Financial Planning is complex and extensive research goes into determining the exact advice we deliver. We don’t only analyse market performance when determining advice, we also consider your lifestyle, age, dream and goals to ensure we can help you live your best possible life.
Are you looking towards the future however aren’t sure how to finance it? Talk to us today about how to structure a financial plan that starts with your dreams and goals.
General Advice Cost and Fees
In general, across the Industry, the amount of fees charged by financial advisors varies with the type of advice and services being offered. Additionally, there are different ways the fees are charged. Some advisors may take a fixed-fee by the hour or by the project, while others may opt for percentage-based payments. You may find they also work off a combination of these. Generally, you will be presented with a document known as a “statement of advice” which will include a breakdown of the fees associated with the advice within it.
The fixed fees are independent of the assets under management, their value, and performance of assets. Some advisors charge a one-off fee for preparing the statement of advice, while others may charge an upfront fee for implementing the financial advice. The fixed fees can also be monthly or annually for the continuing financial advice and reviewing the financial plans . Most financial advisors provide a list of services offered by them and the associated flat fee for the clients to understand and choose from.
Percentage Based Fees
The percentage-based fee structure can either be a percentage of the total value of assets in the portfolio or a percentage of the performance of the assets. Such fees are termed as assets under management fee and investment management fee, respectively.
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How We Charge Fees
The way we charge our fees is a combination of high value to our clients and appropriate compensation for our efforts. We work on what is important for you, in a way that is beneficial for you. The relationship begins with a series of meetings to understand you and your financial plans, empower you to live the best life possible, and support you in the process. The meetings are also followed up by progress meetings to gauge the advancement and achievement of financial goals and objectives.
The first meeting aims at understanding your needs and is no fee for the initial consultation. From there on, upfront fees are charged to build and implement the financial plans. The advisers undertake extensive research into the clients’ needs, goals, financial situation, and solutions to create a personalised plan. The upfront fees range between $3,000 and $10,000.
|First Meeting – Understand
||Second Meeting – Challenge
||Third & Fourth Meetings & Acting on your advice
||Annual Progress Fee
|Where we get to know each other, see if there is a fit and help you clarify what is most important to you.
||Where we start to form some ideas about how we can improve your financial health and help you with your most important dreams and goals.
||Where we make final decisions about which steps to take, clarify your financial life, ensure you have the right products and strategies in place for your best possible life.
||Where we check in and ensure you have complete clarity of your best possible life and what is most important to you, understand what has changed with you, with the financial world and the broader economy. Remap your journey towards your best possible life and make any necessary changes to your financial products or strategies.
|No cost or obligation
||$500 to cover a small proportion of the time and research required to commence research and advice preparation
||This ranges from $3,000-$10,000 depending on your needs, goals and the complexity of your situation.
||$1,200-$6,000 depending on the complexity of your situation and level of service required. Additional Wealth Management Fee if applicable ranging from 0.8% to 0.65% of your assets under management depending on how much you have invested.
For ongoing support with your financial plans, we charge from $1,200 to $6,600 per year, depending on the complexity of your financial circumstances. Based on your financial situation and support required, your Adviser will present the associated costs involved with providing you with your document that outlines your recommendations and its implementation. You may also take specific add-on services on top of the package, including extra meetings and Self Managed Superfund support if required.
- Enhance: The entry-level package is most suitable for people starting with their investment journey or those in the later years of their retirement. Such clients typically have less than $500,000 to invest and have simple financial plans. The package includes one meeting with the financial advisor per year.
- Elevate: The standard package works well for most of the families we work with. You may have a slightly more complicated financial situation, multiple goals and may have more than $500,000 to invest. This package also includes one formal meeting with the financial advisor per year.
- Exceed: The Exceed package is appropriate for clients with more complex financial needs and who, due to that complexity, require more frequent meetings with the financial advisor.
In addition to the three packages, we offer a range of portfolio solutions that meet the unique needs of the clients. These suit clients who want to incorporate wealth management into their financial advice solution. For this, you are charged based on a percentage of the amount you have invested. The more you have invested, the lower the percentage rate; these fees range from 0.8% to 0.65%.
- Foundation: The Foundation solution is suitable for DIY investors who simply want a Financial Advisor to review their investment situation once and design a “set and forget” Strategic Asset Allocation plan. The package works for cost-conscious investors who do not find it beneficial to engage a financial advisor in managing their portfolio. The Foundation solution can be Passive or Active.
- Dynamic: The Dynamic solution is appropriate for investors who require higher involvement from their Advisor in their wealth management. Under this approach, there is greater transparency in what you are investing in, high-quality research and a more defined approach to risk and return. It also includes a third party Investment Manager to enhance efficiency, who is monitored by your Financial Adviser.
- Bespoke: The Bespoke solution is ideal for investors who want a tailored wealth management solution with no consideration of cost. This offer requires bespoke research and support to ensure the bespoke solution continues to meet the client’s defined goals and investment parameters. We find that clients in this space are generally more sophisticated investors with assets over $2million, or they are someone who is not interested in the efficiency and cost savings of an ‘all in one’ solution.
You can view our full fee break down here.
What am I paying for?
From our end, your fees give you access to your adviser(s), a local team of relationship managers, a team of administrative support people, as well as a team of advice research and lending experts. It is this team of people who stay on top of the most current financial products and strategies, as well as understand how best to work with families to help clarify what it is that they truly want from their advice. This dedication has led to a consistently strong result in our annual Beddoes Client Engagement review of our business, with our experienced advisers earning the Most Trusted Adviser designation. Additionally, we invest in Industry-leading compliance approaches to keep everyone safe. We support our people with fulfilling careers, development opportunities and a #wearefamily culture such that we are consistently ranked as a top 10 place to work in Australia by Great Places to Work.
On your end, your fees will help you to have clarity over what is most important to you, your specific dreams and goals, an understanding of what your options are and how the choices you decide to make will impact your future and tradeoffs. Ultimately, our working relationship is about defining what your best possible life looks like and how to achieve it. Our clients consistently report that our advice relationship provides comfort and confidence in their future. There will also likely be financial gains, whether it be through savings, investment returns balanced with your position on risk, taking advantage of financial strategies that will deliver you a better long term outcome, or ensuring you have adequate protection should an unexpected event occur.
Overall, we charge fees in accordance with the extent of services offered and the value provided. We strive to deliver excellent value for fees paid by our clients, keep the advice non-conflicted and unbiased, and help the clients meet their financial objectives in the best possible way.
Wondering what a first meeting looks like? We explain what to expect here.
It’s important to keep in mind fees are only one aspect of things you should consider when choosing the right financial planner for you. It’s important to ask lots of questions and find an adviser you are comfortable with and feel can add the most value to your financial future.
If you’re serious about taking your finances to the next level speak with one of our advisers to find out how we can help you reach your goals and dreams!
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.