Finance Adviser fees?

Morning all,

Hoping to get some advice on the ballpark figure on the financial advice fee please.

I just had a couple of introductory meeting with a finance advisor and got their Letter of Engagement for approx $15k.

In short, their service covers for:

1. Statement of Advice for the research and advice on Superannuation and Share Portfolio.
2. Lending Team to conduct valuation of the existing home, assist with the lending structure for future investment property, to organise mortgage, etc.

On top of that, 12 month Advice Service for $4.5k for:

1. Access to the Finance Advisor
2. Update on economic and legislative changes
3. Minimum of annual review on Superannuation, assets and liabilities, budgeting/cashflow, etc.

It seems a lot of money for not much service and just wondering if this is pretty standard for the Finance Advisor (my first time talking to the Finance Advisor)

I only have a PPOR (fully paid) in regional QLD and small share portfolio & superannuation.

Any advise on above and also any recommendation for a good finance advisor would be much appreciated.

 

that is ridiculous! It will delay your retirement paying that much, plus they will be getting a commission from the loan.

Looks for an independant financial advisor who charges by the hour.

 

https://pifa.org.au/member-directory/

 

Thanks for the response Terry,

I had that gut feeling and am glad I asked the question for the comments.

 

Paying a financial adviser who then will assist and support a new loan to buy new property sounds dubious. Sounds like taking a few bites of the same fruit. And then what else can they earn ? BA fee...or someone else gets that ?
On top of that, 12 month Advice Service for $4.5k for:

1. Access to the Finance Advisor
2. Update on economic and legislative changes
3. Minimum of annual review on Superannuation, assets and liabilities, budgeting/cashflow, etc.

"Access to", update on economic changes (read the web) ....budgeting and cashflow sounds like puff.

 

Don’t walk, run.

Even if they cut price by half or more, how could you ever trust them?

 

I am a financial planner (and accountant) and based on the information provided, the fees do seem high.

I would ask if you could use an external mortgage broker as they should do most of point two.

In terms of the ongoing fee, access to the advisor just means you can call whenever you want (most clients rarely call), updates on economic changes etc this just means you will get a generic newsletter once a quarter. Essentially, you are paying $4,500 to have an annual meeting. If you do go ahead with it, make sure you get your money’s worth from them i.e. call them if you have any questions or concerns with anything.