General or personal advice could help you reach your financial goals.
The difference between general and personal advice
General advice does not consider your personal circumstances and is general in nature. Personal advice is more specific and is tailored to your personal situation.
Whether it's general or personal, the advice you receive could cover any of these financial products or areas:
- investing
- superannuation
- retirement planning
- estate planning
- risk management
- insurance
Personal and most general advice providers must hold an Australian Financial Services (AFS) licence.
General advice
General advice is a recommendation or opinion about a financial product that is not tailored to your personal circumstances.
General advice may help you to identify and narrow down your options. But it won’t tell you how to make the best financial decision for your personal situation.
General advice is different to factual information. This information can give you useful facts about a financial product. Examples of factual information may include descriptions of:
- the basic features of a superannuation account
- the fees and interest rates on a new term deposit
Factual information is usually free and available from places like websites, banks and seminars. A licence isn’t needed to provide factual information.
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 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 receiving general advice if you:
- were not 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
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.
Free financial information
If you're looking for factual information about investment products and strategies, or want to do some research before you see a financial adviser, there are some good free and low cost options around.
We have useful information and tools to help you plan for retirement and understand how investing works, including:
- Retirement planner — calculate what income you are likely to have from super and the Age Pension when you retire, including contributions, investment options and fees.
- Superannuation calculator — work out how much super you'll likely have when you retire.
- How to invest — learn about developing an investing plan, choosing investments and borrowing to invest.
You can also try:
- 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 investment and insurance options, contributions and consolidating your funds.
- Banks, credit unions and building societies — check their websites for retirement calculators and other factual information.
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.