Finding a Financial Advisor You Can Trust in Australia: Costs, Red Flags & Must-Ask Questions
Sep 25, 2025
Listen to the full podcast here.
Choosing the right financial advisor can feel intimidating especially in Australia, where the industry’s reputation is still rebuilding. The good news? High-quality financial advice can change your life: smarter financial planning, clearer investment advice, better budgeting, and a confident path to retirement planning. In this Get Rich episode, I sat down with Lexi Smith from Wealth Maximiser to demystify advisors, money coaches, costs, and the questions you must ask.
Do You Need Financial Advice? How to Know You’re Ready
There’s no magic net-worth threshold. You’re likely ready when:
- A life change hits (new job, inheritance, buying property, starting a family, divorce).
- You want a plan for retirement planning, investment advice, or insurance.
- You’re tired of DIY and want professional financial planning with accountability
If you’re searching for an advisor, that’s already a sign.
Financial Advisor vs Money Coach vs Financial Counsellor
Financial advisor/financial planner (same thing): Licensed professionals who give personal financial advice on superannuation, retirement planning, insurance and investments. Some implement and manage money for you; others give strategy you action yourself.
Money coach: Focuses on financial coaching for everyday money—budgeting, cashflow, debt habits and financial literacy. No product recommendations.
Financial counsellor: Free support for people in serious financial hardship (e.g., National Debt Helpline).
Which to pick?
- Struggling with debt/budget? Start with a money coach or counsellor.
- Need investment advice, super or insurance strategy? See a financial advisor.
What Does Financial Advice Cost in Australia?
Traditional advice isn’t cheap: the average annual fee sits around $4,700–$5,000. That’s why newer models like Wealth Maximiser exist, licensed advice and financial coaching from $699/year (or $99/month). Their hybrid approach focuses on strategy, education and empowerment, letting you implement yourself to keep costs low while still accessing professional guidance.
Why this works: You get tailored financial planning and investment advice style guidance without full-service portfolio management fees.
Red Flags to Watch For
🚩 1. No Clear Credentials or Licences
If an advisor can’t show you their qualifications (e.g., in Australia: AFSL licence, ASIC registration, or being an Authorised Representative) or isn’t transparent about their background, that’s a big warning sign.
🚩 2. Pushy Product Selling
Advisors who immediately push you toward a particular product (insurance, super fund, managed fund, property scheme) without understanding your goals may be more focused on commission than your best interests.
🚩 3. Lack of Transparency on Fees
If the advisor can’t clearly explain how they get paid (flat fee, percentage, commissions, referral kickbacks), it’s a red flag. Hidden or complicated fee structures usually benefit them, not you.
🚩 4. One-Size-Fits-All Advice
Good advice should be tailored to your personal situation (income, debt, family, goals). If they give generic recommendations or dismiss your concerns with “this works for everyone,” it’s a sign they’re not acting in your best interests.
🚩 5. Guarantees of High Returns
No legitimate advisor will promise specific or unrealistic returns. If someone says, “I guarantee you 15% every year” or “this is a no-risk investment,” that’s a major red flag—it often signals a scam or at least very poor advice.
Must-Ask Questions for Any Financial Advisor
1. How are you paid, and what’s my total annual cost? So you understand if it’s flat fee, percentage, or commission and avoid hidden costs.
2. Are you licensed? (Confirm on the ASIC Financial Adviser Register.) Only licensed advisers are legally allowed to give financial advice in Australia.
3. Do you provide ongoing reviews? How often will we meet? Regular check-ins ensure your plan keeps up with life changes.
4. Do you specialise in clients like me (stage of life, goals)? An adviser who works with people like you will better understand your needs.
5. Do you implement recommendations, or do I? Some advisers execute the plan for you, others leave it to you - know what to expect.
6. What happens if I want to end the relationship? Important to know if there are exit fees or minimum contract periods.
7. How do you integrate budgeting, investment advice, and retirement planning into one plan? You want holistic advice that connects all parts of your financial life.
8. Do you receive commissions or referral fees from products or providers you recommend? This shows if there’s a conflict of interest that could bias their advice.
What Wealth Maximiser Does (and Doesn’t)
- Does: Provide licensed, affordable financial advice with three tailored strategy options; one-on-one sessions with a wealth coach; education to improve your financial literacy; ongoing financial coaching touchpoints.
- Doesn’t: Implement investments for you. You action the plan (great if you want control and lower fees).
It’s a strong middle ground between full-service advice and going it alone.
Whether you choose a traditional financial advisor, a money coach, or a hybrid like Wealth Maximiser, the goal is the same: build a confident, values-aligned plan for your money. Start with clarity on your goals, demand transparent fees, verify licensing, and choose the relationship that supports your growth in budgeting, investment advice, and retirement planning - all while strengthening your financial literacy.
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