Financial Advice 101 : 5 Tips You Can’t Ignore

In this conversation, Phil Muscatello, host of the popular Shares for Beginners podcast and YouTube channel, sits down with Simon Shepherd, Principal of Providence Advisory Group, to unpack the essentials of modern financial advice.

Phil’s show is known for making investing accessible to everyday Australians, interviewing experienced investors, authors, and finance professionals to demystify wealth-building. In this interview, the focus shifts beyond the markets - diving into the realities of how financial advice works, what it costs, and how it can help Australians protect and grow their wealth at every stage of life.

Summary of the above interview

The Role & Cost of Financial Advice

• Financial advisers help clients set and achieve life goals - not just pick investments.

• The industry has shifted from commission-based models (rooted in life insurance sales) to professional fee-for-service advice like seeing a solicitor or architect.

• Typical initial plans cost $3,000–$5,000, with fees driven by complexity, not just asset size.

• A Statement of Advice (SOA) is a regulatory requirement for client protection, but its real value lies in the actionable strategy it contains.

• Risk assessment questionnaires are useful but limited - technology is improving how advisers assess real-world risk tolerance.

• Super funds may offer basic income stream advice, but comprehensive, personalised planning is where a financial adviser adds significant value.

More Than Just Investments

• Financial advice covers retirement planning, tax strategies, estate planning, and risk management.

• Rising property values, especially in Sydney, are driving the need for inheritance and estate protection planning.

• Advisers ensure legitimate tax minimisation and help clients access entitlements like the Seniors Health Card or pensioner concession card.

• Good advisers take a holistic approach protecting and growing wealth through every stage of life.

Simon’s Top 5 Tips You Can't Ignore:

1. 🎯 Know your goals before you go - Clarity makes your advice more effective.

2. 💬 Ask how your adviser gets paid - Transparency matters more than the fee size.

3. 🚀 Don’t wait until you’re wealthy - Advisers help build wealth from any stage.

4. ⚖️ Check for independence - Avoid advisers tied to in-house products; seek those who only give advice.

5. 🤝 Trust your gut - If you feel pressured or “sold to” in the first meeting, walk away.

   
   
   
   

Where to Learn More from Phil Muscatello 

To explore more investing wisdom from Phil: 

🎧 Listen to the Shares for Beginners Podcast 

📺 Visit his website: Shares for Beginners

Thanks for watching!

Simon

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Find out more about how we can help: Fiduciary Advisor - Simon Shepherd | Providence Advisory Group