Is Financial Advice Good for Me? the Pros, Cons, Costs and Options

“Time to load up on Bitcoin!” “Property in Perth is going off. Better get in now before it’s too late!”. “Why use an adviser when you can have that for free!”

Barbecue season is in full swing, and so goes the chatter. Usually, a well-intentioned friend or family member with the same thought process, just a different shiny object (property, crypto, mining stocks etc. etc.). One thing they can’t quite tell you is what investment or strategy is right for you. Whether you’ve been sitting on the thought for a while, or you’ve had a big financial change, you’re likely here because you’ve been thinking about getting comprehensive financial advice.

In case we haven’t met, welcome to Falcon Financial Advisers. We are a comprehensive financial advice practice that supports Australians of all life stages. To give you a sense of what we do, our main strengths and expertise lie in comprehensive financial advice to individuals and families. However, we also aim to educate those interested in personal finance, or just wanting to improve their financial position. As experienced professionals, we have acquired knowledge across all major financial advice areas. So even if you’re not in the market for a full plan, that’s totally okay. After all, comprehensive financial advice isn’t always the best fit for everyone. We’ll feel like we’ve done our job if you are able to make a more informed decision that lets you secure yours and your family’s financial future for years to come.

This leads us to why we’re here today: we’d like to give you the rundown on comprehensive financial advice: its pros and cons, the basics on what to expect during the financial planning process and cost, and what your options are for different types of financial advice that’s out there. If these topics resonate, then let’s dive in!

Comprehensive Financial Advice Pros and Cons

As professional advisers, we understand that engaging in a full financial plan is a big investment. Not just financially but also an investment of your time and attention. In today’s fast-paced world where time is scarce and resources are limited, we understand that you really need to nail the decision of who you are going to partner with, ensuring they are a good fit. To help make an informed decision, it’s always good to weigh up the pros and cons of your options. There’s great benefit to engaging in a personalised financial plan done properly. However, it’s not without its limitations. Let’s explore further:

Pros:

Holistic Approach. Comprehensive financial advice can cover all aspects of your financial life, from superannuation and investments to retirement planning, personal insurance and estate planning among others. They can typically cover a very long-time horizon (up to 30 + years) and also across generations if required. The depth and breadth covered in these plans have the potential to transform your financial future, when correctly implemented.

Personalised. When you visit a tailor for that suit or ballgown, you expect a personalised experience resulting in an outfit designed to meet your exact specifications. All of the materials have been ordered, arranged and measured to meet these specifications and nothing comes off the shelf.  Personalised financial advice works in in a similar way. A good financial plan, has been designed to meet your specifications and inputs, making your needs, goals and future plans the priority.

Expertise and Knowledge. Having access to professional expertise and up-to-date financial information can be incredibly beneficial. Advisers stay current with market trends, legislation and strategic planning opportunities, providing you with relevant and timely advice. Importantly they can provide authoritative and objective advice on the latest investment trend that comes up in your social circle, giving you clarity as to whether it’s a good idea for you.

Peace of Mind. Knowing that a professional is managing your financial affairs can provide significant reassurance. This peace of mind allows you to focus on other important aspects of your life.

Cons:

Cost. The potential high costs associated with hiring a financial adviser can be a drawback. Comprehensive financial advice often comes with a price tag that may not be affordable for everyone.

Conflicts of Interest. There is a possibility of advisers recommending products that benefit them more than the client. It’s important to choose an adviser who is transparent about their fees and any potential conflicts of interest.

Dependence. Relying too heavily on an adviser for financial decisions can be risky. It’s essential to stay informed and involved in your financial planning process.

Accessibility. Comprehensive financial advice may not be accessible to everyone, especially given the lack of availability of qualified professional financial advisers to meet the ever-growing demand in Australia.

Cost of Comprehensive Financial Advice

One of the most common questions we receive is “how much does it cost for a financial plan?” As with any professional service, how much you pay will depend on what you’re looking for. Are you wanting a full financial plan? Are you about to retire? Do you want to save for your children’s future? Are you aware of any potential gaps in your thinking which may bear some hidden risks to your financial future? Will you need ongoing advice and support? All of these things and more will play a role in how much you’ll end up spending.

It’s hard to give you a definite number without knowing the specifics of what you want. Generally, though, we can say that clients typically invest anywhere from $2,000 to $10,000 for a range of comprehensive financial advice services. Just to be clear, when we say “comprehensive,” we’re referring to a financial plan that covers all aspects of your financial life, including superannuation, wealth management retirement planning, personal insurance and estate planning among others.

We recommend checking out Money Smart’s Financial Advice page, just to give you a rough idea before speaking with your adviser. But if you’re looking for exactly how much your plan will cost, reaching out to a financial adviser is the best way to get that number. Remember, it’s a personalised service so the adviser you deal with is also of critical importance. Knowing you feel comfortable with who you work with, and you have trust they are acing in your interest and with competence is essential to ensuring you are getting value for your investment.

Conclusion

Naturally, financial advice is our passion, and we could talk about this all day.

If there’s one thing you take away from this article, understand that we truly believe comprehensive financial advice is the key to securing your financial future. Indeed, it has the power to transform your life if you are prepared to follow the steps and personal recommendations provided, far more so than friends and family at the barbecue.

Good financial advice can address a wide-ranging series of financial considerations impacting your life, providing clarity on what investments will work for you, your objectives, timeline and risk appetite. It can help you into your first home, start a business help your children when they are older and ensure you and your family are financially protected. Whatever the occasion, comprehensive financial advice provides a plan for security, comfort, and peace of mind.

This article has covered a great deal, but truly, we are only scratching the surface. So, if you’d like to learn more about all things financial planning, you can check out our financial planning learning hub. Are you feeling ready to take the next step with comprehensive financial advice? Click the button below to get in touch with us or view our pricing page and engagement process.