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Fees and Services

 

 

WHAT FEES, CHARGES AND COMMISSIONS ARE PAYABLE IF PERSONAL ADVICE IS REQUIRED?

 

Using an example of Mary and Bill who are looking for Superannuation Advice, who are looking to invest in a safe retirement fund, without any complex structures (SMSF) or exotic investments.

 

A general guideline to Financial Planning fees:

 

A Statement of Advice $2,200 (SoA - approximately 40 page financial plan) + 2 or 3 Meetings. This may be tax deductible.

Let's compare a Birchcorp established SMSF versus a retail superannuation fund.

Contribution fee (Industry standard = 2% of your investment) v Birchcorp Fee = Nil

Mary and Bill have $520,000 in their current Retail Superannuation Fund, the industry standard Financial planner will charge 4%. i.e 2% x $520,000 = $10,400. 

 

Ongoing Fee (Industry Standard is estimated at 2%). 

Birchcorp charges an On-Going Fee: A maximum of $3,500 per annum if using an SMSF.  

This fee covers Birchcorp Compliance, pension documents, reserving document, newsletter, client login and other Regulatory requirements related to your investments, auditing and accounting. This will also cover due diligence on your investments throughout the year with an annual review (including investment strategy) and all other financial requirements you may have that requires attention. 

 

An example of these fees are outlined below: 

 

Mary and Bill have $520,000 to invest. After taking the Financial Planner's advice, they invest accordingly: 

High Growth-Australian Share fund : $100,000

Balanced Investment Fund: $120,000 

Conservative Investment fund: $300,000

 

The total Fees payable to Birchcorp per annum are: $3500

Compare this to the Industry standard (Most Financial Advisers) : 2% (management fee) x $520,000 = $10,400   N.b this does not include the financial Adviser Fee forr the Retail Superannuation.

 

 Birchcorp  = $3500         v           Industry Standard = $10,400 + $10,400  = $20,800 (includes 2% contribution fee)

 

Please note: This is a guideline for a Statement of Advice (SOA) and Superannuation advice. Some Superannuation Advice may be paid by your Super Fund (consequently deductible to the Super Fund).

 

To meet with a Birchcorp consultant to discusss the above items or answer any of your Personal Financial questions please: Enquire Here

 

 

OTHER FINANCIAL FEES AND CHARGES YOU MAY CURRENTLY BE PAYING?

 

Ask your Financial Planner to outline the fees and charges you will incur from the investment bank / institution, where your money is invested. This has a major impact on your annual return.  Ideally you should compare 5 years of performance, which incorporates fees and taxes where possible.  On consultation with a Birchcorp representative we will compare some of Australia’s largest and most profitable retail funds (the amount of fees are mind blowing), with globally recognised investment companies that have a cost effective approach to fees, and industry funds which will highlight some real savings. As Birchcorp has chosen not to align with any financial institution, we are able to help you select any investment that provides a balance between good service, performance and fees. Fees and Charges in Superannuation and Managed Funds are paramount to a good Financial Plan. This can save the client a further estimated 0.6% of their invested monies (Refer to Retail Funds). Using the example above, this would save you another $3,1200 p.a. in adviser fees.  Adviser and Management fees are the fees that are not well disclosed on your statements. 

  

Note: Currently your investment choices may be restricted to investing with only one company, as your Financial Planner may have a restricted licence. Ask your Financial Planner if they have compared all available investment institutions. Including SMSF and Industry Funds.

 

It is important to understand the extra costs if you do not use a Financial Adviser with a client focused approach. Utilising the example above, the extra costs were ($20,800 + $3120). The total sum of money Birchcorp would put back in your pocket is alarming with a simple change in mindset.Over a lifetime the monies saved is quite alarming, not to mention the real benefit of the effects of leveraging. I have no hesitation in explaining that a $2,500,000 is quite possible in retirement. Note: this is the value Birchcorp can add to the client portfolio. Birchcorp will also provide you with ongoing strategic advice to purchase assets and create wealth. Additionally, you will receive high level service and due diligence above and beyond your expectations. 

 

 

KEY QUESTION FOR YOUR FINANCIAL PLANNER

 

  1. Ask your Financial Planner if they provide advice in buying direct property (investment properties)? Why not? Do they own direct property themselves? Birchcorp will give advice on how to invest in property where appropriate. We own many properties.
  2. Can your Financial Adviser sell any personal insurance? Or, are they aligned with one brand such as AMP, MLC (NAB), CommInsure (CBA), and BT (Westpac). How will that serve your best interest given the limited choice? Can this insurance be purchased inside your super fund to reduce the premiums? Birchcorp will look at all products and help you choose the most appropriate.
  3. Will they invest your monies in the most appropriate super, managed fund and will you consider all company's fees and performances including industry funds? Is there a conflict of interest that you are investing monies in one particular fund due to an underlying relationship? Birchcorp has no ties with any major banks.
  4. How can I reduce my out of pocket expenses to NIL for my Financial Planner's advice? 
  5. Do you discuss mortgages and methods to reduce your home loan (generally your largest financial asset)?
  6. What is the ongoing trail / commissions your company receives each year?
  7. Other points of interest: Click Here

 

 

HOW DO I CHANGE MY FINANCIAL PLANNER?

 

We will sit down with you to discuss rolling over your investments to an appropriate fund (taking into consideration any exit fees if they apply). Or alternatively, leaving your investments as is, with Birchcorp taking over as your financial adviser, therefore reducing your fees. 

 

 

HOW CAN BIRCHCORP CHARGE LOWER FEES THAN THE INDUSTRY STANDARD?

 

  1. Birchcorp relies on positive commentary and referrals from our existing clients. We have nil marketing and advertising expenses.
  2. Birchcorp is not linked to any major banks / financial institutions (unlike 85% of financial planners). Therefore we do not have to pay commissions and / or large licence fees.
  3. Birchcorp is charging a fair price and is willing to tighten up an industry that has had it too easy for too long.
  4. Birchcorp utilises sophisticated investment strategies to reduce costs in line with the said profession.
  5. Birchcorp has researched the market for many years to ensure low costs to the end user (the client).
  6. Birchcorp is given the freedom to sell many products from the flexibility of our Licence Holder. This has allowed Birchcorp to be independent in its research for products that are outperforming its competitors with lower costs.

  

 

Service Inclusions Fees

Mortgage Broking

  • Assessment is by a qualified Financial Planner.
  • Assortement of documents to guide you through the practical elements of the purchase
  • Assessment to consider your entire portfolio
  • Property purchasing Tips
  • Combination of PLD, Mortgage Advice Loan application/ Pre-Approval - $264
  • Subsequent Pre-approval - (within 2 months of old expiration) - $88

Insurances

  • Life Insurance
  • Income Protection
  • TPD and Trauma
  • Insurance Research - (RoA as required, Comparison calculators, research the PDS) administration (rollovers etc. except for SMSF clients who remain free) - $176 

Financial Health Check

General Advice includes, but is not limited to:  

  • Financial Wealth Calculator (FWC) to assess your financial position. This calculator is used in house only and has never been provided to any other company in Australia. 
  • Superannuation comparison (Fees and performance - This can save you hundreds of thousands of dollars as the fees are compounded dollars over many years).
  • Overview and interpretation of your existing policies and investments using FWC.
  • Career planning consultation.
  • Guidance to investment properties. (Including but not limited to purchasing residential, commercial, via your super, suburb research, and strategies).
  • Life insurance and income protection and other insurance general information.
  • Guidance on how to receive income protection and life insurance with no out of pocket expense ( If you are using after tax dollars for this bill, you are paying an extra 30-40%).
  • Wealth creation techniques and strategies.
  • Home loan assessment to ensure: a low interest rate, low fees, appropriate facilities such as a line of credit, offset accounts, interest only, and capitalisation of interest at a minimum.
  • First Consultation - $264. After hours appointments will be considered with a 50% loading.
  • Follow Up Meetings/ Time/ Phone (Within a year of last meeting) - $88/hour

Personal Advice

  • Recommendations and advanced strategies for your personal circumstances. A statement of Advice is provided.
  • Superannuation/ Retail/ Industry/ Rollovers - $88/hour (maximum of 2 hours charged)
  • Preparation of Client Notes for any SoA- $176
  • SoA – Simple advice– Insurance only - $1,320 (only if clawback of insurance commission applies)
  • SoA – Intermediate advice -$2,200
  • SoA – Sophisticated -TBD.

Seminars and Miscellaneous

  • Emergency Personal Phone Calls and Texts after hours. Example, you are negotiating a property on a Saturday at 6:30pm and are unsure on what direction to take.
  • Personal Texts- (Up to 3 texts in 24-hour period on notification and agree with schedule of fees)- $44
  • Pre-arranged personal calls- per 15-minute call- ($44/15 min)

Example; First 15 mins is $44, and all subsequent minutes thereafter will pay for the next 15 minutes. i.e. a 20-min call is 2 X 15 mins, therefore 2 x $44 = $88. 

  • Advice-Call out - Drive to house or other destination (time starts from leaving office and return) - $220/ hour.
  • Email Advice – only for SMSF clients and related to SMSF only,
  • No Email advice– Please call or in person as there is too much risk around giving advice without knowing your personal information.
  • SMSF ongoing clients (business hours only)– Free advice- 2 per year, Emails ok- SMSF related only, pre-arranged calls-ok as part of 2 per year. After the two meetings $88/hr at Birchcorp discretion.
  • SMSF loans– PLD, and loan application is free only if done within 60 days of dating the SoA. (By law the SoA is valid for this period). Free Personal loan mortgage and IP’s set-up if they are doing a SMSF within 60 days of the date of SoA.
  • After business hours Meetings - (9am-5pm), $264/hour, SMSF clients $176/hour (this will use one of the two free meetings). 

SMSF

  • Set-up a SMSF with individual or corporate trustee
  • SMSF and property purchase (super gearing) via a bare trust

Birchcorp = POA, but typically iinvolves moderate advice + Disbursements + Administration.. 

Accounting and Auditing

  • SMSF
  • Individual, Company and Trust tax returns

These services are provided by our professional third party provider.

Client login

These items are all above and beyond what is available on the public domain.

  • Articles and Education
  • Forms and Documents
  • Useful Links
  • Newsletter Archive
  • Adviser direct contact details
  • Calculator

TBA

 

 

Estate Planning

  • Will
  • Power of Attorney
  • Enduring Power of Attorney
  • Enduring Guardianship
  • Testamentary Trust

POA

 

 DISCLAIMER

 

The content provided on this web site is general in nature and does not take into account personal objectives, financial situation, or needs. The advice given may be inappropriate when considering personal circumstances. Prices may change without notice, please ask for our latest fee schedule on receiving advice.


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© Birchcorp 2017. -- All Rights Reserved

Birchcorp Pty Ltd ABN 56 132 775 654 is a Corporate Authorised Representative (No. 339299)
of Dover Financial Advisers Pty Ltd ABN 87 112 139321, which is the holder of an AFSL No. 307248. Birchcorp Pty Ltd is an Accredited Member of the FBAA with an ACL No. 376718.