Is a financial adviser worth it?

Is financial advice worth the fee?

It depends on how much is unresolved. Advice is worth paying for when there are structural decisions with long consequences — entity ownership, contribution sequencing, an exit, a transition to retirement — and nobody currently holding the whole picture. It is not worth paying for when the position is simple and already sensible.

The reason the industry answers this badly is that it usually answers it with a return figure. We will not, for two reasons. The first is that we cannot substantiate one. The second is that it would be the wrong measure anyway: most of what changes after good advice is not investment return, it is the tax treatment, the ownership, the order and the timing of decisions that would have been made regardless.

So the honest framing is not "advice returns X%". It is: what is currently unresolved, what is it costing to leave it unresolved, and is that larger than the fee? If we cannot describe what changes, we should not be charging you to change it.

Where does the value of advice actually come from?

Five places, and investment selection is not among the largest. Structure — which entity owns what. Sequencing — the order decisions are made in. Tax — treatment that follows from both. Protection — what happens if the income stops. And behaviour — not doing something expensive at the wrong moment.

Four of those five have nothing to do with picking investments. That is the single most useful thing to understand before comparing advisers, because it means the thing most advisers lead with is the smallest of the five.

How much does financial advice cost in Australia?

It varies widely, and the more important question is how it is charged. Three models dominate: a percentage of the assets you hold, commissions paid by product providers, and fixed fees quoted in dollars. The model affects what advice you are likely to receive, not only what you pay.

Percentage of assets. A common approach, where the fee is a percentage of the balance under advice. Two consequences follow. The fee rises as the balance rises, whether or not the work does — and advice that would reduce the balance under advice, such as paying down a mortgage, using money to buy into a business, or gifting to family, sits in tension with how the adviser is paid.

Commission. Conflicted remuneration on investment and superannuation products was substantially removed by the Future of Financial Advice reforms, though commissions remain permitted on some life risk products. Where any commission exists, it must be disclosed.

Fixed fee. A dollar amount agreed before the work starts, based on complexity rather than balance. The fee is knowable in advance, does not move with the balance, and does not change what advice is comfortable to give.

How do you charge?

Fees are discussed and agreed with you before any work begins — a fixed dollar amount, an hourly rate, a percentage of the portfolio under advice, or a combination, depending on the engagement. Where life insurance is recommended, the insurer pays us a commission at no additional cost to you, always disclosed. The initial consultation is free; the full schedule is in our Financial Services Guide.

The shape of the engagement corresponds to how much needs resolving.

A one-off review. For a specific position that needs a proper look and a documented answer — a structure to assess, a decision to make, a second opinion on advice already received. Finite scope, a fee agreed upfront, no ongoing obligation.

An ongoing advice relationship. For a position with several moving parts that will keep moving — entities, contributions, property, insurance — reviewed as circumstances and rules change.

A comprehensive arrangement. For substantial and genuinely complex affairs, typically multiple entities, a business, and family or estate considerations, involving coordination with several other professionals.

In every case the fee basis is agreed before the work starts. If we do not think the work will be worth the fee, we will say so and decline the engagement — which happens.

Are financial adviser fees tax deductible?

Sometimes, in part. Deductibility depends on what the fee relates to. Fees for advice connected to managing existing income-producing investments may be deductible, while fees for initial advice or for planning that is not connected to producing assessable income generally are not. Where the fee is paid from a superannuation fund, different considerations apply again.

We raise it because it changes the real cost and is almost never mentioned. We also will not tell you what your position is on a web page — it depends on the composition of the advice and your circumstances, and it is a question to settle with your accountant against the specific invoice.

Can I just do this myself?

Yes, and some people should. If you are genuinely interested in this, have the time, and your position is not structurally complex, a low-cost fund and a good accountant will get you most of the way. The case for advice strengthens with complexity and with the consequences of getting a structural decision wrong — not with the size of the balance.

The people who do this well themselves generally have three things: real interest, enough time, and a position without entities. Take away any one of those and the do-it-yourself approach tends to fail not through bad decisions but through decisions never made — the contribution room that expired, the insurance never reviewed, the structure never revisited.

The honest risk of self-management is not a poor investment choice. It is drift.

When is advice not worth it?

When the position is simple and already sensible. When someone wants a specific product rather than advice. When they are looking for the cheapest possible fee, because that is a different service. When they want to hand over the decisions entirely. And when the fee would be a material proportion of the amount being advised on.

That last one matters and is rarely said. There is a level of assets at which a comprehensive advice fee is simply too large a share of the sum involved to be defensible, whatever the quality of the work. Below it, ASIC's Moneysmart guidance and a decent accountant are a better use of the same money, and we will say so rather than take the engagement.

We would rather publish this than discover it in a second meeting.

What happens if I do nothing?

Usually nothing dramatic — which is exactly why the cost of inaction is easy to underestimate. Nothing breaks. Contribution room quietly expires, a structure stays fitted to circumstances that ended years ago, and the compounding difference between a good decision and a default one accrues silently in the background.

The next two years are an unusually poor time to be on autopilot. Capital gains and negative gearing rules change from 1 July 2027, superannuation is changing from 1 July 2026, and a plan built for the previous rules is now dated whether or not anyone has looked at it.

How do I find out whether it is worth it for me?

Start with a Wealth Gap Conversation — a no-obligation discussion at no cost, with no product involved. If we do not think advice would be worth the fee in your case, we will tell you in that conversation. If we do, the fee will be discussed and agreed with you before any work starts.