A financial adviser’s fee is $250–400/hour. For the right situations, that’s some of the best money you’ll spend. For the wrong situations, it’s money you didn’t need to spend. The challenge is knowing which is which.
Use a financial adviser for: retirement planning with $300k+ in assets, business sale, inheritance of significant funds, divorce financial settlement, complex insurance needs analysis, or pre-retirement income modelling. DIY is fine for: choosing a KiwiSaver fund, setting up an index fund account, basic budgeting, and straightforward insurance comparison. A one-off consultation ($1,500–2,500) for a specific question can be better value than a full ongoing adviser relationship.
Situations Where a Financial Adviser Clearly Adds Value
1. Retirement Planning with $300,000+ in Assets
Once you have meaningful retirement savings, the decisions become complex:
- Asset allocation: What proportion in growth vs defensive assets as retirement approaches?
- Drawdown strategy: Which accounts to draw from first to minimise tax?
- Sequence of returns risk: How to protect against a market crash at age 64 derailing retirement?
- NZ Super integration: How do other income sources interact with NZ Super eligibility?
- Longevity planning: How long do your funds need to last?
The cost of getting these decisions wrong — running out of money at 80, or leaving hundreds of thousands untouched due to excessive caution — vastly exceeds the adviser fee.
What to expect: A comprehensive retirement plan costs $2,000–5,000. For a couple with $500,000+ in retirement assets, this is the best money they’ll spend.
2. Business Sale
Selling a business involves:
- Timing the sale for tax efficiency (income vs capital gain treatment)
- Structuring the purchase price (upfront vs earnout)
- Investment of proceeds
- Post-sale income planning
An adviser working with your accountant and solicitor can save meaningful amounts through structure. Business sales are complex — this is not DIY territory.
3. Inheritance of Significant Assets
Receiving $100,000–1,000,000+ suddenly creates decisions you’ve never had to make:
- Pay down mortgage or invest?
- Which investment vehicles?
- Tax implications of different options?
- Estate planning for the inherited assets?
A one-off consultation ($1,500–3,000 for a Statement of Advice) provides a clear action plan for decisions that will compound over decades.
4. Divorce and Relationship Property Settlement
The Property (Relationships) Act 1976 creates a legal framework for dividing assets — but the financial implications of different settlement structures can differ by hundreds of thousands of dollars over time.
A financial adviser (often working alongside your family lawyer) can model:
- Long-term retirement impact of retaining vs selling the family home
- Equalisation of KiwiSaver and investment accounts
- Ongoing income and financial independence projections under different scenarios
5. Complex Insurance Needs
Life, income protection, trauma/critical illness, and total permanent disability covers interact. The right structure depends on your family situation, mortgage, KiwiSaver, income, and employer covers.
An insurance-specialist adviser maps a coherent structure. This is typically commission-based — ensure the adviser is genuinely comparing options from multiple insurers.
Questions to ask: “Do you have access to all major NZ insurers, or just some?”
6. Significant Financial Transition
Other situations where professional advice is worth the fee:
- Large redundancy payout
- Death of a spouse
- Significant property settlement
- Starting or winding up a business
- Major career change affecting income and benefits
When You Can DIY
| Financial task | DIY resource |
|---|---|
| KiwiSaver fund selection | Sorted.org.nz fund finder, Morningstar ratings |
| Setting up an index fund account | Kernel, InvestNow, Sharesies — simple online process |
| Budgeting | PocketSmith, Budget Calculator, this site |
| Basic term life insurance comparison | iSelect, Policy Finder, direct comparison |
| Mortgage application (straightforward) | Bank direct, interest.co.nz rate comparison |
| Understanding NZ Super eligibility | workandincome.govt.nz |
| Emergency fund and savings strategy | Pay Yourself First |
Many NZers over-complicate their financial situation. A KiwiSaver in a growth fund + index fund contributions + mortgage repayment is a complete wealth-building strategy that requires no ongoing professional advice.
Types of Engagement: Hourly vs Retainer vs Commission
| Model | What you pay | Best for |
|---|---|---|
| Hourly ($250–400/hr) | Direct fee to adviser | Specific one-off questions |
| Flat fee / Statement of Advice | $1,500–5,000 per engagement | Comprehensive plan for a specific situation |
| Annual retainer | $2,000–8,000/year | Ongoing relationship, regular reviews |
| Commission (no direct fee) | Paid by product provider | Insurance, sometimes mortgage |
Fee-only advisers (hourly or flat fee, no commission) have no conflict of interest. They’re the clearest choice for investment and retirement advice.
Commission-based advisers are common in insurance. The FMA (Financial Markets Authority) requires disclosure of all commissions — ask upfront.
How to Find a Licensed Financial Adviser in NZ
FANZ (Financial Advice New Zealand) Adviser Directory
financialadvice.nz — Search by location and specialty. All listed advisers are licensed.
Sorted.org.nz
sorted.org.nz/financial-advisers — CFFC-run search tool.
Financial Service Providers Register
fsp.register.govt.nz — Verify any adviser is licensed before engaging.
Questions to Ask Before Engaging
- “What is your FSP registration number?” — verify it
- “How do you charge for advice?”
- “Do you receive any commissions for products you recommend?”
- “What is your speciality area?”
- “What does the engagement process look like?”
- “Do I receive a written Statement of Advice?”
Red Flags
| Red flag | What it means |
|---|---|
| Guaranteed returns | Fraud or misrepresentation — no legitimate adviser promises specific returns |
| Won’t disclose fees or commissions | Non-compliance with FMCA requirements |
| Pressure to act quickly | High-pressure tactics are a warning sign |
| Can’t provide FSP number | Not licensed |
| Pushing you toward complex products | Possible product bias or commission conflict |
| No written advice provided | Not meeting professional standards |