Why I’ve got more in my super than when I retired 11 years ago

Also check ASIC’s “Banned or Disqualified Register”, and “Enforceable Undertakings Register”, to make sure the adviser remains authorised.

Check their qualifications

Financial advisers need a relevant university degree, a year of professional practice and to pass an industry examination to be qualified. They must also provide a “Financial Services Guide” setting out what they offer, how they charge, owners, any links to product providers and their licence number.

Dimensional Fund Advisors, which has about $45 billion assets under management locally and which has worked with advisers for more than 30 years,

Paul Turner, vice president of Dimensional Fund Advisors, which has about $45 billion assets under management locally and which has worked with advisers for more than 30 years, says a good adviser needs to be able to maintain clients’ confidence during volatile markets by “articulating a sense of progress to goals”.

But the advice needed by a retiree with decades of investment experience managing a diverse portfolio in cash, property and equities will be much different from that for someone who has just started their career.

A self-funded retiree like Strandquist, who is also trustee of his self-managed super fund, continues to receive advice from financial advisers, accountants and tax specialists.

“But I’m also looking for advice on what to invest in and the best timing for buying and selling,” he says.

Sam Ryma, principal adviser with financial planners Forest Wealth, says advice can range from single issues, such as how much to contribute to super or income protection insurance, through to comprehensive guidance to achieve lifetime financial goals.

Ryma adds that those aged over 55 typically have advantages over younger generations because they have no, or low, mortgages, are at the peak of their earning potential and are often “empty nesters”.

“They need to invest in line with their risk appetite, avoid paying too much, and, as retirement comes closer, consider more conservative strategies,” says Ryma.

That means they are more likely to need ongoing advice with regular reviewing of their financial plans and affairs.

What will it cost?

There continues to be a big gap between what advisers charge and what people are willing to pay, which is preventing many from seeking regular professional guidance, says Abood.

According to independent analysis, potential clients baulk at the average fee for an initial consultancy of about $4000 plus an annual retainer of around $4700 for ongoing advice.

Surveys reveal people only want to pay $530 for advice and $800 for a retainer.

By comparison, $4000 spent on setting out a financial road map for life could also, according to carsales.com.au, buy a 23-year-old Toyota Corolla with 245,000 kilometres on the clock.

Most advice firms have links with other financial planning specialists, such as lawyers, accountants, tax specialists and mortgage brokers, who have their own professional qualifications and fee structures.

Sources of information about specialist advisers include professional associations, a lender or financial institution, your super fund, recommendations from people you know and trust, or an industry regulator.

Finn Dorney, principal wealth adviser for Shadforth, says critical financial decisions leading to a comfortable retirement are made decades earlier when people in their 20s are buying their first homes or choosing a super fund.

“My clients tend to be time-poor professionals who value the comprehensive service and peace of mind of having someone manage their finances long-term – they have no issue with our upfront fees of $4400,” Dorney says.

Advice from mortgage brokers

When it comes to seeking advice about paying for a property, Phoebe Blamey, director of mortgage broker Clover Financial Solutions, says brokers provide better mortgage advice than banks because they are legally obliged to act in their client’s best interest.

“Banks only act in their own best interests,” Blamey says. “They are simply selling a mortgage.”

Mortgage brokers are paid by commission from the product provider.

Blamey says most banks pay around the same commission, which prevents brokers simply pushing business to the highest payer.

“There is fierce competition between the banks to provide the best and cheapest products,” she says. “There is also fierce competition between brokers to provide the best advice.”

Preparing for major lifestyle changes, such as marriage, death and divorce, can also involve seeking different types of advice.

Sandy Wong, a private client adviser at Equity Trustees, says wills ensure assets are inherited by the people testators (who write wills) want to benefit – and excludes those they don’t.

Lawyers, working with financial planners, can also incorporate testamentary discretionary trusts in the will in which the terms set out in the will determine how it is set up and administered, and how income and capital can be distributed each year, Wong says.

Wills can also protect assets for the beneficiaries and provide potentially tax-effective income and capital gains tax distributions, she says.

For the Strandquists, it is important for them to ensure that valid nominations are in place in their self-managed super fund as their member benefit does not automatically form part of their estate when they pass away.

Super is a great way to boost long-term savings because contributions are generally taxed at 15 per cent and withdrawals are tax-free for those aged 60 or older.

An adviser can provide information on the manager’s performance, investment selection, long-term strategies and asset allocation. Alternatively, super funds, such as AustralianSuper, are investing heavily in artificial intelligence and digital technologies to provide free guidance for members.