Financial Planning

 
Financial planning advice helps you plan and manage your money to work towards making your dreams and goals become a reality. Whatever your situation, there are 7 key building blocks (sometimes called ‘strategies’), that can be used, in combination, to help make the most of your money. 
Managing Debt
Budgeting
Investing
Superannuation
Social Security
Managing Tax
Protection
 

What does a financial planner do?

A financial planner is like having a personal coach for your money. Their aim is to help you protect and get more out of the money you have, so you can have more of the things you want – today and in the future.
 
After finding out who you are, your current circumstances and where you want to be, your financial planner will help you make informed decisions about how to make the most of your money, investing and protecting it to your advantage and using financial products that suit your needs. Their job is to take the 7 key building blocks (sometimes called ‘strategies’) and mix and match these elements to suit your personal situation. The result will be a personal financial plan.
 
If you have any concerns about whether your financial planner is licensed ask them for their Financial Services Guide and if you still have concerns check with the Australian Securities and Investments Commission (ASIC).
 

What is in a financial plan?

Whether you go to a professional financial planner or do it yourself, you’re going to need a plan. In its brochure, “Don’t kiss your money goodbye”, the Australian Investments and Securities Commission (ASIC) says that a good financial plan should:

• summarise your financial position
• list your goals
• explain how you will reach those goals
• show how carefully chosen investments mesh together as working parts of your overall strategy
• disclose and explain any risks and how they can be overcome
• state all the costs
• reveal the commissions your financial planner might receive from the investments they recommend. 

 
 

How much does it cost to use a financial planner?

The excerpt below from the Australian Securities and Investments Commission website provides a good explanation about how financial planners charge.
 
“Many advisers get paid through commissions on investments they recommend. The law allows this, as long as you know about it. Only a few advisers charge simply by the hour, but you may be able to negotiate this arrangement. Most charge a combination of fees and commissions.
 
 ”As a rough guide, if you invest about $100,000, expect to pay from $1,500 to $2,500 (or from 1.5% to 2.5% commission, or $15 to $25 for every $1,000 you invest) for the normal range of products, assuming your finances are reasonably straightforward.”
 
”Fees for service can range from about $100 per hour to $400 per hour. Around $200 an hour is common if you are paying only for the time spent and no commissions.”
 
For more information about getting advice you can also visit FIDO website - the consumer website of the Australian Securities and Investments Commission (ASIC).