Hello Raskles 👋
Welcome back to part two of our three-part series, where we’re tackling the most important questions to ask your financial advisor throughout different stages of the journey.
In Part 1, we discussed 5 questions to ask during your introductory call. Now, let’s move on to the strategy presentation. This is where the rubber meets the road. You’ll be presented with projections, plans and possibilities. But how do you know you’re truly getting the most out of it?
Here are five key questions to ask during your strategy presentation to make sure you’re walking away with clarity and confidence, not just a pile of paperwork.
Question 1: “Can you talk me through the assumptions used in these projections – and what happens if things turn out differently than expected”
If your advisor shows you a visual projection of your financial future (as they should), it’s crucial to look under the hood. Assumptions play a massive role in how convincing that pretty graph looks, and without understanding them, you risk being misled – intentionally or not.
Ask your advisor to explain:
- The rate of return used (and how it aligns with your risk profile) – see more on this below
- Inflation assumptions (generally assumed to be between 2 and 3% – if no inflation has been applied, they might be overshooting with their estimates)
- Salary growth rate (is 3% growth year on year realistic in your profession?)
- Interest rates on debt (e.g., assuming a fixed rate at 3% for 30 years might be wishful thinking, particularly given the long term average (1990-2023) interest rate on a principal place of residence in Australia has been approximately 6.86% and typically trends 0.5% to 1% higher on investment property loans)
- Centrelink entitlements (have these been modelled in and is access to them realistic given your trajectory?)
- Importantly, you also need to be sure that the modelling has factored in the advice cost/s, investment fees and any insurance premiums.
Quick detour: What’s a ‘risk profile’, anyway?
When your advisor talks about your risk profile, they’re basically trying to figure out how much financial rollercoaster you’re comfortable riding. Some people can watch their investments bounce up and down without losing sleep. Others see a small dip and immediately want to jump ship. Neither reaction is right or wrong—it just helps your advisor match you to the right type of investment strategy.
Your risk profile is shaped by things like:
- Your goals
- Your timeline
- Your personal attitude toward risk
- Your financial situation
Based on your answers, you’ll usually land somewhere on a scale—from super conservative (low risk, low returns) to aggressive (high risk, higher potential returns).
Here’s a snapshot of long-term investment return profiles based on risk levels:
| Cash | Defensive
(20% growth) |
Conservative (40%) |
Balanced
(60%) |
Growth
(80%) |
High Growth
(100%) |
|
| Average | 3.5% | 5.3% | 5.8% | 6.4% | 7.1% | 7.8% |
| Lowest | 0% | -8% | -9% | -15% | -24% | -32% |
| Highest | 8% | 11% | 15% | 21% | 27% | 33% |
*based on 30 year historical profiles
The takeaway? Don’t bank on best-case scenarios. Ask about the worst-case, too.
Question 2: “What leading indicators will help us measure progress towards my goals?”
A good advisor knows that your financial plan should tick more than just a numerical target. An even better advisor will know what forward indicators will signal you’re heading in the right direction.
Your financial plan should clearly connect to your goals (retirement at 60, buying a home, passive income, etc). But these goals are often years (or decades) away, so a smart question to ask is “what can I look out for in the short and medium term to let me know I’m on track?”
Some examples of leading indicators might be:
- Cash flow surplus increasing (e.g. $100/month → $300/month)
- Debt reduction milestones (e.g. paying off $10k of high-interest debt within 6 months)
- Savings rate increasing (e.g. growing from 10% → 20% of income)
- Superannuation or retirement contributions increasing in line with long-term targets
- Alleviated anxiety because systems are in place (automation is underrated!)
Question 3: “What are the key tradeoffs I have to make to achieve these outcomes?”
Now here is the less fun part – real accomplishment is rarely achieved without sacrifice. Every goal requires tradeoffs and it’s important to understand what those are.
Maybe it’s cutting back on travel. Maybe its dialing down on discretionary spending. Maybe its locking in additional super contributions for 20+ years. Whatever it is, you should feel clear – and comfortable– about what it will take.
And remember, there’s no “right” answer. We don’t all have to be hustling hard throughout our 30s and 40s in the hope of retiring in our 50s on a super yacht. For some, the priority is enjoying right now and travelling while they’re young, and if that means working part time for a little longer, then that’s a sacrifice they are happy to make. The key is conscious compromise, not accidental sacrifice.
Get granular on this stuff. Ask:
- Is the spending limit realistic for my lifestyle?
- Are these contribution levels sustainable?
- What happens if I want to flex the plan later?
Even the best recipe falls flat if you’re missing ingredients.
Question 4: “Can you explain to me any other fees in addition to the advice fee that I should expect, such as investment manager fees?”
We touched on advice fees and the “FSG” in Part 1 . But now that your strategy is in hand, it’s time to dig deeper.
You will typically see:
- A flat advice preparation fee (once off)
- An ‘ongoing advice fee’ (either a fixed dollar amount or percentage-based)
These fees should be clearly identified in the Statement of Advice, usually under an ‘Advice Fees’ table.
But don’t stop there. Look for a “Product Fees” table. This is where things start to get a little more complicated. This includes third-party fees—like investment manager or fund fees—which aren’t paid to your advisor but absolutely impact your returns.
Here’s a rough guide:
- ETFs: 0.05% – 0.50%
- Managed Funds: 0.70% – 2.00%+ (especially active ones)
These aren’t dealbreakers—but they should spark a deeper conversation about investment style, value, and alignment with your personal preferences.
Question 5: “What does our ongoing relationship look like?”
Let’s circle back to one of the most undervalued parts of the advice journey: the relationship.
You should walk away from the strategy presentation totally comfortable with the support you have moving forward. Whether you’re implementing the advice yourself or leaning on the advisor and their team, you need to be crystal clear on what needs to happen, when, and by whom.
Make sure you understand the process for reviewing and adjusting your strategy if (or when) your circumstances change—and what types of changes would actually warrant that pivot.
Finally, if you’re considering implementing only parts of the advice, ask about the knock-on effects. A financial plan is like a spiderweb—tug one thread, and others may shift. Clarity is king here.
The best advisors don’t just deliver a plan—they co-create clarity. In saying that – this goes both ways. Don’t just nod along – ask questions. Challenge assumptions. And remember – while the advice document may be static, your life certainly isn’t. The most effective advisor-client relationships recognise this—and together, they build a dynamic that embraces change and evolves with it.
Stay tuned for part 3: 5 questions to ask your advisor 6 months into your plan being implemented.
Ready for advice? Book a call with our team now to get your finances sorted and let’s build a plan 💥
