In an era where financial decisions have never been more complex, Australians are increasingly seeking professional guidance to help them manage, protect, and grow their money. But what exactly does a financial planner do? And do you really need one?
In this in-depth guide, we’ll explore the services financial planners provide, when it makes sense to engage one, how they’re regulated in Australia, and how to find a trusted adviser that’s right for you.
What Is a Financial Planner?
A financial planner is a licensed professional who helps individuals and families develop strategies to meet their short-term and long-term financial goals. These goals may include saving for a house, planning for retirement, investing, or protecting wealth through insurance.
Financial Planner vs. Financial Adviser: What’s the Difference?
In Australia, the terms financial planner and financial adviser are often used interchangeably. Both refer to someone who provides licensed financial advice. However, some planners specialise in comprehensive, long-term planning, while others may focus on specific areas such as insurance or investments.
Common Titles You Might Encounter:
- Financial Adviser
- Financial Planner
- Wealth Manager
- Retirement Planner
- Investment Adviser
Regardless of title, always verify that they are licensed and registered with ASIC (Australian Securities and Investments Commission).
What Does a Financial Planner Do? Key Services Explained
A skilled financial planner can provide a broad range of services depending on your life stage, financial situation, and goals. Here are the most common areas they cover:
1. Goal Setting and Financial Strategy
- Help identify your financial goals (buying a home, retiring early, starting a business, etc.)
- Develop a customised roadmap to achieve those goals
2. Budgeting and Cash Flow Management
- Analyse income and expenses
- Recommend practical budgeting strategies
- Improve savings habits
3. Superannuation Advice
- Consolidation of multiple super funds
- Choice of fund type (industry, retail, SMSF)
- Contribution strategies and investment options
4. Insurance and Risk Protection
- Life insurance
- Total and Permanent Disability (TPD)
- Trauma and income protection
- Identifying coverage gaps and recommending suitable policies
5. Investment Advice
- Aligning your risk profile with appropriate asset classes
- Managing investment portfolios
- Recommending managed funds, ETFs, or direct shares
6. Retirement Planning
- Calculating retirement income needs
- Structuring assets for tax-efficient drawdown
- Maximising Age Pension eligibility
7. Estate Planning
- Will and power of attorney referrals
- Planning wealth transfer
- Superannuation beneficiary strategies
8. Tax Minimisation Strategies (general advice only)
- Structuring investments for tax efficiency
- Making use of tax deductions and offsets
9. Ongoing Monitoring and Adjustments
- Annual reviews
- Strategy adjustments due to life changes
Do I Really Need a Financial Planner? 7 Common Scenarios
You might be wondering whether it’s worth paying for advice. While not everyone must use a financial planner, there are certain life events and scenarios where professional advice can be extremely valuable:
- Starting a family or buying your first home
- Running your own business or being self-employed
- Receiving an inheritance or windfall
- Planning for retirement or transitioning to it
- Facing complex debts or financial challenges
- Starting to build an investment portfolio
- Seeking peace of mind about your future finances
In each of these situations, a licensed planner can help you make informed choices that may save (or earn) you thousands over the long term.
How Financial Planners in Australia Are Regulated
In Australia, financial planners are regulated by ASIC and must meet strict professional and ethical standards.
Key Regulatory Bodies and Frameworks:
- ASIC: Maintains the Financial Adviser Register
- AFSL: Australian Financial Services Licence required to provide advice
- TPB: Tax Practitioners Board (if offering tax advice)
Why Licensing Matters:
- Ensures your adviser is accountable
- Guarantees minimum education and ethical standards
- Provides a complaints and dispute resolution pathway
Always check a financial planner’s credentials via the Financial Adviser Register.
The Benefits of Working With a Licensed Financial Adviser
Partnering with a licensed planner can yield measurable and emotional benefits:
1. Clear Financial Direction
You’ll know where your money’s going—and why.
2. Improved Financial Outcomes
Numerous studies suggest that clients with advisers accumulate more wealth over time.
3. Accountability and Motivation
Planners keep you on track when life gets busy or priorities shift.
4. Professional Insight and Risk Management
You gain access to tools, knowledge, and strategies beyond what’s available to DIY investors.
5. Peace of Mind
Knowing a licensed professional is looking out for your best interests helps reduce stress.
How Much Does a Financial Planner Cost in Australia?
Fees can vary depending on the complexity of advice and service model. Here’s what to expect:
Typical Fee Structures:
- Flat fee: $2,000–$4,000 for an initial plan
- Hourly rate: $150–$400/hour
- Ongoing service: $2,000–$5,000/year
- Asset-based: 0.5%–1% of managed assets annually
Under Australian law, planners must disclose all fees in a Financial Services Guide (FSG) and provide a Statement of Advice (SOA) outlining any recommendations.
Questions to Ask About Fees:
- How are you compensated?
- Do you receive commissions?
- Are you independent or institutionally aligned?
How to Choose the Right Financial Planner for You
Choosing the right adviser is just as important as the advice itself. Use the checklist below to make a confident choice:
1. Verify Their License
Use ASIC’s Financial Adviser Register.
2. Check Their Specialisation
Do they focus on young families, retirees, small business owners, etc.?
3. Understand Their Service Offerings
Will they manage your investments, or simply provide a plan?
4. Compare Fee Structures
Transparent pricing = trust.
5. Ask the Right Questions:
- What’s your investment philosophy?
- How do you tailor advice to my circumstances?
- How often will we review the plan?
What to Expect From Your First Meeting With a Financial Planner
Your first meeting is typically an information-gathering session. Here’s what it involves:
What You’ll Need to Bring:
- Income and expense details
- Super and investment balances
- Debts and liabilities
- Goals and priorities
What You’ll Discuss:
- Lifestyle goals
- Risk tolerance
- Financial challenges
- Family situation
You’ll then receive a Statement of Advice (SOA) that outlines strategies and product recommendations.
Can You DIY Your Financial Plan Instead?
Yes—but there are limitations.
DIY May Work If:
- Your financial situation is very simple
- You enjoy researching and monitoring finances
However, Consider the Risks:
- Emotional investing decisions
- Missing tax opportunities
- Lack of long-term strategy
A professional planner adds value through both strategy and behavioural coaching.
FAQs About Financial Planners in Australia
Q1: What is the difference between a financial planner and adviser?
A: In Australia, the terms are interchangeable. Both must be licensed and registered with ASIC.
Q2: How do I check if a financial planner is licensed?
A: Use the ASIC Financial Adviser Register.
Q3: Are financial planners only for the wealthy?
A: No. Many Australians at all income levels benefit from financial advice.
Q4: Can I change advisers later if I’m unhappy?
A: Yes. You’re free to switch planners at any time.
Q5: How do I find a planner near me?
A: Use Finistry’s directory to search for trusted financial professionals near you (coming soon).
Conclusion: Is It Time to Talk to a Financial Planner?
Financial planners can play a vital role in helping you build a more secure and stress-free financial future. Whether you’re just starting out or planning for retirement, professional advice tailored to your goals can be a smart investment.
If you’re considering financial advice, always look for a licensed professional who acts in your best interest.
🔎 Coming Soon: Find a Financial Planner Through Finistry
Finistry is building a directory of trusted, licensed financial advisers, accountants, mortgage brokers, and bookkeepers across Australia. Soon, you’ll be able to:
- Compare local professionals
- Read verified reviews
- Make informed choices with confidence
Are you a financial services provider? List your business on Finistry to connect with Australians seeking expert guidance.
Stay tuned for launch updates and subscribe to our newsletter to be the first to know when Finistry goes live.
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