Facet Wealth
Caption: Facet Wealth

Facet Wealth Review

Facet Wealth has headquarters in Baltimore, Maryland, and serves clients all over the country. The company can charge much less than the industry average because of the technology used by Facet Wealth certified financial planners (CFPs). The company is relatively new, having opened in 2016, but quickly became well-known for developing a financial service model to provide one-to-one guidance to clients at a lower cost.

Pros
  • No-surprise annual flat fee
  • Free initial consultation
  • Dedicated account representative for each client
  • Affordable financial management

Cons
  • Not available once portfolio grows over $1 million

Who Should Consider Facet Wealth?

Facet Wealth’s professional certified financial planners work with individuals holding $100,000 to $1 million in assets, although there is no minimum deposit to open an account. These investors are known as the mass affluent and financial managers who get paid a percentage of a client’s portfolio value consider these to be small, less profitable accounts. People in this category often receive less attention from larger wealth management firms or are passed between account representatives instead of consistently working with one person. Facet Wealth is committed to providing financial services to the mass affluent with a dedicated CFP who will give unlimited guidance for one low annual fee.

Facet Wealth vs. Robo-Advisors

Robo-advisors are an affordable solution using digital platforms to manage investments, plan retirement funding and find income tax-lowering strategies. These online and mobile apps, such as Betterment and Personal Capital, are attractive because robo-advisors are a low-cost alternative to a CFP that is quite effective – up to a point.

Where robo-advisors fail is with reacting fluidly to situations that come up in life, such as a job promotion with more benefits selections, details in a divorce agreement, sudden inheritance or income tax situations. The CFPs at Facet Wealth have access to proprietary technology that does away with massive spreadsheets and other software, so they are freed up to work with clients directly. Facet Wealth offers data-driven decisions enhanced by human discernment.

What to Expect from Facet Wealth

Getting Started
You can schedule a free 30-minute introductory call with a CFP after providing some general financial information. After your initial consultation, you work with one CFP who helps you determine which services make the most sense, given your financial goals and budget. You use an online form to securely provide information like your income and assets, investment risk tolerance and life goals. Facet Wealth CFPs examine about 30 different financial aspects like savings plans, cash flow, debt management, retirement planning or income, trust and estate planning, and more. Taking all things into consideration, your CFP will help you reach financial goals, from saving for a large purchase to income planning in retirement.

Ongoing Support and Planning
Facet Wealth clients have discussions with their CFP regularly, typically several times in the first year and two or three times annually after that. You can also log on to the client dashboard at any time to view your account. Facet Wealth provides financial reports and printable PDFs to clients, who have online access to their records 24 hours a day, every day. Where you may typically have to read through many pages of explanations and graphs to decipher your financial plan, Facet Wealth provides transparent, easy-to-digest information. You schedule calls online or by calling your advisor’s direct line, and never reach a call center.

Facet Wealth Services

Facet Wealth provides comprehensive financial planning services with one upfront annual fee based on the services you need, not the size of your portfolio. A Facet Wealth CFP can devise a plan to:

  • Help a young professional balance short-term sacrifice and long-term goals
  • Assist families with insurance planning and college savings
  • Create an actionable retirement savings plan for someone who is further along in their career
  • Identify and maximize opportunities to create a secure source of passive income for a retiree
Facet Wealth Services
Service Description
Retirement Planning Saving and preparing for retirement with a step-by-step plan.
Education Planning Providing for your child or grandchild’s education.
Life Planning Designing a financial plan so you can realize life goals like buying a house, taking a dream vacation or pursuing further education.
Asset Management Creating a diversified portfolio to meet your particular needs.
Income Tax Planning Planning long-term tax strategies to help you minimize tax exposure and maintain your wealth.
Insurance Planning Planning insurance to help maximize and protect your wealth.
Estate Planning Creating a financial plan to care for your loved ones and beneficiaries after you die.
Legacy Planning Providing for future generations or funding an organization or charity.
Retirement Income Creating a retirement income plan encompassing Social Security, retirement accounts and pensions.

Facet Wealth Costs

Facet Wealth charges a yearly subscription fee based on the financial management services you require. The seven-level subscription structure ranges from $480 to $5,000 a year. The company’s average client pays around $1,600 per year to have a $350,000 asset portfolio managed along with financial planning services. That amount is about 60% of the fees charged by most of the competition, making Facet Wealth substantially more affordable compared to firms that use the traditional fee model, charging a percentage of the portfolio value.

Facet Wealth Complaints

Facet Wealth is a new company that has already received high rankings. ConsumersAdvocate gives the firm 4.5 out of 5 stars, with high marks for account features, fee structure, financial strength and customer experience. Investor.com gives Facet Wealth an 82% Trust Score, composed of an algorithm using data to rank investment firms like Security and Exchange Commission (SEC) filings and firm disclosures. Various other reviews praise Facet Wealth for reaching out to underserved investors and for the flat fee structure. We found no Better Business Bureau rating or complaints about Facet Wealth.

Facet Wealth Q&A

  • How do I know a Facet Wealth CFP will work in my best interest?
    CFPs are fiduciaries, meaning they are legally bound to only offer financial advice that is in your best interest. Facet Wealth seeks to hire the best financial advisors, and with no commissions, there’s no incentive to suggest a product that doesn’t most effectively address your needs.

  • If my portfolio grows over $1 million, will Facet Wealth continue to work with me?
    When your savings and investments reach $1 million, your advisor will help you transition to a firm that can meet your needs. Facet Wealth is only set up to serve the mass affluent effectively.

  • How do I meet with my Facet Wealth certified financial planner?
    Call your CFP’s direct line at Facet Wealth to schedule a meeting via phone or videoconference. Evening and day appointments are available, and you are encouraged to ask any questions. You pay once a year for all the financial advice you require.

  • How does Facet Wealth charge less for services compared to other firms?
    Typically, the smaller accounts Facet Wealth specializes in managing get shuffled around from one advisor to another in other wealth management firms. Accounts under $1 million are considered unprofitable for firms with fees that are a percentage of the portfolio value. One CFP at Facet Wealth can handle many times the client load of a traditional firm because the company’s proprietary technology significantly reduces prep and analysis time for the advisor. Clients get undivided attention from the CFP when they need it, and the company turns a profit with smaller accounts although services cost much less.

  • Does Facet Wealth charge a cancellation fee?
    No, Facet does not charge a cancellation fees.

  • Where does Facet Wealth offer services?
    Facet Wealth is registered with the SEC in the District of Columbia and 26 states and offers financial planning services across the U.S.

Conclusion

If you have assets totaling $1 million or less, a dedicated Facet Wealth CFP can help you effectively manage all assets, including your retirement portfolio, and help you plan for reaching your financial goals. The company provides personalized service combined with a convenient online dashboard for clients, who pay less to have wealth management services at their fingertips.

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