May 18, 2009

The truth is, it's not easy to find the right Texas financial advisor for your specific needs. It starts with how to find someone at all. Many people ask a friend or family member for a referral. However, your friend's financial situation isn't the same as yours. The first step is to realize that there are unique financial advisors for unique clients. Whether it's a specific financial need, such as estate planning due to your privately-owned business, or a specific investment philosophy, there is a financial advisor who specializes in that area.

You also have to get past the language. Certain people will tell you that only a registered investment advisor (RIA) is good or to use a fee-only financial planner, or to work with only Certified Financial Planners (CFP), and not to work with someone who is just a "broker". In reality, there are good and bad fee-only CFPs, and good and bad investment brokers. There is absolutely no right or wrong title for your advisor and no right or wrong way for every client to pay their advisor.

You should interview several financial advisors in Texas. Make sure you feel that you have open lines of communication with them and that you feel comfortable asking them to explain anything you don't understand. You should share the same investment philosophy and understand how they are getting paid. Perhaps most importantly, they should have experience helping other people in your same financial situation. As mentioned above, there are Texas financial advisors who focus on groups like business owners, retirees, doctors, etc., so ask them how they have helped other clients like you.

Another helpful piece of advice is to help your Texas financial advisor help you. Your financial planner will probably want to know what your financial goals are, so be open with them about any financial ideas you have and your current financial situation. An investment adviser can't provide the right solution unless they have all the information.