The actor said there was "no other person" he was thinking about when he chose the name.
More than half of women who live with abusive partners experience violence during pregnancy.
A new mother was told she must flee Port Vila hospital with her baby as Cyclone Pam bore down.
There were a few signs I'm never going back to the land of maternity jeans, breast pumps and bassinets.
Australian actress Marta Dusseldorp has revealed she was forced to withdraw from a Sydney Theatre Company production because a director did not approve of her breast feeding.
Looking for a name that's a little bit different for a girl? Turn to names that have been traditionally used for males, as these celebs (or their parents) did.
Greg Hughes is "an absolute shell of a man" as he and his wife Catherine struggle to come to terms with the loss of their newborn son Riley to whooping cough.
Introverts are often misunderstood as shy, and sometimes even rude. A timid child can be difficult to build rapport with, but it's important we nurture their sensitive natures.
Sheryl Sandberg's advice
Forget foreplay. The new and improved route to intercourse is "choreplay" - it's good for your spouse, good for your house, and comes with the imprimatur of feminist du jour Sheryl Sandberg.
The first time your child learns a new skill at playtime is very exciting - for both you and your baby! Play is important to your child's development for a variety of reasons - here are some simple ideas for you to try at home.
For me, being the best mother I can be means being a mum alone, at least for now. Thinking of my friends with inadequate partners, I wonder why more people don’t choose single motherhood.
Weird poses, surprise photobombs, bizarre editing: these are the wedding photos that should have never seen the light of day.
The mother of a four-week-old Perth baby who died after contracting whooping cough says her family has been left devastated by the loss of her "gorgeous, sweet" son.
To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, we are giving away five DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!
Little Peyton Williams thought she was getting a baby sister named Charlee. But the two-year-old has had to settle for a doll dressed in pink after her baby "sister" turned out to be a boy.
We all know that having a strong immune system is the best way to stay healthy – but what can we do to help it along?
A Melbourne mum who died after the home birth of her baby pleaded with her husband to call an ambulance because she felt she was going to die, the Victorian Coroners Court has heard.
Q: My two-month-old baby doesn't like me. He's perfectly content with my wife, but when I try to hold him, he gets upset and cries. I've backed off a little, thinking that he just needs a little time to get used to me, but that doesn't seem to be working. I'm starting to think I'm just not a very good dad. Is it too late for me to build a relationship with my baby?
Wouldn’t it be great to get some nice feedback every now and then? After all, everyone likes to hear positive praise, particularly when it comes to parenting.
The Essential Baby & Toddler Show is back this April! Save $8 off the door price for a limited time only!
If you're looking to revive an older name, or don’t want anything near the top 1000 list, check out these rare monikers for your unique baby.
It’s great to see a generation of dads who are more actively involved with caring, nurturing and loving their kids.
When there’s no question that milk banks are important, why don’t we have more of them in Australia?
Television personality Carrie Bickmore has given birth to her second child.
Top 5 Articles
Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.
A Norwegian man is facing jail after putting abortion pills in his ex-girlfriend's smoothie, causing her to have a miscarriage.
Jordy Jackson was born without eyes. He has anophthalmia, which affects one in every 100,000 babies born.
With Easter fast approaching, Cadbury are giving away 5 Cadbury Easter Hampers. Enter Now!
Model Sarah Stage has defended her pregnancy body after critics claimed her slim figure at eight-and-a-half months pregnant wasn't "normal".
To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, Essential Baby and Entertainment One are giving away five bumper DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!
I love to take pictures of my children. In some of the pictures, my younger son is nursing.
There are things I wish I didn't know. I wish I didn't know that companies make tiny braces, small enough to hold necks no bigger than a wrist.
When a couple discovers they're expecting multiples, the dad can sometimes be almost forgotten in all the excitement and preparation. But one group offers a space just for dads of twins and higher-order multiples.
A brave mum of two has shared details of the harrowing attacks she suffered at the hands of her partner in a bid to help other victims of domestic violence.
Early last year I turned 35, and having just found out I was pregnant, I opted to have the new test for Down syndrome.
If your family is more into Star Wars, gaming and the periodic table than most, you might want to check out these geek-chic baby items.
According to the Chinese zodiac, babies born in the year of the sheep are creative and enjoy spending quiet time with their own thoughts.
Pregnant women will for the first time have access to locally analysed, accurate, non-invasive pre-natal genetic testing when the first Australian clinic to offer the services opens its doors next week.
Not a day under 65 and a lifetime of struggle! That's the look of these newborns, who look adorably older than their real age. Social networking site Reddit recently featured user submissions of adorable grandbabies, here are our favourites.
An entire family was kicked off a Cathay Pacific flight when a misbehaving toddler refused to put his seatbelt on.
A baby stolen from her mother's arms shortly after birth has been found through an astonishing coincidence.
Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.
Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.
A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.
Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.
Sign up now!
Receive a daily email from Essential Baby during April with great play tips and ideas, then submit your baby at play photos to our Playwall, Instagram or Twitter for your chance to win.