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Typical fees for financial planners?

Discussion in 'Financial Planning' started by otherwiz, 18th Jun, 2013.

  1. otherwiz

    otherwiz New Member

    Joined:
    18th Jun, 2013
    Posts:
    2
    Location:
    Sydney, NSW
    My wife and I are looking at $3,000 up front plus $5,500 per annum to plan and manage our finances. We are going in with a few hundred thou in super and a smaller amount of shares. The plan revolves around a new super provider and tax reduction on super contributions, plus a transition-to-retirement instrument. Do these fees seem reasonable?

    I don't want to be mean, and I'm sure I am underestimating what goes into this kind of service, but it isn't like we are getting weekly adjustments to our investment portfolio -- the super fund charges their own (apparently modest) fees, and the plan is obviously based on a tried and tested formula.

    -- naive me
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Depends what you get for your money I guess. I am an estate planning lawyer in Sydney and work with a few fin planners. The fees charged tend to be around $3000 + for a financial plan and then another fee for ongoing advice and management of the investments. Some charge a fixed fee or some a % of total investments pa. but you want to make sure you are getting something worthwhile for you money and know what this will be.

    If you want a second opinion I can put you in contact with a Sydney based planner.
     
  3. otherwiz

    otherwiz New Member

    Joined:
    18th Jun, 2013
    Posts:
    2
    Location:
    Sydney, NSW
    Thanks, Terry.

    I would appreciate your referral as we may need to find a different planner. I've just realised that our guy's company is owned by the retail SuperAnnuation company he wants us to use, and that it is owned by a major bank. It all smells a bit, especially when the super fund's fees would be 3-4 times what I would pay if I rolled everything into one of the two funds I have now.

    You can e-mail me at achmed71hr at yahoo dot com if you don't want to post your planner's details here.
     
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Otherwiz, that email didn't work, or I deciphered in incorrectly. I have sent you a private message.
     
  5. Andrew Newman

    Andrew Newman Well-Known Member

    Joined:
    5th Nov, 2008
    Posts:
    175
    Location:
    Melbourne
    Hi Otherwiz

    Make sure you receive conflict free advice, where your financial adviser should satisfy the following 3 criteria:

    1. They don't have ownership links or affiliations with any product manufacturers. (I have read that about 80% of the financial planners in Australia are affiliated with a product manufacturer)

    2. They don't receive commissions or incentive payments from investment products. (can be rebated)

    3. They don't charge a percentage of your assets. (this is really a commission disguised as a fee).

    Terry's comment "you want to make sure you are getting something worthwhile for you money and know what this will be" is spot on.

    I am happy to provide you with a FREE super review and discuss strategy ideas that add value.

    Kind Regards