The Financial Planning Association (FPA) defines financial planning as the process of meeting your lifes goals through the proper management of your finances. Your lifes goals may include buying a home, saving for your childrens education and planning for retirement.
A good financial plan as suggested by the Australian Investments and Securities Commission (ASIC) should:
Download a copy of ASICs Getting Advice.
Quality financial advice can help you make informed decisions about your financial situation.
A Meritum financial adviser can help you determine your short and long term financial goals and suggest solutions to achieve them.
Benefits of financial advice include
A Meritum financial adviser can help you determine your short and long term financial goals and suggest solutions to meet them.
The Financial Planning Association (FPA) suggests a financial adviser can assist you:
You may need advice if you:
Not everyone needs advice. If you are confident that you have an effective strategy in place, then you may not need professional advice. For example the FPA says:
There is no set amount that a financial planner will charge. It depends on how complex your financial situation is and the level of service that the financial planner provides. Some planners may charge you directly for their services: others may be reimbursed by their employers or by the providers of products that you may invest in. Many will not charge you at all for the first meeting. Check their Financial Services Guide (FSG) for details. Your financial planner will prepare a Statement of Advice which will detail all fees and charges payable to the planner, both from commissions and fees.
As a general rule fees can include:
Some financial planners only use one fee basis, but many use a combination of the above. Many financial planners also charge separately for the initial plan and for the ongoing work.
Initial advice $2,000-$4,000
Implementation 1% of assets invested
Trailing commission 0.6%-1% (usually paid out of investments)
This is an example only the cost of advice varies according to the level of complexity of your situation, and the services offered. It may vary widely from the example given.