First Financial Advice as a Young Australian — A Checklist

What to Expect From Your First SOA

Your first Statement of Advice may cover a range of topics depending on what you asked for — it could be about saving for a home, consolidating super accounts, getting income protection insurance, or starting an investment portfolio. The key is that the advice should be specific to you, not a generic template. If the document reads like it could apply to anyone, that is a red flag.

Check Your Personal Details

Start by making sure your personal information is correct — name, age, income, savings goals, and risk tolerance. Mistakes at this stage can lead to recommendations that are not right for you. If you told your adviser you want to buy a home in five years but the SOA is built around a 30-year retirement plan, something is wrong.

Understand the Fees

For your first SOA, pay close attention to fees. Some advisers charge a fixed dollar amount for initial advice, while others charge a percentage of your investment balance. Ongoing fees are common but not universal — ask whether they are optional. The SOA should include a clear fee table. If the fees are difficult to find or understand, ask your adviser to explain them.

Ask About Alternatives

Your adviser should show that they considered different options before recommending a specific product or strategy. For example, if they recommend a particular super fund, did they also look at other funds? If they recommend an insurance product, did they compare options from different providers? Good advice is based on comparison, not convenience.

Take Your Time

You are never required to sign a SOA on the spot. Take time to read it, ask questions, and seek a second opinion if needed. Most products have cooling-off rights that let you change your mind within 14 or 30 days of signing. If you feel rushed, that is a warning sign.

Preparing for Your First Advice Meeting

Before your first meeting, clarify your goals. Common reasons young Australians seek advice include: starting a savings or investment plan, understanding superannuation, getting insurance, managing debt (including HECS-HELP), and planning for major purchases like a home or car.

Gather relevant documents: recent payslips, superannuation statements, bank account and investment statements, details of any debts (credit cards, personal loans, HECS-HELP), and information about any insurance policies you hold.

What to Expect from Your First SOA

Your first Statement of Advice should set the foundation for your financial future. It should include: a clear summary of your current financial position, specific recommendations aligned with your goals, fees and costs clearly disclosed, and a plan for implementing and reviewing the advice.

The SOA should explain the reasoning behind each recommendation and how it helps you achieve your goals. If the advice is complex, your adviser should take the time to explain it in terms you understand.

Questions to Ask Before Proceeding

Before implementing your first advice, ask: Is this advice in my best interests? What are the total costs including ongoing fees? What are the risks? How long until I see results? Can I afford the ongoing costs?

Also ask: What happens if I lose my job or my circumstances change? Can I stop the arrangement at any time? What is the minimum amount I need to invest? Your adviser should answer all questions clearly.

Frequently Asked Questions

Is financial advice worth it for young people?
Yes, especially if it helps you establish good financial habits early. Advice on budgeting, super contributions, insurance, and debt management can provide significant long-term benefits.

How much should a young person pay for advice?
Initial advice for young people typically costs $1,500-$3,000. Ongoing advice may be $1,000-$2,000 per year. Scaled advice on a single topic may cost less.

Can I get advice just about my super?
Yes. Many advisers offer scaled advice focused on superannuation. This can help you choose the right fund, optimise contributions, and ensure adequate insurance within super.

What if I cannot afford ongoing advice?
You can start with one-off advice and implement the recommendations yourself. Return for updated advice when your circumstances change or when you can afford ongoing services.

What Financial Advice Typically Costs

What does advice cost in practice? The typical ongoing fee sits around $4,700–$4,800 a year — a figure that has climbed 67% in five years, though annual growth has cooled to roughly 4%. Starting out, expect an initial Statement of Advice to be priced between $2,000 and $3,500, with specialist hourly rates anywhere from $300 to $600. Since FOFA banned commissions on investment advice, fee-for-service billing has become the norm.