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How much does a Financial Planner cost in Australia?

Updated: May 6

This graph shows an example of the quantitative value of advice (over $3m at life expectancy!), so it is imperative to always view the fee alongside the value of advice! To see how this advice works, please watch our modelling video on Youtube.

Average Costs

Research from the Financial Advice Association of Australia in 2020 indicated that the average initial cost to set up a financial plan is around $3,300 and then about $358 per month on average to receive ongoing advice.

However, it is worth noting that since 2020, inflation has been considerable meaning both the average upfront and ongoing fees are likely to be at least 20% higher in 2024, which would equate to an average $3,960 for initial advice and $430 per month.

It is important to note that these fees are just an average and depend on the complexity and amount of services involved, and therefore, the fees can be both lower and higher.

It is also worth noting that fees can:

  • Often be paid partially from superannuation which helps client's cashflow. Additionally, most super fund fees have a 20% tax discount known as a Reduced Input Tax Credit, which means the net cost to the client can be up to 20% lower than mentioned above.

  • Often be tax deductible to a client when the fees are ongoing and paid from a personally owned investment portfolio. This is often advantageous for clients who are both in higher tax brackets as the net fee could be as much as 47% lower than mentioned above!

Costs vs Value

At this point, it is also important to differentiate the idea of cost versus value.

Financial Planners often offer a free initial appointment to be able to better explain the value clients will receive before providing the fee estimate. If the value of a service is more than the fee, then of course people proceed with the advice.

Many of our services can provide tangible benefits such as tax savings, super & investment fee savings, insurance premium savings and investment performance. In most cases, the tangible benefits of the advice exceed the cost of the advice.

However, just as important are the intangible benefits of advice:

  • Helping you define clear and considered goals

  • Building a tailored plan for achieving your goals

  • Having a professional keep you on track for meeting your goals

  • Providing clarity and keeping you on track for the future with our detailed modelling and projections

  • Removing the time and stress from managing your personal finances

  • Helping you avoid financial mistakes

To have the time to convey all of this value, Source Wealth offers a full 90 minute initial appointment valued at $800 before a client needs to make their decision. You can book that in here.

How are Financial Planning Fees Calculated?

To onboard a new client, most advisers will require at least 3 appointments, or approximately 5 to 7 hours. In the third appointment, a Statement of Advice is legally required to be provided.

These documents are often 50 to 150 pages long and contain enormous detail regarding the recommendations, benefits, any disadvantages and alternatives considered. These documents often take around 10 to 20 hours to be produced. To download your free sample financial plan please click here.

Finally, implementation of the advice can take anywhere from 5 to 20 hours.

When you tally up the total hours, it is simple to see why financial planning fees are what they are.

So, when should I first get Financial Advice?

Nearly everyone in employment should at least get their income protection insurances organised through a Financial Planner, and if they have a mortgage and dependents, it is extremely important that they also get their other life insurances organised. Insurance only advice is typically much cheaper than comprehensive advice. For Comprehensive advice, it is generally important that clients have:

  • Income levels with at least the potential to have a cashflow saving surplus (even if you currently aren't). In this high inflation environment this could mean household income above 200,000 combined


  • An amount of investable assets for advisers to add sufficient value relative to their fees (by staying below 1% p.a. net of funds under management (FUM), this would mean approximately a FUM including super balances of at least $250,000 combined)

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