Are you affiliated with any specific product providers that may influence your recommendations?

No. We have some arrangements where product providers have reduced thier fees for our clients but we are not owned by them or do we recieve any remuneration so our only incentive is always to give you the best value products. 

Can you explain what fee for service is exactly?

From 1 July 2013, commissions have been banned under the new legislation called Future of Financial Advice (FOFA), so essentially every financial advice firm is now ‘fee for service’.  

However, there is more to this than just being fee for service. Many financial advice firms are ‘fee for service’ however they charge their fees as a % of your account balance. To us, this is not true fee for service; this is fee for how much money you have. Also, by employing this charging structure, it also means they must recommend a product that allows them to deduct their fee as a %, so it still creates biased advice. There may also be a situation where you have some available funds and the question might be whether this should be used to pay down debt or invested and if the financial adviser is remunerated as a % of your investment balance and a % of your mortgage balance, the advice may be conflicted as it will directly impact his revenue stream.

Insurance commissions were not banned under FOFA, so many ‘fee for service’ financial advice firms are still being paid % based commissions on the premiums you pay for insurance products recommended to you. Not only does this cost the client more in the long run as those commissions are built into the premium which you pay year after year, but it can also lead to biased and conflicted financial advice. A financial adviser may recommend higher levels of cover or additional features simply to increase the premium so they receive a higher commission. Alternatively, the financial adviser may be inclined to recommend retail insurance cover in order to receive a commission, whereas the cheaper cover available in your industry superannuation fund may have been sufficient.

At Precision Wealth Management, we are what we call true fee for service. We rebate commission on insurances and the fees charged are always flat dollar fees based on the amount and complexity of the work, advice and service required and never determined purely on the amount of money you have in your account.

How much does it cost to obtain financial advice?

The cost for obtaining financial advice can vary depending on your personal situation and the complexity of the advice required, just like any other service.

When we provide personal financial advice, it must be in a document called a Statement of Advice. The cost to prepare a Statement of Advice can vary significantly depending on the work involved.

Our first meeting is always at no cost and is obligation free, so we can disuss your situation and what you are looking to achieve and provide you with a second opinion on your current investments and strategy. From there, we will provide you with an upfront quote so you know exactly how much it will cost so you can make an informed decision if you would like to proceed.

I’m not located within the Brisbane region; can I still get financial advice from you?

Absolutely! With the use of Skype, telephone and email, there are no physical barriers to who we can deliver financial advice to provided they are in Australia. Wherever possible, we even look to utilise these technologies for our Brisbane based clients, to reduce our carbon footprint and maximise our efficiencies. This allows us to continue offering affordable financial advice.