Free financial advice: What to look out for and where to find it
Navigating the world of finance and staying on top of your money can be challenging, so you may want to get help from a financial adviser. But if your budget is tight, there are ways you may be able to get some free help. We take a closer look at some things to consider if you’re looking for free financial advice.
Key points:
- When looking for financial advice you need to distinguish between general and personal advice.
- Financial counsellors can offer free help if you’re in financial difficulty.
- Free advice on a range of financial topics is available in online webinars run by Services Australia.
What is financial advice?
Financial advice is a service offered by qualified and licensed professionals that’s designed to help you plan your finances and make important decisions about your money.
For example, you may want help with areas such as budgeting, investing, retirement planning or insurance.
The Australian Government’s Moneysmart website says financial advisers must be licensed by the Australian Securities and Investments Commission (ASIC) or work for an organisation that’s licensed.
Financial advisers must also meet strict education and training standards to be able to offer advice.
When looking for advice about your finances, it’s important to distinguish between general and personal advice.
Anyone offering general advice is typically providing information to help you understand financial products, processes and guidelines that apply at a general level. This kind of advice doesn’t take into account your personal circumstances.
If you’re looking for more personal advice then you need someone who can look at your specific circumstances and financial needs, and your goals for the future. These tailored services can often come with a fee attached.
But there are still ways you may be able to get some financial advice for free.
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Where can I get free financial advice?
If you’re looking for free financial advice, there are several possible options that may be suitable, depending on your needs. There are also some key potential issues to be aware of when receiving ‘free’ advice from these sources.
Financial counsellors
Financial counselling is offered through selected government and not-for-profit community organisations, such as the National Debt Helpline (1800 007 007) or the Salvation Army.
According to Financial Counselling Australia, financial counsellors don’t charge fees or receive any third party payments or commissions.
These services are generally aimed at people experiencing financial difficulties, for example if you’re struggling with debt, or need information and support. In some circumstances, financial counsellors may negotiate directly with your creditors if you’re struggling with repayments.
Some organisations also offer hotlines for people in specific financially difficult circumstances. This could include financial support for seniors or drought relief for affected farmers and small businesses.
Financial planners or advisers
Financial advisers typically provide investment advice and financial planning at a cost, as explained earlier, but they sometimes offer an initial consultation free of charge.
What this consultation covers will depend on the adviser, and it may not go into detailed personal advice.
These sessions can often serve as an introduction to allow the adviser to get to know you (and vice versa) and understand your situation.
A free initial session may be helpful if your situation doesn’t require follow-up advice from the adviser, but bear in mind that any subsequent appointments will likely come at a cost.
Some financial planners may operate on the basis that there is no cost to the client at all, even for multiple appointments. They may earn money by receiving a commission for certain financial products, such as insurance, that the client purchases.
But Moneysmart says a financial adviser can’t charge you commission on superannuation products and ordinary investments.
It may help to understand more about how a financial planner or adviser makes money so you’re aware of any other incentives that could impact the advice you receive.
Mortgage brokers
If you’re looking for guidance about buying a house or taking out a home loan, you could seek some help from a mortgage broker.
Mortgage brokers generally don’t charge for advising their clients. They typically make money by earning a commission from the financial institutions whose products they sell to clients.
This is an important factor to be aware of when considering whether a mortgage broker is right for you, and assessing any options or products they present to you.
It’s worth remembering too that some mortgage brokers may not offer you a full range of home loan options. They may have arrangements in place to sell some providers’ products but not all, so it could be worth doing your own research to help make sure you’re comparing as many home loan options as possible.
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Your super fund
If you need help managing your super, some funds offer free basic advice to their members in relation to things like investment options, insurance and making additional contributions.
While there may not necessarily be a direct charge for this advice, the cost is typically already factored into the regular fees you pay to your super fund.
To get more comprehensive advice from your super funds you usually have to pay a fee. In some cases, this fee may be deducted from your super balance, if agreed upon in advance. While not strictly ‘free’, it does mean you avoid any out-of-pocket expenses for the advice, but you would be eating into your retirement balance in the process.
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Free financial webinars and seminars
Free financial education on a range of financial topics, including money management and retirement, is available in online webinars run by Services Australia. You can book to watch then live as they happen or access any recordings of past webinars.
Some super funds may also offer free webinars and seminars to their members, so it could be worth contacting your fund to check what might be available.
Online resources
While it’s not personal advice, many government websites, such as Moneysmart or the Australian Taxation Office (ATO), offer general information on a variety of financial matters.
Canstar also offers general information on a range of topics, which may help you to better understand your finances, and upholds strict editorial guidelines in relation to the content it publishes.
Beyond that, you could follow finance experts on social media platforms for regular tips and updates. But be sure to check that the person or website you use as a source for this kind of information is reputable.
What are some advantages of free financial advice?
One obvious answer is you get free financial advice that can help you with your financial situation.
For example, a financial counsellor may refer you to other services such as a gambling helpline, family support service, personal counselling or community legal centre that you might not have been aware of. They may also help you understand whether you are eligible for government assistance, and assist with applications if you are.
What to look out for with free financial advice
Financial advisers and planners, although sometimes offering their services for free initially, often require further consultations for you to get the full benefits of the service.
For example, they may specialise in planning and developing long-term financial goals and mapping your progress over time.
Advisers and brokers who are ‘free’ to clients are typically still paid by commission, meaning they may earn money based on the specific financial services or products they sell on behalf of other companies, or in some cases their own company.
Moneysmart says the way financial advisers charge can influence the advice they give you.
“For example, if they get a commission for selling a financial product, like insurance, they may push this product. But if they charge based on how your investment performs, they may work harder to grow your money,” it says.
You should check in advance how they gets paid and ask to see a copy of their Financial Services Guide which should explain how they operate.
It’s a good idea to be aware of the qualifications of anyone providing you with financial advice, regardless of whether it is a free or paid service.
Maybe ask about their education and qualifications and check on Moneysmart’s financial adviser register for details on the status of their or their organisation’s licence, as well as a list of the topics the adviser is allowed to advise their clients on.
A possible alternative, although usually not free, is an independent financial adviser who is not allowed to earn commissions for products recommended to clients.
Original reporting by Eliza Parry-Okeden.
Cover image source: G-Stock Studio/Shutterstock.com
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This article was reviewed by our Deputy Editor, Canstar Amanda Horswill before it was updated, as part of our fact-checking process.
Michael is an award-winning journalist with more than three decades of experience. As a senior finance journalist at Canstar, Michael's written more than 100 articles covering superannuation, savings, wealth, life insurance and home loans. His work's been referenced by a number of other finance publications, including Yahoo Finance and The Motley Fool.
Michael's worked as a reporter and producer for the BBC and ABC, including for Australian Story. He's also worked as a feature writer for The Courier-Mail and as a science and technology editor and commissioning editor at The Conversation.
Michael's professional awards include a Queensland Media Award and a highly commended in the Walkleys. In 2021 he was part of a team that was a finalist in the Australian Museum Eureka Prize for Science Journalism. He holds a Bachelor of Science in mathematics and applied physics (Manchester Metropolitan University) and a Masters of Science in pure mathematics (Liverpool University).
You can connect with Michael on LinkedIn.
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