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If a financial planner is charging fees of less than, say, $1,500, it is usually an indication that they: However, I am saying that you need to be extremely cautious of low fees. I’m not saying you need to pay high fees – not at all.

The old adage of ‘you get what you pay for’ couldn’t be more true in financial planning. Understanding the costs of financial advice is an important part of deciding whether or not to engage the services of a financial planner and whether it’s worth paying for financial advice. Here is a list of some things you should be wary of. There are a number of red flags that should see you running for the hills when dealing with a financial planner. Learn more about our advice process here. Ultimately, you will have a clear roadmap with step-by-step recommendations on what you should be doing, giving you a high-probability of achieving your objectives. The financial planner’s recommendations will undoubtedly include numerous strategies that can minimise tax, maximise returns, manage risk and improve your cash flow. Recommendations within the advice document should be accompanied by updated projections showing your ability to achieve your goals based on implementation of the financial planner’s advice. This way, the financial planner can be confident that all recommendations provided are appropriate to your specific needs. Only now should formal advice be provided, as the financial planner will have a thorough understanding of who you are, where you are, and where you want to be. The initial projection can then be used to more precisely define your goals now that you have more clarity around where you currently stand. This provides context around the reality of your situation and whether your goals are too-lofty, overly-conservative, or somewhere in-between. With a good understanding of who you are and what you would like to achieve, the next logical step is to understand whether you are on-track or off-track, based on what you are currently doing. Understanding who you are and what you would like to achieve provides the basis for everything a financial adviser does and every recommendation they make. A good financial planner will begin by spending considerable time getting to know who you are and what’s important to you.