Beyond Returns: What Does a (Good) Financial Planner Really Do?

Real value often lies beneath the surface

When it comes to financial advice, many people understandably want to know: “What am I getting for my money?” That’s a fair question. And while fees are often compared directly to portfolio performance, that’s only part of the picture.

In this blog, I want to unpack where true value lies in financial planning - beyond percentages, benchmarks, and annual returns.

Performance is Just One Piece of the Puzzle

There’s often a temptation to measure the success of financial advice purely by how well an investment portfolio performs. Yes, performance matters a lot but a well-constructed portfolio, especially one tailored to provide income in retirement, needs to reflect your needs, not just chase returns.

Returns also need context. A portfolio with a 50/50 split between growth and defensive assets will perform differently compared to a high-growth portfolio, but it may do a better job of supporting your cash flow needs, managing volatility, and preserving capital.

On Fees and Comparisons

Comparing fees across different platforms and providers can be helpful although it’s not always apples-to-apples.

For example, a flat annual advice fee may look high when viewed as a percentage of one specific account. But once you consider your entire financial position including, cash holdings, annuities, superannuation, property and share investments and government entitlements, the picture can change dramatically. It’s also important to consider what you’re paying for: is it just investment selection, or is there more to the relationship?

And here's something many don’t realise: many “low-fee” funds don’t include personalised advice, hands-on planning, Centrelink support, or guidance through big life decisions. The cost is lower because the service is narrower.

Why I’m Cautious About Financial Modelling

People often want to see detailed scenario modelling and I understand why. Seeing your future projected in neat graphs can be comforting. But financial models are only as good as their assumptions.

Most models assume a smooth, linear path of returns. Real life doesn’t work that way. Markets rise and fall. Interest rates shift.

Plans evolve. And sometimes, focusing too much on a hypothetical outcome can create false certainty or distract from more practical decisions.

Modelling is useful however, in many situations, especially when the strategy is relatively straightforward, simplicity and adaptability are far more valuable.

What About the Age Pension and Government Entitlements?

For many in or approaching retirement, the Age Pension is a critical piece of the puzzle yet navigating its rules, and how different assets are treated under the income and assets tests, isn’t always simple.

One small change in how an annuity is assessed can mean thousands of dollars in extra pension entitlements (or not). This is one of the key areas where a financial planner can add significant behind-the-scenes value by knowing how the system works and engaging directly with Centrelink on your behalf if needed.

Understanding Risk vs Volatility

Here’s a distinction I think more Australians should understand better:

• Volatility is the up-and-down movement of asset prices.

  
  

• Risk on the other hand, is the chance that you’ll suffer a permanent loss, or be forced to sell an investment at the wrong time to meet cash flow needs.

For example, blue-chip shares like the major banks may be volatile, but the long-term risk of them becoming worthless is low. However, if you have to sell those shares during a downturn, that’s where real financial damage can occur.

A well-built financial plan aims to avoid exactly that situation, by matching your income needs with appropriate assets, and ensuring you always have access to funds without being forced to sell at the wrong time.

So… What Am I Really Paying For?

The truth is, I don’t claim to know what investment will be “the best performer” next year. I’m not a fund manager and frankly, I’m wary of any financial adviser who tries to be.

Instead, I rely on professional investment research and follow a disciplined, well-considered strategy.

My job is not to chase returns, but to help you build a financial life that works.

Here’s where the real value of good advice lies:

• Clarifying goals and building a strategy around what matters to you.

  
  

• Designing banking systems, budgets, and cash flows that support your lifestyle.

  
  

• Coaching and educating, so you feel empowered to make sound decisions.

  
  

• Managing relationships with debt, where appropriate.

  
  

• Helping with tax planning and working alongside your accountant.

  
  

• Navigating government systems, including pensions and entitlements.

  
  

• Legacy planning, so that when the time comes, your loved ones are looked after according to your wishes.

  
  

And yes, designing investment portfolios tailored to your specific needs. Portfolios that aim to preserve capital, provide accessibility, and support your long-term goals.

Industry Funds: Why I’m Cautious

Some people are surprised to hear I rarely recommend industry super funds. While they can be suitable in certain situations, there are reasons I approach them with caution:

• Lack of transparency: It’s not always easy to get clear data or do meaningful comparisons.

  
  

• Unlisted and illiquid assets: These can distort valuations and potentially create liquidity problems in the future.

  
  

• Operational risks: Some industry funds have had serious technology issues, including delays in payments and data breaches.

  
  

• Fees aren’t always lower: On a like-for-like basis, they’re not necessarily cheaper than retail options.

  
  

• Lack of investment choice: Many industry funds offer only a limited range of pre-mixed or basic investment options, which may not adapt to everyone’s situation.

  
  

That doesn’t mean they’re bad, it just means they’re not automatically the best option for everyone. Every recommendation I make is based on the client’s situation, not public perception.

Final Thoughts: Value is in the Eye of the Beholder

It’s true, my fees can seem high when looked at as a percentage of a single investment account. But that’s not the full story.

The real value of a good financial planner and the advice they provide goes far beyond investment returns.

It’s about confidence, clarity, and control. Knowing that someone is in your corner, helping you make good decisions and avoid costly mistakes.

If that’s something you value, then I’d argue the fee is a worthwhile investment in itself.