Facet Wealth Review

Facet Wealth provides comprehensive online financial planning, as well as consulting and investment management services, primarily to individual investors. The firm’s team provides advice based on each individual’s goals and unique circumstances. Though the firm has one office in Baltimore, it offers its services nationwide on a virtual basis.

Assets under management: $961,342,264

Minimum investment: No minimum

Individual investor to advisor ratio: 79:1

Fee structure: Fixed fees

Headquarters: 100 International Drive, 23rd Floor Baltimore, MD 21202 Website: www.facetwealth.com Phone: 443-376-6222

All information included in this profile is accurate as of January 24, 2022. For more information, please consult Facet Wealth’s website.

Overview of Facet Wealth

Facet Wealth was established in 2016 as a robo-advisor that also offers a human touch. The company has three co-founders: Brent Weiss, who currently serves as the company’s chief evangelist, responsible for guiding the firm’s vision and ensuring consistent brand messaging; Patrick McKenna, who serves as executive chairman; and Anders Jones, who is the CEO. Jones and McKenna each own more than 10% of the firm, and the global equity firm Warburg Pincus owns over 25% through two investment funds.

Facet currently employs nearly 300 people, and approximately 115 of them perform investment advisory functions. 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’s clients are individuals who do not have a high net worth, which the Securities and Exchange Commission (SEC) defines as having at least $750,000 under an advisor’s management or a net worth believed to be at least $1.5 million. The firm does also serve a small number of high net worth individuals. Although its current client base does not include them, Facet Wealth notes in its brochure that it is also capable of working with pension and profit-sharing plans, business entities and charitable organizations.

There is no minimum account size required to work with Facet Wealth.

Services offered by Facet Wealth

Facet 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 Facet’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 level:

• Aggressive
• Moderately Aggressive
• Moderate
• Conservative

Client money is typically invested in exchange-traded funds (ETFs), though the firm may also manage other assets such as mutual funds, stocks and bonds. Facet Wealth recommends both short-term purchases (those 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 assets under management (AUM), Facet Wealth charges a flat fee for its services. Fees can range from $1,200 to $15,000 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, although on the higher side at the top of the range.

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

For more information and to view Facet Wealth’s Form ADV filings, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.

Facet Wealth’s onboarding process

1. Schedule a free call: The onboarding process with Facet starts with a free obligation-free introductory call, which can be scheduled online. You can also call 1-888-339-5536 to immediately speak to a representative.
2. Receive a customized package: The representative will listen to your needs, wants and objectives and then create a customized package that may work best for you.
3. Get assigned a dedicated planner: Clients who choose to go forward are assigned a dedicated planner, and they can meet with them virtually as often as they’d 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.
4. Receive regular reports and check-ins: Clients also are provided a quarterly report regarding the status of their account. They will also be contacted by the firm at least annually to check in and see if their financial status or objectives have changed.

Where Facet Wealth is located

Facet Wealth has one physical office in Baltimore, but it meets with clients virtually, not in person.

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 typical robo-advisor, Facet Wealth is worth considering. While the firm is headquartered in Baltimore, it provides services nationwide, virtually. Unlike robo-advisors, Facet offers personal attention via dedicated CFPs who provide advice based on your individual goals and objectives.

You don’t need 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 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 could provide a good middle ground between a robo-advisor and a traditional advisor.

As always, before making an important decision for your financial life, make sure to take the time to research multiple options to ensure you find the right advisor for you.