Facet Wealth 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 Wealth is hard to cubbyhole into just one specific category.
Facet Wealth 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 Wealth’s all-inclusive fee may seem high to some; for others, who may be used to paying an asset-based fee that’s a percentage of total assets, Facet Wealth’s fees may seem low. To help sort out whether or not Facet Wealth is a good option for you, here’s an overview of the products and services offered by the firm, including comparisons with other brokerages.
Facet Wealth gets credit for combining professional-grade financial advice in an online package. However, it’s primarily for the mid-level “mass affluent,” as its services may be too pricey for smaller investors and too hands-off for the wealthy.
|Equity Trades||$0 (annual fee between $600 and $6,000)|
|Account Minimum||$0 (none listed)|
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- About Facet Wealth
- Pros and Cons of Facet Wealth
- Facet Wealth at a Glance
- Individual Services Reviews
- What Facet Wealth Is Best For
- Where Facet Wealth Falls Short
- Current Promotions
- Comparison: Facet Wealth vs. Other Brokers
- Should You Invest With Facet Wealth?
When it comes to the world of wealth management, Facet Wealth is just a baby. Based in Baltimore, Maryland, the firm only came into existence in 2016. As of January 2020, Facet Wealth listed just 99 employees, with its primary $33 million investment coming from investment firm Warburg Pincus and venture capital firm Slow Ventures.
Facet Wealth is one of just a few online-based firms that provide CFP-based consultations. But like its competitors, it has both pros and cons.
- Portfolios professionally managed by CFPs
- Management fees based on level of service; assessed annually
- No account minimums
- $0 commissions (part of overall fee package)
- Costs and offered services not clearly outlined on website
- Can only interface with CFP advisors online or via web conferencing
Here’s a quick look at the features and benefits of Facet Wealth:
|Facet Wealth at a Glance|
|Account Minimum||$0 (none listed)|
|Stock Commission||$0 (part of annual fee)|
|Option Commission||$0 (part of annual fee)|
|Commission-Free ETFs||Unlimited (part of annual fee)|
|Zero-Transaction-Fee Mutual Funds||Unlimited (part of annual fee)|
|Investment Selection||Broad; at CFP professional’s discretion, unless clients choose to manage their own|
|Customer Service||Dedicated CFP professional available at nearly any time|
|News and Research||N/A (provided directly from CFP professional)|
|Miscellaneous Fees||N/A (part of annual fee)|
Facet Wealth isn’t like other most online brokerages that offer DIY trading and per-transaction or AUM fees. When it comes to individual services, most are provided by the company’s CFPs, including advice on when to buy or sell a stock. Here’s a breakdown of how Facet Wealth delivers its services to customers across various parameters.
As a full-service financial services firm that operates entirely online, Facet Wealth 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.
Facet Wealth doesn’t offer the traditional trading experience you might get with other online brokers, such as Fidelity or E-Trade. Facet Wealth, 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 Wealth 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.
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Facet Wealth has no account minimums.
All of the costs of managing your account are wrapped up into a single annual management fee at Facet Wealth. As such, you don’t have to worry about individual trading commissions or mutual fund expenses. This makes it harder to make an apples-to-apples comparison of trading costs with popular online trading firms.
As Facet Wealth doesn’t offer an online trading platform, it doesn’t have the same types of trading technology as online trading firms. All trades are executed at no additional charge by Facet Wealth’s CFP professionals.
Usability is in the eye of the beholder. For certain types of clients, Facet Wealth may seem not very usable at all, in the sense that there is no facility for online trading or other customizable interface for DIY traders. However, those who need the full services of a financial professional and don’t need or want a usable interface won’t mind.
As Facet Wealth isn’t a do-it-yourself platform, it doesn’t offer customers the traditional mobile trading app that other online brokers have.
Facet Wealth has a theoretically unlimited range of offerings and investment selection. Your CFP professional will work with you to determine the investments that best suit your needs and will develop a financial plan on your behalf, buying and selling various securities. That being said, Facet Wealth focuses on passive management, so you can anticipate that when it comes to investments, the firm will focus primarily on index funds, ETFs or both.
Perhaps it’s best to think of Facet Wealth more as a full-service financial provider rather than just an asset manager. In addition to investments, Facet Wealth’s CFP professionals can assist you with everything from company stock option plans and 401(k) plans to IRAs and employee benefits. You can even link your outside accounts with Facet Wealth so that the firm can better manage your overall client experience. Facet Wealth has the capability to directly manage accounts at four investment firms: Charles Schwab, TD Ameritrade, Pershing and Fidelity.
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Facet Wealth isn’t set up as an online dispenser of financial education and information. If you’re looking for daily news on the latest hot stock, for example, you’ll have to look elsewhere. Similarly, although Facet Wealth specializes in providing information about retirement planning, employee stock options, investment options and the like, it offers this information firsthand from a CFP professional — not through a link on a website. For hands-on access to online information, you’ll want to use other sites as a supplement to the comprehensive financial planning offered by a Facet Wealth advisor.
Facet Wealth 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 Wealth, 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.
Facet Wealth uses industry-standard security measures to keep client data safe. Data always belongs to clients and is hosted on servers using Amazon Web Services. Whether the data is in-transit or at-rest, Facet Wealth uses encryption to protect it.
Costs are hard to pin down with Facet Wealth. On the one hand, all you’ll ever pay is your annual fee, which can run between $480 and $5,000. On the other hand, costs aren’t quite as clearly defined as with other online brokerages, which charge a set fee per transaction or an annual fee based on the amount of assets you hold at the firm. You won’t know the specific fees you’ll pay until you actually meet with your Facet Wealth advisor. For example, clients requiring a “more extensive relationship” will likely be charged a commensurately higher fee.
Facet Wealth maintains that their “pay-as-you-go” style matches client costs with the level of service they need, rather than how many transactions they make or how many assets they hold.
Facet Wealth is best for the following features:
- Customer service
- Range of offerings and investment selection
- Commissions and fund expenses
Note that your broad range of investment choices are in the hands of your CFP advisor and are not ones that you can pick from via an online trading platform. Note also that your commissions and fund expenses are covered by your annual fee, which depending on your perspective, may be high or low. If you’re a very active trader, this fee may seem quite low. But if you never trade your own portfolio and don’t need much advice, the fee may seem high.
Here’s where Facet Wealth comes up short compared with some other brokers:
- Mobile and emerging technologies
- Trading experience
- News and research
Bear in mind that it’s hard to make an apples-to-apples comparison to other online brokers in these areas because your CFP professional will handle your actual trading and is your primary source of news and research.
Facet Wealth doesn’t currently offer any sign-up bonuses or promotions.
Facet Wealth 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|
|Personal Capital||$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 Wealth. Betterment and Schwab, for example, operate robo-advisor services with a CFP overlay and do not provide clients with a dedicated CFP, like Facet Wealth. Personal Capital 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.
If you’re a do-it-yourself trader, Facet Wealth isn’t the best option for you. The firm is most like a traditional, full-service firm wrapped in an online brokerage package. Facet Wealth 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 Wealth 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 Wealth 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.
Overall, Facet Wealth 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.
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Information is accurate as of Dec. 3, 2019; commission rates are accurate as of Jan. 17, 2020. This content is not provided by Interactive Brokers. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by Interactive Brokers. This site may be compensated through the bank advertiser Affiliate Program.