How much does a standard Statement of Advice from a financial planner normally cost?
The cost of the Statement of Advice will depend on its scope. As a guide, expect to pay between $550 and $1200 for simple advice and between $2000 and $4000 for more comprehensive advice which may incorporate several strategies. If you've agreed to ongoing advice, some of the cost may be paid over time with the initial fee reduced.
If you receive advice about insurance, you may not have to pay for the SOA as the Adviser will be paid commissions from the insurance company if you choose to go ahead with the recommendations. These commissions are usually paid back to the Insurance company whether you do this through an Adviser or not.
Even if you decide not to proceed with the adviser's recommendations, you will generally be expected to pay for the preparation of the SOA to take into account the time and effort the Adviser has put into the Plan preparation..
If you decide to accept the adviser's recommendations there may be a fee for implementing the advice. This pays for administration work. You may be able to negotiate the rate with your adviser.
There are usually different payment options. You can agree to pay upfront or the cost can be deducted from the investment such as paying from your superannuation benefits and not impacting your after tax cash flow.
Every office will have their own process so it it best to know what you are paying for before proceeding.
If you would like to speak about your specific query further then please don't hesitate to contact me on the below details:
Principal Financial Adviser
RP Wealth Management
T: 0434 502 079