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
Most people who are trying to get pregnant know that the best time to conceive is in the few days after ovulation.
A cruise with your family is among the most absurd settings for a miscarriage, but it is certainly not the worst.
A 22-year-old woman who is pregnant with her third child has had her requests for a tubal ligation denied because doctors believe she is too young.
When a pregnant woman is infected, the likelihood that her foetus will be infected is about 50 per cent.
If you're hoping to conceive, one of the most important things you need to know about is ovulation.
I remember the first time I felt mum guilt, within days of having my first child. The feeling was so intense I rang my own mum to debrief, hoping she'd tell me I wouldn't feel this way very often.
When it comes to motherhood, actress Kristen Bell is her own superhero and she thinks other mums should be too.
In a world of ever-shrinking gadgets, it's no surprise prams are getting smaller. We put the record-holding GB Pockit through its paces.
The gorgeous Bombol Bouncer is back - and boasts two chic new colours to boot.
Looking for a gift for the wine lover in your life - or just something for yourself?
Pinky Mckay joins us again at the Essential Baby & Toddler Show presented by Blackmores with her expert baby settling advice. Register now for your free ticket.
The best part about our outdoor adventures? It makes my husband and I better parents, since we're happier while adventuring.
A good samaritan saved a mother and baby from being seriously injured by crashing her own car into theirs.
Returning to work after having a baby can be daunting, and when you're experiencing postnatal depression or anxiety it can seem even more overwhelming.
Background noise from the radio or TV might be making it harder for your toddler to learn learn new words.
Teresa Palmer is basking in pregnancy glow as she awaits the arrival of her new baby.
Top 5 Articles
Pre-book & Save 50%. Get your tickets now for Kidtopia Festival. 7-9 October 2016 Parramatta Park, Sydney.
H2O is one of the necessities of life, but for babies a seemingly harmless amount of water can be fatal.
So much parenting advice is geared towards having your first baby, but what's it like having a baby when you already have children?
Fans of The NeverEnding Story – of which there are certainly plenty – went crazy for these plush Falkors when they first went on sale last year.
I thought I had prepared myself for motherhood. Then my baby girl arrived and knocked everything flat.
People love to warn you about what to expect when having a baby, but they can be way off when it comes to the reality.
Motherhood is wonderful ... except when it sucks.
There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.
Breast is best, except when it's not. And in our case, it most definitely wasn't.
The photos are heartbreaking and almost too difficult to look at, but Kayley Burke is begging other parents to take notice.
In news that will make expectant mums jump for joy - and reach for a block of Cadbury - scientists have revealed chocolate could provide health benefits during pregnancy.
If you're in any way challenged in the follicle department, prepare to feel a jolt of envy - at a two-month-old baby.
While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.
One mum has learnt a harrowing lesson about the best way to cut grapes to make it safe for toddlers and little kids to eat.
Lately I've been thinking about the caesarean stories and the brave women who birth their children with strength and beauty.
It's stressful to be the one who is holding your baby most of the day, but it's even more stressful to wonder, 'am I doing something wrong? Or am I creating bad habits?'
Free ticket offer
The Essential Baby & Toddler Show, presented by Blackmores, will be held in Sydney on 23-25 September. Register for your free ticket now to save $20!