Managing your finances can be challenging — whether you’re saving for a home, planning for retirement or investing in the share market. With so much financial information (and misinformation) available, many Australians ask the same question:
“Is it worth paying for a financial advisor?”
The short answer is yes — but it depends on your needs, goals, and of course, the cost.
What Does a Financial Advisor Do?
A financial advisor Melbourne (like a good business accountant Melbourne) helps individuals and families make informed decisions about their money. Their services may include:
- Budgeting and cash flow management
- Investment strategy and portfolio construction
- Superannuation advice
- Tax-effective strategies
- Insurance and risk management
- Retirement planning
- Estate and inheritance planning
In Australia, financial advisors must hold an Australian Financial Services Licence (AFSL) or be authorised under one, and they are legally required to act in your best interests.
When Is It Worth Paying for a Financial Advisor?
It’s generally worth paying for advice if:
Your Financial Life Is Complex
If you own a business, multiple properties, or have substantial assets, professional advice can help you avoid costly mistakes.
You’re Planning for Retirement
Superannuation strategies, pension entitlements, and asset drawdowns can be confusing. A good financial advisor Melbourne can help you retire and maximise your income in retirement.
You Don’t Have Time (or Interest)
Many people simply don’t have the time or interest to stay on top of the share market, legislation, or tax changes. Outsourcing to a trusted expert frees up time and reduces stress.
You Want a Long-Term Plan
Advisors don’t just help you make financial decisions — they help you build a roadmap, set milestones, and good advisors will remain accountable!
You’ve Had a Major Life Event
Marriage, divorce, inheritance, career change, or a family health issue — all of these can significantly affect your financial future and may require specialist advice from a financial advisor Melbourne.
What Does It Cost?
Financial advice in Australia can vary in cost. Common models include:
- Initial Statement of Advice (SOA): $2,000–$4,000+
- Ongoing advice/management: $2,000–$5,000+ per year
- Hourly or one-off advice: $150–$500 per hour
Some advisors offer fee-for-service models (flat fees), while others charge based on a percentage of assets under management. A business accountant Melbourne can also, within limits, provide similar types of advice at potentially a much lower cost.
Always ask for a Financial Services Guide (FSG) and a clear explanation of all fees before proceeding.
What’s the Return on Investment?
Research by Vanguard and Morningstar suggests that advised clients can generate higher long-term returns, not necessarily through beating the market, but through:
- Better asset allocation
- Tax-effective strategies
- Avoiding emotional decisions
- Staying invested during volatility
For many Australians, this “behavioural coaching” alone can justify the cost of advice.
Final Thoughts: Is It Worth It?
If your financial situation is simple — for example, you’re young, have minimal debt, have started a business and are just starting to save — you might be fine with chatting to your business accountant Melbourne.
But if you’re earning well, managing multiple assets, or planning for retirement, a financial advisor Melbourne can be a smart investment. They don’t just help you grow wealth — they provide peace of mind, help you avoid pitfalls, and help your money grow.
Need help finding the right advisor or understanding your options? Our team at Nobel Thomas works alongside licensed financial planners and can help point you in the right direction.
