Australians unwilling to pay big for term deposit advice
Australian investors are willing to pay only $300 upfront for receiving financial advice, a new study has found.
According to research released in the Investment Trends 2010 Planner Business Model report, the average Australian consumer believes financial advice should cost $300 for the first visit and $300 for subsequent visits.
The survey of 1,100 investors and 1,300 advisers revealed a huge discrepancy between the views of the two sides, with advisers stating that the break-even cost of providing their full services is $2,700 or $1,200 for a simple advice plan.
Investment Trends analyst Recep Peker said the study showed "a striking disconnect" between the expectations of planners and their clients.
"It also suggests that many investors may be unaware of the true cost of advice under existing asset-based fee models," he added.
Consumers aiming to secure strong long-term investments could choose to compare term deposits in search of better returns. This week, Alex Tilbury of National Features, hosted by news.com.au, claimed that term deposits could offer a more secure investment option than the current $6 billion share market float by coal rail freight business QR National.
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