Is it worth paying for a financial advisor?
The Australian financial services industry can feel overwhelming when there's a lack of knowledge and familiarity as questions about investments, self managed super funds, income protection, retirement planning, and managing debt arise. That’s often when the question comes up: should I seek financial advice—and is it worth paying for a financial advisor?
Should I seek financial advice? Is it worth working with a financial advisor? This guide explores the pros and cons of engaging a financial advisor in the Australian context. We'll also look into practical situations that can be relatable to you, along with expert opinions to provide more clarity and resolution. Read on.
General information only: This article is educational and does not consider your personal objectives, financial situation, or needs.
Is it Worth Paying for a Financial Advisor in Australia?
In many cases, yes, it's worth paying for a financial advisor's expertise if you're from Australia.
It’s worth paying for a financial advisor when the value comes from better decisions—not “beating the market.” For most people, the payoff is reduced risk of costly mistakes, clearer trade-offs (what to do now vs later), and a plan you’ll actually follow.
Here’s the quick “worth it” test that matches what searchers usually mean by “worth it”:
- Can you name the decision you need help with in one sentence? If the decision is unclear, you’ll pay for advice you can’t judge.
- Is the cost of a wrong decision meaningfully bigger than the fee? Think: retirement timing, super strategy, insurance gaps, or investing errors during volatility.
- Will advice change what you do—or just confirm what you already do? If nothing changes, you’re paying for reassurance. That can still be valid, but be honest.
- Can the advisor explain the “total cost” in dollars, not just a fee type? You want the advisor fee plus any platform, product, investment, and implementation costs.
- Can they show you the deliverables and timeline before you commit? If you can’t describe what you’ll receive (SOA, implementation steps, review cadence), you can’t measure value.
Keep in mind that you might notalways need ongoing advice. If your main need is a strategy decision, you may get the best ROI from a scoped, one-off plan + implementation support, then revisit advice only when life changes.
When is it Worth Paying for a Financial Advisor?
It’s usually worth paying for advice when the decisions you’re making could have long-lasting consequences.
It may be worth it if you’re:
- Within ~10–15 years of retirement and need a drawdown plan
- Deciding between super strategies, contributions, or pension options
- Managing a major change (inheritance, divorce, redundancy, business sale)
- Restructuring insurance or protecting family income
- Juggling multiple goals (home, kids, retirement, investing) with limited cashflow
- Prone to costly behavioural mistakes (panic selling, chasing returns)
When is it Not Worth Paying for a Financial Advisor?
It may not be worth paying for ongoing advice if:
- Your finances are simple and you’re not facing a major decision
- You only need a one-off answer (you may prefer limited scope or hourly advice)
- The advisor can’t clearly describe deliverables, fees, and review cadence
- You feel pressured into products or rapid decisions
Why Should I Work with a Financial Advisor?
Working with a financial advisor can be worth it when you want clearer decisions, a structured plan, and accountability over time. The biggest “wins” people report are often confidence and wellbeing, not just investment returns.
In a Financial Planning Association (FPA)–commissioned study, advised Australians most commonly said a financial planner helped them in these ways:
- Greater confidence in having a comfortable retirement (47%)
- Improved financial wellbeing (40%)
- Improved financial decision making (37%)
- Improved money management (33%)
- Improved general wellbeing (e.g. peace of mind, health and social aspects) (32%)
A good advisor helps you replace uncertainty with a plan you understand, then helps you follow through as life changes. If you’re considering advice, ask for a clear scope, transparent fee breakdown, and how conflicts are managed—before you commit.
How Much Does a Financial Advisor Cost in Australia?
The rate for financial advising services in Australia usually depends on the client's unique financial situation and possible requirements. Thus, the client and the financial advisor must discuss this before starting.
As a benchmark, the median ongoing advice fee in Australia reached about $4,668 in 2025, according to Adviser Ratings reporting (as covered by industry publications). More tailored financial plans can range up to $7,000–$10,000 depending on the client’s financial stage, such as early career, pre-retirement, or managing a superannuation fund nearing retirement.
The key is to request a clear scope and a written fee breakdown before you proceed.
Next Recommended Read: If you want a more in-depth look at financial advisor fees, check out this article next— All the Financial Advisor Fees You Should Know About
How Do Financial Advisors Charge Fees?
In Australia, advisors typically charge in four common ways: flat fees, hourly rates, commissions (in limited cases), and asset-based fees. You should always clarify what you’re paying, what you’re getting, and who is responsible for the advice and costs.
MoneySmart provides a useful breakdown of common advice fee types and what they cover (ongoing advice, review fees, hourly rates, and more).
Let's take a look at each option:
1) Flat Fees
Flat fees (often called “project fees”) are agreed upfront for a defined scope of work.
A well-run flat fee model should include:
- what will be delivered (for example: a Statement of Advice),
- what implementation support is included (if any),
- timing, and
- when fees are due.
If a financial advisor proposes a flat fee structure, it's important to understand when your fees are due and payable. Below is an outline of common flat fee examples and when they are paid:
- Statement of Advice (SOA) fee — A single charge for crafting your SOA. You can pay this upfront, deduct it from your investments, or add it to the ongoing fee.
- Fee to implement financial advice — A one-time charge for carrying out financial advice, such as bank account setup and investment purchase. It may be upfront, based on your asset value.
- Fee for ongoing financial advice — A recurring fee covering services like reviews, reports, calls, emails, and newsletters, often paid monthly
- Review fee — A one-time charge for revising your financial plan, making necessary changes, and aligning your investments with financial goals, for instance.
- Investment platform fee — Fixed charge for the administrative financial platform handling your investments.
- Hourly rate — Set fee per hour for addressing specific questions outside regular advice or services.
- Service fee — A fixed charge for a particular service or professional advice type, like preparing your Statement of Advice (SOA)
2) Hourly Rates
Hourly advice can suit people who want help with a specific question or a one-off decision. Experienced financial advisors' hourly rates can easily range from $275 to $550, depending on their background and areas of expertise.
Under this payment method, clients with small projects may benefit the most as they only require an hour or two to reach completion. On the other hand, the final bill for larger projects can be very expensive—especially if there are delays in either the production or implementation of the service. Always confirm what’s included, and an advisor will track time.
3) Commissions
Some financial advisors may receive commissions in specific situations (commonly associated with certain insurance products). If commissions apply, you should expect clear disclosure and the opportunity to ask why this payment structure is being used.
4) Asset-based Fees
Asset-based fees are charged as a percentage of the assets an advisor manages for you. The fee often sits between 0.5% to 1% of a client's existing balance. The advantage of this approach is that your advisor is motivated to grow your portfolio, as this means their advice fee will be equally higher, thus compensating them based on your financial growth.
The major disadvantage, however, is that as your balance grows, these financial advice fees can cease to accurately reflect the work an advisor is doing on your portfolio and result in you overpaying them versus a different fee model.
Asset-based fees can be a percentage of the portfolio or based on performance:
- Asset-based (portfolio percentage) — A percentage fee calculated from your total portfolio value. The fee increases with more assets, payable regardless of investment performance.
- Investment management fee (performance percentage) — An additional percentage fee, based on the performance of your investments (usually measured by an ongoing agreement with the benchmark).
Clients should consider cost vs benefit at different life stages: early career, mid-career wealth accumulation, or pre-retirement. For instance, an early career client may pay higher relative fees for a flat SOA, but gain long-term guidance; a pre-retirement client may benefit from asset-based fees aligned to superannuation growth.
The clients must understand the implementation fee structure thoroughly before engaging with a financial advisor to keep transparency. This is to prevent unfavourable surprises and make sure fees and product costs are disclosed in writing.
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Factors That Make or Break a Financial Advisor's Value
Many factors affect the overall expenses involved in financial advising services. The value of the advice you receive also depends on how well it aligns with your personal situation and interests. That's why having a thorough understanding of how these factors influence the fees is essential for anyone seeking professional financial help. Here's a look at some of the factors that affect the fee:
1. The type of financial advice
Basic services, such as one-time consultations, are cheaper. On the other hand, comprehensive financial planning advice, covering areas like investment, retirement planning, and tax minimisation, is likely to have high complexity and will cost more than advice that relates only to your insurance needs. Specialised services tailored to specific needs also vary in price based on their depth and expertise.
Financial advisors provide advice that ranges from general guidance to highly tailored solutions, depending on the client's needs.
Keep in mind that the cost of a financial advisor depends on the type of advice you need.
2. The value of the advice
Not all financial advice has the same value. Some advisors exclusively provide generic advice, while others give a personalised and holistic plan that fits well with their personal circumstances.
High-value advice is:
- tailored to your goals and circumstances,
- practical to implement, and
- reviewed as your life changes.
*When assessing the worth of the advice received, clients should always consider its long-term financial benefits and positive impact on their bottom line and objectives.
3. The expertise of your advisor
As with any professional, highly experienced advisors are likely to charge higher fees due to their extensive knowledge and successful track record. This additional investment can be valuable, provided the advice you received for your financial circumstances reflects and showcases their expertise. Ongoing education is essential for financial advisors to maintain their expertise and provide up-to-date advice.
An advisor may have 30 years of experience, but if they have spent their entire career providing ‘one size fits all' advice during the previous 30 years, it's unlikely that clients will receive much value anyway.
What to Look For with Your Advisor to Get Your Money's Worth
You'll want to look into these things first before hiring a financial advisor:
1. Are they evaluating your financial needs?
A great advisor starts by asking and looking into your financial dreams and challenges: identifying your short-term and long-term goals, and making sure that you have a clear vision of where you want to go. A great advisor will also consider your desired lifestyle when evaluating your financial needs and goals, ensuring that your financial plan supports the way you want to live now and in the future. This means that achieving your individual financial outcomes should feel like a top priority from your very first meeting with an advisor.
At Northeast, our advisors specialise in understanding your financial freedom goals and then crafting financial strategies tailored to your unique aspirations.
2. Learn what a financial advisor does.
Good advisors excel in every facet of money management and give clients a comprehensive approach to their financial situation. Investing is a central component of the comprehensive services offered by financial advisors, as they help clients build wealth and develop investment strategies aligned with their goals. They learn about holistic services, from investment management fees and planning to retirement strategies. Making obtaining financial advice for clients convenient and effective.
3. Choose a financial advisor who teaches you
Best-in-class advisors not only handle your finances but also give the right financial advice. They also educate and mentor you so you can keep making informed financial decisions even by yourself. Expert advisors are committed to enriching more people's financial well-being with wisdom and providing professional financial advice with a mantra of developing 'resourcefulness overreliance'.
4. Research financial advisors
Each financial advisor has individual expertise. Investigate or ask for their qualifications, experience, and track record to assess compatibility and ensure you're comfortable collaborating with them on your project.
How to Get the Most Value from What You Pay
Even when working with us, we always recommend that our clients do these things to make the most out of any arrangement with a financial advisor. Maximising the value of your advisor's fees also means protecting your financial well-being and interests.
1. Do your research
Before considering getting yourself a financial advising service, educate yourself with the right information through books and online resources. You can also ask family, friends, and colleagues you believe are credible or familiar with the topic. Make sure you research and filter potential advisors thoroughly.
Investigate their credentials, client testimonials, and areas of expertise. Check if your potential advisor has the credentials. Ask if they have an Australian Financial Services licence or such. Check if they provide a Financial Services Guide (FSG). Also, check if the advisor is associated with any other entity that could affect the advice they provide.
Consider evaluating whether the advisor has experience assisting clients at similar financial stages as yours, e.g., early career, mid-career wealth accumulation, or pre-retirement planning.
2. Take a look at how your advisor is paid.
One critical aspect often overlooked is how your advisor is compensated. Different advisors have various fee structures, from hourly rates to commission-based models. Knowing these intricacies is a must to avoid inconveniences and unpleasant surprises along the way.
3. Discuss your goals and financial standing with your advisor
Communication is key to a fruitful advisor-client relationship. Be open about your financial goals, aspirations, and current standing. Sharing your current life stage with your advisor helps them tailor their advice to your specific needs. Financial advisors need a comprehensive picture of your situation to tailor their strategies effectively.
4. Hire a new advisor
Finding the right advisor is crucial for your financial strategy and wealth management. Sometimes, despite efforts to make things work, a financial advisor might not align perfectly with your needs. Don't hesitate to explore new avenues.
Ready to Work with a Trusted Financial Advisor?
If you want advice that’s clear, personal, and action-focused, Northeast Wealth is built for that. Our approach is designed to help you make progress without feeling overwhelmed—and to keep you in control of your decisions.
What makes Northeast Wealth stand out:
- A clear, step-by-step advice process, so you always know what happens next.
- Fee clarity before you commit. We’ll make sure you’re crystal clear on the services you need and your specific fees upfront.
- Advice that’s easy to understand. The goal is for you to leave feeling clear and in control—not confused.
- Relational + educational support. We prioritise guidance that helps you build confidence and better habits over time.
- Values-led investing (if it matters to you). Responsible investing is positioned as central to the firm’s approach, including a stated focus on 100% responsible investments.
Next step: Book a complimentary call with Northeast Wealth to talk through your situation, what you’re trying to achieve, and what advice could look like from here.
Compliance note: Northeast Wealth Pty Ltd acts as a Corporate Authorised Representative of Synchron Advice Pty Ltd (AFSL 243313)
Final Thoughts: Is a Financial Advisor Worth It?
A financial advisor can be valuable and worthwhile if you find the right one advisor in harmony with your goals. Their extensive knowledge can navigate intricate financial choices in a way that general advice providers might not be able to do. They help you come up with informed decisions, choose the right investments, risk management, retirement planning, tax reduction, and achieve financial objectives. A financial advisor can also help you optimise your savings to support your long-term financial goals.
Cost vs benefit scenarios show that for many Australians, the long-term financial gains, risk reduction, and confidence in decision-making can outweigh upfront costs, particularly when advice is tailored to the client’s financial stage.
As you know, tailored and ongoing advice can save money and offer reassurance, vital in uncertain economic times. To answer the question: Yes. It's worth paying for a financial advisor.
If you're looking for a financial advisor to provide a tailored financial plan and top-level advice, we at Northeast Wealth are always ready to deliver. Our goal is always to help our clients maximise their investment, whether it's on financial instruments or sound strategies and advice. Get in touch with us today.
A financial advisor can be valuable and worthwhile if you find the right one advisor in harmony with your goals. Their extensive knowledge can navigate intricate financial choices in a way that general advice providers might not be able to do. They help you come up with informed decisions, choose the right investments, risk management, retirement planning, tax reduction, and achieve financial objectives. A financial advisor can also help you optimise your savings to support your long-term financial goals.
As you know, tailored and ongoing advice can save money and offer reassurance, vital in uncertain economic times. To answer the question: Yes. It’s worth paying for a financial advisor.
If you’re looking for a financial advisor to provide a tailored financial plan and top-level advice, we at Northeast Wealth are always ready to deliver. Our goal is always to help our clients maximise their investment, whether it’s on financial instruments or sound strategies and advice. Get in touch with us today.
Frequently Asked Questions (FAQs)
Are financial advisors regulated in Australia?
Yes. Financial advisors giving personal advice must be authorised under an Australian Financial Services (AFS) licence and meet legal obligations like acting in the client’s best interests.
Note: FASEA ceased operation on 14 December 2021, so it's no longer the current standards body.
How do I check if a financial advisor is legitimate?
Use ASIC’s Financial Advisers Register to confirm the advisor is authorised and registered, and to review their employment history and qualifications.
What documents should I receive before I agree to advice?
At minimum, ask for clear disclosure of fees and services, and expect documentation such as an SOA (Statement of Advice) when personal advice is provided. MoneySmart explains common advice costs including SOA and implementation fees.
Do I need ongoing advice, or can I get one-off advice?
You don’t always need ongoing advice. If you have a single decision to make, a scoped plan + implementation support may be enough. Revisit advice when life changes.
Can I stop paying ongoing advice fees?
Ongoing fees should be tied to an agreed service. Financial advisors must seek your written consent each year to charge ongoing advice fees and provide details of services and fees for the next year.
What should I ask in the first meeting?
Ask: what’s included, the total cost in dollars, how conflicts are managed, who the AFS licensee is, and what you’ll receive (deliverables + timeline).
What if I have a complaint about my advisor?
First, complain to the financial firm directly. If it isn’t resolved, you can take the complaint to AFCA (Australian Financial Complaints Authority).
Are financial advice fees tax deductible?
Sometimes. The ATO explains that deductibility depends on the nature and purpose of the advice, and you generally must have paid the fees yourself (the ATO notes you can’t claim a deduction if the amount comes from your super).
James O’Reilly is the Director of Northeast, a fast-growing financial advice firm that empowers clients to achieve meaningful financial progress and well-being. He's also the co-host of the Australian Retirement Podcast, one of Australia's fastest-growing podcasts.