Buying is the biggest financial decision you’ll make. An advisor models the full picture — not just the loan.
Financial advisors don't just "pick stocks." They build a diversified investment strategy, optimise your tax position, manage risk through insurance, and — critically — prevent you from making emotional decisions that destroy returns. Here's what that looks like in real dollar terms.
Option A — High interest savings account (HISA) at 5.0% p.a.:
After 10 years with compound interest: $81,445. Safe, government-guaranteed up to $250K, but taxed at your marginal rate annually. After tax at 32.5%: approximately $72,500.
Option B — Diversified portfolio with a financial advisor:
Australian shares have returned an average of 9.1% p.a. over the past 30 years (ASX 200 accumulation index, S&P/ASX). A balanced portfolio (60% equities, 30% bonds, 10% cash) has historically returned ~7-8% p.a. After advisor fees of 1% and assuming 7% net return: $98,358. With franking credits reducing effective tax: approximately $91,000 after tax.
Difference: ~$18,500 more with an advisor over 10 years on just $50,000.
HISA at 5.0% p.a. (after tax at 32.5%): ~$145,000
Diversified portfolio at 7% net (after tax with franking): ~$182,000
Difference: ~$37,000 more with an advisor. Over 20 years the gap compounds dramatically — to over $120,000 on the same $100K starting amount.
Superannuation optimisation: Reviewing your super fund's fees, investment options, and insurance. The average Australian pays $1,500/year in unnecessary super fees (Productivity Commission, 2018). An advisor switches you to a better-performing, lower-fee fund.
Tax-effective investing: Using strategies like salary sacrifice into super (saving up to 22% tax on contributions), investing in franked Australian shares (where franking credits reduce your tax), and timing capital gains to minimise CGT.
Debt structuring: Determining whether to pay off your mortgage faster or invest — which depends on your interest rate vs expected investment return. At current rates, it's often better to invest surplus cash rather than pay down a 5.5% mortgage if your portfolio returns 7%+.
Behavioural coaching: Vanguard's research attributes 1.5% of the 3% advisor alpha to behavioural coaching alone — preventing clients from panic-selling during market downturns. During COVID-19 (March 2020), the ASX dropped 37%. Investors who sold locked in losses. Those who held recovered fully within 12 months and went on to new highs.
All figures are illustrative and based on historical averages. Past performance does not guarantee future returns. Individual outcomes vary based on personal circumstances, market conditions, and investment choices. Seek personalised advice before making financial decisions.
Before buying your first home, before purchasing an investment property, when your household income exceeds $150,000, when you have more than $200,000 in super, or when you’re unsure whether buying or renting is better for your situation. If any of these apply, the cost of advice is almost always worth it.
Salary sacrificing into super means your employer pays part of your pre-tax salary directly into your super fund. You pay 15% contributions tax instead of your marginal rate (up to 45%). This calculator shows you exactly how much you save.
Concessional super contributions are capped at 0,000/year (2024-25) including employer contributions. Contributions tax is 15% (30% for incomes over 50,000).
Illustrative only based on 2024-25 ATO tax rates. Does not include Medicare levy. Seek personalised advice before making salary sacrifice arrangements.
A comprehensive Statement of Advice typically costs $2,500–$5,000. Ongoing annual advice ranges from $3,000–$6,000 or 0.5–1% of assets. Many advisors offer a free initial consultation to assess your needs.
A home loan specialist finds you the best home loan. A financial advisor looks at your entire financial life — super, insurance, investments, debt, tax — and creates a strategy. One finds a product, the other creates a plan.
Not always, but if you have significant savings, complex income, or are unsure about your readiness, an advisor can save you from costly mistakes. For straightforward purchases on standard income, a specialist may be sufficient.
Yes — this is one of their highest-value services. They model cash flow, determine ownership structure, optimise tax position, and ensure the investment fits your overall wealth strategy.
Yes. Financial advisors must hold an Australian Financial Services Licence (AFSL) or be an authorised representative of one. They are regulated by ASIC and must meet education, competency, and ethical standards.