October 24, 2020

Facet Wealth review: Should you use it?

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  • Facet Wealth is best for someone who needs comprehensive financial planning and has modest or sizable assets, although there is no minimum balance requirement.
  • The firm offers the same services as a standard financial-planning firm, except that it’s all done virtually — meetings take place via phone or video calls, and data gathering is done by email and in an online portal.
  • Facet Wealth uses a goals- and values-based approach and emphasizes implementing recommendations at the client’s pace.
  • Clients pay a fixed, flat fee on par with the industry average for ongoing access to a dedicated Certified Financial Planner, and the first three onboarding meetings are free.
  • Click here to schedule a call with FacetWealth »

Facet Wealth is best for someone who needs comprehensive financial planning and has a medium or high level of assets. Someone with one-off questions or few financial assets may not get the maximum value out of the annual fee and might consider using an automated online advisor that includes free financial planner access.

Facet Wealth’s annual fee ranges from $1,200 to $6,000 and is determined after discussing your financial goals and needs during a free initial call with an onboarding specialist. Clients on the low end of the price range are usually young professionals or couples with a growing net worth. Clients on the high end of the price range typically have complex business assets or estate issues and multiple high-balance investment accounts.

The fee is fixed and should not change, even if your financial situation becomes more complicated. It can be paid annually, quarterly, or monthly. Because the fee is flat and fixed, it will represent a much higher percentage of assets for someone with a low net worth. 

All comprehensive financial planning is completed virtually — through email, phone and video calls, and Facet Wealth’s online portal — and includes budgeting and cash flow management, investment strategizing, tax planning, education planning, retirement planning, employee benefits review, insurance review and planning, and estate planning. If you’d rather meet in-person with your financial planner, Facet Wealth isn’t right for you.

Facet Wealth takes great care in matching each prospective client with one of its nearly 70 Certified Financial Planners. The CFPs are required to follow the fiduciary duty and do not earn commissions or kick-backs.

That said, there’s no harm in setting up a free introductory call with Facet Wealth if you’re interested in what it can offer you and to see where you would fall on its price scale.

Bottom line: Even though there is no account minimum to use Facet Wealth, the best value will be derived by someone who has a medium or high level of assets and is not starting from scratch. 

Facet Wealth logo 2



Facet Wealth


Editor’s rating 4.6 out of 5
Fees Fixed rate, from $1,200 to $6,000 annually
Account minimum None
Promotion None at this time
Schedule a call

Facet Wealth pros and cons

Pros

  • First two meetings (onboarding) and third meeting (financial planner match) are free of charge
  • All advisors have Certified Financial Planner designation
  • CFPs take a goals- and values-based approach to planning, with emphasis on implementing the recommendations at client’s preferred pace
  • Flat annual fee is assigned based on complexity of financial help needed and will not change, even if your financial situation becomes more complicated
  • Easy-to-use online portal to share documents with your assigned CFP, book appointments, and keep track of your goals and cash flow
  • Rebalancing on investment accounts performed as often as needed by a separate team of investment specialists
  • No additional fee for managing investment assets

Cons

  • Flat fee may be relatively high for someone with few financial assets
  • Investment account management only available through Fidelity and Schwab-TD Ameritrade 
  • No in-person meetings

Facet Wealth logo 2



Facet Wealth


sofi logo



SoFi


vanguard.jfif



Vanguard


Editor’s Rating

4.6 out of 5

Editor’s Rating

4.8 out of 5

Editor’s Rating

4.6 out of 5

Min. balance

$0

Min. balance

$0

Min. balance

$50,000

Fees

$1,200 – $6,000 a year

Fees

$0

Fees

0.05% – 0.30% AUM

Learn more Learn more Learn more

Facet Wealth vs. SoFi

Facet Wealth is solely a financial-planning firm, whereas SoFi offers loans and banking products, investment accounts, and career coaching and financial planning. 

If you use any of SoFi’s products, such as its $0 minimum balance automated investing account, you’re able to set up meetings with a financial planner at no cost to help you navigate a specific issue or talk about your overall strategy.

SoFi is good for people who don’t have the cash to pay for comprehensive financial planning right now, but still want to make prudent, forward-thinking decisions with their money.

Click here to learn more about SoFi »

Facet Wealth vs. Vanguard Personal Advisor Services

The biggest difference between Facet Wealth and Vanguard Personal Advisor Services is the minimum balance requirement.

You need to have at least $50,000 in a Vanguard IRA, trust, or other non-retirement investment account to use Vanguard’s Personal Advisor Services. Comprehensive financial-planning services and account management are included in the 0.30% annual AUM fee, which for a $50,000 balance is equal to $150 (this doesn’t include expense ratios in the underlying investments). Note that the AUM fee is reduced for balances above $5 million.

Facet Wealth charges $1,200 a year on the low end of its price scale for financial planning and investment account management, which means the same $50,000 balance would shake out to a 2.4% fee. The benefit of a fixed, flat fee is that you won’t pay more as your balances grow like you do with Vanguard.

If you don’t have a Vanguard investment account that counts toward the balance requirement, you won’t be eligible to use its financial-planning services. Facet Wealth is open to anyone who can pay its fee, and will manage clients’ non-401(k) investment accounts at Fidelity and Schwab-TD Ameritrade.

Click here to learn more about Vanguard Personal Advisor Services »

Facet Wealth is virtual financial-planning firm. It was founded in 2016 and is headquartered in Baltimore, Maryland, although its advisors are scattered throughout the United States. All planning meetings take place via phone or video call, and data gathering is performed via email and the firm’s online portal.

Every advisor at Facet Wealth holds the Certified Financial Planner designation, a fiduciary-binding agreement that requires them to act in the best interest of the client at all times.

Facet Wealth charges a flat, fixed fee for comprehensive financial planning services and ongoing access to a CFP that is on par with the industry average. There is no hourly fee charged for an advisor’s time spent working on the client’s financial plan or asset under management fee based on account balances. 

The firm believes in a passive investment management strategy, emphasizing low-cost, tax efficient, and well-diversified holdings. 

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