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- Designated CFP®
- Flat Annual Fees (tiered)
- $0 Setup Fees
- Only Virtual Meetings
- Can Get Expensive For Complex Portfolios
I get asked about money tools a lot. Especially when it comes to financial management and planning tools – and whether there are more affordable options out there for more customized financial planning service.
Receiving tailored financial planning advice is something anyone juggling multiple financial goals could use – but the cost of traditional wealth management firms deters them from using the services.
Well, Facet Wealth offers an alternative to that – and I’m pumped to be telling you more about it today!
In this Facet Wealth review, I’ll be looking at the company and its primary features, pros and cons, and how it compares to a few other financial planning tools – so that you can get a better idea of whether it could be the right financial planning company for you.
What is Facet Wealth?
Facet Wealth was designed for people who want a comprehensive, tailored financial plan and professional advice, but can’t afford the services offered by traditional financial management companies.
It’s an alternative to these companies – and it provides virtual, expert, one-to-one portfolio management at a lower cost.
With Facet Wealth, you’ll be assigned a dedicated, certified financial planner (CFP) who will work with you one-on-one to establish your needs and goals, develop a financial plan with actionable steps, as well as perform regular plan reviews to make sure you stay on track with your financial goals.
There will be formal check-ins – but you will also be able to contact your advisor anytime for any questions you may have. The financial plan can also be changed based on your circumstances or changing preferences.
The tool allows you to access high-quality, professional financial planning similar to that offered by a traditional financial planning firm. However, the main difference between a traditional firm and Facet Wealth is the fact that all meetings with your dedicated CFP happen virtually (via phone or video), and the plan is managed online.
Facet Wealth Price: $480 - $5,000 With Facet Wealth, you'll be assigned a dedicated, certified financial planner (CFP) who will work with you one-on-one to establish your needs and goals and develop a financial plan with actionable steps!
The Main Features of Facet Wealth
Dedicated Facet Wealth CFP
One of the best things about Facet Wealth is that you work with a finance professional to help you take your finances to the next level.
Each Facet Wealth customer is assigned a dedicated Certified Financial Planner who offers top-tier financial management and planning services. CFPs are professionals who undergo extensive, in-depth training, and testing.
Working with a CFP is extremely valuable in creating a strong financial portfolio and learning how to manage it well. The CFP will take time to learn about you as a person and gain an understanding of your financial needs and goals.
In the first 90 days of your Facet Wealth subscription, you’ll get to chat with your financial planner several times via video conferencing to establish your financial situation and goals.
The planner will be there to coach and guide you through every step of the financial journey you’re on – and help you execute the actions. From then on, you’ll speak to your CFP every six months (but they will be available to speak to whenever if you have any questions).
Essentially, a designated CFP is always there to help you make sound financial decisions – and that’s a huge bonus.
While investments in portfolios managed by robo-advisors typically vary based on your risk tolerance and timeline, Facet Wealth takes a different approach.
Your CFP will build a customized portfolio based on their financial situation and future goals. These portfolios are created from a list of low-cost ETFs to minimize costs and maximize diversification.
This means investment expense ratios don’t reduce you’re your returns, and you get exposure to several different types of assets, so there’s a good balance of risk and rewards.
Direct Investment Management
If you want an existing account to be managed by a robo-advisor, you’ll first need to sell your investments before transferring money to the company’s custodian.
With Facet Wealth, accounts are managed at four custodians:
- TD Ameritrade
- Charles Schwab
If you already have an account at any of these firms, Facet Wealth allows direct investment management – which is super convenient.
This is one of the main things that sets Facet Wealth apart from other online advisors.
Comprehensive, Individually Tailored Financial Plans
Facet Wealth offers a more tailored, customized financial planning service than other online advisors.
It’s a bespoke service which essentially means your dedicated CFP will be able to help you with any major (or minor) financial decision you’re facing – whether it’s making the most of your employee benefits or helping you create an effective early retirement strategy.
You will be able to access your financial plan on Facet’s portal, where you can easily track your assets, liabilities, and action items. Whenever you make a change to your information on the tool, your advisor will be notified – and will make sure your financial plan is adjusted accordingly.
Flat Annual Fee
Facet Wealth comes with a flat yearly fee based on how complex your financial planning needs are – I’ve covered that in more depth below.
How Much Does Facet Wealth Cost?
Facet Wealth will charge a subscription fee based on the level of financial management services you need. So, in short, you can be paying very little for tailored financial advice – if your financial needs aren’t very complex.
The annual fee starts from $480 a year for basic financial planning – and can go up to $5,000 annually if your plan requires complex wealth-management strategies.
Here’s a rough idea of how much you might pay in the following scenarios:
$480 Annual Fee
If you’re just getting started (a recent graduate, for example), your financial management may fall into the minimum cost tier.
You may get advice on how to manage your cash flow, short-term and retirement savings, renter’s insurance, as well as how to optimize your workplace benefits.
$1,600 Annual Fee
If you need more than financial management advice, Facet Wealth charge a flat fee of about $1,600 for financial planning.
That’s how much someone who is simultaneously managing multiple financial goals and investments could expect to pay.
$5,000 Annual Fee
You can expect to pay up to $5,000 a year if you own a business, are looking for assistance in selling your business or for any other more complex financial management strategies.
Are There Any Additional Fees to Worry About?
Additionally, Facet Wealth doesn’t charge an extra fee for portfolio management (that’s included in the price for service).
This means that a client with $500,000 in multiple investment accounts and someone with a $50,000 portfolio could pay the same annual fee – if both of these clients have similar financial planning needs.
To find out your annual fee, you will need to attend a (virtual) meeting with a Facet Wealth advisor. In the meeting, you’d discuss your assets and financial goals for the advisor to figure out how complex your financial planning needs are.
Pros and Cons of Facet Wealth
Here are the pros and cons of Facet Wealth – though, in my opinion, it has more pros than cons:
- Each client gets a designated certified financial planner;
- Flat annual fee based on how complex your financial needs are;
- There is no upfront set-up fee;
- Your financial plan is easy to track and make changes to online;
- Full-service financial planning;
- Investments are managed directly through brokerage firms;
- Virtual meetings with your advisor mean you can work with them from anywhere;
- All meetings are virtual – so no in-person communication;
- Could be as expensive as some of the traditional firms out there if you need complex financial planning (up to $5,000);
Who is Facet Wealth Best For?
If you’re someone who has multiple financial goals – like starting a business, buying a home, as well as saving for retirement – Facet Wealth could be the financial management tool that helps you align your finances with these goals, and help you stay on track to achieve them.
Working with a qualified financial planning professional is a huge bonus when building wealth. Managing complex financial issues on your own is never something I’d recommend if you’re hesitant about making financial decisions – and working with a specialized, brick-and-mortar financial management firm could be expensive.
So, if you’re looking for customized financial planning at a lower cost, and don’t mind it all being online – Facet Wealth could definitely be the right option for you.
Even if you are just starting out and are looking to build your financial portfolio over time – Facet Wealth could provide customized financial advice to help you make sound decisions that set you up for financial success – at a very affordable price.
Alternative Online Financial Planning Companies
There are, of course, companies that offer similar services to Facet Wealth, and some of these I’ve already covered in my previous posts.
While both of these have some attractive features to offer and are excellent for financial management, one thing to bear in mind is that with both Personal Capital and Betterment, you’ll pay more as the value of your portfolio increases.
The flat fee makes Facet Wealth a smart option as your financial portfolio grows – because the cost will only increase if you require additional, complex planning (and only when it’s time to renew your contract). Similarly, if your financial planning and management needs decrease, so will the fee Facet Wealth charges.
Additionally, both Personal Capital and Betterment require you to have an account minimum of $100,000 for wealth management services, while Facet Wealth will manage your finances no matter what your account balance is.
Could Facet Wealth Help You Manage Your Finances?
If you’re looking for comprehensive, full-service financial advice and planning service at a lower cost, Facet Wealth offers just that.
Working with a designated CFP who knows your financial goals and needs inside out, you’ll receive customized top-level financial planning recommendations that help you grow your retirement and savings, plan your wealth and manage your investment accounts.
All-in-all, Facet Wealth is a great tool to use for anyone who wants specialized, professional financial advice without having to use a traditional, brick-and-mortar financial planning firm. It’s ideal for anyone who has multiple financial goals and wants professional, one-on-one guidance for achieving financial freedom.