Australians are more investment-savvy than ever, but 2025 brings new complexities. With the government tightening financial advice standards and digital platforms promising tailored advice at the tap of a finger, the question is sharper than ever: should you hire an investment advisor, go it alone, or trust a robo-advisor with your portfolio?
The 2025 Investment Advice Landscape: What’s Changed?
This year, Australia’s financial advice sector is experiencing a shakeup. The Quality of Advice Review, delivered in late 2024, prompted regulatory reforms that took effect in early 2025. These changes aim to make financial advice more accessible and affordable, particularly for everyday Australians—not just the wealthy.
- Reduced Red Tape: Advisors can now provide scaled, affordable advice on specific issues (like superannuation or ETFs), not just comprehensive plans.
- Fee Transparency: Advisors must clearly disclose ongoing fees and commissions—no more hidden surprises.
- Digital Disruption: ASIC has greenlit a new generation of robo-advisors and hybrid advice models, making algorithm-driven guidance widely available.
This environment means more options for Australians, but also more decisions to make. Is a human advisor still worth the cost?
What Does an Investment Advisor Actually Do?
Let’s cut through the jargon. An investment advisor is a licensed professional who helps you decide where, when, and how to invest your money. Their role can include:
- Building a personalised investment strategy based on your goals (retirement, property, kids’ education, etc.)
- Recommending asset allocations—how much to put in shares, bonds, property, cash, and alternative assets
- Rebalancing your portfolio as markets shift or your life circumstances change
- Navigating tax implications and compliance (especially important in 2025, with superannuation changes and capital gains tax tweaks)
They’re also there to keep your emotions in check—helping you avoid panic selling in a downturn or chasing fads in a boom.
In 2025, many advisors now offer hybrid services: a blend of digital tools for tracking and reporting, with human oversight for complex decisions. This can be particularly valuable for Australians with complicated finances, like business owners or those managing family trusts.
Should You Hire an Advisor, Go Robo, or DIY?
The answer depends on your circumstances. Let’s break down the options Australians are considering this year:
- Human Investment Advisors: Best for those with complex financial needs or who want a trusted expert in their corner. Expect to pay $2,500–$5,000 for an initial plan, with ongoing fees (often a percentage of assets managed, or a flat retainer).
- Robo-Advisors: Digital platforms like Stockspot, Six Park, and Raiz use algorithms to recommend low-cost ETF portfolios. In 2025, these services start at around 0.3–0.7% per year, with no upfront consultation fee. They’re ideal for younger Aussies or those with straightforward goals.
- DIY Investors: If you’re confident, willing to research, and have the time, direct investing via platforms like SelfWealth or CommSec is more accessible than ever. But you’re responsible for every decision—and every mistake.
Case Study: Take Megan, a 38-year-old from Brisbane. After inheriting $200,000, she faced a choice: hire a traditional advisor, sign up for a robo-advisor, or invest herself. Megan opted for a hybrid model—a digital platform with access to a human advisor for major decisions. The result? Lower fees than a full-service advisor, but more confidence than going it alone.
Questions to Ask Before Choosing an Investment Advisor
If you’re leaning toward hiring a professional, ask these questions to ensure they’re the right fit in 2025’s new regulatory climate:
- Are you a licensed financial advisor, and do you have a clean compliance record?
- How are you paid—flat fee, percentage, or commissions? (Full transparency is now mandatory.)
- What experience do you have with clients in my situation (e.g., self-employed, nearing retirement, property investors)?
- Will I receive ongoing advice and portfolio reviews, or just a one-off plan?
- Can you provide references or testimonials from recent clients?
Don’t be shy—2025’s reforms are designed to empower you as the client.
Conclusion: Make Your Next Investment Move with Confidence
The Australian investment advice landscape in 2025 is more dynamic—and more accessible—than ever. Whether you choose a traditional advisor, a digital platform, or a hybrid, the key is finding the right fit for your goals and comfort level. Take the time to ask questions, compare options, and remember: the best investment is the one that lets you sleep soundly at night.
