General and personal financial advice

Understand the difference between general financial advice, personal financial advice, and financial information.

So much information and advice!

There are so many different places to source financial information and financial advice. When you’re planning your finances and investments, it’s important to know how to recognise whether you’re being general advice, personal advice, or simply financial information.

At high level:

• General financial advice is a recommendation or opinion about a financial product. But that recommendation or opinion doesn’t consider your personal circumstances and is general in nature.
• Personal financial advice is a more specific recommendation or opinion that is tailored to your personal circumstances.
• Financial information is useful facts about products, services and financial strategies. It’s usually free and available from many places (like Moneysmart). A licence isn’t needed to provide factual information.

Whether it's general or personal, the advice you receive could cover any combination of investing, superannuation, retirement planning, estate planning, risk management and insurance.

General advice

General advice is a recommendation or opinion about a financial product that’s not tailored to your personal circumstances.

General advice may help you to identify and narrow down your options with regards to financial strategies and products, but because it doesn’t consider your personal circumstances, it won’t tell you how to make the best financial decision for your personal situation.

When general advice might be appropriate

You may want general advice if you:

• want to compare or confirm your understanding of different financial products. For example, the difference between a managed fund and an ETF
• are researching and learning about different financial topics
• don't want to spend money on tailored advice

You may be getting general advice if you:

• weren't asked questions about your financial situation, needs and objectives
• are dealing with someone who will not recommend a specific product for you. They will speak generally about it rather than tailoring it to you

When providing general advice, the advice provider must give you a warning. The provider will:

• tell you the advice you’re about to receive is general, meaning it doesn’t take into account your own objectives, financial situation or needs
• prompt you to consider if the advice is appropriate for you before acting on it
• in some cases, provide you with a Product Disclosure Statement if the advice is about a financial product

Personal advice

Personal advice is a recommendation or opinion tailored to your personal circumstances. This advice will consider your personal circumstances, such as your:

• income
• expenses
• assets
• liabilities
• goals
• risk tolerance

It's more specific than general advice and takes into account your financial situation and goals.

Personal advice can include:

• Simple, single-issue advice — Help with one financial issue. For example, how much to contribute to your super, or what to do if you inherit shares.
• Comprehensive financial advice — Help to develop a financial plan to reach your financial goals. This covers things like savings, investments, insurance, superannuation and retirement planning.
• Ongoing advice — Regular monitoring and review of your financial plan and personal circumstances.

Personal advice providers must act in your best interest.

When personal advice might be appropriate

You may want personal advice if:

• Your situation is complex and you need help to work it all out
• You're going through a significant life event. For example, buying a house, getting married, transitioning to retirement, redundancy, death of a spouse, or illness.
• You inherited a large sum of money.
• You want to outsource your financial affairs.
• You need specific advice on a topic area and have specific requirements. For example, you want income protection insurance but have health issues.
• You want to ensure you're on track to meet your financial goals.
• You need help managing someone else's money. For example, you’re appointed Power of Attorney for someone, or you’re an executor for a deceased estate.

Financial information

Financial information is useful facts about products, services and financial strategies. It’s usually free and available from many places. It can be a good way to do some research before you see a financial adviser.

As well as the information and calculators on the Moneysmart website, you can also try:

• Services Australia Financial Information Service — free information about financial matters including managing your money, reducing your mortgage, investing and superannuation.
• Australian Securities Exchange (ASX) — visit the education centre for information for first-time investors, articles and online seminars.
• Your super fund — get factual information about the investment and insurance options your fund offers, and guidance on contributions and consolidating your funds.
• Banks, credit unions and building societies — check their websites for retirement calculators and other factual information.

If you decide that financial advice is right for you, you can search by postcode on the financial advisers register to find a licensed adviser near you. The search results are randomised and in no particular order.