Why you need a financial advice review

  • Use the yearly review as an opportunity to gauge whether you're getting value for your ongoing advice fees.
  • An effective review should allow for any changes in your goals and financial circumstances.
  • Reviews can be more frequent than annually.

Your financial adviser should describe what the review process will entail, the proposed frequency and the relevant costs for providing this service.

what is a financial advice review and why do you need one?

Your financial position should be reviewed periodically to ensure any recommendations and strategies developed under the statement of advice (SOA) remain appropriate. This should normally occur annually, but could be on a six-month basis, quarterly or as required, depending on the agreed level of service.

Ongoing service obligations

Here are some examples of the ongoing client services an adviser may offer:

  • A comprehensive annual review of your financial strategies to ensure the recommendations provided remain appropriate and continue to support your goals and lifestyle objectives.
  • A review of the investment environment, economic conditions, market movements and legislative framework.
  • Personal consultation, as required, to discuss any specific questions or concerns you may have, as well as changes in your circumstances that may have an impact on your financial strategies.
  • Phone and email access to your adviser and their staff.
  • Online access to your portfolio, if applicable.

Why have a review?

Your personal situation may have changed

Experiences such as starting a new job, buying a home, getting married, retiring, having children, or losing a loved one can affect what you spend and your capacity to save.

Your lifestyle and financial goals may have changed

Your goals may change over time and with particular events in your life. Thus, it is important to review your situation and ensure your plan synchronises with any new or revised goals.

Don't underestimate the effects of changes in legislation

Legislative changes could drastically alter your financial situation. They can be triggered by a new government, the federal budget or the passing of legislation throughout the year. These changes can impact things like superannuation contributions limits, tax rates, or Centrelink rules and benefits. Your financial adviser can help you adapt through a review of your situation.

You could be paying more tax than necessary

Having your financial situation reviewed on an annual basis, means your financial adviser can assist you in identifying any strategies to help you minimise your tax costs or boost your after-tax returns.

Your insurance needs may have changed

Changes to your personal, work or family situation may impact your insurance needs.

Your debts may not be managed effectively 

Reviewing your debts with your financial adviser and resetting any benchmarks means you are effectively taking control.

 How much does financial advice cost?
 How do I know if my financial plan is any good?