A financial advice plan, or Statement of Advice (SOA), is a detailed document that sets out the financial advice given to a consumer by their licensed financial planner or adviser.
The planner or adviser may be a physical person who provides face-to-face or virtual advice or a digital adviser who provides digital advice online through a platform or app.
Either way, the SOA you’re given provides recommended actions that are in your best interest, compliant with Australian regulations, and designed to help you achieve a specific financial goal.
Financial goals are usually related to things you want to do in your life, like:
- Saving a deposit to buy your first home
- Getting financially set before starting a family
- Paying off credit cards and loans so you can be debt-free
- Building an emergency fund so you can manage unexpected expenses
- Getting your super sorted so you know you can comfortably retire.
While you can research and do all of these things on your own, getting financial advice lays out the steps needed so you can be more confident about achieving those goals.
What does an SOA look like?
Statements of Advice can vary. One from a face-to-face adviser may be 60 pages or more and use specialist language. But technology has enabled digital financial advice providers, like moneyGPS, to provide easy-to-understand SOAs that are just 10-14 pages.
How much does an SOA cost?
Single-topic advice SOAs—which means focused on one financial goal, costs an average of $1980 from a face-to-face adviser. The same advice from moneyGPS ranges from $90-180.
The reason it is so much cheaper is because it uses advanced technology, which is faster and less costly. It is not influenced by commissions or kick-backs to recommend certain products. There is no difference in the quality or standard of digital advice as any financial advice provided in Australia has to adhere to the same rules.
Will it really help me?
Yes. Numerous studies have found that advised Australians are better off than those who have never received advice. Research from the Financial Advice Association of Australia found that:
- Three-in-four clients earning $120,000 or less per year who work with financial planners felt financially secure and confident which is higher than unadvised consumers on the same income level.
- Nine-in-10 Millennials who work with a financial planner agree that financial planning has left them better off financially,
- Advised Australians rate their overall life satisfaction at 7.3 out of 10, significantly higher than the 6.4 rating from the unadvised.
How can I get a financial advice plan?
You can get a financial advice plan through some accounting practices or your financial planner. For digital advice, sign up to moneyGPS, as it’s free to get started.
Once you’ve completed a 10-15 minute questionnaire on your life and goals, you’ll be provided a list of recommended financial advice plans that are in your best interest. Choose and purchase the one you want to start off with, answer a couple more questions, and you’ll be given your financial advice plan.
If you want to speak to a human during or after the process, you can speak with an experienced GPS Coach who can answer any questions you have about your financial advice plan.
accountantsGPS and moneyGPS are owned by Fiduciary Financial Services (AFSL: 247344) ABN: 76 003 624 888
