We’ll cut to the chase. Yes, you can manage your finances on your own. But do you really want to leave the health of your financial future up to chance? And let’s be honest. We’re living in some tough economic times. In fact, an estimated 74% of adults aged between 18 and 34 have unmet financial advice needs, and at least 10.2 million Australian adults are planning to seek financial advice.
That’s why so many Australians are choosing to work with financial planners. In this article, we’ll explain not only how to choose a trusted financial adviser, but also how to spot red flags along the way.
Your Checklist for Choosing a Financial Adviser
It’s important to understand that not all financial advisers are the same. Some individuals may present themselves as advisers without holding the proper qualifications or credentials. In Australia, anyone providing financial advice, whether general or personal, must hold an Australian Financial Services (AFS) licence.
Before you commit, here’s a quick checklist to help you find a professional adviser you can trust.
- Identify what you need help with: Clarify your goals and whether you want guidance for one issue or support that continues over time.
- Find and compare qualified advisers: Use the Financial Adviser Register, directories, and trusted referrals to build a shortlist and compare specialties and reviews.
- Verify their licence, credentials, and experience: Make sure they hold an AFS licence, appear on the Financial Adviser Register, and have qualifications and experience relevant to your situation.
- Understand the type of advice and how they work: Ask whether they provide general or personal advice and request their Financial Services Guide (FSG) to see how they operate and what they charge.
- Meet, ask questions, and review fees: Use the first meeting to gauge whether they are a good fit, discuss how often they communicate, and compare their fees with other advisers you meet.
- Decide, stay involved, and review regularly: Once you choose an adviser, stay engaged in the process and schedule regular check-ins to keep your financial plan aligned with your goals.
These steps can help you filter out unqualified advisers and give you confidence that you’re working with someone reputable and transparent. We go into more detail on these below.
1. Identify What You Need Help With
Before choosing an adviser, take a moment to pinpoint what you actually need support with. Think about whether you’re looking for guidance on a single issue, such as sorting out your super or deciding how to invest, or whether you want advice that continues over time.
Having a clear sense of your goals helps you narrow down who is best suited to assist and ensures you’re matched with someone who understands your financial stage.
2. Find and Compare Qualified Advisers
Once you know what you need, start building a shortlist of advisers. Use the Financial Adviser Register, directories, and referrals from people you trust. Speak with friends, family, or colleagues who’ve had positive experiences with financial advisers. Personal recommendations can be a great starting point.
As you compare advisers, look at their specialty areas, experience level, and online reviews to see how they’ve helped others. Transparency and reputation matter.
This early research gives you valuable insight into who may be the right fit before you even schedule your first meeting.
Understand the Types of Advisers
It also helps to understand the different types of advisers available in Australia. Some are independent, meaning they are not influenced by product commissions, while restricted or bank-aligned advisers may be tied to certain providers. Knowing this distinction can help you narrow your list and choose someone whose approach aligns with your goals.
Assess Experience and Specialty Areas
Also, be sure to look at an adviser’s experience and areas of focus. This helps you find someone who can best support your financial goals now and in the future.
Common specialties include:
- Superannuation: Guidance on growing and managing your super to prepare for retirement.
- Investments: Advice on building a diversified portfolio that suits your goals and risk tolerance.
- Retirement planning: Strategies for creating reliable income streams once you stop working.
- Insurance: Help choosing life, income protection, or trauma cover to protect your assets and loved ones.
- Tax and estate planning: Coordinating advice to minimise tax and plan for how your assets will be passed on.
3. Verify Their License, Credentials, and Experience
Before sharing personal information, confirm that the adviser holds an AFS licence and appears on the Financial Adviser Register. This step protects you from unqualified operators and gives you confidence that you’re dealing with someone authorised to provide financial advice.
Look for credentials such as Certified Financial Planner CFP® and membership with the Financial Advice Association Australia (FAAA) or similar bodies, and check whether their experience aligns with your needs.
Feel free to ask any adviser that you meet with for this information. If an adviser will not freely share this information, or you can’t find it with a few quick online searches, it may be best to move on to the next adviser on your list.
4. Understand the Type of Advice and How It Works
Before you get too far along the path, think about what it is that you really need. Do you just want some general guidance to set you on the right path? Or are you in need of more specific direction? Understanding the difference between the two types of advice will help you make a clearer decision about the kind of support that suits your situation.
When speaking with a financial planner or adviser, ask whether they provide general or personal advice and request their Financial Services Guide (FSG). This document outlines how they operate, what they charge, and any potential conflicts. Knowing this upfront helps set expectations and ensures you’re choosing the right kind of advice for your needs.
Know the Difference Between General and Personal Advice
- General financial advice: Broad guidance that doesn’t take your personal goals, financial position, or future plans into account.
- Personal financial advice: Tailored recommendations based on your circumstances, objectives, and best interests.
5. Have an Initial Consultation, Ask Questions, and Review Fees
Your first meeting is the ideal time to see whether the adviser’s approach suits you. Ask how they communicate, how often they schedule reviews, and what tools they use to keep clients informed.
Make sure you walk away with a clear understanding of their fee structure so you can compare it with other advisers you meet. A good adviser will answer your questions openly and encourage you to take your time before deciding.
Questions to Ask a Financial Adviser
You want an adviser who focuses on quality over quantity. This means you will want to look for someone who manages their client load to provide individual attention, thoughtful planning, and regular communication. Advisers who spread themselves too thin may not have the time to track your progress, update strategies, or anticipate changes in your circumstances.
Use the meeting to ask a few key questions to make sure your needs will be met:
- Are you licensed under ASIC, and can I view your registration?
- What types of clients do you usually work with?
- Do you act in my best interests at all times?
- How often will we meet or review my plan?
- What digital tools or reports do you provide?
- How do you charge for your services?
- Are they proactive in adjusting your strategy when life or the market changes?
- Do they tailor advice to your personal goals rather than relying on templates?
The right adviser should answer these questions clearly and confidently, and encourage you to ask more.
Ask About Transparency and Fees
When asking an adviser how they charge for their services, it helps to know what typical fees look like. In 2025, the median annual advice fee in Australia is around $4,668. More tailored plans, especially for clients approaching retirement or managing self-managed super funds, can range between $7,000 and $10,000.
Common fees you may come across include:
- Statement of Advice (SOA) fee: A one-off charge for preparing your personalised plan.
- Implementation fee: Covers setup tasks such as opening accounts or purchasing investments.
- Ongoing advice fee: A monthly or annual cost for continued support and reviews.
- Review fee: A one-time charge when updating your plan to reflect new goals.
- Hourly rate or fee for service: Fixed fees for one-off questions or specific tasks.
- Asset-based fee: A percentage of your portfolio value, charged regardless of investment performance.
When comparing advisers, ask for a clear breakdown of all fees in writing so you can understand exactly what you’re paying for and what’s included in each service.
6. Decide, Stay Involved, and Review Regularly
Once you’ve chosen an adviser, your involvement doesn’t stop there. Stay engaged in the process by asking questions, reviewing updates, and booking regular check-ins to keep your financial plan aligned with your goals.
Life changes, and your strategy should change with it. Working collaboratively with your adviser helps you stay on track long-term and makes the entire experience more productive and transparent.
Consider Technology and Accessibility
Your time is important to you. And the best financial advisers in Australia understand that. For that very reason, many advisers now offer virtual consultations, secure online portals, and digital tools to make communication and progress tracking easier.
Red Flags to Watch Out For
Before you make a final decision, keep an eye out for behaviours that signal an adviser may not be acting in your best interests. Here are a few signs to take seriously:
- Promises of guaranteed returns
- No licence details or reluctance to provide them
- Pressure to buy specific products
- High-pressure sales tactics or rushed decisions
- Unwillingness to provide an FSG
- Vague or unclear fee explanations
- Poor or inconsistent online reviews
- Unsolicited calls, emails, or messages offering financial advice
Spotting these early can help you avoid costly mistakes and move on to a more reliable adviser.
Take Your Next Step Toward Confident Financial Planning
Financial advice should always feel transparent, goal-driven, and collaborative. The relationships you form should be built on trust and open communication between you and your adviser. When you understand the process and the fees involved, you can make confident, informed decisions that support your long-term goals.
Sources:
- Abood, S. (2025, May 12). What does good financial advice look like?. Australian Financial Review. https://www.afr.com/companies/financial-services/what-does-good-financial-advice-look-like-20250505-p5lwkg
- AFS licensees. ASIC. (n.d.-b). https://www.asic.gov.au/for-finance-professionals/afs-licensees/
- Choosing a financial adviser. Moneysmart.gov.au. (n.d.-a). https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser
- Financial advice costs. Moneysmart.gov.au. (n.d.). https://moneysmart.gov.au/financial-advice/financial-advice-costs
- Is it worth paying for a financial advisor? (Australia Guide). Northeast Wealth. (n.d.). https://www.northeastwealth.com.au/resources/is-it-worth-paying-for-a-financial-advisor-australia-guide
