In an increasingly complex financial world, many Australians are faced with the challenge of managing their finances effectively and are increasingly turning to a financial planner for assistance in achieving their long-term goals. From navigating volatile investment markets to planning for a comfortable retirement, the decisions can be overwhelming. This article explores the benefits of engaging a professional financial planner in Australia. It will delve into the services they provide, the process a new client can expect, and the statistical evidence that demonstrates the tangible value financial planners can bring to an investment portfolio.

Financial planning is not just for the wealthy; it is a valuable resource for anyone seeking to take control of their financial future. A qualified financial planner can provide the expertise, discipline, and guidance needed to navigate the complexities of the financial landscape and make informed decisions that align with your personal objectives.

Why Consider Financial Planning?

The primary reason to consider financial planning is to gain a clear understanding of your current financial situation and to develop a strategic plan to achieve your future goals. A financial planner can help you articulate your objectives, whether they be buying a home, funding your children’s education, or ensuring a comfortable retirement. They can then create a roadmap to help you get there.

Beyond goal setting, financial planners provide a range of benefits, including:

Expertise and Knowledge: Financial planners are professionals with in-depth knowledge of financial markets, investment strategies, tax laws, and superannuation regulations. They are required to meet stringent professional standards, including ongoing education and adherence to a strict code of ethics, ensuring they are equipped to provide sound advice.
Objectivity and Discipline: One of the most significant challenges for self-directed investors is managing their emotions during periods of market volatility. Fear and greed can lead to poor decision-making, such as selling at the bottom of the market or chasing speculative returns. A financial planner acts as a behavioural coach, helping you to remain disciplined and focused on your long-term strategy.
Time Savings: Managing your own finances can be a time-consuming process, requiring extensive research and ongoing monitoring. Engaging a financial planner frees up your time, allowing you to focus on other aspects of your life, while knowing your finances are in capable hands.
Peace of Mind: Knowing that you have a professional in your corner, working to protect and grow your wealth, can provide significant peace of mind. This is particularly valuable during times of economic uncertainty or major life events.

Services Offered by Financial Planners

Financial planners in Australia offer a wide range of services that can be tailored to your individual needs. These services can be broadly categorised as follows:

Service Category	Description
Financial Planning	This is the core service, involving the development of a comprehensive financial plan that covers all aspects of your financial life, including budgeting, savings, and goal setting.
Investment Management	Advisers can help you to build and manage an investment portfolio that is aligned with your risk tolerance and long-term objectives. This includes asset allocation, security selection, and regular portfolio reviews.
Retirement Planning	This is a critical area for most Australians. A financial planner can help you to determine how much you need to save for retirement, how to structure your superannuation, and how to generate a sustainable income in retirement.
Superannuation	Advisers can provide guidance on all aspects of superannuation, including fund selection, contribution strategies, and navigating the complexities of self-managed super funds (SMSFs).
Insurance	A financial planner can help you to identify your insurance needs and recommend appropriate life, disability, and income protection policies to protect you and your family from unforeseen events.
Tax Planning	Advisers can work with you to structure your finances in a tax-effective manner, helping you to minimize your tax liabilities and maximize your after-tax returns.
Estate Planning	This involves working with a solicitor to ensure that your assets are distributed according to your wishes after you pass away. This can include the preparation of wills, powers of attorney, and testamentary trusts.

The Financial Planning Process: What to Expect

Engaging a financial planner for the first time can seem daunting, but the process is designed to be collaborative and transparent. The Australian Securities and Investments Commission (ASIC) has established a clear framework that all licensed financial advisers must follow. Here is a step-by-step guide to what you can expect:

1. Initial Meeting and Fact-Finding

The first step is an initial meeting, which is typically free of charge. This is an opportunity for you to get to know the adviser and for them to understand your financial situation and goals. You will be asked to provide detailed information about your assets, liabilities, income, and expenses. This is often referred to as the “fact-finding” process. It is crucial to be open and honest during this stage, as the quality of the advice you receive will depend on the accuracy of the information you provide.

2. Defining Your Goals and Risk Profile

Once the adviser has a clear picture of your financial situation, they will work with you to define your short, medium, and long-term goals. They will also help you to determine your risk tolerance, which is your willingness to accept investment risk in pursuit of higher returns. This is a critical step, as it will inform the investment strategy that the adviser recommends.

3. The Statement of Advice (SOA)

After the initial meetings, the adviser will prepare a formal document called a Statement of Advice (SOA). This is a legally required document that sets out the adviser’s recommendations in detail. The SOA will include:

A summary of your financial situation and goals.
The adviser’s recommended investment strategy.
Details of any financial products that are being recommended, including the reasons for the recommendation.
A clear breakdown of all fees and charges.
Information about any potential conflicts of interest.

You should review the SOA carefully and ask the adviser to clarify anything you don’t understand. You are not obligated to accept the recommendations in the SOA, and you should only proceed if you are comfortable with the proposed strategy.

4. Implementation

If you decide to proceed with the adviser’s recommendations, they will assist you with the implementation process. This may involve opening new investment accounts, transferring funds, and completing the necessary paperwork.

5. Ongoing Review and Monitoring

Financial planning is not a one-off event; it is an ongoing process. Your financial situation and goals will change over time, and your investment strategy will need to be adjusted accordingly. A good financial planner will meet with you regularly (typically annually) to review your progress and make any necessary adjustments to your financial plan.

The Quantifiable Value of Financial Advice

While the qualitative benefits of financial planning, such as peace of mind and improved financial literacy, are significant, there is also compelling evidence to suggest that financial advice can lead to better investment outcomes. Several studies have attempted to quantify the value that financial advisers add to their clients’ portfolios.

The Vanguard “Adviser’s Alpha” Framework

One of the most well-known studies in this area is Vanguard’s “Adviser’s Alpha” framework. Vanguard, one of the world’s largest investment management companies, has conducted extensive research into the value of financial advice. Their research suggests that financial advisers can add as much as 3% per annum to their clients’ net returns. This value is not generated by trying to outperform the market, but rather by focusing on the following key areas:

“We believe implementing the Vanguard Adviser’s Alpha framework can add about 3% in net returns for your clients and also allow you to differentiate your skills and practice. Like any approximation, the actual amount of value added may vary significantly, depending on clients’ circumstances.” [1]

Russell Investments’ “Value of an Adviser” Report

Another significant study in the Australian context is Russell Investments’ annual “Value of an Adviser” report. The 2024 report found that financial advisers added at least 5.7% in value for their clients over the past year. The report breaks down this value-add as follows:

Behavioural Coaching (3.3%): This is the most significant contributor to the value-add. By helping clients to avoid common behavioural mistakes, such as panic selling during market downturns, advisers can have a profound impact on their long-term returns.
Tax Planning (1.3%): By structuring investments in a tax-effective manner, advisers can significantly improve after-tax returns.
Asset Allocation (1.1%): By ensuring that clients have an appropriate mix of assets in their portfolio, advisers can help them to achieve their goals while managing risk.

“Advisers are much more than financial experts – they are also behavioural coaches who help clients cope with the emotional rollercoaster of both investing and life itself.” – Neil Rogan, Russell Investments [2]

Conclusion

Engaging a professional financial planner is a significant step towards achieving your financial goals. The benefits extend far beyond simply picking investments. A good financial planner will provide you with a comprehensive financial plan, act as a behavioural coach, and help you to navigate the complexities of the financial world with confidence. The evidence from leading investment firms like Vanguard and Russell Investments clearly demonstrates that financial advice can add significant value to your investment portfolio, far outweighing the fees involved.

In a world of increasing financial complexity, the guidance of a trusted professional is more valuable than ever. By taking the time to find the right financial planner for your needs, you can take control of your financial future and set yourself on the path to long-term financial success.

Call our Perth firm on (08) 6462 0888 to learn more.

References

[1] Vanguard, “Putting a value on your value: Quantifying Vanguard Adviser’s Alpha in the UK”, June 2020. https://www.vanguard.co.uk/content/dam/intl/europe/documents/en/quantifying-vanguards-advisers-alpha.pdf

[2] International Adviser, “Financial advisers add at least 5.7%pa in value for Australians”, 4 September 2024. https://international-adviser.com/financial-advisers-add-at-least-5-7pa-in-value-for-australians/

[3] IBISWorld, “Financial Planning and Investment Advice in Australia – Market Research Report”, March 2025. https://www.ibisworld.com/australia/industry/financial-planning-and-investment-advice/1823/

[4] ASIC, “Professional standards”. https://www.asic.gov.au/regulatory-resources/financial-services/financial-advice/professional-standards/

[5] ASIC MoneySmart, “Choosing a financial adviser”. https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser

[6] ASIC MoneySmart, “Working with a financial adviser”. https://moneysmart.gov.au/financial-advice/working-with-a-financial-adviser

Bruce Blee 2 months ago

Thanks once again Tracy for providing me with options and information relevant to my portfolio .

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Paul Wedd 3 months ago

My meeting with Daniel was very positive as we discussed a range of issues in relation to my superannuation and my financial and personal health which were pertinent to me. Also looked at what if cash flow scenarios in regard to bookkeeping opportunities and creating a new super fund if matters come to pass. Also the coffee and biscuits were great.

Nicky T 4 months ago

Dan genuinely cares about my personal circumstances and supports my finacial goals as an individual with specific needs.

Richard Gordon 4 months ago

The team at Approved Financial Planners has been amazing in supporting and guiding us through the development of a financial plan for our future. From the beginning, they took the time to truly understand our goals and objectives, making us feel heard and valued.

What stood out was their ability to present tailored scenarios with adjustable factors, helping us make informed decisions with confidence. They also went above and beyond by assisting with the implementation of important elements such as insurance and wills, giving us peace of mind that our family's assets are protected in case of the unexpected.

We’re incredibly grateful for their professionalism, care, and expertise. Highly recommend their services to anyone looking for reliable and thoughtful financial planning.

Steve Giaquinto 5 months ago

I have been with Approved Financial Planners for a long time now. Great Advice and service. Tracey has a wealth of knowledge and has helped me achieve my financial goals with ease.

David Russell 5 months ago

On March 6 both Cindy and I had our annual financial review with Approved Financial Planners in Floreat WA. Our financial planner is Tracey Corbett and this is our second year where Tracey has been our planner and her advice has been very informative and is explained in such a way that both Cindy and I can understand. All sections of both our financial plans were presented and explained in lay-man terms.

We are both looking forward to seeing Tracey next year for our next review.

Robert Dale 6 months ago

Tracey has been a honest and helpful advisor who has her clients interest at heart.

Karlee Palmer 7 months ago

Tracey and the team at Approved have been a great help.. very helpful and supportive

Anne-Audrey LATSCHA 7 months ago

I am extremely satisfied with the services provided by Tracey at Approved Financial Planners. I appreciate the attention to details, the follow up, the prompt responses, the patience in assessing and explaining options. I also appreciate the attention to customer also provided by the rest of the team. Highly recommended !

Ken Miller 7 months ago

Just completed another annual review with Dan at Approved Financial Planners. It is so nice to see such positive and pleasing results as presented by Dan and to know our financial planning is in good hands. Ongoing planning and advice from Dan is always welcoming and if Dan is not available, we have found Christa the office manager always willing and able to assist and deal with any queries we may have. So, needing a financial adviser then contact Dan and his team at Approved Financial Planners

Ken and Anne Miller

tim palmer 7 months ago

Thanks Dan and Staff for the annual review. The forecasting for retirement and the software used was very illustrative and useful to understand. Growth in funds and super has been robust in the last 12 months and advice for the next 12 months taken on board. Look fwd to making a few tweaks to the portfolio once the report is completed.

Maureen Campbell 7 months ago

I've been working with Dan for over 10 years & I have been consistently impressed with his level of professionalism and expertise.
He offers a comprehensive yearly review of my investment portfolio, pension balance, cash flow & estate planning. Dan stays up to date with current trends in finance which gives me confidence that my financial plan is aligned with current best practices.
I appreciate his strategies to maximise my superannuation, ensuring I'm on track for the future.
I also want to mention the support from his team, they are friendly & professional.
I highly recommend Dan.

John Twigg 8 months ago

Hi People - just a quick note letting everyone know that AFP have been nothing but totally professional with my business over the past few years. Tracey has been my latest advisor and I have nothing but praise for her friendliness, approachability and advice covering everything from the value of second-hand cars to having my will updated.

Bev Philpott 8 months ago

Tracey is our new planner. We find her to be friendly and very down to earth. We appreciate having things explained in terms we understand. We hope to have a long relationship with her in her role as our financial planner.

Cheryl Pooley 9 months ago

Attended a meeting with Tracey Corbett to review financial situation. Meeting went well, Tracey is always very helpful and would recommend Approved Financial Planners to anyone seeking financial advice.

Juan Ceballos 9 months ago

We are happy with their service and their advice. We followed their recommendations and we now have achieved our goals in the short term. We recommend them.

Shannon Bedford 9 months ago

Daniel has been providing me with Financial Planning for several years now. My financial literacy is pretty poor so it's great to work with someone who explains things in a manner that is easy to understand. I'm a visual person, so I like that he is able to plug figures into charts and quickly show me the outcomes of various scenarios. Daniel is gives great advice, is realistic about my goals and is also an easy person to talk to.

Erwin Norbert Babooram 9 months ago

We have been clients of Approved Financial Planners since 2018, and we couldn’t be happier with the service they’ve provided over the years. Daniel Stevens has been an exceptional adviser, making us feel like so much more than just clients. His advice has been instrumental in our financial growth, helping us stay focused on achievable goals while always keeping our best interests at heart.

One of the highlights of working with Daniel is the annual catch-up—he takes the time to truly understand where we are in our financial journey and provides tailored advice to keep us on track. It’s clear how much he genuinely cares about helping us reach our goals.

Having worked with Approved Financial Planners for years, we can confidently say their expertise and dedication have made a significant difference in our lives. We highly recommend them to anyone looking for professional, personalised financial advice.

Rheon Plug 10 months ago

I have recently had my Annual Review with Tracey.
Tracey has been very helpful and supportive with my long and short term financial goals.
She is very professional and friendly and comes with a lot of super helpful knowledge and information.
I'm very excited to see what can be achieved long term with Tracey and team!

Thanks again to the team at Approved Financial Planners.

Beverly Blight 10 months ago

A relaxing experience for such a burdening issue. Tracey and her team have welcomed us to her flock with an attitude rarely seen these days, 'anything is possible'. Thankyou for making our finances seem 'too easy'. We will recommend this Company to all that need financial help.

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Why Consider Financial Planning?

Services Offered by Financial Planners