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Last weekend, an article titled Financial planners under fire was published in News Limited weekend papers and gave incorrect information about planner fees, following an interview with FPA CEO Dante De Gori. It said, “… advice fees could vary dramatically but $2,000-$5,000 was typical for upfront advice and a maximum of $1,000 a year for ongoing advice.”
However the article incorrectly stated that ongoing advice fees should be a ‘maximum’ of $1,000. It is meant to be a ‘minimum’ of $1,000 not ‘maximum’.
A request has been made to the journalist to correct this, both online and in print.
Here is some information on the average costs of working with a financial planner:
Your fee for financial advice will depend on the type of advice you need and the complexity of your situation.
According to research by Investment Trends, on average you’ll be charged $2,250 in up-front fees, the first time you see a planner. Younger clients (under 45) tend to pay half of what older clients pay, on average ($1,200 vs. $2,600). This is because younger clients tend to have less wealth accumulated and require less complex advice.
Then when you continue your relationship with a planner, the average ongoing advice fees are $3,450 per annum.
Source: Investment Trends 2016 Planner Business Model Report