Fiduciary financial advisors use two main fee methods for financial advice in Australia:
Fixed fees: Fiduciary financial advisors may charge a fixed price for their services and base the cost on the type of advice provided, the complexity of the client's situation, and the time required to complete the work. For example, an advisor may charge a fixed fee for developing a financial plan, advising on a specific financial issue often related to a significant life event, or implementing a financial strategy.
Percentage-based fees: Financial advisors may also charge a percentage of the client's assets under management (AUM), typically an annual fee, based on the total value of the client's investment portfolio. For example, a fiduciary financial advisor may charge a fee of 1% of the client's AUM. As fiduciary financial advisors, we believe in the benefits of fixed advice fees, which include the following:
Transparency: Fixed fees are more transparent than percentage-based fees, as clients know how much they will pay for the financial advisor's services upfront.
Budgeting: Fixed fees can help clients budget for financial advice, as they know exactly how much they will need to pay.
Peace of mind: Fixed fees can give clients peace of mind, knowing they will not pay more than the agreed-upon fee, regardless of the complexity of their financial situation or the time the fiduciary financial advisor takes to complete the work.
Email clientservice@providencegroup.com.au if you would like a copy of our Financial Health Check. The checklist is a great starting point to determine in what areas you need help, making it easier for your Fiduciary financial advisor to estimate advice costs.
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