There’s no shortage of misconceptions about financial advice. From outdated stereotypes to straight-up myths, these misunderstandings often prevent people from seeking the help they need to build wealth, protect assets, and plan for the future. In a world where financial complexity is growing, these myths could be costing Australians thousands – if not millions – over a lifetime.

Here are ten of the biggest myths about financial advice and the truth behind them.

1. Financial Advice is Only for the Wealthy

This is perhaps the most damaging myth of all. Many believe that financial advice is reserved for the ultra-rich, but the reality is that sound financial planning is most valuable for those looking to build wealth. Whether you’re saving for a home, managing a family budget, or planning for retirement, good advice can help you optimise your finances and avoid costly mistakes.

Take, for example, a young professional in their early 30s. They may assume that wealth-building strategies don’t apply to them yet, but by engaging an adviser early, they can develop a plan to maximise superannuation contributions, make strategic investments, and create a tax-effective strategy for wealth accumulation. Starting early compounds the benefits over time.

2. I Can Get the Same Advice for Free Online

While there is a wealth of financial information online, most of it is generic, and much of it is misinformed. A financial adviser provides tailored advice based on your unique circumstances, risk profile, and long-term goals – something no blog post or AI chatbot can replicate.

Consider the difference between a generic budgeting template found online and a personalised financial plan that accounts for your specific salary, debt levels, investment goals, and risk appetite. One-size-fits-all solutions rarely deliver the same level of precision and effectiveness.

3. Financial Advisers Just Sell Products

This outdated view ignores the fact that the financial advice industry has undergone significant reforms. Today’s professional advisers operate under strict ethical and legal obligations to act in their clients’ best interests, providing strategy-driven guidance rather than pushing products.

An adviser’s role today is about developing strategies – such as reducing tax liability, structuring income streams, and planning for retirement – not just selecting investment products. Many advisers work on a fee-for-service model rather than commissions, ensuring their incentives are aligned with client outcomes.

4. Advice is Too Expensive

While there is a cost to good advice, not seeking it can be far more expensive. A well-structured financial plan can help you reduce taxes, increase investment returns, and avoid costly financial pitfalls, often paying for itself many times over in the long run.

For instance, an adviser might help a business owner restructure their assets to take advantage of capital gains tax concessions, potentially saving tens of thousands of dollars that would have otherwise gone to the tax office.

5. I Don’t Need Advice Until I’m Retiring

Waiting until retirement to seek financial advice is like waiting until you’re sick to start exercising. The earlier you engage with an adviser, the more opportunities you have to structure your finances effectively, maximise compounding returns, and make smart long-term decisions.

A 45-year-old who starts planning for retirement today will have far more flexibility and control over their financial future than someone who waits until they are 60. Financial planning isn’t just about retirement—it’s about optimising every stage of life.

6. All Financial Advisers are the Same

Not all advisers are equal. The best ones have deep expertise, strong ethics, and a commitment to ongoing education. They also work to understand your unique circumstances, tailoring strategies that align with your financial goals. It’s important to do your research and choose an adviser who aligns with your needs and values.

Consider the difference between an adviser who simply ticks boxes and one who proactively helps you adjust strategies based on economic changes, legislative updates, and personal milestones like marriage, children, or career changes.

7. I Can Manage Everything Myself

Some people believe they can handle their finances on their own – and some do an okay job. But even the most financially savvy individuals benefit from an expert second opinion. Professional advisers bring experience, insights, and objectivity that can help you avoid emotional decisions and capitalise on financial opportunities you may not have considered.

Think of it like managing your own fitness – sure, you can go to the gym and follow a workout routine, but a professional trainer can fine-tune your plan, keep you accountable, and help you achieve better results. Financial planning works the same way.

8. Property is the Only Investment That Matters

Australians have a deep love affair with property, but putting all your eggs in one basket is risky. Diversification across different asset classes – shares, bonds, managed funds, and yes, property – creates a more resilient portfolio and can help manage risk effectively.

History has shown that property markets can stagnate or decline, just like any other investment. A diversified approach spreads risk and ensures that if one asset class underperforms, others can provide stability.

9. Financial Advice is Just About Investments

While investing is a key part of financial advice, it’s only one piece of the puzzle. A great financial adviser helps with budgeting, debt management, superannuation strategies, insurance, tax efficiency, and estate planning. The value of advice extends far beyond picking stocks.

For example, an adviser might help a family set up appropriate life insurance to protect their children’s future, or structure a trust to ensure assets are passed on efficiently to the next generation.

10. I’ll Lose Control of My Money

A financial adviser doesn’t take over your money – they empower you to make better financial decisions. The goal of advice is to give you clarity, confidence, and control over your financial future, not to make decisions for you. A good adviser will always ensure you remain in the driver’s seat.

Think of an adviser as a co-pilot – you set the destination, and they help navigate the best route to get there safely and efficiently.

Final Thought: Don’t Let Myths Cost You Money

Believing these myths can be costly, leading to missed opportunities, unnecessary financial stress, and lost wealth. The best way to cut through the noise is to have an open conversation with a qualified financial adviser. With the right guidance, you can build a strategy that aligns with your goals, safeguards your future, and puts you in control of your financial success.

It’s time to separate fact from fiction and take control of your financial future – because the best time to seek advice was ten years ago. The second-best time is today.

About the Author

Kurt Purkiss, Director of Lambourne Partners Wealth, a proud financial advisory firm dedicated to helping Australians build, protect, and enjoy their wealth. Lambourne Partners believes in delivering tailored advice that empowers clients to achieve financial freedom, whether they are business owners, professionals, or families planning for the future.

For a complimentary financial health check, contact Kurt Purkiss below, by email to kurt.purkiss@lambourne.com.au or call (02) 4969 6600, and be sure to mention this article.