I Hired Facet Wealth to Evaluate Our Finances--Here's What Happened

Summary

In this video, the presenter shares his experience with Facet Wealth, a financial planning and investment management firm. He discusses their flat-fee pricing model, services including financial planning and investment management, and his interactions with CFPs. The presenter reviews Facet's investment portfolio strategies, tax loss harvesting, and rebalancing approaches. He points out areas for improvement, such as Roth conversion analysis and Social Security claiming strategy, but overall has a positive experience and considers Facet Wealth a cost-effective option worth considering for financial planning and investment management.

Takeaways

• 😀 The speaker hired Facet Wealth for a comprehensive family finance review, including investments, with the intention of recommending them to his wife for future financial guidance.
• 📈 Facet Wealth is a financial planning firm and registered investment adviser, launched in 2016, currently managing around three and a half billion dollars in assets.
• 💼 They offer both financial planning and investment management services, including rebalancing and tax loss harvesting, with a flat fee structure and no asset under management charges.
• 💵 The fee for their services ranges from $2,000 to $6,000, with the higher tiers offering more personalized service, additional virtual sessions, and estate planning.
• 🔗 Facet Wealth requires clients to connect their investment and banking accounts to their platform for comprehensive financial evaluation.
• 🤔 The speaker experienced an issue with the initial financial planner leaving the firm, which led to a new CFP being assigned, but overall found the CFPs to be knowledgeable and professional.
• 📉 Facet Wealth provided three financial scenarios for the speaker to choose from, but none were a perfect fit, indicating some limitations in their scenario customization.
• 💼 The speaker was disappointed with Facet Wealth's lack of detailed planning for Roth conversions and Social Security claiming strategies.
• 🌐 Their investment portfolios are heavily based on low-cost index ETFs, with a strategy that aims to match the market rather than beat it, which the speaker found reasonable.
• 📊 Facet Wealth's portfolios consider asset location and tax consequences, adapting their strategies for different account types such as taxable and retirement accounts.
• 🔄 They offer a capital gains budgeting service to manage the transition of non-Facet investments into their portfolio in a tax-efficient manner.

Q & A

What services does Facet Wealth offer?

Facet Wealth offers both financial planning and investment management services. They provide guidance on personal finances, manage investments including rebalancing and tax loss harvesting, and have a digital platform to connect and manage various financial accounts.

How does Facet Wealth's fee structure work?

Facet Wealth charges a flat fee for their services with no separate fee for investment management. The fees vary based on the plan chosen: $2,000 for the Core plan, $3,000 for the Plus plan, and $6,000 for the Complete plan, which includes a dedicated CFP and estate planning.

What is the difference between the Core and Plus plans offered by Facet Wealth?

The Core plan offers three virtual sessions in the first year and one session per year thereafter, while the Plus plan includes an extra virtual session in the first year and two sessions starting in the second year. Additionally, the Plus plan provides access to a small team of CFPs for more consistency and includes estate planning services.

How does Facet Wealth handle investment management?

Facet Wealth takes over the management of investments, performing tasks like rebalancing and tax loss harvesting. They use a variety of low-cost index ETFs and consider factors like asset location for different account types, such as taxable and retirement accounts.

What was the experience like when the initial CFP left Facet Wealth?

The client had an initial meeting with a CFP who seemed knowledgeable and professional, but a week later, they were informed that the CFP had left the firm. Facet Wealth then assigned a new CFP who was also professional and knowledgeable, ensuring a smooth transition.

How does Facet Wealth approach financial planning for retirement?

Facet Wealth creates scenarios based on client discussions to determine factors like annual retirement spending and saving for goals like education or home purchases. However, the client experienced some frustration as the scenarios provided were not exactly what they wanted and could not be easily adjusted within the system.

What are the client's thoughts on Facet Wealth's investment portfolio?

The client found the investment portfolio reasonable, noting that it consists of low-cost index ETFs and is well-diversified. They also appreciated the consideration of tax consequences through asset location strategies.

What are the client's views on Facet Wealth's approach to Roth conversions and Social Security claiming?

The client felt that Facet Wealth could improve its analysis and guidance on Roth conversions and Social Security claiming strategies. They expected more detailed recommendations in these areas, which are important for retirement planning.

How does Facet Wealth compare to other financial planning and investment management firms?

Facet Wealth is praised for its lower-cost fee structure compared to traditional firms that charge a percentage of assets under management. The client found their portfolio management reasonable and their services worth considering, especially for those looking for a more cost-effective approach.

What is the client's final recommendation regarding Facet Wealth?

The client had a positive experience with Facet Wealth and recommends the company for consideration, particularly for those who value a cost-effective approach to financial planning and investment management. However, they suggest that potential clients consider their specific needs, such as the importance of detailed advice on Roth conversions and Social Security claiming.