Choosing a financial advisor is a personal decision: especially when you are retired or nearing retirement and your portfolio may need to support decades of living expenses.
For Texas retirees, the right relationship should fit more than an account balance. It should fit your lifestyle, your comfort with investment risk, your need for income, and the way you prefer to communicate. Whether you are planning a move to the Texas Hill Country, transitioning from a business career, or already enjoying a slower pace near Austin, an advisor should be able to explain how their work supports your goals.
The first meeting is not a sales presentation you have to passively sit through. It is an interview. You are allowed to ask direct questions, request written information, compare answers, and walk away if something does not feel clear.
Use these seven questions as a starting point.
1. “Are you a fiduciary, and does that apply all the time?”
A fiduciary is generally required to act in a client’s best interest when providing investment advice. However, the details of an advisor’s obligation can depend on the services being provided and the type of relationship you establish.
Ask:
- “Are you acting as a fiduciary for all of my accounts?”
- “Are there situations when you are not acting as a fiduciary?”
- “Will your fiduciary obligation be described in our written agreement?”
- “Do you receive commissions or other compensation from third parties?”
A clear answer matters. Be cautious if an advisor uses broad phrases such as “I always do what is right for my clients” but avoids explaining their legal standard of conduct or whether it applies to every service.
The SEC’s Investor.gov guidance on choosing an investment professional recommends reviewing an advisor’s relationship summary, known as Form CRS. That document explains services, fees, conflicts, and the professional’s standard of conduct in plain language.
2. “How are you compensated?”
There is no single compensation model that automatically makes an advisor right or wrong for you. Advisors may charge a percentage of assets, a flat planning fee, an hourly fee, commissions, or a combination.
What matters is whether you understand exactly how the advisor is paid and whether that arrangement could influence recommendations.
Ask:
- “Do you charge an asset-based fee, a flat fee, an hourly fee, commissions, or a combination?”
- “When is the fee charged?”
- “Is the fee paid directly by me or deducted from my account?”
- “Does your firm receive compensation from investment or insurance product providers?”
- “Are there bonuses, sales incentives, or other payments tied to specific recommendations?”
An advisor should be able to explain compensation without making you feel uncomfortable for asking. You do not need to apologize for wanting to understand the business relationship.
3. “What are all the fees and expenses I could pay?”
The advisory fee is only one possible cost. Depending on the account and investments used, you may also encounter fund expenses, transaction charges, custodial fees, account fees, trading costs, or product-related expenses.
As Investor.gov explains, “Investing isn’t free.” Even small ongoing costs can affect the amount of money that remains invested over time.
Ask for a dollar estimate rather than relying only on percentages:
- “What would my total annual cost be on a $500,000 portfolio?”
- “What fund or ETF expenses would I pay in addition to your fee?”
- “Are there transaction, custodial, account, or platform fees?”
- “Are there upfront charges or surrender fees?”
- “Could the total cost change as my account balance changes?”
- “Can you show me where these expenses appear on my statements?”
The SEC’s Form ADV information can help you review an investment adviser’s fee schedule, billing practices, and other expenses. You should also ask the advisor to explain anything in the documents that seems unclear.
Cost should not be the only factor in your decision. But a lack of cost transparency is a serious concern.
4. “What is your investment philosophy?”
An investment philosophy is the advisor’s basic view of how portfolios should be built and managed. It should connect to your goals: not simply describe a favorite product or market prediction.
For a retiree, a useful conversation may include:
- How the advisor balances stocks, bonds, and cash
- How portfolio risk is matched to your income needs and time horizon
- How the portfolio is designed to remain liquid
- How often investments are reviewed or rebalanced
- How the advisor responds during market declines
- Whether the approach emphasizes long-term ownership over short-term trading
- How costs and taxes may be considered without turning the discussion into a sales pitch
You can ask:
“If the market falls sharply, what decisions would you expect us to make: and what decisions would you avoid?”
You can also ask how the advisor measures success. Is the goal simply to outperform a benchmark, or is it to help your portfolio support a sustainable lifestyle while managing risk?
At Mau Sanchez Capital, investment management and fiduciary planning services are attributed to Portafolio Capital Management dba Mau Sanchez Capital: not to Texas Retirement Journal, which serves as an educational publication. The firm’s stated philosophy generally favors transparent, liquid, publicly traded markets, long-term equity ownership, traditional fixed income, and client-specific asset allocation rather than unnecessary complexity or excessive investment fees.
That approach may or may not be the right fit for every household. The important point is that you should be able to understand an advisor’s approach before you agree to it.
5. “Who are your typical clients?”
An advisor’s experience should be relevant to your situation. That does not mean you need someone who has worked with an identical household. It does mean the advisor should regularly work with people who have similar concerns.
For example, your needs may be different if you are:
- A recently retired executive managing several account types
- A business owner preparing to sell or transition a company
- A couple relocating from Austin to a Hill Country community
- A widow or widower adjusting to a new financial routine
- A retiree who wants to coordinate portfolio withdrawals with lifestyle expenses
Ask:
- “Who do you typically serve?”
- “What financial situations do your clients commonly face?”
- “How many households do you work with?”
- “Will I work directly with you or primarily with a team?”
- “Do you have experience working with retirees who need regular portfolio income?”
You are not looking for confidential information about another client. An advisor should be able to provide an anonymous example that helps you understand the types of decisions they commonly handle.
A good fit is often about communication and experience as much as geography or account size.
6. “How often will we meet and communicate?”
A financial planning relationship should have clear expectations. Some retirees want regular meetings and frequent updates. Others prefer a structured annual review with communication when an important decision arises.
Neither preference is automatically better. The key is knowing what you are receiving.
Ask:
- “How often will we meet?”
- “Are meetings held in person, by phone, or by video?”
- “Who should I contact when I have a question?”
- “How quickly do you typically respond?”
- “Will you contact me during periods of market volatility?”
- “How often will my retirement plan and portfolio be reviewed?”
- “What happens if my health, family situation, income, or goals change?”
This is especially important for couples. Make sure both partners feel comfortable asking questions and understand who will be involved in future conversations.
Retirement is not a one-time event. Your spending, housing decisions, travel plans, charitable interests, and health considerations may change. The advisor’s communication process should be able to adapt with you.
7. “Can you explain your approach in plain English?”
This may be the most revealing question of all.
Financial terminology can make a conversation sound sophisticated without making it useful. If an advisor cannot explain a recommendation in language you understand, you may have difficulty evaluating future decisions.
Try asking:
- “What does this recommendation mean for my day-to-day retirement?”
- “What are the main risks?”
- “What could cause this strategy not to work as expected?”
- “Can you explain that without acronyms or industry jargon?”
- “What would you tell a family member in my situation?”
- “Can you summarize the recommendation in three sentences?”
You should not feel embarrassed about asking for clarification. A strong professional will recognize that understanding is part of the relationship: not an interruption to it.
Mau Sanchez, founder of Texas Retirement Journal and owner of Mau Sanchez Capital, often emphasizes the value of making complex retirement decisions understandable. That does not mean every decision is simple. It means the reasoning, tradeoffs, costs, and risks should be presented clearly enough for you to make an informed choice.
Before you sign: verify the answers
A good interview is only one part of your due diligence. Request the advisor’s Form CRS and Form ADV Part 2 brochure, then review the information against what you heard in the meeting.
You can also check:
- SEC Investment Adviser Public Disclosure for investment adviser registration and disclosure information
- FINRA BrokerCheck for brokers and certain financial professionals
- The firm’s written advisory agreement, fee schedule, and privacy or custody documents
Look for consistency. If the advisor describes a simple fee structure but the documents contain several additional charges, ask for an explanation. If the advisor says they provide ongoing planning but the agreement describes only investment management, clarify the difference.
You can also use the SEC’s Form CRS investor bulletin to understand the types of information the relationship summary is designed to provide.
The right advisor should make you feel informed: not pressured
Trust should develop through transparency, not urgency.
Before choosing an advisor, write down the answers to the seven questions and compare them across your interviews. Pay attention not only to what each professional says, but also to how they respond. Do they welcome follow-up questions? Do they acknowledge uncertainty? Do they explain tradeoffs? Are the fees and responsibilities easy to find in writing?
For Texas retirees, a financial planning relationship should ultimately support the life you want to live: whether that means quiet mornings near the Hill Country, frequent travel, time with family, charitable giving, or simply greater confidence in your financial decisions.
Schedule a private meeting with a fiduciary financial advisor today by calling (512) 593-8380 or by visiting: https://calendly.com/portafoliocapital/15min
Portafolio Capital Management dba Mau Sanchez Capital is a Registered Investment Adviser. This content is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Advisory services are provided only pursuant to a written advisory agreement.
To learn more about retirement living, financial preparedness, and lifestyle opportunities across Texas, explore the Texas Retirement Journal retirement collection.
This article may include stories, scenarios, and perspectives created or assisted by artificial intelligence. Although the individuals and circumstances described may be fictional, the topics are intended to reflect real financial, personal, and lifestyle issues that retirees and individuals commonly face.
The content is provided to encourage readers to consider different perspectives that may affect their retirement, regardless of whether they are currently planning, approaching retirement, or already retired. It is intended for general educational and informational purposes only and should not be interpreted as personalized investment, financial, tax, legal, medical, or retirement-planning advice.
Individual circumstances vary. Readers should independently verify any information presented and consult appropriately qualified professionals before making financial or personal decisions. No advisory, professional, or client relationship is created through the use of this website.
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