Smart Ways To Navigate Facet Wealth's Flat Fee Structure Today
Facet Wealth offers a transparent flat fee financial planning service that differs from traditional percentage-based advisory models. Their approach provides comprehensive financial planning with certified professionals at predictable costs, making professional financial guidance more accessible to a broader range of clients.
What Is Facet Wealth's Flat Fee Model?
Facet Wealth operates on a subscription-based financial planning model where clients pay a set annual fee rather than a percentage of assets under management. This flat fee structure ranges from approximately $1,800 to $8,000 per year, depending on the complexity of your financial situation and the level of service required.
Unlike traditional financial advisors who typically charge 1-2% of your investment portfolio value annually, Facet Wealth's approach means your costs remain consistent regardless of your asset growth. This creates alignment between you and your advisor, as they're not incentivized to simply grow your investment portfolio but rather to focus on comprehensive financial planning tailored to your specific goals.
How The Flat Fee Structure Works
Facet Wealth begins with a complimentary consultation to assess your financial needs and goals. Based on this assessment, they provide a customized quote for their services. The flat fee is billed annually but can be paid monthly, making it easier to budget for financial planning services.
Once enrolled, clients are paired with a dedicated Certified Financial Planner™ (CFP®) professional who creates a personalized financial plan. This relationship is ongoing, with regular check-ins and plan adjustments as your financial situation evolves. The flat fee covers all aspects of this relationship, including unlimited access to your financial planner throughout the year.
What makes this model particularly transparent is that there are no hidden fees or commissions. The amount you agree to pay is the total cost of services, which includes investment management, retirement planning, tax optimization strategies, estate planning guidance, and other financial planning needs.
Comparing Flat Fee Financial Planning Providers
When evaluating flat fee financial planning services, it's important to compare what different providers offer. Here's how Facet Wealth stacks up against some competitors:
| Provider | Fee Structure | Services | Minimum Assets |
|---|---|---|---|
| Facet Wealth | $1,800-$8,000/year | Comprehensive financial planning with dedicated CFP® | None |
| Personal Capital | 0.89% AUM (first $1M) | Wealth management with financial advisors | $100,000 |
| Betterment | 0.25% AUM + premium plans | Automated investing with CFP® access on premium | None ($100k for premium) |
| Vanguard Personal Advisor | 0.30% AUM | Financial planning with advisor access | $50,000 |
What sets Facet Wealth apart is their truly flat fee model with no asset minimums, making financial planning accessible to those who might not qualify for traditional advisory services. While competitors like Wealthfront offer lower percentage-based fees, they typically provide less personalized service and limited direct access to financial planners.
Benefits and Drawbacks of Facet Wealth's Approach
Benefits:
- Predictable costs that don't increase as your wealth grows
- Fiduciary advisors legally obligated to act in your best interest
- No conflicts of interest from commission-based product sales
- Unlimited access to your dedicated CFP® professional
- Comprehensive planning beyond just investment management
Drawbacks:
- Annual costs may seem high for those with smaller portfolios
- Virtual-only service model (no in-person meetings)
- May not be ideal for those seeking only investment management
- Less suitable for complex situations requiring specialized expertise
For many clients, the flat fee structure becomes more cost-effective as their assets grow. Someone with a $500,000 portfolio paying Facet's average fee of $3,600 annually is effectively paying 0.72% of assets—comparable to many traditional advisors. But as that portfolio grows to $1 million, the effective rate drops to 0.36%, representing significant savings.
According to NerdWallet, this pricing model can be particularly advantageous for young professionals with high incomes but still-growing assets, as they get comprehensive planning without being penalized for future asset growth.
Pricing Overview and Value Assessment
Facet Wealth's pricing is determined by financial complexity rather than asset levels. Their lowest tier typically serves individuals with straightforward situations, while higher tiers accommodate those with multiple income streams, business ownership, complex tax situations, or estate planning needs.
To determine if this pricing model offers value, consider calculating what you would pay under a traditional percentage-based model. For example:
- With $250,000 invested at a traditional 1% fee: $2,500 annually
- With $500,000 invested at a traditional 1% fee: $5,000 annually
- With $1,000,000 invested at a traditional 1% fee: $10,000 annually
For those with significant assets, Facet's flat fee structure often represents substantial savings. However, individuals with smaller portfolios might find percentage-based models more economical initially.
The value proposition extends beyond cost comparisons. Facet Wealth clients receive comprehensive financial planning that addresses tax strategies, insurance needs, estate planning, and other aspects that robo-advisors and investment-focused services typically don't cover. This holistic approach, combined with unlimited access to a dedicated CFP® professional, delivers value that can't be measured by fee structure alone.
According to Investopedia, consumers should consider both quantitative factors (fees) and qualitative factors (service quality, advisor credentials, and scope of services) when evaluating financial planning providers.
Conclusion
Facet Wealth's flat fee model represents a transparent alternative to traditional financial advisory services. By removing asset-based fees, they've created a structure that aligns advisor incentives with client goals beyond just portfolio growth. This approach particularly benefits clients with growing assets who need comprehensive planning.
When considering whether this model is right for you, evaluate your current financial complexity, anticipated asset growth, and desire for personalized guidance. For many, the predictable cost structure and unlimited access to a dedicated CFP® professional justify the annual investment. As the financial services industry continues to evolve, transparent pricing models like Facet Wealth's flat fee structure provide consumers with clearer choices for managing their financial futures.
Citations
- https://www.facetwealth.com
- https://www.personalcapital.com
- https://www.betterment.com
- https://www.vanguard.com
- https://www.wealthfront.com
- https://www.nerdwallet.com
- https://www.investopedia.com
This content was written by AI and reviewed by a human for quality and compliance.