We have moved to Annual Agreements

Annual Agreements

We have transitioned to annual advice agreements for all clients. This format means that you, as the client, have the choice to opt into an advisory relationship with us every year.

What is an annual advice agreement?

Your agreement outlines the services you will receive over a twelve-month period. Many of our clients have agreements that include one annual or bi-annual review with their financial planner.

They are signed by both the adviser and the client and outline the dollar value of the fees you will pay over twelve months – and where they will be paid from (some fees are paid from super accounts and some from cash flow). All fees linked to your agreement are tax-deductible if paid from your bank account.

Why did Rising Tide move to annual agreements?

Without a doubt, the outcomes and feedback we get from clients. This is to ensure absolute clarity on what is being paid, when it’s being paid, and from where. We also like that the fee discussion is held annually; it creates an environment where we need to provide value year in & year out. Secondly, one of the issues uncovered during the Royal Commission into Banking and Finance is that, disappointingly, some financial planning businesses were not providing the services the clients had signed up for.

What services are included if you sign an AASA?

• Review and plan meeting/s with your adviser to discuss your goals and your progress towards them.
• Year-round access to your financial planner to discuss changes in your world & questions relating to your money.
• Administration assistance
• Claims assistance if you have insurance policies as well
• Annual review of your home loan & investment loans

How much are the Rising Tide fees outlined in the AASA?

This differs for each client and is based on your unique circumstances. The key factors that come into consideration are:

• Complexity of the advice
• The number of moving pieces your financial world includes
• How often do you want to contact your adviser
• How many changes occur or are likely to occur in your financial world

Most clients pay an annual amount between $4,500 and $12,000 + GST. This is often paid from a combination of their super and bank accounts and is reviewed annually based on their circumstances.

Remember that these fees are tax-deductible.

How does it work?

If you sign an agreement on January 1, the services promised must be delivered and signed off by 31st December of that year. Once those services have been delivered, a new agreement must be signed for the following year. 

If a new agreement is not signed, the fees, associated advice and service will cease until a new agreement is signed.

What about if you only have lending with us?

If you only have lending with us, the bank pays us to source the best loan for you from over 40 lenders. We will also review this loan whenever the need arises.

Please refer to this article by our lending director, Sam Gawenda, for further information on how our fees are structured for pre-approvals.

What about if you only have insurance with us?

We get paid by the insurance provider to assist with claims, so that doesn’t change. If you wish to make changes to your insurance, please remember that a fee may be associated with the work. However, in all cases, we will be crystal clear about whether there are any fees that you will have to pay prior to undertaking any work.

Have you previously received superannuation advice from us, but have you not signed an AASA in the last 12 months? 

Please reach out to one of our advisers and discuss your options. 

Any questions? Please send me an email (matt@ctrt.com.au)