Join our investing community

About advice from a Fin. Advisor and advice costws re Super

Discussion in 'Financial Planning' started by Gill Bates, 5th Mar, 2015.

  1. Gill Bates

    Gill Bates New Member

    28th Dec, 2006
    I'm a member of as corporate super fund. I recently turned 55

    The financial adviser suggested I start a transition to retirement pension with salary sacrifice. I would like to do this.

    He wants to charge me upfront fee of $2700 and .22% year for this AND to prepare a financial plan AND ongoing monitoring
    (.22% a year would be $700 - $1000 yr)

    My questions are,
    What is the hourly rate a adviser would charge? (A range is ok)

    2nd question is, Should it be possible, to just pay for setting up the transition to retirement pension with salary sacrifice setup
    Without the financial plan and ongoing monitoring?

    If a yearly review was needed of the
    "transition to retirement pension with salary sacrifice", I would prefer to pay for that at an hourly rate , each year.

    I told the adviser I just wanted the "transition to retirement pension with salary sacrifice", not the financial plan, but he said it was not possible and I had to get the financial plan etc.

    Thank You
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    Advisors must issue a statement of advice (which is the financial plan) for their advice. It can just cover this advice required rather than the whole picture.

    You should pay for this and the meeting involved. A fixed fee should do it. What is the 0.22% supposed to cover?
  3. Christianrenel

    Christianrenel Active Member

    13th Jan, 2015
    Transition To Retirement

    Hi Gill,
    I agree with TerryW, the Financial Planner will be need to issue a Statement of Advice whichs covers the ?Transition to Retirement? (TTR) Strategy. The (TTR) strategy requires money to be moved from accumulation to pension phase and the strategy should be refreshed each year to maximise the benefits, this is why annual reviews are important.

    Depending on the Adviser?s Business model will determine how he allocates fees for the work. The financial planning business which I work for runs a ?fee for service? business model, fees are similiar to what an accountant would charge for their time.

    Kind Regards

    Last edited by a moderator: 22nd Sep, 2016
  4. bdm8

    bdm8 New Member

    12th Nov, 2014
    TTR Advice

    Hi Gill, in response to your question on how much a financial advisers hourly rate is that will depend on the ability and experience of them, however my hourly rate is $250 per hour.
    As the others have mentioned a SOA will need to be issued and this is more for consumer protection to record keeping of the advice. This process is what builds the costs of the advice up, and with a TTR as it really should be refreshed at least annually there will need to be an advice document issued each time.
    I would suggest that if the adviser will be reviewing and refreshing your TTR each year for only .22% fee on your current balance I would snap that offer up as would be almost at cost price.
  5. Investor23

    Investor23 Member

    21st Oct, 2014
    Adelaide, SA
    I personally charge $330 per hour (if providing advice on a one off basis). This is to cover all admin and paraplanning also.

    What you need to factor in is each year you will need a review meeting (at least 1 hour)... A pension refresh (putting together an SOA and implementing this) which would take at a minimum 2 - 3+ hours.

    The 0.22% is a really good deal to be honest if that is going to cover all ongoing advice and work annually. I wouldn't charge that little personally, hardly cost.