I often get asked how does Our pricing “stack up” in the marketplace? It’s a question we continually ask ourselves and review to ensure we’re providing the most optimum value. We owe it to our clients – and ourselves – to get it right.
It’s not as simple as looking at one price to another. To answer this question fully, you need to consider a range of factors. Here’s why.
Bucking the industry trend
Since December 2019 until today the number of advisors in Australia has decreased from 37,000 to 15,860. And the forecast is for another 2,000 advisors to leave the industry by the end of 2023. There’s two main reasons for this:
The costs to provide advice have exploded with industry research indicating a 44% increase in servicing costs in the last three years (due to additional compliance, regulations, consumer protections, and insurance costs).
A significant increase to the minimum education standards required of advisors has forced many to stop providing advice.
Many advisers did not pass the FESEA exam (an exam Centered around ethics in Financial Services which had to passed to continue your license)
The result has seen advice fees increase on average by more than 35% as firms adjust to the extra regulation costs and the rising salaries of employees due to competition for the best talent and combined with a full work force.
At WE. We are most certainly not immune to these cost increases, we have bucked the industry trend and expanded our advice team by merging with the WE Love Group a perfect fit.
We achieved this, by maximising the value we can offer you through providing quality people and delivering advice that is meaningful and holistic.
It pays to have quality people
It’s hard to put a price on quality people. We have always taken this approach, as we understand the trust and faith people place in us to help them live a fulfilling life. The biggest challenge in today market is to recruit and retain quality people with the reduced talent pool putting pressure on business salary expectation. Our fees indeed to take this into account. But we remain committed to providing leading industry knowledge and expertise as we believe you should expect, and deserve, nothing less. It’s why all of our advisors have passed the Advisor Standards Exam, (FESEA). WE are all tax advisers, with a holistic approach to advice.
Like anything in life, you pay for what you get. With Wealth Effect Group, you’re not just paying for some of the most highly qualified and experienced advisors to help you live on your terms. You’re also paying for people who work with respect, honesty, integrity, trust and execellence, qualities we believe should be valued above all else.
Happy returns = Happy customers - It's not all just about portfolio creation & management
At the end of the day, you want to see a return on the advice fees that you pay. We want that for you too. On average, our clients receive a benefit of between 4 to 6 times the amount of their ongoing advice fees. This means if your fees amount to $8,000 a year, your projected benefit from following our advice will be between $32,000 to $48,000 a year after our fees and before any tax deduction you could receive on our advice. WE deliver on our Forecast - here's how.
We apply what we call “The value Forecast”. Using industry benchmarks and 40+ years of experience from our new team members, we combine the quantitative factors (like returns, asset growth and tax minimisation strategies) with the qualitative factors (like peace of mind, financial security and confidence) to deliver an accurate estimate of the overall value we can deliver. The WE Value Equation.
And we do this annually so that every client can have a clear picture of what they can expect for the next year – and what the value of our advice will look like over 10 years.
Living a full filling life -
It’s important when comparing one pricing option to the next that you’re comparing apples with apples oranges with oranges. When we established over a decade ago Wealth Effect Group’s purpose was to deliver financial services in a better way. A way that focused on the person, not the product. It’s why we developed our philosophy of Living a Full Life to create financial plans to meet your specific needs with an emphasis on achieving a strong sense of security and feeling of freedom. Our pricing is reflective of this holistic approach. It’s not cookie-cutter or product based. We don’t receive any margin fees from investment products that we use with our clients or kick-backs from portfolio platforms or superannuation funds. We are not aligned with a specific bank, super provider, or life insurer.
By not having these conflicts, you can be confident that our advice is always in your best interests. It’s why our fees are more than a bank or super fund will charge you (where they want you to stay in their products). And compared to other boutique advice businesses, we have been able to contain our fees in the mid-range and still deliver top-range service. Our advice is centered around enhancing your financial wellbeing – something we’ve been doing for over decade well before the banks decided to cash-in on the term in their marketing campaigns. We’ve placed great importance on constructing a team who are exceptional advisors, and exceptional people, so that we can always meet this promise to you. So when weighing up your pricing options, don’t just look at the fee. Look at everything that sits behind it to gain a true indication that your financial advice is worth it. That it all adds up to delivering real value.
If you would like to learn more about WE’s pricing structure or would like to discuss any aspect of your financial situation, we’re always ready to chat. Please feel free to talk to your advisor at any time or contact one of our team by clicking the link>>>> .