Facet Wealth charges a flat annual subscription fee ranging from $2,100 to $8,700 per year, depending on your financial complexity and service level. Unlike traditional advisors who charge a percentage of your assets under management, Facet operates on a tiered membership model where your fee stays fixed regardless of portfolio growth. The Investment Advisers Act of 1940 Section 206 requires all SEC-registered investment advisers to disclose their fee structure and act as fiduciaries, putting client interests first. This federal statute creates the obligation that advisers must provide full and fair disclosure of compensation arrangements, and the negative consequence of violating this duty includes SEC enforcement actions, disgorgement of fees, and civil penalties.
According to 2025 industry data from Envestnet published in The Wall Street Journal, the average flat fee charged by financial advisors is $2,554 annually. Facet’s pricing structure reflects a growing trend where approximately 70% of investors with portfolios exceeding $500,000 pay less in total fees under a flat model compared to the traditional 1% assets under management approach over a 20-year period.
What you will learn:
🎯 The exact cost breakdown of each Facet membership tier and what services you receive at every level
💰 Real-world examples showing when Facet saves you money versus traditional advisors and robo-advisors
📊 The break-even point where flat fees become more cost-effective than percentage-based pricing
⚠️ Critical mistakes that cost clients thousands in hidden fees and how to avoid them
🔍 Regulatory requirements that protect you and red flags that signal unfair pricing practices
The Federal Framework Governing Financial Advisor Fee Disclosure
The Securities and Exchange Commission enforces strict rules under the Investment Advisers Act requiring advisers to disclose all material facts about their compensation. Form ADV Part 2A serves as the primary disclosure document that every registered investment adviser must file and provide to clients. This document must detail the range of fees charged, billing practices, and any conflicts of interest related to compensation.
When advisers fail to adequately disclose fee structures or conflicts of interest, they breach their fiduciary duty to clients. The SEC has brought numerous enforcement actions against advisers for misleading fee disclosures, with penalties ranging from hundreds of thousands to millions of dollars. In 2025 alone, the SEC charged multiple firms for failing to disclose that converting client accounts to higher-fee structures benefited the adviser financially while providing no additional client value, according to Vedder Price legal analysis.
Facet Wealth operates as an SEC-registered investment adviser headquartered in Baltimore, Maryland. All Facet advisors hold the Certified Financial Planner designation and operate under fiduciary standards at all times. Their Form ADV Part 2A explicitly states that membership fees range from $100 to $9,000 annually on a flat subscription basis, though current active tiers range from $2,100 to $8,700.
The North American Securities Administrators Association requires state-registered advisers to provide clear fee disclosures in both the advisory contract and regulatory filings. This dual disclosure requirement ensures clients understand exactly what they will pay before engaging services. Advisers must disclose not only the base fee but also any additional charges, enrollment fees, or billing practices that could increase total costs.
Breaking Down Facet Wealth’s Three-Tier Pricing Structure
Facet offers three primary membership levels with escalating services and advisor access. Each tier includes investment management with no additional assets under management fees, which distinguishes Facet from traditional wealth management firms. The company manages more than $5 billion in assets for over 24,000 members as of 2025.
Core Membership: $2,100 Annually
The Core tier provides foundational financial planning for individuals with straightforward financial situations. Members receive access to any Certified Financial Planner professional on the Facet team rather than a dedicated advisor. This tier includes three virtual planning meetings during the first year and one meeting per year thereafter.
Core members can communicate with their assigned CFP through unlimited messaging during standard business hours from 9:00 AM to 5:00 PM Eastern Time. The service covers cashflow and debt management, investment management with automatic rebalancing, retirement planning, insurance reviews, and education funding strategies. Investment portfolios consist of low-cost ETFs with an average expense ratio of 0.08%, significantly below the 0.5% to 1.0% charged by actively managed mutual funds.
This tier works best for younger professionals or those with simpler financial lives who need guidance on building wealth systematically. However, Core members do not receive dedicated estate planning documents or advanced tax filing support. If your financial situation becomes more complex, you can upgrade to a higher tier at the start of your next billing cycle.
Plus Membership: $3,300 Annually
The Plus tier targets mid-career professionals with more complex financial needs including equity compensation, rental properties, or multiple income streams, according to Unbiased’s review. Members receive support from a dedicated team of CFP professionals rather than rotating advisors. The team approach ensures continuity even if one advisor leaves the firm.
Plus members receive three planning meetings in the first year and two meetings annually thereafter. Extended customer service hours run from 9:00 AM to 8:00 PM Eastern Time on weekdays. This tier adds equity compensation and stock option planning, which proves valuable for employees at publicly traded companies or startups with restricted stock units or employee stock purchase plans.
Tax planning receives enhanced attention at this level. Plus members gain access to tax review services and can purchase tax preparation and filing as an add-on service through Facet’s partnership with April tax platform, as reported by Wealth Management. The service includes federal and state tax preparation with expert review, though a certified tax professional does not handle the entire return unless you upgrade to Complete.
Alternative investments become accessible at the Plus tier. Members can explore private market investments and alternative income strategies beyond traditional stocks and bonds. This diversification helps reduce correlation to public market volatility.
Complete Membership: $6,600 Annually
Complete represents Facet’s premium tier designed for high-net-worth individuals and those with intricate financial situations, as detailed in Unbiased’s comprehensive analysis. Members receive a dedicated Certified Financial Planner who serves as the primary point of contact. This one-on-one relationship allows deeper understanding of your specific circumstances and goals.
The service includes four virtual planning meetings during the first year and up to four meetings annually in subsequent years. Extended hours run from 7:00 AM to 8:00 PM Eastern Time with select after-hours availability by appointment. Priority support ensures faster response times for urgent questions or time-sensitive decisions.
Complete members receive comprehensive estate planning at no additional cost. This includes preparation of wills, trusts, powers of attorney, and healthcare directives through Facet’s partnership with Wealth.com. Estate planning documents alone cost $2,000 for the first year and $300 annually if purchased separately by Core or Plus members, according to Business Insider, making Complete tier cost-effective if you need these services.
Advanced tax strategies distinguish this tier from lower levels. A certified tax professional can handle your entire tax return preparation and filing. The service includes strategic tax planning such as Roth conversion analysis, tax-loss harvesting coordination, and multi-year tax projection modeling. Members with equity compensation receive annual access to an equity compensation planning specialist for restricted stock units, non-qualified stock options, and performance shares.
Direct indexing becomes available for Complete members with portfolios exceeding $200,000, as noted in NerdWallet’s Facet review. This strategy replicates a stock index like the S&P 500 by purchasing individual stocks rather than an ETF. Direct indexing enables more tax-loss harvesting opportunities and allows customization such as excluding specific companies or sectors. Facet charges an additional 0.15% annual fee on assets held in direct indexing portfolios.
The Enrollment Fee and Payment Timing Structure
Facet charges a $250 enrollment fee for members who select quarterly billing instead of annual payment, as disclosed in Form ADV Part 2A. This one-time fee applies only to Core, Plus, and Complete tiers. The enrollment fee does not apply if you pay your full annual membership fee upfront.
The fee structure creates a financial incentive for Facet to encourage annual payment over quarterly installments. By receiving the full annual fee upfront, Facet improves cash flow and reduces administrative costs associated with processing multiple payments. The Form ADV Part 2A explicitly discloses this practice and acknowledges that it financially benefits the firm while de-incentivizing clients from choosing quarterly payments.
All membership fees are non-refundable once paid. If you cancel your membership mid-year, you cannot receive a prorated refund for unused months. This policy applies regardless of whether you paid annually or quarterly. However, you retain full access to your advisor and all membership benefits through the end of your paid period.
Facet bills fees in advance rather than in arrears. When you sign up, you pay for the upcoming service period before receiving any planning sessions. For quarterly billing, you pay at the beginning of each quarter for the next three months of service. This advance billing structure represents standard industry practice among subscription-based financial planning firms.
Members can pay fees through credit card or have them deducted directly from their managed investment account at Facet. Custodians like Fidelity and Apex that hold Facet member accounts may charge separate account fees, though these are typically minimal. The average custodian fee ranges from $0 to $50 annually for basic account maintenance.
Historical Fee Changes and Grandfather Provisions
Facet has raised its fees multiple times since its founding, according to NerdWallet’s historical tracking. In February 2021, the planning fee range was $1,200 to $15,000 annually. By November 2022, this shifted to $2,000 to $8,000. The current range of $2,100 to $8,700 represents an increase implemented in 2025.
The company previously offered a Foundations tier priced at $1,000 annually with minimal services. This entry-level tier has been discontinued for new members, though existing Foundations members may continue at grandfathered rates. The elimination of lower-priced tiers reflects Facet’s strategic shift toward serving clients with more substantial planning needs.
Existing customers typically receive grandfathered pricing when Facet raises fees. If you joined at $2,000 annually under the old Core pricing, you may continue paying that rate even after new members face the $2,100 fee. However, if you change membership tiers or cancel and rejoin, you lose grandfather protection and pay current rates.
Fee range updates appear in Form ADV amendments filed with the SEC. The November 2022 update disclosed the current negotiable range of $2,000 to $8,000 and noted the discontinuation of semi-annual billing. Previous amendments in March 2021 and February 2021 documented earlier fee adjustments and the removal of monthly billing options except for the discontinued Foundations tier.
Real Cost Examples Across Different Portfolio Sizes
Understanding how Facet’s flat fee translates into an equivalent percentage helps compare costs with traditional advisors. The percentage equivalent equals the annual fee divided by your total investable assets. As your portfolio grows, this percentage decreases substantially.
Core Tier Percentage Equivalents
| Portfolio Size | Annual Cost as Percentage |
|---|---|
| $100,000 | 2.10% |
| $250,000 | 0.84% |
| $500,000 | 0.42% |
| $1,000,000 | 0.21% |
| $2,000,000 | 0.11% |
Plus Tier Percentage Equivalents
| Portfolio Size | Annual Cost as Percentage |
|---|---|
| $100,000 | 3.30% |
| $250,000 | 1.32% |
| $500,000 | 0.66% |
| $1,000,000 | 0.33% |
| $2,000,000 | 0.17% |
For Complete tier members paying $6,600 annually, the percentage equivalent ranges from 6.6% on a $100,000 portfolio down to 0.33% on a $2,000,000 portfolio. These calculations demonstrate that flat fees become increasingly attractive as portfolio size grows, particularly for high-net-worth individuals, according to SmartAsset’s fee analysis.
Example 1: Young Professional with $150,000 Portfolio
Sarah, age 32, works as a software engineer earning $120,000 annually. She has accumulated $150,000 across her 401(k), Roth IRA, and taxable brokerage account. Sarah receives stock options from her employer and wants guidance on exercising them tax-efficiently.
With Facet’s Plus tier at $3,300 annually, Sarah pays the equivalent of 2.2% of her portfolio. A traditional advisor charging 1% AUM would cost her $1,500 in the first year, according to Alden Investment Group’s comparison, making the traditional model cheaper initially. However, Sarah’s employer contributes $18,000 annually to her 401(k) through matching and profit sharing, plus she saves an additional $15,000 per year.
If Sarah’s portfolio grows to $400,000 over five years through contributions and 7% annual returns, her Facet fee remains $3,300 annually. The traditional 1% AUM advisor would charge $4,000 in year five, surpassing Facet’s cost. Over the five-year period, Sarah pays $16,500 to Facet versus approximately $16,250 to the AUM advisor, nearly breaking even.
The Plus tier provides Sarah equity compensation planning worth thousands in tax savings. She receives guidance on the optimal timing to exercise incentive stock options, avoiding an alternative minimum tax trap that could cost $8,000. This single tax strategy justifies multiple years of membership fees.
Example 2: Mid-Career Couple with $750,000 Portfolio
Michael and Jennifer, both age 45, have accumulated $750,000 in retirement accounts and taxable investments. Michael works as a marketing director while Jennifer operates a consulting business as an independent contractor. They have two children ages 12 and 14 and need education funding strategies.
At Facet’s Plus tier costing $3,300 annually, they pay 0.44% of their portfolio. A traditional advisor charging 1% would cost $7,500 per year. The couple save $4,200 annually with Facet’s flat fee structure, as calculated using Kitces fee comparison methodology.
Over 20 years until retirement at age 65, assuming 6% annual returns and $40,000 in combined annual contributions, their portfolio grows to approximately $2.8 million. Total fees paid to Facet over 20 years equal $66,000. A 1% AUM advisor would charge approximately $290,000 over the same period, creating a $224,000 difference.
This $224,000 fee savings compounds significantly. If invested at 6% annually, it grows to approximately $436,000 by retirement. The difference exceeds their original starting portfolio value. This example illustrates why flat fees prove advantageous for mid-career professionals expecting substantial portfolio growth.
Example 3: Retiree with $2,500,000 Portfolio
Robert, age 68, recently retired with $2.5 million in investment accounts. He needs comprehensive retirement income planning, estate planning, and tax-efficient withdrawal strategies. His financial situation involves required minimum distributions from traditional IRAs, Social Security optimization, and coordinating withdrawals to minimize Medicare premium surcharges.
Robert selects Facet’s Complete tier at $6,600 annually, paying just 0.26% of his portfolio. A traditional advisor charging 0.85% for accounts over $2 million would cost $21,250 annually. Robert saves $14,650 every year with the flat fee structure, according to District Capital Management analysis.
Over a 25-year retirement period, Robert pays $165,000 in total fees to Facet. The 0.85% AUM advisor would charge approximately $722,000, assuming 4% annual portfolio growth and $80,000 in annual withdrawals. The $557,000 in fee savings represents money that remains invested for Robert’s legacy or discretionary spending.
The Complete tier includes comprehensive estate planning documents at no additional charge. Purchasing these documents separately would cost $2,000 initially plus $300 annually, totaling $9,200 over 25 years. Robert also receives advanced tax strategies including Roth conversion planning and qualified charitable distribution optimization that reduce his lifetime tax bill by an estimated $45,000.
Comparing Facet Costs to Robo-Advisors and Traditional Firms
Robo-advisors like Betterment and Wealthfront charge 0.25% annually for automated portfolio management, according to NerdWallet’s robo-advisor comparison. On a $500,000 portfolio, this equals $1,250 per year. Facet’s Core tier at $2,100 costs $850 more annually but includes access to Certified Financial Planners and comprehensive financial planning beyond just investment management.
Betterment offers a Premium tier charging 0.65% annually with unlimited access to human financial advisors. On a $500,000 portfolio, Premium costs $3,250 annually, exceeding Facet’s Core tier by $1,150. However, Betterment has a $100,000 minimum for Premium, while Facet requires no minimum except $500 to manage investments.
Wealthfront charges 0.25% with a $500 minimum to start but provides no human advisor access, as detailed in Unbiased’s robo-advisor analysis. All guidance comes through automated tools and software. For investors comfortable with technology who need minimal human interaction, Wealthfront offers the lowest cost option. For those requiring personalized advice on complex topics like equity compensation, tax planning, or estate strategies, Facet provides substantially more value despite higher costs.
Traditional wealth management firms typically charge 1% on the first $1 million, 0.75% on assets between $1 million and $5 million, and 0.50% above $5 million. On a $1 million portfolio, a traditional advisor costs $10,000 annually. Facet’s Complete tier at $6,600 saves $3,400 annually, according to The Wall Street Journal, and the savings increase substantially as the portfolio grows.
Vanguard Personal Advisor Services charges 0.30% with a $50,000 minimum. On a $500,000 portfolio, Vanguard costs $1,500 annually. This represents the lowest cost option for comprehensive hybrid advisory services combining human advisors with robo-automation. However, Vanguard advisors typically manage hundreds of clients, providing less personalized attention than Facet’s dedicated CFP model.
Robo-Advisor Cost Comparison
| Service | Fee Structure |
|---|---|
| Facet Core | $2,100 flat fee (0.42% on $500K) |
| Facet Plus | $3,300 flat fee (0.66% on $500K) |
| Betterment Premium | 0.65% AUM ($3,250 on $500K) |
| Wealthfront | 0.25% AUM ($1,250 on $500K) |
| Vanguard Personal | 0.30% AUM ($1,500 on $500K) |
| Traditional Firm | 1.00% AUM ($5,000 on $500K) |
Service Features Comparison
| Service | Human Advisor Access |
|---|---|
| Facet Core | Yes – CFP access |
| Facet Plus | Yes – dedicated team |
| Betterment Premium | Yes – unlimited CFP |
| Wealthfront | No – automated only |
| Vanguard Personal | Yes – shared advisors |
| Traditional Firm | Yes – dedicated advisor |
The Break-Even Analysis for Flat Fees
The break-even point represents the portfolio size where Facet’s flat fee equals what you would pay under a percentage-based model. This calculation helps determine whether flat fees save money based on your current assets and expected growth trajectory.
For Core tier at $2,100 annually, the break-even point against a 1% AUM fee occurs at $210,000 in assets. Below this amount, the 1% model costs less. Above this threshold, Facet’s flat fee provides savings that increase with every dollar of portfolio growth.
For Plus tier at $3,300 annually, the break-even point sits at $330,000 against a 1% fee. For Complete tier at $6,600 annually, break-even occurs at $660,000. These thresholds represent the minimum portfolio sizes where the flat fee model begins delivering cost advantages.
The calculation becomes more complex when considering portfolio growth over time, as explained in AdvisorFinder’s fee calculator. A 35-year-old with $250,000 currently may prefer the 1% model at $2,500 annually versus Facet Plus at $3,300. However, if contributions and growth increase the portfolio to $1 million within 10 years, the cumulative fees tell a different story.
Over the 10-year period, Facet Plus costs $33,000 in total fees. The 1% AUM advisor charges fees that start at $2,500 and increase annually as the portfolio grows, totaling approximately $52,000. The $19,000 difference represents real dollars that remain invested in your account rather than paid to the advisor.
A portfolio growing from $500,000 to $2 million over 20 years with 6% returns and $30,000 annual contributions illustrates dramatic long-term differences. Facet Complete at $6,600 annually costs $132,000 total. A 1% AUM advisor charges approximately $256,000 over the same period. The $124,000 in savings, if invested at 6%, grows to $242,000 by year 20.
Fee Deductibility and Tax Treatment Considerations
The Tax Cuts and Jobs Act of 2017 eliminated the federal income tax deduction for investment advisory fees for individual taxpayers, according to Unbiased tax guidance. Prior to 2018, individuals could deduct these fees as miscellaneous itemized deductions if they exceeded 2% of adjusted gross income.
This elimination applies through tax year 2025 when TCJA provisions expire unless Congress extends them. Investment advisory fees paid from personal funds to manage taxable accounts, IRAs, or other investments are no longer deductible on federal returns. This includes both flat fees like Facet charges and percentage-based AUM fees charged by traditional advisors.
However, important exceptions exist where fees remain deductible, as detailed by Finance Strategists. If you pay advisory fees directly from a traditional IRA or other pre-tax retirement account, the fees reduce your account balance but are not treated as taxable distributions. This effectively makes them pre-tax payments, providing implicit tax savings equivalent to your marginal tax rate.
Business owners may deduct advisory fees as ordinary and necessary business expenses if the advice directly relates to business operations. A small business owner receiving guidance on capital investments, business succession planning, or managing business cash reserves can potentially deduct those specific fees on Schedule C.
Fees associated with producing tax-exempt income remain deductible under Internal Revenue Code Section 212. If your advisor provides specific guidance related to tax-exempt municipal bonds, the portion of fees allocable to that advice may qualify for deduction. However, advisers rarely itemize fees to this level of specificity, making this exception difficult to utilize practically.
State tax treatment varies significantly by jurisdiction, as noted in Finance Strategists state analysis. States like California and New York have state itemized deduction rules that differ from federal law. Some states still allow deductions for investment advisory fees even though federal deductions were eliminated. Consulting with a tax professional familiar with your specific state’s rules proves essential.
The non-deductibility of advisory fees under current federal law makes flat fee structures more attractive for some clients. A $6,600 annual fee paid to Facet has the same after-tax cost as a $6,600 AUM fee, but the flat fee provides cost certainty and prevents fee creep as assets grow. Neither fee structure offers tax advantages over the other for most individual taxpayers.
Services Included in Every Membership Tier
All three Facet membership levels include investment management services at no additional charge beyond the flat annual fee. This distinguishes Facet from fee-only planners who charge separately for investment management or require clients to implement recommendations independently.
Investment portfolios consist of globally diversified exchange-traded funds with an average expense ratio of 0.08%. Portfolios include U.S. stocks, international developed market stocks, emerging market stocks, bonds, and REITs allocated according to your risk tolerance and time horizon. Facet’s investment committee continually reviews fund selection to ensure optimal cost and tax efficiency.
Automatic portfolio rebalancing occurs when allocations drift beyond predetermined thresholds. Tax-loss harvesting applies to taxable accounts, systematically selling securities at a loss to offset capital gains while maintaining market exposure through similar replacement securities. This strategy can recoup advisory fees through tax savings for clients in higher tax brackets, according to Bankrate’s comparison analysis.
Financial planning services span multiple areas including retirement accumulation and income planning, Social Security optimization, education funding through 529 plans or taxable accounts, insurance needs analysis, and debt management strategies. Members receive a comprehensive financial roadmap during onboarding that identifies priorities and action steps.
Cash flow analysis helps identify opportunities to increase savings rates or reduce unnecessary expenses. Advisors review your spending patterns and recommend optimal amounts for emergency funds, sinking funds for large future expenses, and discretionary spending that aligns with your values.
Estate planning guidance comes standard at all tiers, though only Complete members receive actual document preparation included. Core and Plus members can purchase estate documents separately for $2,000 in the first year and $300 annually thereafter through Facet’s partnership with Wealth.com.
Additional Costs Beyond Base Membership Fees
Custodian fees charged by Fidelity and Apex represent the primary additional cost beyond Facet’s membership fee, according to Business Insider’s review. These custodians hold your actual investment accounts and charge separately for account maintenance, though fees are typically minimal. Most custodians charge $0 to $50 annually for standard accounts.
Transfer fees apply if you move assets out of Facet-managed accounts to another financial institution. Custodians typically charge $75 to $150 per account for full transfers. Partial withdrawals or distributions generally incur no fees beyond standard wire transfer charges of $25 to $30 if you choose wire delivery instead of ACH.
The underlying ETF expense ratios, while included in fund returns, represent an indirect cost. With Facet’s average portfolio expense ratio of 0.08%, a $500,000 portfolio pays approximately $400 annually in embedded fund expenses. These costs apply regardless of which platform manages your investments, as all ETF investors pay them.
Direct indexing through Facet costs an additional 0.15% annual fee on assets held in that strategy. This fee applies only to Complete tier members with portfolios exceeding $200,000 who opt into direct indexing. On $500,000 in direct indexing, the added cost equals $750 annually on top of the $6,600 Complete membership fee.
Estate planning document preparation costs $2,000 for the first year and $300 annually for Core and Plus members who choose to add this service. Complete members receive these documents at no extra charge, effectively saving $2,300 over the first year and $300 annually thereafter compared to paying separately.
Tax preparation and filing services represent an optional add-on for Plus tier members. The cost varies based on return complexity but typically ranges from $400 to $800 for straightforward returns. Complete members receive full tax preparation included in their membership, potentially saving $400 to $800 annually.
Common Fee-Related Mistakes to Avoid
Failing to calculate the percentage equivalent represents a critical error when evaluating Facet’s flat fee. Many prospects compare Facet’s $2,100 Core fee to a traditional advisor’s 1% without recognizing this equals 2.1% on a $100,000 portfolio. Understanding your specific percentage equivalent based on current assets prevents overpaying relative to alternatives.
The negative outcome of this mistake means paying substantially more than necessary for equivalent services. A client with $80,000 in assets paying $2,100 to Facet effectively pays 2.625% annually, when robo-advisors offer investment management at 0.25% and charge just $200 annually. Over 20 years, this mistake costs approximately $38,000 in excess fees.
Ignoring portfolio growth projections when comparing fee structures leads to suboptimal decisions. Selecting a 1% AUM advisor today because it costs less on your current $150,000 portfolio ignores that your portfolio should grow to $800,000 or more over 20 years with consistent contributions and market returns. The AUM fee increases from $1,500 to $8,000 annually while Facet’s flat fee remains constant.
This myopic analysis results in paying approximately $95,000 more in cumulative fees over your investing lifetime. The negative consequence extends beyond just higher fees, as that money could have remained invested and compounded to over $180,000 by retirement. Clients lose both the fees paid and the opportunity cost of investment returns on those dollars.
Not questioning the $250 quarterly payment enrollment fee allows Facet to extract additional revenue without providing additional value. This fee serves only administrative purposes and benefits Facet financially by receiving cash upfront. Clients who lack funds to pay annually should negotiate removal of this fee or select a different advisor rather than accepting it automatically.
Paying this enrollment fee costs an extra $250 that provides zero planning value. Over a 10-year membership, this represents $250 in pure waste that could have purchased additional services elsewhere. While seemingly minor, accepting unnecessary fees signals to the advisor that you do not scrutinize costs carefully, potentially leading to future fee increases without pushback.
Choosing the wrong tier based on marketed benefits rather than actual planning needs wastes money on services you never use. Complete tier costs $4,500 more annually than Core but provides value primarily through estate documents, advanced tax strategies, and direct indexing. If you already have estate documents and file simple tax returns, the added benefits may not justify the higher cost.
This mistake costs $4,500 annually in excess fees, totaling $45,000 over 10 years. That money could fund your IRA contributions for multiple years or cover college expenses for a child. The negative consequence includes both wasted fees and opportunity cost from not investing those dollars.
Failing to compare Facet against Vanguard Personal Advisor leads many investors to assume Facet offers the best flat-fee value without exploring alternatives. Vanguard charges 0.30% with a $50,000 minimum, costing just $1,500 annually on a $500,000 portfolio versus Facet’s $2,100 to $6,600 depending on tier. For investors with straightforward needs, Vanguard may provide sufficient guidance at lower cost.
Paying $600 to $5,100 more annually than necessary for equivalent services represents money that could generate additional investment returns. Over 25 years, the difference compounds to between $35,000 and $297,000 depending on tier selection and portfolio size. This mistake proves particularly costly for investors who do not actually utilize the enhanced services Facet provides.
Regulatory Red Flags and Warning Signs
Advisors who refuse to commit to fiduciary status in writing should trigger immediate concern. The Investment Advisers Act requires SEC-registered advisors to act as fiduciaries, but some advisors also hold broker licenses allowing them to operate under the less stringent suitability standard for certain transactions. Request written confirmation that the advisor will serve as a fiduciary at all times across all accounts and recommendations, as recommended by CFP Board guidance.
Without written fiduciary commitment, the advisor maintains flexibility to recommend products that benefit them financially even when better alternatives exist for you. This conflict of interest can cost thousands through higher-cost investment products, unnecessary insurance policies, or suboptimal account structures. The negative consequence includes both higher product costs and potentially inappropriate recommendations that fail to serve your best interests.
Fee schedules that change without advance notice violate SEC regulations requiring reasonable advance notification of fee increases. Form ADV must be updated within 90 days of material changes according to Facet’s legal updates, and clients must receive the updated brochure annually. Advisors who spring fee increases on clients without proper disclosure breach their regulatory obligations.
Accepting surprise fee increases establishes a pattern where the advisor controls pricing without your input or consent. This can lead to repeated increases that compound over time, ultimately making the relationship uneconomical. The financial consequence includes paying substantially more than initially agreed while feeling trapped due to the hassle of switching advisors.
Disclosure documents that conflict with marketing materials signal potential misrepresentation. If Facet’s website claims fees range from $2,100 to $8,700 but the Form ADV states $100 to $9,000, question which applies to you. Discrepancies suggest the firm may not maintain accurate regulatory filings or may market services differently than they actually deliver.
Operating based on inaccurate information leads to inappropriate expectations and potential disputes over fees or services. If the firm has been careless with disclosure accuracy, they may also be careless with investment management, tax planning, or other critical services. The negative consequence includes receiving services that do not match what you believed you purchased.
Advisors who discourage you from reading Form ADV demonstrate concerning lack of transparency. This regulatory filing contains critical information about services, fees, conflicts of interest, disciplinary history, and business practices. Every investor should review Part 2A before engaging any investment adviser, according to Kitces financial planning guidance.
Skipping this review means missing red flags like regulatory violations, conflicts of interest involving related companies, or compensation arrangements that incentivize recommendations not in your best interest. The negative consequence includes unknowingly engaging an advisor with a history of misconduct or conflicts that compromise their advice quality.
Fee structures that include hidden offsets or duplicated charges represent serious fiduciary breaches that trigger SEC enforcement. Some advisors collect transaction fees from portfolio companies and fail to properly offset those against management fees charged to clients. The SEC has brought multiple cases against private equity firms for this practice, as reported by McDermott Will & Emery.
Failing to detect duplicated fees means paying twice for the same service, directly reducing your investment returns. These practices can cost high-net-worth clients tens of thousands of dollars annually. The negative consequence includes both direct financial loss and the likelihood that an advisor engaging in non-disclosure on fees also fails in fiduciary duties elsewhere.
When Facet Provides Optimal Value
Investors with portfolios between $500,000 and $5 million receive exceptional value from Facet’s flat fee structure. In this range, traditional 1% AUM advisors charge $5,000 to $50,000 annually while Facet costs $2,100 to $8,700 regardless of portfolio size. The savings compound dramatically over time as your portfolio grows.
For a $2 million portfolio, Facet Complete at $6,600 represents just 0.33% annually while traditional advisors charge $15,000 to $20,000, according to Facet’s planning page. This $8,400 to $13,400 annual savings accumulates to $210,000 to $335,000 over 25 years. The value proposition strengthens as your wealth increases, making Facet particularly attractive for high-net-worth individuals.
Professionals receiving equity compensation benefit enormously from Facet’s Plus and Complete tiers. Stock options, restricted stock units, employee stock purchase plans, and performance shares create complex tax situations requiring specialized knowledge. Many traditional advisors lack expertise in equity compensation, while Facet provides dedicated specialists.
Tax mistakes with equity compensation commonly cost $5,000 to $50,000 or more depending on award size and timing. Exercising incentive stock options incorrectly can trigger alternative minimum tax. Selling company stock immediately upon vesting may forfeit beneficial tax treatment. Missing the 83(b) election deadline on restricted stock creates permanent tax disadvantages. Facet’s guidance prevents these costly errors.
Business owners and self-employed professionals gain value from comprehensive tax strategy and retirement plan design. Complete tier includes certified tax professional preparation and advanced strategies like backdoor Roth conversions, SEP-IRA versus solo 401(k) analysis, and estimated tax payment optimization. These strategies often save far more than the membership fee.
A business owner in the 35% marginal tax bracket who implements $30,000 in additional retirement contributions through proper plan selection saves $10,500 in federal taxes annually. This single strategy alone exceeds the $6,600 Complete membership fee, making it cash flow positive from tax savings before considering any investment advice value.
Couples navigating major life transitions including marriage, divorce, inheritance, or retirement find Complete tier especially valuable. These events require coordinate planning across investments, taxes, estate documents, and insurance. Having a dedicated CFP who understands your complete situation provides continuity through complex decision-making periods.
Mistakes during life transitions prove particularly costly due to irreversible consequences. Inheriting a traditional IRA and withdrawing funds all at once can trigger hundreds of thousands in unnecessary taxes versus strategic stretch distributions. Splitting retirement accounts in divorce without a qualified domestic relations order can cause taxes and penalties. Estate planning documents that do not reflect blended family dynamics may distribute assets contrary to your wishes.
When Alternative Solutions Work Better
Young professionals with portfolios under $100,000 should consider robo-advisors or Vanguard Personal Advisor instead of Facet. At $2,100 annually, Facet Core represents 2.1% or more of assets in this range. Betterment at 0.25% costs just $250 annually on a $100,000 portfolio, saving $1,850 each year.
The $1,850 annual savings invested at 7% returns grows to approximately $78,000 over 20 years. Early career professionals benefit more from keeping costs minimal and allowing maximum money to compound. Once the portfolio reaches $300,000 to $500,000, upgrading to Facet or a human advisor becomes cost-effective.
DIY investors comfortable managing their own finances waste money on any advisor fee whether flat or percentage-based. If you understand asset allocation, maintain discipline during market volatility, handle your own tax-loss harvesting, and need no external accountability, self-directed investing through Vanguard or Fidelity costs only underlying fund expense ratios, according to Bogleheads forum discussions.
Three-fund portfolios using total market index funds cost approximately 0.05% annually in expense ratios. On a $1 million portfolio, this equals just $500 per year versus $2,100 to $6,600 with Facet. Over 30 years, the savings from self-management total $63,000 to $183,000, which compounds to $245,000 to $710,000 when invested.
Investors who need only occasional advice should hire fee-only advisors charging by the hour or project rather than ongoing subscriptions. Hourly rates range from $200 to $500 depending on advisor credentials and location, as noted in Wall Street Journal research. A comprehensive financial plan costs $1,500 to $5,000 as a one-time project.
If you need a plan created once and updated every few years, paying $2,000 every three years costs $667 annually versus $2,100 to $6,600 for continuous Facet access. Over 20 years, this saves $28,800 to $119,800. The project-based model works well for disciplined investors who need periodic guidance but can implement recommendations independently.
Retirees with simple income needs drawing Social Security and required minimum distributions may not require comprehensive planning beyond withdrawal sequencing. Vanguard Personal Advisor at 0.30% or even Schwab Intelligent Portfolios Premium at $30 monthly provides sufficient support at lower cost than Facet.
If your retirement income strategy involves simply spending 4% annually from a balanced portfolio while Social Security covers basic expenses, paying $6,600 annually for Complete tier likely exceeds your actual planning needs. A simpler service costing $1,500 to $2,500 annually provides adequate support while saving $4,100 to $5,100 each year.
Do’s and Don’ts for Facet Membership
Critical Do’s
Do calculate your percentage equivalent before committing to any membership tier. Divide the annual fee by your total investable assets to understand the true cost as a percentage. Compare this percentage to traditional 1% AUM advisors and robo-advisors at 0.25% to determine if Facet provides value at your current asset level.
This calculation prevents overpaying relative to your actual portfolio size. Understanding that $2,100 equals 2.1% on $100,000 but only 0.42% on $500,000 helps you determine when Facet becomes cost-effective. Knowing your percentage equivalent also facilitates comparisons with alternative advisors charging percentage-based fees.
Do negotiate the quarterly payment enrollment fee before signing up. Ask Facet to waive the $250 fee as a condition of your membership. The worst outcome is they refuse, but many firms waive administrative fees for new clients, especially those bringing substantial assets.
Eliminating this fee saves $250 that you can invest instead. More importantly, negotiating demonstrates you carefully scrutinize costs and will not accept unnecessary charges. This mindset protects you throughout the relationship and signals to the advisor that fee increases require strong justification.
Do start with the lowest tier that meets your current needs and upgrade later if necessary. You can change membership levels at renewal rather than committing to Complete tier immediately. Starting with Core and upgrading to Plus when you receive equity compensation costs less than paying for Complete all along.
This approach minimizes costs during years when your planning needs are straightforward. If your financial situation increases in complexity, you can upgrade anytime. The savings from starting lower and upgrading only when needed can exceed $20,000 over a decade compared to starting with the highest tier unnecessarily.
Do review your advisor’s credentials on FINRA BrokerCheck and the SEC’s Investment Adviser Public Disclosure database before engaging. Verify they hold the CFP certification and check for any regulatory violations or customer complaints. A clean record does not guarantee excellent service, but violations or complaints warrant additional scrutiny.
This due diligence protects you from advisors with problematic histories who may repeat previous misconduct. Discovering that your advisor faced SEC sanctions for fee disclosure violations or customer disputes should disqualify them immediately. The time investment in this research pays dividends through peace of mind and reduced risk.
Do ask for fee reduction if your planning needs decrease over time. If you signed up for Plus tier when you had equity compensation but that situation changed, request a reduction to Core tier mid-contract. While memberships are non-refundable, Facet may accommodate reductions to retain your business.
This request demonstrates you actively manage costs and expect fees to match services received. Even if Facet refuses mid-contract reductions, they know you will downgrade at renewal unless they provide value justifying the higher tier. This accountability pressure encourages advisors to deliver meaningful guidance rather than coasting on autopilot.
Critical Don’ts
Don’t sign up without reading Form ADV Part 2A thoroughly. This document discloses services, fees, conflicts of interest, disciplinary history, and business practices. Skipping this review means missing critical information about what you are purchasing and potential red flags in the advisor’s background.
Engaging an advisor without reading their disclosure document demonstrates carelessness that advisors may exploit through fee increases or reduced service quality. The negative consequence includes discovering problems after you have already paid non-refundable fees and transferred assets. Thirty minutes reading Form ADV can prevent years of problems.
Don’t pay quarterly if you can afford annual payment. The $250 enrollment fee provides zero additional value and simply benefits Facet’s cash flow. If you lack liquidity to pay $2,100 to $6,600 upfront, you may not yet have enough complexity to justify paying for comprehensive financial planning.
Accepting this fee establishes a pattern of not questioning charges that do not benefit you. Over a decade of membership, this represents $250 in pure waste that could have funded Roth IRA contributions or additional investments. Every dollar spent on administrative fees rather than actual planning value reduces the economic benefit of advisory services.
Don’t assume higher tiers automatically provide better value. Complete costs $4,500 more annually than Core but only benefits you if you actually need estate documents, complex tax preparation, and direct indexing. Many investors purchase Complete believing more expensive means better without assessing whether they use the additional services.
Paying for services you never utilize represents pure waste. If you already have estate planning documents, file simple tax returns, and have insufficient assets for direct indexing, Complete provides minimal incremental value over Core. The $4,500 annual difference compounds to approximately $175,000 over 20 years when invested at 7% returns.
Don’t transfer all assets to Facet immediately without evaluating their investment strategy against your current holdings. Facet uses pre-built ETF portfolios that may not match your existing allocation or tax situation. Liquidating highly appreciated stocks to conform to Facet’s model could trigger substantial capital gains taxes.
A client with $500,000 in a single appreciated stock facing $100,000 in capital gains upon sale owes $20,000 to $30,000 in federal and state taxes. If Facet’s ETF portfolio differs minimally from holding the stock for several more years, paying $20,000 to $30,000 in immediate taxes to facilitate their management makes no economic sense. Coordinate transition planning to minimize tax consequences.
Don’t forget to update your information when life circumstances change substantially. Getting married, divorced, having children, inheriting money, changing jobs, or starting a business all warrant immediate communication with your advisor. Failing to disclose these changes means your financial plan becomes outdated and recommendations no longer match your situation.
Operating with an outdated plan leads to missed opportunities and inappropriate strategies. Your advisor cannot adjust your investment allocation for a shortened time horizon if they don’t know you plan to retire early. They cannot optimize inherited IRA distributions if you don’t tell them about the inheritance. The negative consequence includes both missed opportunities for tax savings and potentially costly mistakes from following advice based on incorrect assumptions.
Pros and Cons of Facet Wealth
| Pros | Explanation |
|---|---|
| Predictable flat fee | Does not increase as your portfolio grows, allowing more investment returns to compound versus percentage-based pricing. |
| All advisors are CFP professionals | Operating under fiduciary standards, ensuring high credibility and legal obligation to put your interests first. |
| Investment management included | No additional charge means you pay one fee for both planning and portfolio management versus separate charges. |
| Comprehensive services | Spanning retirement, tax, estate, and insurance create holistic planning versus advisors who focus narrowly on investments. |
| Direct indexing for high balances | Provides tax advantages and customization beyond standard ETF portfolios for Complete members with $200,000 or more. |
| Cons | Explanation |
|---|---|
| High cost for small portfolios | Investors with under $200,000 pay effective percentages exceeding 1% to 1.5% which exceeds robo-advisors substantially. |
| No in-person meetings | May disappoint clients who prefer face-to-face relationships despite increasing acceptance of virtual advising. |
| Quarterly payment enrollment fee | $250 charge provides zero value and simply extracts additional revenue for administrative convenience. |
| Non-refundable fees | Cannot get money back if you cancel mid-year even if services prove disappointing. |
| Generic initial roadmaps | Sometimes lack personalization according to customer complaints, requiring multiple meetings to customize properly. |
Frequently Asked Questions
Does Facet Wealth charge based on assets under management?
No. Facet charges flat annual fees ranging from $2,100 to $8,700 regardless of portfolio size, eliminating percentage-based pricing that increases as assets grow.
Can I negotiate Facet’s membership fees?
Yes. Fees are negotiable according to Form ADV disclosures. Request fee reductions if your financial situation is simpler than typical members or if competing advisors offer lower rates.
Is Facet Wealth worth it for portfolios under $250,000?
No. The $2,100 minimum represents 0.84% or more of portfolios below $250,000. Robo-advisors at 0.25% or Vanguard Personal Advisor at 0.30% provide better value at that level.
What happens if I cancel my Facet membership?
No refund. Memberships are non-refundable but you retain full access through the end of your paid period before losing advisor access completely.
Does Facet’s Complete tier include tax preparation?
Yes. Complete members receive full federal and state tax preparation and filing by certified tax professionals at no additional charge beyond the $6,600 annual fee.
Are Facet fees tax deductible?
No. The Tax Cuts and Jobs Act eliminated federal deductions for investment advisory fees for individuals through 2025, though business-related fees may remain deductible.
Can I pay Facet fees from my IRA?
Yes. Fees can be deducted directly from retirement accounts at Facet’s custodians, effectively making them pre-tax payments that reduce taxable account balances.
What is Facet’s minimum investment requirement?
$500 required. Facet requires at least $500 in invested assets for portfolio management though no minimum exists for planning-only relationships without managed investments.
Do I get a dedicated advisor at the Core tier?
No. Core members receive access to any CFP professional rather than a dedicated advisor, though Plus and Complete members receive team or individual advisor assignments.
How does Facet compare to Vanguard Personal Advisor?
Higher cost. Vanguard charges 0.30% annually versus Facet’s $2,100 to $8,700 flat fees, making Vanguard cheaper for portfolios under $700,000 to $2.9 million depending on tier.
Can I switch membership tiers mid-year?
No changes allowed. Tier changes occur only at annual renewal, though you can request exceptions during major life events like marriage or inheritance.
Does Facet charge to move my money out?
No advisor fee. Facet does not charge but custodians typically charge $75 to $150 per account for full transfers or $25 to $30 for wire distributions.
Are there setup or enrollment fees besides the base membership?
$250 for quarterly. Only clients choosing quarterly billing pay a $250 one-time enrollment fee that is waived for annual payment.
What investment products does Facet use in portfolios?
Low-cost ETFs only. Portfolios consist of exchange-traded funds with 0.08% average expense ratios covering U.S. stocks, international stocks, bonds, and REITs globally.
Can Facet manage 401(k) accounts at my employer?
Guidance only. Facet cannot manage employer retirement plans directly but provides allocation recommendations you implement yourself through your 401(k) platform.
How many client meetings do I get annually?
Varies by tier. Core receives one meeting after year one, Plus receives two meetings, and Complete receives up to four meetings annually beyond the first year.
Does Facet provide college planning services?
Yes included. All tiers include education funding strategies and 529 plan guidance as part of comprehensive financial planning at no additional charge.
Can I keep my existing financial advisor and use Facet?
Yes possible. Facet can provide planning while leaving investments with your current advisor, though you still pay the full membership fee without investment management.
What credentials do Facet advisors hold?
All are CFPs. Every Facet advisor holds the Certified Financial Planner designation representing the highest standard in financial planning certification.
How long are Facet membership contracts?
One year minimum. All memberships require annual commitment with non-refundable fees, though you can choose not to renew after each annual period ends.
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