Facet Review

Pros and Cons of Facet

Types of Clients

Facet only offers its advisory services to individual retail clients. The firm requires one to invest $500 to open an account. Between this and the company’s commitment to providing advice solely online, it’s accessible to a range of clients, especially beginners.

In addition to the account minimum, clients are also responsible for paying an advisory and enrollment fee, which we’ll expand upon later. Contrary to many other firms that offer discretionary services, each member pays a non-refundable flat rate that depends on what services are being offered.

Financial Advisor Services

By enrolling as a member with Facet, you’ll gain access to many advisory services. Chief among those is comprehensive planning, which will determine what other services, such as investment management or retirement planning, you need. During your sign-up, the firm will ask you specific questions about your current situation, goals, and risk tolerance.

Once Facet understands your preferences and needs as a client, it’ll make recommendations for services you may require. Additionally, according to the firm’s Form ADV Brochure 2A, it’ll draft a client relationship agreement that outlines what services it’s providing you and how much it’ll cost.

As mentioned, the services you receive from Facet are largely based on the information you provide. However, the specific solutions the firm may offer you include:

• Comprehensive financial planning
• Portfolio management
• Risk management
• Cash flow planning (i.e., budgeting)
• Debt management
• Employee benefits planning
• Retirement planning
• Estate planning
• Small business planning
• Income tax planning

Keep in mind that, while it isn’t its main focus, Facet offers investment management. The firm provides this service on a discretionary basis, meaning it has the authority to buy and sell securities on your behalf.

Advisor Certifications

Per Facet, all of its advisors carry the CFP designation. These experts must pass a series of rigorous requirements, such as education prerequisites and an exam. CFPs are also held to a fiduciary duty at all times.

Fee Structure and Cost

Facet provides its services in exchange for a flat fee, as well as a one-time $250 enrollment fee. According to the firm’s Form ADV Part 2A, one can expect an annual advisory fee of $2,400 to $8,000. The exact amount is dependent on the services a given client receives and is initially agreed upon in the client relationship agreement.

Unlike other firms, Facet’s fee structure is not dependent on assets under management (AUM). It also doesn’t have a wrap fee program for clients to participate in. Finally, due to its commitment to a fiduciary duty, advisors don’t collect a commission for products or services they recommend.

Investment Philosophy

Facet builds its investment philosophy around each client’s needs and goals. For this reason, the firm asks you to provide this information as you begin working with an advisor. Additionally, the company strongly believes in providing “unbiased” investment advice, doing so by only utilizing CFPs as its advisors.

For the most part, the firm invests in low-cost exchange-traded funds (ETFs) to reach its clients’ target asset allocation. This depends on the risk tolerance you initially provide, ranging from conservative to aggressive.

Despite Facet mainly tailoring its investment philosophy to each client, it does implement specific methods of analysis to guide its advisors. According to its Form ADV Brochure 2A, Facet’s financial advisors analyze a given security using these strategies:

• Fundamental. With this method, advisors take an in-depth look at current and past data to make informed decisions for the future performance of a security. While there’s no promise of improved future performance, this approach can help an expert chart a trend and look at historical implications.
• Technical. Much like the previous strategy, this method takes both current and past data into account. In this case, however, the purpose is to predict future prices and trade volume.
• Cyclical. This strategy involves looking at past trends in market prices to develop an understanding of how they may change in the future.

Disclosures

Facet Wealth, Inc. operates as an RIA with the SEC. This status requires the firm to file an annual Form ADV, which is available to the public at any time through the SEC’s Investment Adviser Public Disclosure database (IAPD). On this document, RIAs must report any disclosures, which refer to conflicts of interest or disciplinary actions involving a company or its representatives.

According to its most recent Form ADV, Facet has no disclosures to report. Because it’s common for a large RIA to have at least one, this is a fantastic sign for the firm.

Customer Service and Becoming a Client

If you have a question, need to report a complaint, or contact Facet for any other reason, you can do so by:

• Calling (443) 376-6222, Monday-Friday, 9 am-5 pm EST
• Emailing info@facet.com
• Mailing the company at 100 International Drive, 23rd Floor, Baltimore, MD 21202

On the other hand, if you’re looking to start working with Facet, you have two different options. For those looking to go online, you can visit the firm’s website and fill out its form to schedule a free initial consultation. Alternatively, you can call (888) 321-5782 to make an appointment with an advisor. Be aware that all consultations are online, rather than in-person.

Tips for Choosing a Financial Advisor Firm

Choosing a financial advisor firm to work with is an important decision. However, it can be difficult to know which firm is the best for your goals and needs. To find the right fit, it’s critical to understand what services a company has to offer, as well as whether they align with your needs. For instance, if you need to develop a comprehensive financial plan, it may not make sense to hire an investment management firm.

It’s important to know how much money you’ll need to open an account. Financial planning firms, such as Facet, often require significantly less than investment management firms. You should also pay close attention to a company’s fee structure. Some may charge a flat fee for the services they provide, while others build their costs around an AUM percentage.

If you need help finding a firm that suits your needs, we recommend using this free matching tool. After you fill out a short questionnaire about your financial situation and preferences, it’ll match you with a fiduciary in your area.

Methodology

This review is based on publicly available information directly from Facet’s website and the SEC. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Is Facet good?

Facet is a relatively low barrier-to-entry option that offers holistic financial planning. This makes the firm ideal for beginners or those looking to create a financial plan at an affordable cost. Additionally, the firm operates exclusively online, making it accessible to clients all over the country.

Conversely, if you’re looking for an investment management solution, understand that Facet mainly offers it in conjunction with its financial planning service. And, according to its Form ADV Brochure 2A, its portfolio management services don’t come via a wrap fee structure. This may make it less than ideal for some investors.

How much does it cost to join Facet Wealth?

To sign up as a Facet member, you need to pay an initial $250, as well as invest at least $500. You’ll also need to pay an annual flat fee of $2,400 to $8,000, depending on the extent of the services you receive.

Is Facet a fiduciary?

Facet Wealth, Inc. is registered with the SEC as an investment advisor. This requires it and all of its representatives to adhere to a fiduciary duty while it conducts its advisory business.