When You Need a Financial Adviser
Consider professional financial advice when: you have more than $200,000 in investable assets, you're approaching retirement, you've received an inheritance or windfall, you're dealing with complex tax situations (investment properties, business), or you need insurance structuring. A good adviser can save you far more than their fees through tax optimisation, appropriate investment strategy, and avoiding costly mistakes.
Types of Financial Advisers
Fee-for-service: You pay a set fee ($2,000-5,000 for a full financial plan). No commissions. Most aligned with your interests. Fee-based: Combination of fixed fees and percentage of assets under management (typically 0.5-1% of portfolio annually). Common for ongoing advice. Commission-based: Paid by product providers. Higher conflict of interest risk. Less common since regulatory reforms.
What to Check
- AFSL (Australian Financial Services Licence) — verify at moneysmart.gov.au
- Qualifications — minimum is a relevant degree plus professional year
- Experience — how long have they been advising?
- Specialisation — do they understand your specific needs?
- Fee transparency — get a written fee disclosure before engaging
- Independence — are they aligned with specific product providers?
For Chinese Australians
Some financial advisers specialise in Chinese Australian clients and understand cross-border financial issues (Chinese property, overseas income, family support obligations). Check the Financial Planning Association directory or ask your community network for referrals. Mandarin-speaking advisers exist but ensure they hold proper qualifications — language alone is not enough.