Facet Wealth Review 2023

Most life decisions include a financial aspect, which means you might need a financial planner in your corner at some point. If you’re not comfortable navigating investing and big financial decisions on your own, Facet Wealth can provide you with guidance. Facet Wealth aims to help you invest in every facet of your life, regardless of your circumstances, assets, or portfolio size.

Established in 2016, the company believes financial planning should be accessible to everyone and provides unbiased virtual financial planning from a team of more than 100 certified financial planners (CFPs). CFPs have a fiduciary duty to act in their clients’ best interests.

Facet Pros & Cons

Who Is Facet Wealth For?

Facet Wealth is best for those who need financial advice but don’t want to pay high fees. Traditional financial advisors generally charge a management fee of 1% (or higher) based on your assets. Facet Wealth charges a flat rate with no surprise fees.

If you prefer a no-commission system, Facet Wealth may be perfect for you. Traditional advisors may add fees for suggesting services and products and trading securities. Facet Wealth provides advice within your plan without commissions.

Facet Wealth may not be for everyone. Beginner investors may not need to pay for years of advice or special services. Small investors may be better served by low-cost robo-advisor services that provide investment management on small account balances. However, Facet Wealth can be a major resource once your assets have grown and more guidance is needed.

Another group that may not need Facet Wealth are self-directed/do-it-yourself investors and financial planners, who may not require paid advice for managing their investments and other finances.

Read more >>> Best Robo-Advisors for 2022

How Does Facet Wealth Work?

You start by filling out the schedule request for a virtual consultation on the Facet Wealth website. The consultation may last around 30 minutes via video or phone call. Once signed up, Facet will send you a packet describing how Facet Wealth works, the guidelines, and what they have to offer based on your financial situation and preferences.

You’ll also fill out a questionnaire which covers information such as your family, current finances, and future financial goals. This information will be displayed on your dashboard to assist in keeping all your information in one location.

Based on your consultation, a CFP will contact you to discuss your financial situation and future goals and expectations. This is where the level of service you need will be determined. Your CFP will create a “financial blueprint” showing your suggested personal financial plan and future goals.

There will be multiple meetings with your CFP for the first few months to ensure that your investments are set up correctly. Once settled, you’ll have access to your CFP whenever you need them, or at least every six months, for a briefing. Reviews by your CFP may occur more frequently if your goals change or the condition of the market changes.

Facet Wealth will use your chosen risk levels (aggressive, moderately aggressive, moderate, conservative) to determine your portfolio. Low-cost mutual funds and exchange traded funds (ETFs) will be the primary investments. However, you may be allowed to use individual stocks and bonds with discretion.

Read more >>> How to Determine Your Risk Tolerance

What Makes Facet Wealth Great?

Here are a few of the reasons why you might want to consider signing up for Facet Wealth:

Comprehensive Investment Management

Like most investment advisories, Facet Wealth provides direct management for taxable brokerage accounts and individual retirement plans. Those include traditional and Roth IRAs, SEP and SIMPLE IRAs, and solo 401(k) plans.

And while they don’t provide direct management of employer-sponsored retirement plans, like 401(k) and 403(b) plans, they offer investment recommendations. You can act on those recommendations within your employer plan to integrate them with your overall investment plan better.

In addition, taxable investment accounts automatically include tax-loss harvesting to minimize the tax liability generated by investment activities.

Read more >>> Which Retirement Account Is Best? A Comparison of Plans

Advisor Qualifications

All Facet Wealth advisors are certified, financial planners. While this is a common requirement at many financial advisory firms, there are also many companies whose employees primarily aim to sell company products.

Facet Wealth advisors act as fiduciaries. This is an important distinction with any investment service you want to use. A fiduciary is legally bound to work in the client’s best interests and not their own or their employer’s.

Fiduciary status means the advisor can’t favor products offered by the employer or make trades to generate additional fee income.

Flat fees

A major selling point of Facet Wealth is that they offer flat fees. A flat fee is the cheapest option for many consumers. Unlike standard fees based on your asset balance or the commission your advisor earns, you’re only paying a fee based on the assistance you need for your investment management and service level.

Your fee will is determined once your CFP determines which level is required for your financial situation. As your investments grow, you won’t have to worry about rising or hidden fees unless you add additional services.

Helpful Dashboard To See All Your Finances in One Place

Having access to all your finances in one place makes all the difference. Facet Wealth provides your financial blueprint and links to your financial accounts on one platform. This is especially beneficial to those with multiple accounts with various platforms and providers. The dashboard makes it a point to show achievements like meeting emergency fund goals, savings rate, and credit score to give you a better understanding of your financial profile.

Tailored Planning

While some companies may offer robo-advisor services only, Facet Wealth provides each client with their own financial advisor. While it’s important to grow your investments and cover your long-term goals, Facet Wealth also focuses on short-term goals.

For example, if you’re planning to buy a house soon or would like to pay off your debt, your advisor can provide a strategy to move your money toward meeting your goals in less time.

Some services that Facet Wealth provides include:

• Asset management
• Retirement planning
• Income tax planning
• Life planning
• Stock option plans
• Debt management and reduction
• Education planning
• Legacy planning
• Retirement income
• Estate planning
• Insurance planning
• Account management for taxable brokerage accounts and self-directed retirement plans, including traditional, Roth, rollover, SEP and SIMPLE IRAs, as well as solo 401(k) plans
• Management assistance with employer-sponsored plans, like 401(k) and 403(b) plans

What Are Facet’s Drawbacks?

No Face-to-Face Contact

Although Facet Wealth offers human CFPs, it does not provide in-person assistance. However, video chat and phone calls may be enough. But if you prefer speaking with someone to go over your finances in person at any given moment, there may be better options than Facet Wealth.

Limited Investment Accounts

Your money must be held at certain brokers only. In order to manage your investments through Facet Wealth, your portfolio must be at either Fidelity, Apex, Schwab, or TD Ameritrade. If you don’t already have a portfolio through one of those brokers, you’ll need to transfer your current accounts to one of these four platforms.

 Flat Fees Might Be Proportionally More Expensive for Smaller Accounts

For the most part, flat fees are a selling point of Facet Wealth, especially for someone with many assets. Most companies charge based on assets under management, making a flat fee the better option. However, if you have fewer assets, you may pay a higher fee on a percentage basis.

For example, a robo-advisor might charge 0.25% annually or $375 on a $150,000 portfolio. Since even the lowest Facet Wealth subscription fee is $2,000 annually, it will amount to 1.33% on a percentage basis.

It’s Hard to Determine Future Costs

Facet Wealth offers seven levels of service. Your level of service is considered a subscription and will be billed to you monthly, quarterly, or annually in advance.

Since fees are based on the level of service, figuring out exactly how much you’ll be paying can be challenging to determine upfront. Not knowing how much money they’ll have to pay for something in the future can deter people from moving forward.

The cost of Facet Wealth’s services depends on the services you may need. Fees can range from $2,000 per year to $6,000 per year. Unfortunately, the company does not provide a published itemized list of the fee structure for each of the seven service levels.

How to Contact Facet Wealth

All clients will have a direct line of contact with their CFP.

• Consultation: https://facetwealth.com/get-started/ or by calling 1-888-321-5909.
• Customer service: [email protected] or call (443) 376-6222 between 8:00 am and 9:00 pm Eastern.
• Clients can also schedule phone and video support.

Best Alternatives To Facet Wealth

If Facet Wealth isn’t the right financial advisory for you, here are a few alternatives to consider.

Betterment

Betterment is an automated online investment service you might want to consider if you are only interested in investment management. There’s no minimum balance required to participate, and it provides comprehensive investment management at an annual fee of just 0.25% of your portfolio value.

Betterment provides access to a team of certified financial planners through its Betterment Premium service. Not only does it provide direct management of individual retirement accounts and taxable investment accounts, but it also provides advice for employer-sponsored retirement plans. Estate planning services are also available. Premium requires a minimum portfolio size of $100,000 and comes with an annual management fee of 0.40%.

Read more >>> Betterment Review 2022

Vanguard Digital Advisor and Personal Advisor plans

Vanguard isn’t just the world’s largest provider of mutual funds – and the second-largest provider of ETFs – it also provides broker services and two different advisory services.

Much like Betterment, Vanguard Digital Advisor is a robo-advisor focused on providing direct management of your investments. That includes taxable investment accounts and IRAs, though they will also provide guidance – but not direct management – of employer-sponsored retirement plans. The service requires a minimum investment of $3,000. And though there is no annual management fee, investment expenses average approximately 0.15% of assets under management.

But if you want a more hands-on level of wealth management, Vanguard offers its Personal Advisor plan. It provides a mix of robo-advisor management with human oversight. That includes unlimited access to human, financial advisors. They’ll manage your taxable investment account and IRAs and provide advice on employer-sponsored retirement plans. Personal Advisor requires a minimum of $50,000, with an annual management fee of 0.30%.

Personal Capital

This virtual money management platform summarizes your spending, goals, and investments in one place. The company also provides paid access to financial advisors to manage your assets under their Wealth Management program. There is an annual management fee of 0.89% of assets under management, and you must have a minimum of $100,000 in your portfolio to participate.

Read more >>> Personal Capital Review 2022

The Bottom Line

If you think your finances could use some help, you can schedule a free consultation with an advisor at Facet Wealth. A free consultation will allow you to have your finances analyzed to determine if Facet Wealth is the right choice for you. Set up the consultation, see what they offer you, and decide if it’s the way you want to go.

Advice on advisors:

• Financial Advisor vs. Financial Planner: How To Decide
• Opinion: Why I Don’t Use Investment Advisors To Manage My Money
• How to Find a Financial Advisor You Can Trust

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