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How much financial advice costs

We get asked how much financial advice costs quite a lot. The simple answer is it depends. A young person starting out will have much simpler needs than a retiring business owner with multiple tax structures such as company, family trust, SMSF etc.

The initial meeting fee to see an adviser at Chandler Private Wealth is $165 including GST (book here) The exception to this rule is if you are referred by an existing client or your accountant, lawyer, insurance broker or mortgage broker we have a relationship with we will underwrite the initial meeting fee.

How much financial advice costs

There is some homework to complete prior to the meeting. The purpose of the initial advice meeting is to get to know each other, what you are looking for and how we might be able to help.

We can provide general factual info at that meeting which may be all you require. If you require written personal advice we would work out what your financial goals are, what type advice you want/need, what is in the scope of the engagement. Then once we know what the fee will be we will obtain your consent prior to starting.

As an example simple advice to a young accumulator might only cost $440 while more comprehensive advice to a business owner client may cost $5,500 or anywhere in between. You can get a bit more of an idea about what this fee covers here.

Is it worth paying for a financial adviser?

Research completed by Vanguard, who is a global asset manager with assets over 6 trillion US dollars. Has shown that clients who have an ongoing relationship with a financial adviser feel more secure about their financial future. They also have proven that they have statistically better financial outcomes than those who don’t.

Depending on your financial situation, you may not need to pay ongoing financial advice costs. If you don’t, we will discuss this with you. You have the option to only engaging on an ad-hoc basis, or pay as you go when you deem required. We have put together a few starting points on how you can achieve this here.

How much financial advice costs
Are financial advice fees tax deductible?

If advice and the subsequent fee is charged to your super fund, then yes that is tax deductible to your super fund. So it means the net fee you would pay is lower.

If you are charged personally to setup an initial financial plan then currently, this isn’t tax deductible but it is regarded as a capital expense. There are a few groups lobbying to get this changed.

Any ongoing financial advice fees or retainers you pay an adviser. With regard to your assessable investment income are generally tax-deductible. There is more information on this here.

Can you trust financial advisers?

The short answer is, yes. If you don’t trust yours then find one you do. Under the Corporations Act, financial advisers providing personal advice need to comply with the “best interests duty”.

This means that financial advisers have to be able to show that they have put clients in a better position. Not complying with these rules can result in being banned from the industry and facing large fines. You can find out more about the Corporations Act here.

Get in touch

As always, feel free to reach out if you want to have a chat about your finances or book in a meeting. We have an office in Adelaide (South Road Black Forest) and Broken Hill via appointment only. Call 08 7160 1191 or email admin@cpwealth.com.au