Review of Facet Wealth

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Reviewed By

Updated on Tuesday, January 12, 2021

Facet Wealth provides comprehensive online financial planning, as well as consulting and investment management services, primarily to individual investors. The firm’s team of 54 financial advisors provides advice based on each individual’s goals and unique circumstances. Though the firm has one office in Baltimore, it offers its services nationwide virtually. Facet Wealth currently oversees roughly $344.5 million in assets under management (AUM).

All information included in this profile is accurate as of January 12, 2021. For more information, please consult Facet Wealth’s website.

Assets under management: $344,522,346
Minimum investment: No minimum
Fee structure: Fixed fees
Headquarters: 100 International Drive, 23rd Floor
Baltimore, MD 21202
https://www.facetwealth.com/
443-376-6222

Overview of Facet Wealth

Facet Wealth was established in 2016. The company is privately owned by its three founders — Brent Weiss, who currently serves as the company’s chief evangelist, responsible for guiding their vision and ensuring consistent brand messaging; Patrick McKenna, who serves as executive chairman; and Anders Jones, who is the CEO.

Facet Wealth currently employs 154 people — about one-third of them perform investment advisory functions, while two employees are licensed agents of an insurance company or agency. The firm has one office located in Baltimore, but its advisors provide services virtually to clients across the country.

What types of clients does Facet Wealth serve?

The vast majority of Facet Wealth’s clients are individuals who do not have a high net worth (the SEC defines high net worth investors as those with either $750,000 under management or a net worth of at least $1.5 million). However, the firm does have a small group of high net worth clients that it serves. There is no minimum account size required to work with the firm.

In addition to individual investors, Facet Wealth also offers services to pension and profit-sharing plans, business entities, trusts, estates and charitable organizations. In some cases, Facet Wealth purchases clients with smaller accounts from other registered investment advisors. It will offer them back, however, when accounts reach $1 million.

Services offered by Facet Wealth

Facet Wealth primarily provides online financial planning services and portfolio management for individuals. The firm typically doesn’t offer clients investment management services on a standalone basis but rather provides them as part of its overall financial planning and consulting services.

The following is a comprehensive list of the firm’s offerings:

  • Investment advisory services and portfolio management
  • Financial planning
    • Financial goal setting
    • Portfolio design and asset allocation
    • Risk tolerance and capacity analysis
    • Investment management
    • Employee benefits planning
    • Employer stock plan analysis
    • Retirement planning
    • Estate planning and beneficiary
    • Education planning
    • Small business planning
    • Small business retirement plans
    • Income tax planning
    • Trust planning
    • Cash flow and expense planning
    • Debt management and planning
    • Insurance/risk management planning
  • IRA and 401(k) rollovers

How Facet Wealth invests your money

Facet Wealth stresses that all of its investment recommendations are based on the individual needs of each client. The firm has four primary asset allocation programs, which are based on a client’s risk tolerance: Aggressive, Moderately Aggressive, Moderate and Conservative.

Funds are typically invested in various mutual funds, exchange traded funds (ETFs), stocks and bonds. Facet recommends both short-term purchases (those to be held less than a year) and long-term purchases (those held for a year or more).

All services are provided on a discretionary basis in line with the client’s objectives, meaning the firm makes day-to-day decisions about buying and selling securities. The client can, however, indicate if there are securities they don’t want to invest in for whatever reason.

Fees Facet Wealth charges for its services

Unlike many firms that base fees on a client’s AUM, Facet Wealth charges a flat fee for its services. Fees can range from $600 to $10,000 per year, but typically fall between $1,200 and $6,000 annually.

Known as “subscription pricing,” the rate is determined by the level and scope of services provided and doesn’t necessarily increase as a client’s account grows, as it would with fees based on a percentage of AUM. The average fixed fee for a financial advisor ranges from $1,500 to $7,500, which puts Facet Wealth in that ballpark.

In some cases, Facet Wealth may recommend a third party as the custodian for investment management assets (for example, Charles Schwab, Fidelity or TD Ameritrade), in which case clients may have to pay additional fees.

Facet Wealth’s highlights

  • Flat fees could prove advantageous for some clients: Subscription pricing means clients don’t have to pay more just because they invest more money. Rather, the fee is determined by scope of work and is straightforward and predictable once it’s established, as long as management needs don’t change significantly.
  • Dedicated CFPs on staff: Even though the firm provides its services online, each client is assigned a personal certified financial planner (CFP) with whom they can build an ongoing relationship.
  • Individually tailored portfolios: Facet Wealth doesn’t use model portfolios. Rather, the firm bases its recommendations on factors unique to each client including their goals, objectives and risk tolerance.
  • Awarded performance: Earlier this year, Facet Wealth was named “Best Online Financial Planning Service” by NerdWallet. Investment News named CEO Anders Jones to its “40 Under 40” List in 2019.

Facet Wealth’s downsides

  • Potential conflict of interest: Some of Facet Wealth’s advisors are also representatives of Purshe Kaplan Sterling Investments, a broker-dealer, which clients can choose to use for brokerage transactions. Because those individuals may receive a commission on such transactions, there’s a possibility for a conflict of interest to arise if clients choose to work with one of them.
  • No in-person interaction: Because Facet Wealth provides services via videoconference rather than in person, some people may miss the in-person interaction.
  • Difficult to estimate costs due to fee range: Because the firm’s fees are more subjective, it can be difficult to know how much you may have to pay for its services. In addition, if your portfolio is small and your needs are complex, then an account for which the fees are based on AUM may be more beneficial.

Facet Wealth’s disciplinary disclosures

Facet Wealth has no disciplinary disclosures on its record. This includes any civil, regulatory or criminal actions against the firm, its advisors or its affiliates over the past 10 years. For more information, visit the firm’s IAPD page.

For reference, registered investment advisors must file Form ADV paperwork with the Securities and Exchange Commission (SEC). One section of Form ADV asks for disclosure information, meaning firms must report any type of disciplinary history.

Facet Wealth’s onboarding process

The onboarding process with Facet Wealth starts with a 30-minute introductory call, which can be scheduled online and comes with no obligation.

Clients who choose to go forward are assigned a dedicated planner, and they can meet with them virtually as often as they like and communicate with them via email, text and phone. Most clients meet with their planner more frequently the first year and then two to three times per year thereafter. Clients also are provided a quarterly report regarding the status of their account.

Is Facet Wealth right for you?

If you’re looking for online financial planning and investment management services with more of a personal touch than a robo-advisor, Facet Wealth is worth considering. While the firm is headquartered in Baltimore, it provides services nationwide, virtually. Unlike robo-advisors, Facet Wealth offers personal attention via dedicated CFPs who provide advice based on individual goals and objectives.

You don’t have to have a ton of money to invest with Facet Wealth either, as the firm doesn’t require a minimum account balance. It charges clients a flat fee based on the scope of work required, which may be a good deal for people with larger amounts of money to invest, but uncomplicated planning needs. On the flip side, those with complicated planning needs may find better value elsewhere depending on the size of their account.

Some people may also miss the ability to meet in-person with their advisor. But for those looking for flexibility and convenience along with a personal touch, Facet Wealth provides a good middle ground between a robo-advisor and a traditional advisor.

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