Best Financial Advisors in Houston

Frequently Asked Questions

• Introduction

  There are many titles for financial professionals, so it's challenging to track what each one means. A financial advisor is probably the term you've heard most often. Financial advisor is a broad term for a professional who helps individuals or companies manage their finances, including investment choices. There are over 100 certifications that financial advisors can obtain.
  

  • Financial planners, wealth managers, and investment advisors are all financial advisors with different focus areas.
  • A financial planner helps an individual or a company make a plan to achieve long-term financial goals.
  • A wealth manager helps individuals maintain their wealth through various disciplines and services, such as taxes, estate planning, and investment advice.
  • An investment advisor offers investment advice and recommendations to individuals or organizations.
    

  There’s a misconception that you have to be extremely wealthy to use a financial advisor. In reality, they can be beneficial for people from any income level. Keep reading to find answers to the most commonly asked questions about financial advisors, so you know which type can fit your specific needs.
  

• Why should you choose a Houston financial advisor with a Certified Financial Planner designation?

  You should choose a Houston financial advisor with a Certified Financial Planner designation because CFPs undergo continuing education every two years to keep their practical and theoretical competence in financial planning up to date. All CFPs are required to have three years of financial planning experience. They're also background-checked and must uphold the CFP Board’s Code of Ethics and Professional Responsibility, meaning you get a financial advisor with current industry knowledge and skills, and who operates under strict ethical standards.

• Can your Houston financial advisor prepare your tax return for you?

  Financial advisors generally don’t prepare tax returns. They can connect you with a professional tax preparer to help you maintain tax compliance or work with your current tax preparer to execute tax plans. Some financial advisory firms in Houston also offer tax consulting solutions in support of their financial services. The cost of the tax consulting service will most probably be charged separately.

• What does it mean if your Houston financial advisor has “fiduciary duty” to you?

  Having “’fiduciary duty” to you means your financial advisor is obligated by law to operate in your best interest and prioritize your interests over their own every time. An individual or an organization under fiduciary duty must adhere to the highest legal and ethical standards toward their clients. Check if a Houston financial advisor is a fiduciary before working with them.

• What information will your Houston financial advisor need to kickstart your financial planning?

  Before the financial planning process, the advisor will need financial account statements and insurance and estate plan documents. You will also need to accomplish a risk profile questionnaire so the advisor understands your investment limitations. Basically, information and documents on the financial account you want to be managed. So, if you’re working with your Houston financial advisor on your retirement account, you will need to provide details on the retirement plan from your employer.

• Can your financial advisor work on your estate plan in Houston?

  Your financial advisor can work with your current estate attorney or connect you with one if you don’t have an estate plan yet. If you already have an estate plan, the advisor can evaluate it and make recommendations to align the plan with your financial goals. However, your Houston financial advisor won’t be able to help with preparing your trust or will.

• Are financial advisors worth it?

  Whether or not a financial advisor is worth it depends on your personal situation. If your finances are fairly straightforward, then you may be better off handling it on your own. But if you have substantial assets or a complex investment portfolio, then hiring someone to handle it for you can be well worth the cost.