Facet review September 2023

What we think of Facet Financial Planning

Facet is a straightforward way to get help from a Certified Financial Planner (CFP), a fee-only planner who isn’t paid to recommend specific products. As a member, you get a dedicated CFP — who are all fiduciaries obligated to act in your best interest — and fees depend solely on the complexity of your finances and planning needs.

Customers also have the option of receiving guidance on assets they wish to hold on their own — for instance, an existing individual retirement account (IRA) you wish to keep with your broker — or transferring assets to Facet. But Facet only works with exchange-traded funds (ETFs). This means transferring your assets could result in the liquidation of your positions, with a new portfolio built entirely of ETFs.

How does Facet approach investing?

Facet uses a personalized approach to help customers work toward their financial goals. Its strategy can be broken down into five steps:

1. Introduction. Visit the Facet website to schedule a 30-minute introductory call.
2. Sign up. Provide your income information, assets, risk tolerance, financial goals and other details.
3. Match. Facet will match you with a dedicated certified financial planner (CFP).
4. Plan. Your CFP helps you develop a plan to reach your financial goals.
5. Manage. Your adviser provides ongoing management of your investments and assets and offers advice when you need it.

What should I expect when meeting with my financial planner?

After your introductory call, Facet matches you with one of its CFPs. Before your first meeting, you’ll receive an introductory packet and login credentials to Facet’s online questionnaire. Your Facet CFP will use the information you provide to tailor your planning experience.

Meetings with your CFP can be held in the daytime or evening and are conducted by phone or videoconferencing — whichever you prefer. Facet suggests that during the first year, their members tend to meet more frequently with their adviser, but that there’s no predetermined number of required meetings. You’re free to meet with your adviser as frequently or infrequently as you’d like.

What financial services does Facet offer?

Here’s a breakdown of Facet’s financial services:

• Dedicated CFP. A personal CFP can speak to you over the phone or via videoconference to help you meet various financial goals
• Wealth planning blueprint. Design your own personal financial plan complete with one-page plans for individual goals.
• Lifestyle and expense planning. Plan for the future of your family by factoring in potential expenses.
• Debt management. Tackle outstanding debt by creating a debt management plan.
• Portfolio management. Build a personalized investment portfolio designed to cater to both your short- and long-term financial goals.
• Investment management. Learn how to construct and diversify your investment portfolio to better manage your assets.
• Retirement planning. Outline your retirement goals alongside your CFP and create an action plan to utilize going forward.
• Tax planning. Minimize the impact of taxes while keeping your financial goals in sight.
• Estate planning. Take care of your loved ones after your death by drawing up an estate plan with the help of your CFP and personal attorney.
• Retirement income. Track your retirement income and create a distribution plan from your savings.
• Trust and legacy planning. Structure your finances to provide for future generations and preferred charities in your absence.

What investments does Facet offer?

Facet only offers management of ETFs, according to a Facet CFP that we spoke with. So regardless if you transfer assets from another account or construct an entirely new portfolio with Facet, expect a portfolio of only ETFs. They told us they choose from both domestic and international ETFs and will construct a diverse portfolio based on the member’s goals and risk tolerance. Investments are monitored daily, and Facet will perform any necessary rebalancing.

Assets you can transfer to Facet include IRAs and assets from taxable brokerage accounts. While you can’t transfer a 401(k) to Facet, they will still provide rebalancing recommendations and guidance on these accounts.

Facet Financial Planning fees

Facet charges flat fees for its services that range from $1,800 to $6,000 a year depending on the complexity of your financial plan, according to the company’s website and the Facet CFP we spoke with. The lower end of that price range would apply to a single person with straightforward planning needs, while the higher price would apply to someone with complex finances, such as a business owner or someone with numerous rental properties, the CFP told us. Most families can expect to pay around $2,400 a year.

But the company’s Form ADV, which was filed as recently as April 14, 2022, shows a price range of $1,800 to $8,000 a year. Because of this discrepancy, we recommend calling and speaking with a CFP regarding your specific needs to get the most accurate price.Facet also offers a discount if you pay the fee up front for the year, which comes out to two months of free planning. So instead of $2,400, you could pay $2,000 by paying in full for the year. Note that this is nonrefundable. You also have the option of paying quarterly, but there’s no discount for this option.

Pros and cons

Facet Financial Planning reviews and complaints

Though Facet has been around since 2016, there aren’t many customer reviews across the major review sites. As of April 2022, it has an unclaimed profile on Trustpilot with one 5-star review and its Better Business Bureau page has only four complaints. Most complaints report issues with getting a fee refund after closing their account.

The good news is that Facet has no Consumer Financial Protection Bureau complaints, and it’s registered with the Securities and Exchange Commission.

How do I get started?

Facet requires a phone call to apply for financial planning, but you can get started online:

1. Visit the Facet website and choose Get Started.
2. Select a date to schedule a phone call with an adviser.
3. Get matched with a CFP who will complete a free financial review.
4. Start the application process if you’re satisfied with the service, which your CFP will walk you through.
5. Provide all requested information and submit your application.

Required information

Facet‘s services are only available to US residents who are at least 18 years old. To open an account, you need to provide the following information:

• Name, date of birth and address
• Contact information such as email and phone number
• Social Security number
• Employment information
• State-issued identification

To create an accurate financial strategy, you may be asked for more details such as:

• Risk tolerance.
• Investment goals.
• Debt statements.
• Balance sheet of current assets.

Bottom line

Facet‘s transparent, flat-fee schedule means there are no surprises when it comes time to pay your adviser. However, it’s only been in business since 2016. If you’re looking for a more established financial planner, compare other financial planning options to see what else is out there.

Compare Facet to other platforms

Frequently asked questions

Which Facet plans include life insurance?Facet‘s plans don’t include life insurance. However, the company also sells insurance, so it may be recommended as part of your financial plan.

What is a fiduciary?
A fiduciary is a person legally responsible for another person’s assets. In this case, your CFP has a fiduciary responsibility to make financial decisions that would benefit you.

How do I cancel my Facet policy?
Contact your CFP and ask to cancel your policy. They will then walk you through the steps. There are no cancellation fees when you cancel a policy.

How do I meet with my adviser?
Your dedicated CFP can be available by phone or video call.

What is a Certified Financial Planner (CFP)?
A Certified Financial Planner is a professional designation awarded by the Certified Financial Planner Board of Standards. Financial planners attain this designation by meeting the CFP Board’s criteria, which include formal education, work experience, professional ethics and successfully passing the CFP Board’s exams.