The answer, unfortunately, is the same answer you often hear in financial planning:
"It depends."
Financial advice in Australia can range from a few hundred dollars for a one-off consultation through to several thousand dollars per year for comprehensive ongoing advice. The cost ultimately depends on the complexity of your situation, the services being provided and the pricing model used by the adviser.
Industry data suggests the average Australian pays around $4,000 to $5,000 per year for ongoing financial advice. While that may sound expensive, many clients find the value generated through tax savings, superannuation strategies, investment management and avoiding costly mistakes significantly outweighs the fee.
In this article, we'll explain the most common fee structures used by financial advisers in Australia, what you can expect to pay, and how we charge at Glasshouse Wealth.
How Financial Advisers Charge Fees
There are generally five common ways financial advisers charge for their services.
1. Hourly Fees
Some advisers charge an hourly rate, similar to an accountant or solicitor.
Typical rates range from $250 to $600 per hour.
This model can work well for people seeking answers to a specific question, however it can become expensive if multiple meetings or detailed research are required.
2. One-Off Advice Fees
Many advisers charge a fixed fee for preparing and presenting a financial plan.
These fees typically range between $2,000 and $8,000 depending on the complexity of the advice.
The advantage is that you know exactly what the advice will cost upfront.
3. Ongoing Advice Fees
Many clients require ongoing support rather than a single piece of advice.
This may include annual reviews, investment management, superannuation monitoring, retirement planning, Centrelink assistance, insurance reviews and responding to legislative changes.
Ongoing advice fees commonly range between $2,000 and $10,000+ per year depending on complexity and asset levels.
4. Percentage-Based Fees
Some advisers charge a percentage of funds under management.
A common range is between 0.5% and 1.0% per annum.
For example, a client with $500,000 invested and a fee of 0.60% would pay $3,000 per year.
The benefit of this model is that fees generally rise and fall alongside the client's portfolio and complexity.
5. Hybrid Fee Models
Many modern financial planning businesses utilise a combination of fixed fees and percentage-based fees.
This approach seeks to ensure younger clients can still access advice while recognising that larger portfolios often require additional responsibility, compliance, administration and strategic planning.
How We Charge at Glasshouse Wealth
At Glasshouse Wealth, we utilise a hybrid fee model.
Typically, clients pay an upfront flat advice fee to develop and implement their financial plan. Ongoing advice fees are then charged through a combination of:
• A fixed fee of $1,100 per person per annum
• 0.55% per annum of funds under management
(don’t worry we will calculate this for you!)
One of the unique aspects of our model is that the overwhelming majority of our clients fund part or all of their advice through superannuation.
In practice, many clients will pay an initial deposit from their bank account, with the balance funded from their superannuation account where appropriate and permitted.
This significantly reduces the impact on household cash flow and allows younger Australians to access professional advice earlier than they otherwise may have.
At the same time, the percentage-based component ensures clients with larger balances and more complex financial affairs contribute appropriately towards the ongoing work required to manage their affairs.
Why We Don't Believe in One-Off Advice
At Glasshouse Wealth, we strongly believe that once-off financial advice rarely works.
• Your circumstances change.
• Tax legislation changes.
• Investment markets change.
• Superannuation rules change.
• Retirement goals change.
A financial plan should be a living document that evolves with your circumstances rather than something that sits in a drawer gathering dust.
That is why we focus on building long-term relationships with our clients rather than providing one-off recommendations and disappearing.
Real Client Examples
Example 1: Young Professional Couple
A couple in their 30s approached us seeking advice regarding superannuation, personal insurance and long-term wealth creation.
Their combined superannuation balance was approximately $200,000.
Fees:
• Initial advice fee: $3,300
• $1,100 deposit paid from personal savings
• $2,200 funded via superannuation
Ongoing annual fees (paid monthly via super):
• $1,100 per person fixed fee ($2,200 total)
• 0.55% of $200,000 ($1,100)
• Total annual ongoing fee: $3,300 pa
For this couple, the focus was on establishing strong foundations, improving their superannuation strategy, ensuring they had an appropriate Plan B through insurance and helping them start building long-term wealth.
Example 2: Single Retiree
A retiree approached us seeking assistance with retirement planning, Centrelink entitlements and superannuation strategy.
They had approximately $400,000 invested.
Fees:
• Initial advice fee: $4,400
• $1,100 deposit paid from personal savings
• $3,300 funded via superannuation
Ongoing annual fees (paid monthly via super):
• Fixed fee: $1,100 pa
• 0.55% of $400,000 ($2,200 pa)
• Total annual ongoing fee: $3,300 pa
Our advice focused on improving retirement sustainability, optimising Centrelink outcomes, reviewing pension structures and ensuring investments remained aligned to their objectives.
Example 3: Complex Retired Couple
A retired couple came to us with approximately $1.6 million in superannuation and investments.
Their circumstances involved estate planning, pension structuring, tax planning and intergenerational wealth transfer.
Fees:
• Initial advice fee: $6,600
• $2,200 paid personally
• $4,400 funded through superannuation
Ongoing annual fees (paid monthly via super):
• Fixed fee: $2,200 ($1,100pa each)
• 0.55% of $1.6 million ($8,800 pa)
• Total annual ongoing fee: $11,000 pa
Through the advice process we:
• Identified and addressed approximately $50,000 of potential death benefit tax
• Moved assets from accumulation phase into account-based pensions
• Reduced tax on investment earnings
• Improved investment management and transparency
• Simplified administration
• Coordinated estate planning strategies
• Created a clearer retirement income framework
For these clients, the complexity and responsibility associated with managing their affairs was significantly higher than a younger couple just beginning their financial journey.
Is Financial Advice Worth the Cost?
Ultimately, the real question isn't how much financial advice costs.
The real question is what happens if you don't receive advice.
The right financial advice can help you avoid costly mistakes, reduce tax, improve investment outcomes, maximise superannuation opportunities, structure your estate correctly and provide confidence that you're heading in the right direction.
For some people, advice may save tens of thousands of dollars.
For others, it may simply provide peace of mind.
Either way, understanding the cost of advice is only half the equation. Understanding the value of advice is where the real conversation begins.
If you'd like to understand how financial advice may apply to your situation, we'd love to have a conversation.
