What Does a Financial Planner Actually Do? (A Beginner’s Guide)
Quick Answer: A financial planner helps you use your money wisely to achieve your life goals—from buying a home to retiring comfortably—by creating tailored strategies for investing, saving, managing debt, and protecting your wealth.
Introduction: Why Financial Planning Matters
Managing money can feel overwhelming. Between superannuation, investments, mortgages, insurance, and retirement planning, it’s easy to feel lost. This is exactly where a financial planner comes in.
This beginner-friendly guide will demystify the role of financial planners in Australia, explain what services they offer, how they charge, and how they can help you build the life you want.
What Does a Financial Planner Do Day-to-Day?
A financial planner (also called a financial adviser) is a professional who develops financial plans for individuals and families. Their primary mission is simple: help you use your financial resources to achieve your goals—whatever those goals might be.
A typical day for a financial planner might include:
- Interviewing clients: Understanding your complete financial picture—your income, expenses, assets, debts, insurance coverage, and most importantly, your personal goals and how comfortable you are with risk
- Developing financial plans: Creating tailored strategies designed specifically for your situation and objectives
- Reviewing investments: Regularly reviewing investment performance and adjusting strategies as markets and your circumstances change
- Arranging insurance: Assessing your need for life insurance, total and permanent disability (TPD) coverage, and income protection
- Managing transactions: Executing securities transactions and managing funds from superannuation and other investment vehicles on your behalf
- Ensuring compliance: Navigating complex regulations and handling financial reporting requirements
- Referring to specialists: Connecting you with accountants, lawyers, or other professionals when your needs extend beyond financial planning
Think of your financial planner as a strategist and coach—designing the game plan and keeping you on track when life throws curveballs.
Core Services Financial Planners Offer
Financial planners offer services to help you manage money throughout different life stages. These core services include:
| Service Area | What It Includes | Who It Helps |
| Budgeting & Cash Flow | Understanding where your money goes and creating sustainable spending and saving plans | Anyone wanting to get their finances organised and create surplus funds |
| Investing | Advice on where and how to invest based on your goals and risk tolerance | People wanting to grow wealth beyond just saving in a bank account |
| Superannuation | Contribution strategies, investment options, and account consolidation | Everyone building retirement savings throughout their working life |
| Retirement Planning | Creating a plan to ensure a comfortable retirement, including income streams and social security | Pre-retirees and those nearing retirement age |
| Insurance | Assessing personal insurance needs to protect you and your family from unexpected events | Income earners and families with financial dependents |
| Tax Strategies | Structuring finances and investments to be more tax-effective | Higher income earners and business owners |
Financial planners can provide simple, single-issue advice (like “Should I contribute more to my super?”) or comprehensive financial advice that covers all aspects of your financial life. Many also offer ongoing advice, where they regularly review and adjust your plan over the long term.
Real-World Example: How Comprehensive Planning Works
To understand how financial planning works in practice, let’s look at how professional financial planners in Port Lincoln approach your financial life.
Eyre Financial Services serves clients across the Eyre Peninsula—including Port Lincoln, Cummins, Tumby Bay, and Kimba—using the “Six Pillars of Financial Planning” framework. This holistic approach shows how all pieces of your financial puzzle fit together:
- MAKE – Your Income Plan: Strategies to improve cash flow and use income efficiently through tax-effective methods, directing surplus funds toward wealth creation
- GROW – Your Investment Plan: Analysing investment options and risks to help you make informed decisions aligned with your goals
- LEVERAGE – Your Debt Plan: Examining debt structures and developing strategies for mortgage reduction and using debt strategically for wealth building
- PROTECT – Your Risk Plan: Identifying financial risks and mitigating them through insurance and risk reduction strategies
- ENJOY – Your Retirement Plan: Calculating retirement needs and planning for your desired retirement lifestyle
- PRESERVE – Your Estate Plan: Ensuring assets are distributed appropriately to create a lasting family legacy
This integrated approach ensures no aspect of your financial life is overlooked. Naomi Durdin and Triona Thompson—both SMSF Specialists at Eyre Financial Services—work with farmers and business owners on the Eyre Peninsula, addressing complex situations like farm succession planning, seasonal cash flow management, and Self-Managed Superannuation Funds.
Their CARE Investment Philosophy stands for Core investments, Active investments, Reserves (up to four years of cash for retirees), and Enhanced returns. This protects retirees from forced selling during market downturns—a common mistake that devastates long-term wealth.
When Should You Consider Hiring a Financial Planner?
You don’t need to be wealthy to benefit from financial advice. It’s often most valuable during transitions or major financial decisions.
Consider hiring a professional financial advisor in Port Lincoln if you are:
- Planning for retirement or nearing retirement age, and need to structure your income
- Receiving an inheritance or a large sum of money
- Buying a home or investment property
- Starting a family or a business
- Wanting to start investing, but don’t know where to begin
- Feeling overwhelmed by your finances
- Running a farm or business, and need specialised rural or agricultural financial strategies
- Considering a Self-Managed Superannuation Fund (SMSF)
According to the 2022 Quality of Advice Review, high-quality advice doesn’t require complex, 100-page documents. Often, the most valuable advice is simple, targeted, and responds directly to immediate needs.
Qualifications to Look For in a Financial Planner
To provide personal financial advice in Australia, planners must meet strict education, experience, and ethical standards.
According to CPA Australia, all financial advisers must complete:
- An approved university qualification: At minimum a Bachelor’s degree level, but can also be a graduate diploma or Master’s degree
- A professional year: 1,600 hours of supervised work and training (equivalent to one full year of experience)
- The Financial Adviser Exam: A national exam set by ASIC that tests knowledge of financial advice regulations and obligations
Furthermore, all financial advisers must be registered with ASIC and listed on the public Financial Advisers Register.
For Self-Managed Superannuation Funds, look for advisers with SMSF Specialist Accreditation (SSA®)—a specialised credential demonstrating deep expertise in this complex area.
How Financial Planners Charge for Their Services
The cost of financial advice varies depending on the adviser and the complexity of your needs. Advisers are required to provide you with a Financial Services Guide (FSG), which details their services, fees, and any potential conflicts of interest.
Fees can be charged in several ways:
| Fee Type | What It Covers | Typical Structure |
| Statement of Advice (SOA) Fee | Preparation of your initial financial plan | One-off fee (varies by complexity) |
| Implementation Fee | Putting your financial plan into action (e.g., opening accounts) | One-off fee |
| Ongoing Advice Fee | Regular reviews, and ongoing access to your adviser | Monthly or annual recurring fee (flat fee or percentage of assets) |
| Asset-Based Fee | Managing your investment portfolio | Annual fee as a percentage of total assets managed |
| Hourly Rate | Time-based consultation | Fixed rate per hour (common for one-off advice) |
Important Note About Commissions
Advisers are banned from receiving commissions on superannuation and investment products. This rule was introduced to remove conflicts of interest. However, they may still receive commissions on insurance products (like life insurance), but they must get your explicit consent to do so.
How to Choose the Right Financial Planner
Finding the right financial planner is about more than qualifications and fees—it’s about trust and understanding your unique situation.
Key factors to consider:
- Qualifications and experience: Look for CFP® certification, SMSF Specialist Accreditation if relevant, and significant experience
- Local knowledge: A planner understanding your community and local economic conditions provides more relevant advice
- Fee transparency: Clear explanation of charges and what you receive
- Communication style: Feel comfortable discussing finances with clear explanations
- Ongoing relationship: Choose someone committed to regular reviews and ongoing support
The Quality of Advice Review emphasises that advice value lies in providing clarity, confidence, and a clear path forward.
The Value Beyond the Numbers
The value a good financial planner provides extends beyond investment returns. According to the Quality of Advice Review, this includes:
- Navigating complexity: Understanding options and making decisions that improve long-term outcomes
- Behavioural coaching: Avoiding emotional decisions during market volatility while staying focused on long-term strategy
- Achieving goals: Translating life goals into financial terms with concrete, actionable plans
- Peace of mind: Professional oversight of your financial strategy, freeing you to focus elsewhere
The Financial Planning Journey: What to Expect
Engaging a financial planner typically follows this process:
- Initial consultation: Initial meeting to discuss goals and determine fit. You’ll receive their Financial Services Guide.
- Discovery: Deep-dive session gathering information about your financial situation, goals, and risk tolerance.
- Plan development: Comprehensive Statement of Advice (SOA) outlining recommendations, rationale, fees, and risks.
- Implementation: Adviser helps execute the plan—opening accounts, purchasing investments, or applying for insurance.
- Ongoing review: Regular reviews (typically annually) to track progress and adjust as needed.
Frequently Asked Questions
How much does a financial planner cost?
Financial planner costs vary depending on complexity and services needed. Expect to pay from a few thousand dollars for simple, one-off plans to $10,000+ for comprehensive first-year planning. Ongoing fees typically range from $2,000 to $5,000 annually.
Initial fees might include $3,500-$6,000+ for your Statement of Advice and implementation. Ongoing advice costs a flat annual rate depending on the complexity of your situation. Remember that advisers cannot receive commissions on superannuation and investment products, though they may on insurance with your consent. Always request a clear fee breakdown before engaging a planner.
Do I need a financial planner if I’m young?
You don’t need to wait until you’re older or wealthy to benefit from financial advice. Getting advice early can be one of the smartest financial moves you make.
Time is your greatest asset. When you’re young, you have decades for compound interest to work. A planner can help you set up the right investment strategy early, potentially adding hundreds of thousands to your retirement savings. Planners help with budgeting, cash flow, and investing—crucial skills to develop early.
Avoid costly mistakes. Wrong decisions about superannuation, insurance, or debt in your 20s and 30s can have lasting consequences. A planner helps you avoid these pitfalls.
Major life events need planning. Buying your first home, getting married, starting a family, or launching a business all benefit from professional advice.
If you’re just starting out with a simple situation, consider a one-off consultation or specific advice first. As your situation becomes more complex, upgrade to comprehensive planning.
What’s the difference between a financial planner and an accountant?
While both deal with money, their focus differs significantly.
Accountants focus on historical financial data for tax compliance and reporting. They prepare tax returns, maintain business records, and ensure tax law compliance. Their work is backward-looking: “What happened last financial year, and how do we report it correctly?”
Financial planners are forward-looking, creating strategies to build wealth and achieve future goals. They develop financial plans, investment strategies, retirement plans, and insurance recommendations. Their work asks: “Where do you want to be in 10, 20, or 30 years, and how do we get you there?”
The overlap occurs in tax planning, Self-Managed Superannuation Funds, and estate planning. Some professionals, like Naomi Durdin at Eyre Financial Services, hold both CPA accounting and financial planning credentials—a rare combination enabling integrated advice.
Many benefit from having both: an accountant for tax compliance and a financial planner for wealth-building strategies. The best outcomes come when these professionals work together.
Conclusion: Your Partner in Financial Success
A relationship with a financial planner is a partnership. By finding the right professional—someone with appropriate qualifications, knowledge in your situation, and a communication style that works for you—you gain clarity and confidence to control your financial future.
Whether you’re a young professional starting to invest, a farmer planning succession, a business owner building wealth, or a pre-retiree ensuring a comfortable retirement, professional financial advice helps you navigate complexity, avoid costly mistakes, and turn goals into reality.
You don’t need all the answers—that’s what your financial planner provides. What you need is the willingness to engage with your finances, clearly communicate your goals, and work with a trusted professional.
The best time to start planning your financial future? Right now.
