KEY POINTS:
Assuming the world doesn't regress to a period of subsistence farming and a barter system, money will continue to be an important consideration in most people's lives.
For those lucky enough to have some to spare, however, the question of where to send their excess cash, has become much more difficult to answer.
Even investment professionals - arguably some of whom might be responsible for the current mess - have been flummoxed by the ever-deepening financial crisis.
Most institutional investors, though, are, or claim to be, long-term players and put their faith in the ability of markets to get the price right... eventually.
While that belief is being sorely tested right now, the high priests of capitalism are sticking to their story, which is really quite a simple one in theory: invest for the long term and diversify your portfolio.
In practice, this story is much more complex. The narrative can read like an existential novel. It's easy to lose the plot.
Interpreting the storyline can require a sophisticated level of inside knowledge but New Zealanders, as we are constantly reminded, are financial illiterates.
In such circumstances you'd think that the demand for financial advice would be high - especially now the markets are taking on the aspects of a surreal epic.
But it's not.
Indeed, New Zealand's investment advisers are finding it harder than ever to drum up new business. Partly that's because many people can't afford the advice they need. It's true also that the investment advisory industry has a few trust 'issues' to deal with post the finance company saga.
New legislation should restore some of that lost trust. The Financial Advisers Act won't really have an impact for another year or so but reform is already underway.
Since last year advisers have been required to publish extensive disclosure statements detailing, amongst other things, how they are paid and potential conflicts of interest.
If you are searching for financial advice the sorted website has a good general outline of what to look for in an adviser. Disclosure statements, many of which are freely available online, provide a fascinating amount of individual detail: go read some.
David Chaplin
