When you seek financial advice, it's important to understand the different types of advice available and which one best suits your needs. Financial planners can provide a range of services, from general information to comprehensive, personalised plans.

The law recognises different types of advice, each with its own set of requirements.

General Advice vs. Personal Advice

This is the most fundamental distinction:

• General Advice: This is advice that does not take into account your personal circumstances, objectives, or financial situation. It might be found in a newsletter, seminar, or online article. When providing general advice, a financial planner must give you a warning that the advice may not be right for you.

• Personal Advice: This is advice that is tailored to your specific circumstances. To provide personal advice, a financial planner must first understand your financial situation, needs, and goals.

Types of Personal Advice

Personal advice can be further categorised:

• Holistic or Comprehensive Advice: This type of advice looks at your entire financial situation and develops a comprehensive plan to meet all your financial needs and goals.

• Scaled or Limited Advice: This is advice that is limited to a specific area of your finances, such as your superannuation or a particular investment. It can be a more affordable way to get professional advice on a specific issue.

• Execution-Only: In this case, you instruct a financial planner to execute a transaction for you without receiving any advice. The planner must provide a written warning stating that no advice was provided.

The Advice Process

Regardless of the type of advice you receive, a professional financial planner will follow a structured process, which typically includes:

1. Gathering information: Understanding your financial situation, needs, and goals.

2. Developing strategies: Creating a plan to help you achieve your objectives.

3. Presenting recommendations: Explaining the plan and recommendations to you.

4. Implementing the plan: Putting the plan into action.

5. Ongoing review: Regularly reviewing your plan to ensure it remains on track.

By understanding the different types of advice, you can choose a service that meets your needs and budget, and find a financial planner who is the right fit for you.

General Advice Warning:

The information provided in these articles are of a general nature only and do not take into account your individual objectives, financial situation, or needs. You should consider whether the information is appropriate for you, having regard to your personal circumstances. Before making any financial decisions, we recommend consulting a licensed financial adviser to assess your specific needs and circumstances.