Investment-Only vs Full Service: Which Strategy Suits Busy Professionals?

As a financial adviser working with busy professionals across Australia, I've noticed a growing trend: high-earning individuals wrestling with a crucial decision about their financial future. Should they opt for an investment-only approach, managing their broader financial life independently? Or should they embrace a full-service financial planning relationship?

This isn't merely about choosing between two service models. It's about understanding how your financial strategy aligns with your lifestyle, goals, and the increasingly complex Australian financial landscape. Let me share what I've learned from helping hundreds of professionals navigate this decision.

Understanding the Investment-Only Approach

The investment-only model is straightforward: you engage an adviser specifically to manage your investment portfolio. This might include your superannuation, managed funds, direct shares, or other investment vehicles. The focus remains purely on growing your wealth through strategic asset allocation and portfolio management.

This approach appeals to professionals who are confident managing other aspects of their financial life. Perhaps you're a corporate executive who understands risk management, or a medical specialist comfortable with tax planning through your accountant. You simply need someone to handle the complexity of investment markets while you focus on your career.

The cost structure typically involves percentage-based fees on funds under management, often ranging from 0.5% to 1.5% depending on portfolio size and complexity. For a $500,000 portfolio, you might pay between $2,500 and $7,500 annually. There's transparency here—you know exactly what you're paying for investment management expertise.

The Full-Service Alternative

Full-service financial planning represents a comprehensive approach to your financial life. Beyond investment management, it encompasses retirement planning, insurance reviews, estate planning coordination, tax strategy, debt management, and ongoing financial coaching.

Think of it as having a financial chief operating officer. Your adviser becomes intimately familiar with every aspect of your financial world, identifying opportunities and risks you might miss while buried in your professional responsibilities.

The fee structure varies more widely here. Some advisers charge fixed annual fees ranging from $3,000 to $15,000 or more, depending on complexity. Others combine asset-based fees with fixed retainer amounts. The key difference is that you're paying for holistic advice and ongoing strategic partnership, not just investment returns.

The Hidden Costs of DIY Financial Management

Here's what many busy professionals underestimate: the opportunity cost of managing your own financial affairs. Let's run through a realistic scenario.

You earn $250,000 annually as a senior professional. Your effective hourly rate is roughly $120. Now consider the time you spend on financial tasks:

• Reviewing and rebalancing your portfolio: 10 hours annually

• Researching and implementing tax strategies: 8 hours

• Reviewing insurance coverage: 4 hours

• Estate planning updates: 6 hours

• Staying current with regulatory changes affecting your finances: 12 hours

That's 40 hours, or $4,800 of your time at your professional rate. And this assumes you're making optimal decisions—which is unlikely without deep financial expertise.

Meanwhile, you're potentially missing opportunities that could be worth far more. Perhaps you're not maximising concessional super contributions, leaving thousands in tax savings on the table. Maybe your insurance is outdated, exposing your family to unnecessary risk. Your estate plan might not reflect changes in superannuation death benefit rules.

When Investment-Only Makes Sense

The investment-only approach can be ideal for certain professionals. If you're early in your career with straightforward finances—perhaps renting, no dependents, minimal debt, and a simple salary package—you might not need comprehensive planning yet.

Similarly, if you have genuine expertise in other areas through your profession or personal circumstances, investment-only could work. I've worked with lawyers who handle their own estate planning, accountants managing their tax strategy, and risk managers comfortable with their insurance arrangements.

The investment-only model also suits those who enjoy being hands-on with their finances but lack the time or expertise for portfolio management. You might love optimising your tax position or researching insurance options but find investment markets overwhelming or uninteresting.

The Case for Full-Service Planning

For most busy professionals I work with, the full-service model delivers exceptional value. Here's why.

Complexity increases with success. As you progress in your career, your financial life becomes exponentially more complicated. You might receive bonuses, equity compensation, or partnership distributions. You're juggling mortgage debt, investment properties, growing super balances, and family obligations. Your time becomes scarcer precisely when your financial decisions become more consequential.

Full-service planning addresses this through integrated strategy. Your adviser ensures your investments align with your insurance coverage, which connects to your estate plan, which informs your retirement strategy, all while optimising your tax position. These elements don't exist in isolation—they're interconnected pieces of your financial puzzle.

The Accountability Factor

Something often overlooked is the behavioural benefit of a full-service relationship. Markets are volatile. When the ASX drops 15%, having someone you trust to talk you through the turbulence is invaluable.

I've seen investment-only clients make emotional decisions during market stress because they lack that broader advisory relationship. They might sell at the bottom or make reactive changes that damage long-term returns. A comprehensive adviser relationship provides the emotional guardrails that protect you from yourself.

Making Your Decision

So how do you choose? Start by honestly assessing three factors:

First, your complexity. If your financial situation involves multiple income streams, significant assets, family obligations, business interests, or estate planning needs, you likely need comprehensive support.

Second, your time and inclination. Do you genuinely enjoy managing financial affairs, or is it another burden on your schedule? Be honest—many professionals tell themselves they'll handle things "when they have time," but that time never materialises.

Third, your opportunity cost. What's your hourly rate, and what could you accomplish professionally if you freed up time spent on financial management?

The Australian Context

For Australian professionals, several unique factors favour comprehensive planning. Our superannuation system is powerful but complex, with contribution caps, phase-down strategies, and tax considerations requiring expertise. Changes to regulations occur regularly—the recent increases to super contribution caps being just one example.

Our tax system offers tremendous opportunities for high earners through salary sacrifice, investment structures, and timing strategies. But mistakes are costly. Full-service planning ensures you're maximising these advantages.

Additionally, insurance needs for Australian professionals are often underestimated. In a country without extensive social safety nets for high earners, proper risk management is crucial.

The Bottom Line

For most busy professionals, particularly those earning above $150,000 and accumulating significant assets, comprehensive financial planning delivers value far exceeding its cost. The integrated strategy, time savings, and peace of mind justify the investment.

Investment-only works for those with simpler situations or genuine expertise in other financial areas. But as your career progresses and complexity increases, so does the case for comprehensive support.

The question isn't really about choosing between service models. It's about honestly assessing where you are now, where you want to be, and what support you need to bridge that gap while maintaining focus on the professional work that got you here in the first place.

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Disclaimer: This article provides general information only and does not constitute personal financial advice. Superannuation strategies should be implemented with professional advice considering your individual circumstances, including consultation with a licensed financial advisor and tax professional. The information in this article is current as of the publication date but superannuation rules and contribution caps may change.