Every day, Australians make choices about money without giving them much thought. We decide what we need to buy, what we can pass on for now, and how we’re going to manage our week ahead. And those small decisions rarely make an impact on our longer-term outlook. That said, bigger moments certainly can.
When facing major decisions like buying a home, choosing a car, planning holidays, preparing for retirement, or deciding how to invest, many people start asking what is financial advice and whether they should seek it. And, carrying the weight of those choices on your own can feel overwhelming, which is why so many people turn to financial advice.
The right guidance helps you approach these milestones with clarity and confidence rather than guesswork.
What Is Financial Advice? What it Actually Means
But just what is financial advice, and who should you seek it from? Simply stated, financial advice is guidance that helps you make informed choices about your money. This might mean learning how to create a family budget or putting together a longer term plan to make sure you are well prepared for your golden years.
In Australia, financial advice comes in two main types.
- General advice: This advice provides you with broad guidance but doesn’t get into your personal situation.
- Personal advice: This type of advice is based on your specific goals, needs, and financial circumstances. But this type of advice shouldn’t come from someone who doesn’t have the appropriate credentials to provide it. This type of advice must be provided by someone authorised under an Australian Financial Services (AFS) licence.
Financial advice can help you with investing, budgeting, superannuation, insurance decisions, retirement planning, and other major financial choices you may face over time.
Why Australians Seek Financial Advice
Earlier, we mentioned the big financial decisions many of us face. These choices can feel overwhelming. How much should you spend on a house? How big of a car payment can you afford? Are you putting enough money aside for your retirement? That’s where professional guidance becomes valuable.
Financial advice can help you:
- Understand your money better
- Avoid decisions that may lead to costly setbacks
- Map out long-term plans with clarity
- Make choices that support building and preserving wealth
Beyond the practical support, many people seek advice for the peace of mind that comes from having a knowledgeable partner guiding their decisions.
Where to Seek Financial Advice in Australia
It’s common to chat with colleagues, friends, or family when you’re unsure about money matters, but those conversations only go so far. Their suggestions may be well-meaning, yet they’re not tailored to your situation.
When you’re making choices that shape your long-term future, it helps to speak with someone who is trained, regulated, and required to act in your best interests. That’s where professional financial advice comes in.
The Role of Licensed Financial Advisers
Licensed financial advisers operate under an Australian Financial Services (AFS) licence or act as authorised representatives of a licence holder. This licensing framework sets the rules for what advice they can give and how they must conduct themselves.
A licensed adviser is best positioned to give you personal financial advice that reflects your goals, financial position, and future needs. This advice isn’t intended for the masses. It’s intended for you, and it can help with investment decisions, superannuation questions, retirement strategies, insurance options, and broader money matters.
The Financial Advisers Register
The Financial Advisers Register is a publicly available tool managed by ASIC. It offers a clear snapshot of an adviser’s background so you can make an informed choice. You can check:
- Qualifications
- Authorisations
- Training and experience
- Employment history
- Any disciplinary action or banning orders
Reviewing the Register is one of the easiest ways to confirm an adviser is authorised to provide personal financial advice and meets Australian regulatory standards.
The Financial Services Guide (FSG)
Every licensed adviser must provide a Financial Services Guide, or FSG. This document outlines the fees you may be charged, the services they offer, and any commissions or benefits they receive. It also explains how they handle complaints if something goes wrong.
You can usually find the FSG on the adviser’s website or request a copy directly. Reading it helps you understand how the adviser operates before you move forward.
Preparing to Meet with a Financial Adviser
Before you sit down with a financial adviser, it helps to be clear about what you want from the conversation. A little preparation goes a long way. Ask yourself:
- What goal do I want help with?
- Do I need a one-off consultation or ongoing support?
- Am I looking for guidance on investing, budgeting, retirement planning, or something else?
- How much control do I want over my accounts?
- Does the adviser’s communication style match what I’m comfortable with?
Thinking through these points early makes it easier to choose someone who understands your needs and can offer suitable guidance.
How to Get the Right Financial Advice
Once you’ve clarified your goals, the next step is making sure the advice you receive is trustworthy, unbiased, and right for your circumstances.
Start by choosing an adviser who holds an Australian Financial Services (AFS) licence or is an authorised representative. Check their standing and qualifications on the Financial Advisers Register to confirm they’re permitted to give personal financial advice.
As mentioned earlier, be sure to seek out a copy of their Financial Services Guide (FSG). This document outlines:
- Fees and charges
- Services they provide
- Any commissions or benefits they receive
- How they handle complaints
It’s also helpful to compare fees across different advisers to understand value for money. Make sure you’re comfortable with how much access they will have to your investment accounts and how their involvement fits with the level of control you want. And if something isn’t working for you, raise it early. Remember, open communication helps you get the support you need.
What to Do if You’re Unhappy with the Financial Advice You Receive
You always have a say in how your money is managed, and there may be times when you don’t agree with the guidance you’ve been given. If that happens, it’s important to address the issue. If you fail to address the issue promptly, it can put you in a worse financial situation down the road.
Start by raising your concerns directly with your adviser. Many problems can be resolved through an open discussion. If the issue continues, you can follow these complaint pathways:
- Use the adviser’s internal dispute resolution process
- If the matter isn’t resolved, take your complaint to the Australian Financial Complaints Authority (AFCA)
Keep records of all emails, notes, statements, and conversations. These documents can help support your case if the issue needs to be reviewed by a third party.
Taking the Next Step Toward Confident Financial Decisions
This guide has outlined what financial advice is, how it works in Australia, and the steps you can take to get started. Whether you’re planning for retirement, managing investments, or simply wanting clearer direction with your money, the right adviser can help set you on a clear path.
By understanding your goals, checking qualifications, reviewing the Financial Services Guide, and asking the right questions, you’ll be well placed to choose support that truly fits your needs.
Sources:
- ASIC Home. ASIC. (n.d.-d). https://www.asic.gov.au/
- Financial advice. Moneysmart.gov.au. (n.d.-c). https://moneysmart.gov.au/financial-advice
- General and Personal Financial Advice. Moneysmart.gov.au. (n.d.-d). https://moneysmart.gov.au/financial-advice/general-and-personal-financial-advice
- Make a complaint | australian financial complaints authority. (n.d.-b). https://www.afca.org.au/make-a-complaint
- What is financial advice. (2024, February 22). https://qsuper.qld.gov.au/news-hub/articles/2024/02/22/01/27/what-is-financial-advice
