How Much Does a Financial Adviser Cost?
It depends on the adviser, the type of advice you need, and whether you're looking for a one-off engagement or an ongoing relationship. Most financial advisers will have fee ranges outlined in their Financial Services Guide (FSG), which is usually available on their website. This page breaks down the common fee types so you know what to expect.
Upfront Costs
Initial Meeting
Some financial advisers offer initial meetings at no cost, while others charge between $200 and $600. The initial meeting is typically a get-to-know-you conversation where the adviser learns about your situation and you decide whether they're a good fit. It's not usually a meeting where you receive specific advice.
If an adviser charges for the initial meeting, that fee is sometimes credited towards the cost of advice if you decide to proceed.
Statement of Advice (SOA) Fee
A Statement of Advice is the formal document that sets out the adviser's recommendations for your situation. It's a legal requirement whenever personal financial advice is provided in Australia. Preparing one involves research, modelling, and compliance review, which is why it's typically the largest upfront cost.
SOA fees typically range from $3,500 to $6,000 or more, depending on the complexity of the advice. A straightforward super contribution strategy will cost less than a comprehensive plan covering investments, insurance, estate planning, and retirement projections.
Implementation Fee
Some advisers charge a separate fee for implementing the recommendations in your SOA. This covers the time spent setting up accounts, transferring funds, applying for insurance, or restructuring your portfolio. Others include implementation in their SOA fee. Where it's charged separately, it can range from $0 to $6,000 or more depending on the work involved.
Ongoing Costs
Ongoing Advice Fees
If you enter into an ongoing advice arrangement, your adviser will charge a recurring fee. This typically covers an annual review, portfolio monitoring, and access to the adviser throughout the year. Under Australian law, your adviser must seek your written consent each year to continue charging ongoing fees, so you're never locked in.
Ongoing fees are usually structured in one of three ways:
A percentage of the funds under advice (FUA), typically between 0.50% and 1.50% per annum. Some advisers tier this so the percentage decreases as your balance grows.
A flat dollar fee, often exceeding $3,000 per annum, based on the time and complexity involved in your situation rather than the size of your portfolio.
A combination of both, where the fee reflects a blend of portfolio size and the complexity of the ongoing work.
The right structure depends on your situation. Percentage-based fees mean the cost scales with the size of your portfolio, which keeps fees low for smaller balances and aligns the adviser's incentive with growing your wealth. Flat fees offer more predictability regardless of your balance. Neither approach is inherently better, it comes down to what works for you.
Ad-Hoc Costs
Hourly Rate
It's less common for financial advisers to charge an hourly rate, but where they do, it typically sits between $200 and $500 per hour. This model can suit people who only need help with a specific question and don't want to commit to a broader engagement.
What About Commissions?
Commissions on investment products were banned in Australia as part of the Future of Financial Advice (FOFA) reforms. However, commissions on insurance products are still permitted. This means some advisers may receive a commission from an insurer when they recommend a life insurance, income protection, trauma, or TPD policy. If your adviser receives commissions, they're required to disclose them in their SOA and FSG.
It's worth asking any prospective adviser whether they receive commissions and, if so, how that might influence their recommendations.
Other Costs to Be Aware Of
The fees your adviser charges are separate from the costs of the products they recommend. For example, if your adviser recommends a particular managed fund or super fund, that fund will have its own management fee (often called a Management Expense Ratio or MER). Platform fees, transaction costs, and insurance premiums are also separate from adviser fees. Make sure you understand the total cost of the advice and the products combined.
How Much Does Panorama Wealth Charge?
At Panorama Wealth, we try to keep our fee structure simple:
We typically don't charge for initial meetings.
Where a client comes on board as an ongoing investment client, we usually don't charge a Statement of Advice fee or implementation fee.
We charge a flat 0.60% per annum of the funds under advice for ongoing investment clients.
We don't receive commissions on any of the investment products we recommend. You can find more detail about our ongoing investment service on our Investing page.
If you'd like to understand how our fees would apply to your situation, book an initial consultation and we can walk you through it.