Is financial advice just for the “rich”?
Contents
What’s the real worth of financial advice?
Financial advice is just for the rich. It’s a perception held by many Australians.
“I don’t have enough to see a financial advisor.”
“I don’t see the value in financial advice.”
“Advice is only for people with large investment and property portfolios.”
“Advice doesn’t matter until I’m close to retirement.”
So what’s the real story? Is financial advice reserved only for people with investment portfolios and significant disposable wealth? Or is it an accessible and realistic option for anyone seeking to improve and build their financial security and future?
And what does being “rich” really mean anyway?
Australians want financial advice
The Australian Financial Advice report released at the end of 2024 revealed that over 10 million Australians are open to seeking financial advice.1 And according to the same Investment Trends report, 16.4 million Australians say they need help or guidance with finance-related matters.
These stats are further backed up by research from Colonial State Mutual which identified 93% of Australians believe people need financial advice, with 52% saying that advice is most needed by people “doing it tough financially”, while only 15% thought advice is most needed by the wealthy.2
These findings seem to rally against the belief that financial advice is just the domain of the rich, but many Australians are still choosing to make their own decisions for the majority of their working life, with the Association of Superannuation Funds of Australia (ASFA) confirming only 51% have sought any sort of financial advice before retiring.3
At Tribeca, we’ve found that one of the major reasons people delay seeking financial advice is wrestling with their own idea of what it is to be “rich”. Many people who come to us have diligently saved $1 million dollars in their superannuation and paid off their house, but still feel that they are not that well off even though we would consider them to be in a great position financially. They may not have built up a property or investment portfolio – often the stereotypical definition of being “rich” – but have quietly gone about accumulating savings in their super and removing debt to create significant wealth in their own right.
Being “rich” is all relative.
So with that in mind, what are some of the perceptions holding people back from engaging a financial advisor – and what’s the reality?
“I don’t have enough wealth to see a financial advisor.”
As just mentioned, there’s often a belief that financial advice is only for those who already have money or are considered “rich”. It’s something that you seek after you’ve built your wealth. But that’s dismissing the strength of a financial advisor in helping build finances and security from the ground up, well before helping manage and grow wealth.
Think of it like going to see a personal trainer to improve your fitness and health. You wouldn’t think: “I’ll get in shape first… and then join the gym.” You go to the personal trainer to get you on track.
Many people seek out a financial advisor to help get their finances in shape. Like:
- getting on top of debts
- freeing up cash-flow for meeting everyday costs and creating a savings buffer
- strengthening their superannuation and insurance position
- planning for big life events: buying a home, starting a family, changing jobs
- navigating fork in the road moments: divorce, losing a partner, caring for loved ones
- planning for retirement.
Just as the gym exists to help you get fit, financial advice exists to help you get financially secure. You don’t need to be wealthy to begin – you start where you are, and the benefits accumulate over time.
“I don’t see the value in financial advice.”
Financial advice does take a financial commitment. According to the 2025 Australian Financial Advisor Landscape report, the median advice fee is now just under $5,000.4
It can be a significant barrier, with many people finding it difficult to justify spending this amount. Particularly if they are starting from a vulnerable financial position.
This is when the value of financial advice becomes the important factor.
Each year the Financial Advice Association Australia (FAAA) runs its Value of Advice Index. The 2024 & 25 reports revealed some interesting findings as well as debunked a few myths around who benefits most from advice.
The 2024 report identified:
- 94% of clients trust their advisor to act in their best interests
- 93% say their advisor has helped them manage financial risks in their life
- 80% are now less worried about money since receiving financial advice
- 9 out of 10 advised clients say benefits of advice outweigh the costs.5
Commenting on the report, the Chair of the FAAA noted:
“We often hear that financial advice is only for the rich, but the study shows that nine in ten clients earning $120,000 or less per year who work with financial advisors feel financially secure which is higher than unadvised consumers on the same level of income.
“Another myth is that financial advice costs more than it is worth. But again, nine in 10 clients say the benefits outweigh the costs.”
Those benefits were highlighted further in the 2025 report, which showed that:
- nearly two in three advised Australians flagged a reduction in financial stress and worry
- nearly two in three were able to build a realistic plan for a comfortable retirement
- nearly three in five were helped to get the most out of a current financial situation.6
According to the CEO of the FAAA, “…the difference between those who have advice and those who don’t is growing as Australians are seeing the value of financial advice, not despite uncertain markets, but because of them. Good financial advice isn’t just about the numbers. It’s about giving people confidence, support, and a sense of control, even when times are tough.”
In terms of monetary value, further research from Russell Investments shows that financial advisors consistently add around 6% p.a to a client’s circumstances – equating to thousands of dollars of extra value. This considers both quantitative (asset allocation, behavioural and tax) and qualitative benefits (choices and expertise).7
Using this as the benchmark, at Tribeca we then overlay the unique value and support we can bring in helping you achieve your Good Life goals and aspirations – such as financial security and freedom to make choices – with our goal of delivering 4-6 times our fees in value to you.
Listen to Tribeca’s Chairman Brad Fox talk about the value of advice.
“Advice is only for people with large investment and property portfolios.”
Building and managing portfolios is certainly one of the areas where a financial advisor can provide extensive advice and support. But it’s typically not the main priority.
In referring back to the FAAA 2025 Value of Advice Index, the top five benefits of working with a financial advisor as reported from clients were:
- improved financial wellbeing and peace of mind
- help to simplify and explain financial matters
- help to save time/effort organising and making decisions about finance
- improved financial decision-making confidence
- trusted partner to navigate life’s financial challenges and opportunities.
Those qualitative aspects of offering peace of mind, building money confidence and creating healthy financial habits is where an advisor’s expertise and guidance really counts. For people who are looking to take charge of their money and strengthen their financial wellbeing, the benefits gained from greater financial security and freedom far outweigh the returns on a balance sheet.
At Tribeca, financial wellbeing is where we start with every client as it’s central to living life to the full. Or as we say living our Good Life. Our Financial Wellbeing Matrix enables the client to rate their feelings towards control over their finances (now), and capacity to absorb a financial shock (in the future). We also look at their feelings of financial freedom to make choices (today), and whether they feel on track to meet goals (for tomorrow).
By feeling financially secure, it allows you to enjoy the genuine freedom of making choices you want to make – not have to make.
When your financial wellbeing is healthy, that’s when you can really get to work on building your investments and growing your wealth.
Learn more about Tribeca’s people-centred approach to final advice.
“Advice doesn’t matter until I’m near retirement.”
This misconception once again stems from the idea that financial advice is for the people with high-net-worth assets. But this ignores the importance of how powerful financial advice can be in setting your trajectory well before your retirement years.
Interestingly in recent times there appears to be a shift away from waiting too long before engaging a financial advisor. The FAAA 2024 Value of Advice Index highlighted that younger Australians working with financial advisors are better off financially, with observed improvements in quality of life and financial confidence even greater than for Baby Boomers.
It’s clear the earlier you start, the greater the benefits. And these benefits come in many forms:
- Reduce financial stress by limiting mistakes and making smarter decisions through support and guidance.
- Accumulate wealth steadily and consistently through the power of compound interest. Just consider if you started contributing $500/month in your mid 20s at 7% p.a (average long-term investment return); you would build a nest egg of $1.27 million by age 65. An advisor can keep you motivated and on track from whatever age you decide to start.
- Be financially prepared for major life events such as getting married, buying or renovating a home, having kids, taking that dream holiday, making a career change (planned or forced), or setting yourself up for retirement.
- Take charge of your money and financial future through the education, support and inspiration provided by your financial advisor.
Want more helpful content on the subject of retirement? Here’s two articles from our website: Embrace your retirement potential, Your 20-year holiday, or listen to this informative podcast episode: Spending MORE with Rob Devlin.
The bottom line
The perception that financial advice is only for the “rich” is not just outdated; it’s misguided. Particularly for those who have built up their wealth consistently and diligently over time and simply don’t appreciate that they have put themselves in a strong financial position. In reality advice has become far more accessible, tailored, and flexible than ever before.
Whether you’re trying to get ahead, stay on track, or prepare for the future, financial guidance and support can be one of the most valuable investments you make in yourself.