Hiring a financial planner in Melbourne often comes down to two things: what they charge and what they actually do for that money. Fees vary widely, and the “right” price depends on the complexity of the advice and whether the planner delivers measurable value, not just paperwork.
This guide breaks down the main fee types, typical price ranges, and the simplest way to judge whether the cost is worth it.
What do financial planners in Melbourne typically charge?
A financial planner Melbourne clients work with will usually charge using one or a mix of upfront advice fees, ongoing fees, and product-based costs. In Melbourne, it is common to see an initial fee for a financial plan and an optional ongoing service fee for reviews and implementation support.
As a rough guide, simpler advice costs less, while retirement, complex structures, and business-related advice cost more. You may also visit https://legal4landlords.com/how-insolvency-lawyers-help-businesses-recover-from-financial-distress to get how insolvency lawyers help businesses recover from financial distress.
What is the difference between upfront fees and ongoing fees?
Upfront fees usually cover fact finding, strategy design, and producing formal advice documents such as a Statement of Advice (SOA). They are commonly paid once at the start of the engagement. Learn more about statement of advice.
Ongoing fees usually cover regular reviews, adjustments, coaching, and administration. They are charged monthly or annually and should come with a clearly defined service schedule.
How much is an initial financial plan in Melbourne?
Initial advice commonly ranges from around $2,000 to $6,000+, depending on complexity and the planner’s pricing model. A straightforward super and insurance review may sit at the lower end, while retirement modelling, tax strategy coordination, and multiple entities can push the price higher.
The key is whether the scope is clear, not whether the number looks low.
How much do ongoing financial planning fees cost per year?
Ongoing service is often priced as a flat annual fee, a monthly retainer, a percentage-based fee, or a mix. In practice, ongoing fees frequently fall somewhere around $2,000 to $10,000+ per year, depending on portfolio size, services included, and how often they meet.
They should be able to show exactly what ongoing work will be done and when.
Do planners charge a percentage of funds under management?
Some planners charge a percentage of assets they manage, often referred to as a funds under advice or funds under management fee. This might look like 0.5% to 1.0% per year in many cases, but it varies.
Percentage fees can be reasonable when the planner provides ongoing investment management and advice, but they can become expensive as balances grow unless service value grows too.
Are commissions still part of financial advice costs?
Commissions can still exist in limited areas, most commonly in insurance advice, depending on the product and arrangement. When commissions apply, they can reduce upfront cost but increase the hidden, ongoing cost of the product.
They should disclose all commissions clearly and explain what alternative fee options exist.
What extra costs should clients expect besides planner fees?
Planner fees are not always the only costs. They may also face product fees, platform fees, investment management fees, insurance premiums, and transaction costs.
A good planner will show total cost in one place, so the client can see the full “all in” cost, not just the advice fee.
What services should those fees actually include?
At a minimum, fees should buy a clear strategy, tailored recommendations, and implementation support if requested. For ongoing fees, they should expect scheduled reviews, progress tracking, and proactive changes when life or laws shift.
They should also expect plain-English explanations, written action steps, and clarity on what the planner will not do.
How can they tell if a planner’s fees are good value?
Value is usually obvious when advice leads to better decisions, fewer costly mistakes, and a plan that gets executed. A fee can be “cheap” but wasteful if it results in generic advice, poor follow-through, or confusing documents.
The cleanest test is whether they can explain the expected benefits in dollars, risk reduction, or time saved, and then review results over time.
When are financial planner fees most worth paying?
Fees tend to be most worth it when decisions are high-stakes or hard to reverse. Common examples include retirement timing, super contribution strategy, switching investment approach, complex insurance needs, inheritances, business exits, divorce, or large property decisions.
In these moments, one good strategy can outweigh years of fees.
When might it not be worth paying for ongoing advice?
Ongoing advice may not be worth it if their situation is simple, they are confident managing investments, and they only need a one-off strategy check. It can also be poor value if the planner’s “ongoing service” is mostly silence until renewal time.
If they cannot point to regular work and outcomes, the ongoing fee may not be justified.
What questions should they ask before agreeing to fees?
They should ask for a written fee schedule, what is included, and what counts as extra. They should also ask how often reviews happen, what support is available between reviews, and whether the planner receives any commissions or rebates.
A useful question is: “What will they deliver in the first 90 days, and what will ongoing delivery look like in a normal year?”
What is a simple way to compare planners in Melbourne fairly?
They should compare planners using the same scenario and scope, not just the headline price. The fairest comparison is to request a proposal that lists services, timelines, total costs including product fees, and what outcomes the planner expects to improve.
If two planners charge similar fees, the better choice is usually the one with clearer scope, better communication, and stronger implementation support.
Are financial planner fees tax deductible in Australia?
Some advice fees may be tax deductible depending on what the advice relates to and how it is charged. For example, fees related to managing an existing income-producing investment portfolio may be treated differently than fees for setting up new investments.
They should confirm deductibility with an accountant or tax adviser based on their specific circumstances.
What’s the bottom line on Melbourne financial planner fees?
They should expect to pay a few thousand dollars for initial advice and potentially several thousand per year for ongoing support, with higher costs for complex needs or percentage-based asset fees. The fees are worth it when advice is specific, implemented, and reviewed, and when it meaningfully improves outcomes.
If they want confidence in the value, they should demand clear scope, transparent total costs, and a service calendar that proves what they are paying for.
FAQs (Frequently Asked Questions)
What are the typical fees charged by financial planners in Melbourne?
Financial planners in Melbourne commonly charge upfront advice fees, ongoing service fees, and sometimes product-based costs. Initial advice fees typically range from $2,000 to $6,000 or more depending on the complexity, while ongoing fees often fall between $2,000 and $10,000+ per year. The exact cost depends on the scope of advice and services provided.
How do upfront fees differ from ongoing financial planning fees?
Upfront fees generally cover the initial fact-finding, strategy development, and preparation of formal advice documents like a Statement of Advice (SOA). These are usually paid once at the start. Ongoing fees cover regular reviews, adjustments, coaching, and administrative support, typically charged monthly or annually with a clear service schedule.
Do financial planners in Melbourne charge a percentage of funds under management?
Some planners do charge a percentage-based fee on assets under management or advice, commonly ranging from 0.5% to 1.0% per year. This can be reasonable when investment management is included but may become costly as portfolio balances grow unless matched by increased service value.
Are commissions still part of financial advice costs in Melbourne?
Yes, commissions can still exist mainly in insurance advice depending on the product and arrangement. While commissions may reduce upfront costs, they can increase ongoing product expenses. Planners should disclose all commissions clearly and explain alternative fee options.
What services should be included for the fees paid to a financial planner?
Fees should at minimum include a clear strategy tailored to individual needs, detailed recommendations, and implementation support upon request. For ongoing fees, clients should expect scheduled reviews, progress tracking, proactive adjustments due to life changes or legislation updates, clear explanations in plain English, written action steps, and transparency about what services are not included.
How can I determine if a financial planner’s fees offer good value?
Good value is evident when advice leads to better decision-making, fewer costly mistakes, and effective plan execution. A low fee is not necessarily good value if it results in generic advice or poor follow-through. The best test is whether the planner can clearly explain expected benefits in terms of dollars saved or risk reduced and provide measurable outcomes over time.