When initially seeking advice, always ask to clarify three sets of fees: The initial advice fee, the Implementation Fee (if Applicable) and the likely cost per annum for your ongoing Investing, Advice and Service.
1. The Cost Of The Initial Advice.
While this is an important cost, the Initial Advice Fee cost is not the largest cost you will experience over your investing lifetime. Unfortunately, it is usually the only cost you are considering when you are first seeking advice.
To give you an idea of the scope of this fee, it could be between $200 and $10,000 or more.
At The Financial Advice Shop we try hard to keep this capped at $1,650 (assuming recommendations are implemented in full) and it could be substantially lower depending on the complexity of your circumstances.
2. The Cost To Implement The Recommendations
With the Banks and many other organisations you may find that the Financial Advice Fee is very low but can be shocked to find an excessive Implementation Fee to implement the recommendations.
Avoid being shocked by asking about this fee before committing to pay for Financial Advice.
To give you an idea of the scope of this fee, it could be between $0 and $10,000 or more.
At The Financial Advice Shop we ensure this fee is $0 in relation to investments.
3. The Cost Of Ongoing Investing, Advice And Service
By far the biggest cost associated with receiving advice over your lifetime is the cost of Ongoing Investing, Advice and Service.
This fee is likely to relate to the amount of money invested but to give you an idea of the scope of this fee, it could be between $1,000 per annum. and $20,000 per annum or more.
At The Financial Advice Shop this fee is a set fee based on the services being provided and does not relate to the amount of money being invested. Ongoing Investment, Advice and Service packages start from $3,300 p.a. and move higher from
there depending a number of factors. Discounts can apply so discuss this in detail with your Financial Advice Shop adviser.
It is not until you properly understand these three sets of fees that you will be in a position to properly assess all Financial Planning Advice Options you are considering.
Make sure you are not tricked into receiving Financial Advice that has a low cost for the initial advice but later you find the implementation and ongoing future costs are astronomical.
If you are currently receiving Financial Advice, check your ongoing fees and satisfy yourself they are reasonable.