Bruce Sheppard has excellent advice on financial advisors

Check out this excellent piece from Bruce Sheppard in his blog at BusinessDay Stuff on what questions to ask any potential financial advisor and how most investors are better off putting their money in the bank in the long run. Here's a taste.

An average portfolio will have between 20 and 50% in cash and fixed interest, which will yield 5% and the growth assets will be in equities or property, which over the long haul have produced on average around 9%. Do the maths team, you can't beat the bank. Stay with cash if you are going to use a fund manager, or at the very least, manage your own fixed interest funds and only let the planner play with the growth assets. But even then unless you beat the market you won't do better than leaving the funds in the bank due to the cost structure.Now here is the real kicker, portfolio theory which all these guys sell, is predicated on spreading it around so you earn the market average. So don't hold your breath on beating the market over the long term!