Financial Advice

Understanding the financial advice industry—conflicts, paradoxes, and how to choose an adviser

  1. 10 June 2026

    The FMA has questions for everyone but itself (or: here we go again, with banks and financial advice...)

    The FMA's access to advice report says some good things. But a report that urges banks deeper into advice without acknowledging the risks, and that critiques sector conservatism without any acknowledg…

  2. 20 January 2026

    Making the invisible visible

    “There’s a gap between knowing something intellectually and truly believing it. Visualising your spending, your financial projections, or your mood data can close that gap — making abstract knowledge…

  3. 9 May 2025

    My submission relating to the FMA’s access to advice review

    I recently made a submission to the FMA's access to advice review. The Financial Markets Conduct Act 2013 isn't just about regulating advice — it also includes a purpose to ensure the availability of…

  4. 3 September 2023

    Why would an entrepreneur seek external finance when they have the funds themselves?

    Even if you could fund a business venture yourself, that doesn't mean you should. I explore why seeking external funding can make sense even when you have the means — touching on expected value, utili…

  5. 18 May 2023

    Articles I never published

    I'm taking a break from publishing on this blog — it might be permanent, I'm not sure. Before signing off, I thought I'd share some articles I wish I'd published: exit interview thoughts on Fairhaven…

  6. 17 April 2023

    Thoughts on AI and financial advice (April 2023)

    My views on AI, and specifically how it is likely to impact financial advice in the short- to medium-term, have evolved a lot in the last year or so. When the facts change, I try to change my mind — a…

  7. 2 April 2023

    My crystal ball is on the fritz (#AI)

    I've always said my crystal ball broke sometime in my late teens or early twenties. But right now, that feels more true than usual. The emergence of AI has me genuinely uncertain about what comes next…

  8. 25 February 2022

    When Consumer is anti-consumer

    Consumer NZ is paving a road to hell with good intentions in the way it talks about personal insurance, and especially personal insurance advice. I'm a paying member and a fan — which is why it's so f…

  9. 12 March 2021

    Shades of right – avoiding black & white thinking and “musturbation” when it comes to your finances

    The idea that there's one specific right way to invest, or manage your financial affairs, is kind of weird. Yes, I give clients specific recommendations — but that's what I'd do in their shoes. In rea…

  10. 11 September 2020

    There are two types of job security

    When I give financial advice, one of the most important questions I ask is about job security. It's easy to think about this in terms of your current role. But there's a second, often more important f…

  11. 15 May 2020

    Financial literacy and financial confidence

    Many people think they lack financial literacy when what they really lack is financial confidence. In my experience, with clients and with friends and loved ones, the issue is much more often confiden…

  12. 21 February 2020

    The regulator shouldn’t be funded by those it regulates

    My submission on FMA funding: the regulator shouldn't be mostly funded by the industry it regulates. That setup invites regulatory capture and muddles who the FMA is actually working for.

  13. 14 February 2020

    The paradox of advice

    If you engage a financial adviser, you might think the decision will leave you better off financially. Not necessarily. I often encourage clients to spend more, or point out they can afford to earn le…

  14. 12 July 2019

    How much buffer do you need? (Or: four things I agonise over when providing financial advice)

    I have clients worth tens of thousands of dollars, and clients worth tens of millions of dollars. I find it much easier to advise clients with millions rather than thousands. As a general rule, the we…

  15. 28 June 2019

    Questions I ask clients (and why I’m not afraid of roboadvice)

    The most valuable thing I do as a financial adviser isn't running numbers. It's having conversations. The right questions uncover what a client actually cares about, which is usually the hardest and m…

  16. 17 May 2019

    A financial plan should be based on YOUR circumstances, needs, and objectives

    When it comes to money, I'm a "set and forget" kind of guy — one sign of a good strategy is that you can leave it alone. What you should review, every so often or when life shifts, is whether the plan…

  17. 5 April 2019

    Insurance, commission, and the separation of church and state

    I'm very sensitive to conflicts of interest — I've built my own business specifically to avoid them. Which is why it might surprise you that I'm a strong advocate for commission as the way insurance a…

  18. 17 December 2018

    A curmudgeon reads The Barefoot Investor

    Scott Pape, aka The Barefoot Investor, has a cult-like following on both sides of the Tasman. I like his values — he bats for the consumer and calls out things most people in the financial services in…

  19. 15 October 2018

    The issue isn’t “bad apples”. What New Zealand can learn from Australia’s Royal Commission

    Australia's Royal Commission into financial services misconduct is worth New Zealand's attention. Two themes kept recurring in the interim report: dishonesty and greed. The commission also made clear…

  20. 31 August 2018

    Why Fairhaven Wealth’s fees are increasing

    I'm raising my fees substantially — from $879 to $1,800 including GST. Writing this is a way of being transparent with readers and clients, and getting my head (and my feels) around the decision. $879…

  21. 20 May 2018

    The difference between a financial adviser and an investment manager

    If the first thing you ask a financial adviser is where they get their research from, you're probably conflating two very different roles. Advisers work with clients; investment managers sit in front…

  22. 11 March 2018

    The absurdity of asset-based fees

    Most investment advisers in New Zealand charge asset-based fees — a percentage of your portfolio. On $1 million, that's typically around $9,000 a year, every year, with no obvious link to the work bei…

  23. 11 November 2017

    Money in the media

    Some links to interesting articles in published media such as The Press, The Sunday Star Times, and The Herald from recent months: John McCrone wrote a valuable article about "How to succeed at the re…

  24. 26 September 2017

    Two cents on innovation

    Innovation doesn't need to be revolutionary or technological. When people think "innovation" they think iPhones — but iterative change counts, and so does doing things differently. I'm allergic to bus…

  25. 21 August 2017

    What is your investing risk profile? Answering a risk questionnaire won’t tell you.

    If you've engaged a financial adviser, you'll be familiar with risk tolerance questionnaires — and robo-advisers lean on them even harder. Here's a dirty little secret: they're not nearly as valuable…

  26. 11 August 2017

    Financial advice and the FIRE (“financial independence, retire early”) phenomenon

    The FIRE movement — financial independence, retire early — is alluring. The core lesson is simple: increase your savings rate, live frugally, and you can retire decades early. I'm sympathetic to it, a…

  27. 30 July 2017

    Excessive fees – “a tax on smart people who don’t realise their propensity for doing stupid things”

    Excessive investment fees are "a tax on smart people who don't realise their propensity for doing stupid things" — a line from a Freakonomics episode that cuts close to how I think about my job as a f…

  28. 15 May 2017

    You have a financial plan, whether you’re aware of it or not

    Many people don't think they have a financial plan. They're wrong. Even without clear goals or articulated strategy, you're acting as if you have one — maybe spending more than you earn, maybe skippin…

  29. 25 May 2016

    How financial advisers can add value to their clients – “Adviser’s alpha”

    Advisers don't add value by beating the market. Vanguard's 'Advisor's alpha' research points to the soft stuff — strategy, discipline, guidance — as where the real value sits. It's often underrated.

  30. 25 July 2015

    “The dirt on coming clean”

    Conflicts of interest are unavoidable in professional services — the question is how you manage them. Disclosure is the popular answer, but research suggests it can actually make advice worse, not bet…

  31. 16 January 2015

    Australian Tax Receipts – pros and cons

    I like the idea of the Australian tax receipt — showing each taxpayer where their money went. But the execution has two problems. The chart double-counts welfare spending, inflating the visual impress…

  32. 14 November 2014

    Rating services for professionals

    Online rating services for financial advisers are flavour of the month across the Tasman. There could be benefits — steering clients away from bad advisers, for instance. But the best-rated advisers p…

  33. 13 September 2014

    Changes to FOFA – a storm in a teacup?

    Commentary on both sides of the FOFA changes exaggerates their impact. Most of the "protections" being debated already exist in other forms — breach of contract, professional negligence, dispute resol…

Settings

Text size
Line spacing
Colours

About the read marker

This website records the articles you've viewed in your browser's local storage, so it can show you a small marker next to the ones you've already read.

This data is private and isn't sent anywhere — it stays in your browser, just for your own benefit.

Curious what else is stored? You can see everything this site has saved in your browser.

You can turn these markers off here, or anytime from Settings.