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Speak to a 2020 DIRECTINVEST ADVICE adviser for a no obligation discussion on how we can assist you
Financial Advice Form
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 In response to client feedback, 2020 DIRECTINVEST has developed 2020 DIRECTINVEST ADVICE, a financial planning service providing specific investment advice on a professional fee basis.
A fee for service financial adviser can assist with investment and retirement planning, risk management and estate planning - as directed by the investor. This can include invaluable advice on specific investment products, superannuation, life insurance and more. Fee for service advice enables investors to separate product from advice, and be confident that they are receiving non-commission driven advice.
Did you know?
The large majority of financial advisers and planners in Australia receive commissions for their services. This includes ongoing percentage based adviser service fees that are deducted from the investors' account and last the life of the investment, as well as commissions that are paid by the fund manager. When a financial adviser is being paid commissions by the fund manager(s) that they recommend, the value of advice can be seriously tainted.
Professional Fee for Service Financial Advice
Instead of receiving commissions that potentially undermine the quality of the advice provided, a professional fee for service financial adviser will charge an hourly rate for his or her services. We recommend that our members seek advice from a professional financial adviser who does not receive a commission from the product provider but rather charges you a professional fee similar to a professional like a doctor, dentist or engineer.
The investor will only pay for the time spent assessing their financial situation and providing recommendations with a statement of advice, rather than percentage based commissions that last the life of the investment.
| Fee vs commission based financial advice |
Mary's financial adviser receives commissions and 1.0%^ pa adviser service fee |
John's pays professional dollar based fee only |
| Amount to invest |
$250,000 |
$250,000 |
| 2% entry fee* |
$5,000 |
NIL |
| Fee for service advice cost |
N/A |
$2,750# |
| Net amount invested |
$245,000 |
$247,500 |
| Value after 10 years assuming 10% return pa after adviser fees |
$580,004 |
$641,303 |
| Value after 20 years assuming 10% growth pa after adviser fees |
$1,373,081 |
$1,662,374 |
Difference in value after 10 years
20 years |
$61,299
$289,293 |
Assumptions
*Assumes an entry fee of 2% in charged by the Financial Adviser receiving commissions. Financial advisers can charge entry fees of up to 5%.
#Assumes the Fee for Service Financial Adviser charges $2,750 for advice provided.
^Assumes an adviser service fee of 1% pa is charged by the Financial Adviser receiving commissions. |
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| Entry Fees | Entry fees are optional. Are you paying entry fees on additional investments to existing managed funds?
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