Financial Adviser FAQs:

Do you need a financial adviser? Not necessarily. It really depends on your situation, and how confident
you are handling the money stuff on your own.
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If things are fairly simple, say you've got one KiwiSaver account and you're saving toward a goal a few
years out, you can probably manage that yourself with some good reading and a bit of discipline. But once
life gets more layered, a mortgage, some investments, insurance to think about, maybe a business or
retirement coming into view, that's usually when having someone in your corner starts to pay off.
Financial Advice New Zealand has done the research on this, and people who get advice tend to end up
better off financially and feel more confident about the future. A good adviser does more than build a
plan. They'll help you set goals that actually make sense. They'll catch mistakes before those mistakes get
expensive. And when markets get jumpy, they're the ones keeping you steady. For most people, that's
worth more than what it costs.

This is also where working with an adviser like MyFuture can add extra value. Most financial advisers
operate in only one or two areas, such as insurance, mortgages, KiwiSaver, funds under management, or
budgeting. MyFuture covers all of these plus the specialised field of property investment, giving clients a
single adviser and a single relationship they can rely on right through to retirement.

Costs vary depending on the type of advice and how the adviser is paid. As a rough guide for the New Zealand market:

• Expect to pay $1,500 to $5,000 for a one-off financial plan, more if your situation is complex.
• Hourly rates generally sit between $200 and $400.
• For funds under management, ongoing advice is often charged as a percentage of the money you have invested, usually between 0.5% and 2% a year, with around 1% being common.

Some advice carries little or no direct cost to you. KiwiSaver, insurance, and mortgage advice is often paid for by commission from the product provider rather than a fee you pay yourself. Either way, advisers have to disclose their fees and costs clearly before you commit, so you're never left guessing.

There are three main ways financial advisers in New Zealand get paid, and a lot of them actually use a mix.

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Commission is when the product provider, an insurer or lender, say, pays the adviser when you take out their product. You often pay nothing directly, though it is worth understanding how a commission might influence which products are recommended.

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Fees charged to you come in a few different shapes. Sometimes it's a flat fee for a specific piece of work, sometimes an hourly rate, and sometimes an ongoing percentage of the assets the adviser manages for you.

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Fee-only advisers (sometimes called fee-for-service) take no commission at all. They are paid only by the fees you agree to, and some rebate any commission back to you. Supporters of this model say it cuts down on conflicts of interest, since the adviser has no financial incentive tied to any particular product.

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Under New Zealand law, advisers have to disclose any commissions, incentives, and conflicts of interest that could sway their advice. If you're ever unsure how someone's getting paid, just ask them directly and get it in writing.

Choosing the right adviser isn't just about ticking off qualifications. Here's what actually helps:

• Check they're registered. Every adviser has to appear on the Financial Service Providers Register (FSPR) and either hold, or operate under, a Financial Advice Provider (FAP) licence from the Financial Markets Authority (FMA).
• Confirm they advise on what you actually need. Advisers tend to specialise. One might focus mostly on KiwiSaver, another on insurance or mortgages, another on investment and retirement planning. Make sure whoever you pick actually covers what you need.
• Understand how they're paid. Ask for their disclosure information, it sets out fees, commissions, and any conflicts of interest. Every Financial Advice Provider is required to have a Public Disclosure Statement easily accessible on their website, so that's a good place to start. 
• Ask about their process and minimums. Find out how they work, how often you'll meet, and whether they have a minimum amount they'll manage.
• Make sure it actually feels like a good fit. You'll be sharing personal information and working with this person over time, so trust matters, and so does being able to talk to them easily.

There's nothing wrong with speaking to two or three advisers before you pick one. A good adviser won't mind the questions.

There is no strict minimum you need in the bank before you can see a financial adviser. As a general guide, it is worth having a conversation once you have a few thousand dollars in savings or KiwiSaver, and advice becomes especially valuable once you are approaching $20,000 to $50,000 in investable assets. Beyond that, the right amount depends on the type of advice you are after.

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For KiwiSaver, insurance, and mortgage advice, there is usually no minimum at all. You can seek advice whether you are just starting out or well established.

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For investment and portfolio management, many advisers do set a minimum for the amount they will actively manage. Some specialise in clients with $50,000 to $100,000 or more to invest, while private wealth services may only take on clients with $1 million or more. Others have no minimum. These figures are usually about investable assets, things like KiwiSaver, term deposits, and shares, not the equity sitting in your home.

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The easiest thing to do is just ask. Advisers field this question constantly, so it's a total non-issue.
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It is also worth knowing that not every adviser expects you to arrive with assets already built up. MyFuture, for example, works differently from many traditional advisers by helping clients build wealth from the ground up, rather than only taking on clients who already have significant assets to manage.

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Pretty much any time you're facing a decision that'll have long-term financial consequences. Common trigger points include buying your first home, starting a family, an inheritance or redundancy payout, selling a property or business, going through a separation, or retirement coming into view.

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You don't need a big event to justify it, though. Plenty of people reach out simply because they want a clear plan, a second opinion, or just some confidence that they're on track. And getting advice sooner rather than later usually works in your favour, since it gives your money more time to actually do something.

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Yes, it's regulated. The FMA regulates financial advice here, under the Financial Markets Conduct Act 2013. That got stricter in March 2021, when a Financial Advice Provider licence became a requirement for anyone giving retail clients regulated advice (or you work under someone who's licensed). It's been fully in force since March 2023.

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Regulated advisers have to follow the Code of Professional Conduct for Financial Advice Services. In practice that covers the basics: treat clients fairly, act with integrity, and give advice that actually suits your circumstances. They also have to make sure you understand what they're telling you, protect your information, and meet minimum standards of competence, knowledge, and skill.

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Every adviser has to be listed on the Financial Service Providers Register and belong to an approved dispute resolution scheme, which you can use free of charge if something goes wrong. You can check any adviser's registration and licence on the FSPR before you engage them.

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They can, but it helps to understand where crypto sits in the regulatory system. New Zealand does not have a dedicated set of rules for cryptocurrency. Instead, existing laws are applied, and most crypto assets are not treated as regulated financial advice products under the Financial Markets Conduct Act.

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In practice, this means advice on most cryptocurrencies generally falls outside the regulated financial advice regime. The consumer protections that apply to regulated products, including access to a dispute resolution scheme, may not apply in the same way. The FMA has repeatedly cautioned that crypto is high risk and lacks many of the safeguards that come with other investments.

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Some advisers are happy to discuss how crypto might fit within your wider financial picture, while others choose not to cover it at all because of its volatility and its position outside the regulated regime. If crypto matters to you, ask a prospective adviser about their approach before you begin.

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