Facet: Comprehensive Financial Planning in an Online-Only World
Written by
John Csiszar
Edited by
Melanie Grafil
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GOBankingRates Score
Facet Wealth
-
Investment Options
5.0
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CFP Access
5.0
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Customer Service
4.0
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Fees
3.0
Pros and Cons of Facet
Facet is one of just a few online-based firms that provide CFP-based consultations. But like its competitors, it has both pros and cons.
Pros
- Portfolios professionally managed by CFPs
- Management fees based on level of service and are assessed annually
- No account minimums
- $0 commissions as part of overall fee package
Cons
- Costs and offered services not clearly outlined on website
- CFP advisors are only accessible online or via web conferencing
An Overview of Facet’s Features and Benefits
When it comes to the world of wealth management, Facet is just a baby. Based in Baltimore, Maryland, the firm only came into existence in 2016. As of January 2020, Facet listed just 99 employees, with its primary $33 million investment coming from investment firm Warburg Pincus and venture capital firm Slow Ventures.
Facet is a modern take on the traditional brokerage industry. A combination of the professional guidance of Certified Financial Planners with online capabilities and a unique twist on fee-based service, Facet is hard to cubbyhole into just one specific category.
Facet stands out from its competitors in several ways. In one sense, the firm is an online brokerage, as it doesn’t offer in-person consultations and financial plans are provided electronically. But the company also offers a level of service that online stock brokers simply can’t compete with — personalized financial plans developed by well-trained CFPs. For this reason, the firm is better compared with robo-advisors that also provide CFP-based financial services.
In a world moving toward zero commissions, Facet’s all-inclusive fee may seem high to some. For others, the fees may seem low, especially if they’re used to paying an asset-based fee that’s a percentage of total assets.
| Feature/Benefit | Details |
|---|---|
| Account minimum | No minimum required |
| Stock commission | Included in the monthly fee, no additional charge |
| Option commission | Included in the monthly fee, no additional charge |
| Commission-free ETFs | Unlimited, part of the monthly fee |
| Zero-transaction-fee mutual funds | Unlimited, part of the monthly fee |
| Investment selection | Broad range; selected by the CFP professional, unless clients opt for self-management |
| Customer service | Access to a dedicated CFP professional, available nearly any time |
| Mobile app | Not available |
| News and research | Provided directly by the CFP professional, no standalone feature |
| Miscellaneous fees | All fees covered under the monthly subscription |
| Current promotion | No active promotions |
| Equity trades | No additional charge; part of the monthly fee, which ranges between $100 and $500 |
| Promotion | No active promotions |
Thanks!
What Are Facet’s Best Features?
To help sort out whether or not Facet is a good option for you, here’s an overview of the products and services that the platform offers.
Investment Options
Facet Wealth offers essentially limitless investment options, from stocks and bonds to mutual funds, ETFs, municipal bonds and more.
CFP Professional Access
Facet Wealth subscribers have unlimited access to CFP professionals.
Customer Service
Facet offers phone and video support to its customers. Meetings can be arranged with CFP professionals at nearly any time.
When you call in to Facet, you’ll be connected with your own dedicated CFP professional and you can ask as many questions as you want. Advisors are available for consultation in the evenings and on weekends as well, and the consultations can be as short or as long as customers need.
Fees
Facet Wealth has no account minimums and charges no commissions. Instead, customers pay an annual fee of between $2,000 and $6,000 per year that provides access to all of Facet Wealth’s features, including CFP access.
How Facet Wealth Stands Out
As a full-service financial services firm that operates entirely online, Facet doesn’t offer the do-it-yourself individual services that many popular online brokerages do. In some ways, however, this unique approach offers capabilities beyond those of traditional online firms. Here’s a look at some standard points of comparison.
Trading Experience
Facet doesn’t offer the traditional trading experience you might get with other online brokers, such as Fidelity or E-Trade. But for a certain type of customer, this is actually a plus. Facet, in this sense, is more akin to a full-service brokerage.
Your CFP-professional will handle your trading for you, in line with your investment objectives and risk tolerance, as established in your mutually developed financial plan. In other words, Facet doesn’t offer a retail-facing trading platform — all of your trading is handled in-house by your hired professional, based on your personalized needs.
Fees
Facet Wealth charges a flat fee to users, and there are no commissions or trading fees. There are also no account minimums.
Fee-Only Advisors
The financial professionals at Facet Wealth are Certified Financial Planners, meaning they are fiduciary financial advisors that are required to act in your best interest at all times. You also have unlimited access to your CFP advisors.
Performance
Facet Wealth’s 100% equity and 70/30 balanced portfolios have each outperformed their benchmarks over the past one-, three- and five-year periods, according to the firm’s website.
Comparable Options
Facet doesn’t really match up well in comparison with traditional online brokers like E-Trade and Fidelity. However, there are some other firms that offer CFP-provided advice on a fee-based platform, as outlined below.
| Broker | Account Minimum | CFP Access | Fees |
|---|---|---|---|
| Betterment Premium | $100,000 | Unlimited | 0.40% annually |
| Empower | $100,000, $200,000 or $1 million | Either a financial advisory team or two dedicated financial advisors | 0.89% annually on amounts up to $1 million |
| Schwab Intelligent Portfolios Premium | $25,000 | Unlimited | One-time planning fee of $300, then $30/month |
Remember that the above firms aren’t exact matches with Facet. Betterment and Schwab, for example, operate robo-advisor services with a CFP overlay and do not provide clients with a dedicated CFP, like Facet. Empower is more of a hybrid advisor, providing both digital management services and CFP support. Other online brokers, such as E-Trade, offer zero commissions on most equity and ETF trades but don’t offer dedicated CFP professionals for an annual fee.
How To Apply
You can apply for a Facet Wealth directly on the firm’s website. Other firms may have a feature where you can simply click on an “open an account” link. That’s not the case at Facet Wealth.
First, you’ll answer a questionnaire so the firm can determine how best to serve you. Once you decide you want to open an account, you’ll have to provide the same basic personal and financial information as you would with any other bank or financial services firm. This includes your name, address, date of birth, Social Security number, and funding information for your account.
Who Facet Is Best For
If you’re a do-it-yourself trader, Facet isn’t the best option for you. The firm is most like a traditional, full-service firm wrapped in an online brokerage package. Facet is most appropriate for clients in need of full-service financial planning but who are comfortable with working via video calls and online conferencing rather than meeting in person.
One of the major strengths of Facet is that it only employs Certified Financial Planners. CFPs are specially trained financial advisors that must act as fiduciaries — meaning, they are required by law to put client interests ahead of their own. This may seem like a rule that all financial advisors should follow, but the truth is they don’t.
The average advisor at your local or online brokerage firm is simply a registered representative, and they are only held to the “suitability” standard. This means they can only make recommendations that are considered “suitable” for you, but they aren’t required to meet the higher “fiduciary” standard that CFPs are. For many clients, this is an important distinction and consideration when choosing a brokerage.
Of course, beyond standard online brokerages, Facet has competitors in the “digital-meets-CFP” category as well. Robo-advisors like Betterment and Schwab Intelligent Portfolios have elevated their game by adding fee-based, CFP-directed financial planning services to their standard digital platforms.
Final Take
Overall, Facet offers an attractive package for clients that need fiduciary-based, comprehensive financial planning. Investors should, however, consider the costs and service levels provided by competitors to determine which is the best option for their money.
For the latest GOBankingRates’ evaluations of other top retirement accounts, online brokerages and other information on investing, check out these articles:
- Best Online Brokerages
- Best IRA Accounts
- Best Roth IRA Accounts
- Best Online Stock Brokers for Beginners
- Best Day Trading Platforms
- Best Investment Apps
- Best Robo-Advisors
FAQ
- What are the cons of Facet Wealth?
- One drawback customers might have is that Facet Wealth's does have an annual fee, ranging from $2,000 and up to $6,000, depending on the level and complexity of service required, which could be pricey for some. Others might not feel comfortable handing over their portfolios to outside professionals without opportunities to meet in person, since all correspondence is done online.
- How does Facet Wealth work?
- Facet Wealth offers unlimited access to CFP professionals who manage portfolios in exchange for an annual fee. CFPs will create customized portfolios and provide guidance on matters such as retirement, estate planning, taxes and more. These services are included in the annual fees.
- Is Facet Wealth a fiduciary?
- Yes, all of Facet Wealth's CFP professionals are fiduciary advisors. They must adhere to the standards of the CFP Board to work in the best interests of their clients.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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