If you’re looking for a tailored financial planning service, but you don’t want to pay the high price for a professional advisor, Facet Wealth may be a good fit. The company offers each client a dedicated, certified financial planner (CFP) for a flat annual fee.
Because traditional firms charge a percentage on assets, this revolutionary pricing structure offers a low-cost alternative for those with high portfolio balances and simple financial planning needs. Keep reading for everything you need to know about Facet Wealth.
Personal Capital and Betterment’s Premium Plan provide similar investment services with automated portfolio management and access to financial advisors.
PROS
- Comprehensive, full-service financial planning
- No upfront setup fee
- Dedicated CFP
- Advice from a fiduciary
- No-fee investment management
- Manages investments directly through brokerage firms
CONS
- Wide fee range makes it difficult to estimate costs
- Can be pricey for smaller portfolios
- No option to meet in person
Facet Wealth In A Nutshell
Facet Wealth was designed to fill the gap between traditional, full-service wealth management firms and online automated investment platforms (AKA robo-advisors).
Similar to traditional financial planning, you’ll get to work one-on-one with a designated CFP who will establish goals based on your needs and develop a financial plan with action items. The service covers all aspects of your financial life, not just investment management.
You’ll have twice-yearly formal meetings, and your CFP will be available year-round for any questions you might have or to adjust your plan. All conversations are done remotely, over video or phone, and your financial plan is put together, tracked and managed online.
Instead of the typical financial advisor fee – based on a percentage of assets under management – Facet charges a flat fee. It starts at $1,800 a year and goes up based on the level of service you require. This is great if you have larger portfolio balances, because you’re not paying for the assets you’ve accumulated.
| Account Minimum | $0 |
| Fees | $1,800 – $6,000 per year |
| Setup/Onboarding Fee | None |
| Account Fees | None |
| Advisor Access & Credentials | Unlimited access to a dedicated CFP via phone, email and video. Minimum two advisor-scheduled planning meetings every year. |
| Investment Expense Ratios | Average 0.06% ETF expense ratios |
| Brokerage Options | Charles Schwab Fidelity TD Ameritrade Pershing |
| Portfolio Construction | Personalized portfolios built from ETFs covering 13 asset classes |
| Accounts Supported | Non-retirement brokerage accounts Roth, traditional, SEP, rollover and SIMPLE IRAs Solo 401(k)s Trusts |
| Tax Strategy | Free tax-loss harvesting on taxable accounts |
| Customer Support Options | Email, video & phone support from 8am to 9pm client local time daily |
Facet Wealth Features
Facet Wealth charges a flat fee and only for what you use. Pricing starts at $1,200 a year for basic financial planning and increases from there if you require more complicated wealth management strategies.
Traditional financial advisors charge a percentage of assets under management. So Facet’s $1,200 base fee equates to 1.2% on a $100,000 portfolio – just to give you a rough cost comparison.
Facet Wealth offers much more than simple investment management offered by robo-advisors. Comprehensive financial planning services include:
- Retirement planning
- Education planning
- Life planning
- Asset management
- Income tax planning
- Insurance planning
- Estate planning
- Legacy planning
- Retirement income
Facet Wealth directly manages accounts at Charles Schwab, Fidelity, TD Ameritrade and Pershing. This is both convenient and a potential money saver if you already have accounts at these firms.
In contrast, if you want a robo-advisor to directly manage your accounts, you’ll have to sell your investments before transferring money to their custodian.
For accounts that Facet manages directly – like 401(k)s, 403(b)s and stock option plans – they’ll provide specific investment recommendations. If you want Facet to directly manage these accounts, you’ll need to provide them with your log-in information.
Similar to robo-advisors, the mix of investments in your Facet portfolio is based on your risk tolerance and timeline. But Facet customizes the portfolio for each client, whereas robo-advisors draw from pre-built portfolios and automate management.
The investment committee at Facet meets every quarter to review investment models. Portfolios are built with a focus on minimizing fees and maximizing diversification.
The absolute best service you can get in financial planning is with a dedicated CFP. The job requires in-depth training, as well as rigorous continued education and certification. CFPs at Facet Wealth are full-time employees, and they’re fiduciaries. That means they’re required to make recommendations that place your interests above the company’s.
In your first 90 days with Facet, you’ll meet with your planner a few times (via video) to discuss your needs and goals. They’ll walk you through the steps you need to take in order to execute on your action items. After that, your Facet planner will schedule a video call with you every six months to check in, and they’re available for any questions you might have along the way.
Facet’s web portal is an aggregation tool where you can track your assets, liabilities and action items, as well as upload important documents. Whenever you update your information on the portal, Facet will notify your advisor who will adjust your financial plan accordingly.
Facet Wealth Limitations
Depending on your balance and needs, Facet Wealth pricing might be much higher than fees at traditional wealth management firms. If your financial situation is complex, or you prefer to meet with a financial planner in person, you might want to go with a brick-and-mortar firm.
On the flip side, if you’re looking for portfolio management without any planning guidance, then robo-advisors like SoFi Automated Investing and Wealthfront are less expensive options for lower balances.
Bottom Line
Facet Wealth comes pretty close to what you would get from a traditional wealth management firm. It offers comprehensive, virtual financial advice and planning for a flat fee. With a dedicated CFP who knows your financial needs and goals, you’ll get bespoke recommendations to help you grow your savings and retirement, plan your wealth and manage your investment accounts.
If you don’t yet have a professional that can help you manage your finances, consider setting up a free introductory call with Facet Wealth to see if they’re a good fit.
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