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Facet Wealth Review

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Facet Wealth, Inc.

Facet Wealth, Inc.

Though founded relatively recently, in 2016, Facet Wealth, Inc. oversees more than $141 million in client assets. With 42 offices, the firm is headquartered in Baltimore, and is on SmartAsset's list of the top financial advisors in Baltimore.

The team of 36 financial advisors provides a range of financial planning and investment management services to its client base, which consists entirely of individuals. Some advisors are licensed insurance agents and collect commissions. This arrangement makes Facet a fee-based firm, which has more potential conflicts of interest than a fee-only firm that collects only client-paid fees.

Facet Wealth Background

Patrick McKenna, Anders Jones and Brent Weiss founded the firm and are the principal owners of the firm. McKenna serves as executive chairman, Jones acts as CEO and Weiss is the firm's chief evangelist, guiding the "vision of Facet’s financial life planning experience," according to the firm's website. Warburg Pincus Private Equity XII, LP and Warburg Pincus Financial Sector, LP have minority stakes, and a six employees have very small stakes.

This firm employs 45 certified financial planners (CFP) and one chartered financial consultant (ChFC).

Facet Wealth Client Types and Minimum Account Sizes

Facet Wealth works exclusively with individual clients. It has almost 600 such clients, of whom about 5% have a high net worth. The firm does also offer its services to pension and profit-sharing plans, business entities, trusts, estates and charitable organizations.

Facet Wealth does not impose a minimum investment requirement for new clients.

Services Offered by Facet Wealth

Facet Wealth provides a variety of investment management and financial planning services to clients. These services typically relate to one or more of the following topics:

  • Investment portfolio design
  • Asset management
  • Cash flow and income planning
  • Debt management
  • Online data aggregation
  • Retirement planning focused on accumulation and income
  • Estate planning
  • Financial education and literacy
  • Risk management
  • Insurance planning
  • Income tax planning
  • Education funding planning
  • Employee benefits planning
  • Charitable gift planning

Typically, the firm does not provide stand-alone investment management services, instead combining these offerings with financial planning services to build a holistic financial strategy.

Facet Wealth Investment Philosophy

Facet Wealth looks to cultivate individual relationships with all of its clients to ensure that it's providing an investment and financial planning experience that meets the client's exact needs. As a result, each client relationship begins with an information-gathering session where advisors learn about the client's investment history, financial goals, risk tolerance and more. Based on these insights, advisors take a wide-angle approach to helping clients along with their investment objectives.

The firm typically allocates client assets in mutual funds, exchange-traded funds, stocks and bonds. Advisors may use cyclical, technical and fundamental methods of analysis to help inform their investment decisions. The firm looks to purchase securities on both a long- and short-term horizon, with the quantity of each depending upon the specifics of your situation.

Fees Under Facet Wealth

Advisory fees at Facet Wealth are technically negotiable, but they usually come in the form of a $600 to $10,000 flat fee per year. This variance is dependent upon the scope and length of the services you need. There is also a $1,000 investment platform fee per every $1 million for investment accounts larger than $2 million in size. If the firm instead recommends an asset-based fee schedule, charges will be based on a specific percentage of your overall AUM. Fees are typically calculated and billed on a quarterly or monthly basis. 

Facet Wealth is atypical in that generally charges a flat fee for investment management services. More commonly, firms charge a fee based on a percentage of assets under management. The industry average is 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Learn more about advisors' typical costs here

What to Watch Out For

Facet Wealth has no disclosures of legal or disciplinary action in the Form ADV it recently filed with the SEC.

One thing to be aware of: As mentioned earlier, some advisors may be insurance agents who collect commissions from vendors. This is a potential conflict of interest. That said, the firm and its advisors are fiduciaries, and are legally obligated to act in their clients' best interests at all times.

Opening an Account With Facet Wealth

If you're interested in opening an account with Facet Wealth, visit the firm's website and submit a contact form or schedule an introductory meeting. Alternately, you can call the firm at (443) 376-6222 or send them an email at info@facetwealth.com.

All information is accurate as of the writing of this article.

Tips for Financial Planning

  • Finding the right financial advisor for you doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • If your primary goal is to save and invest for retirement, a good first step is to see whether you're on pace to meet your retirement income needs. Check out our retirement calculator to see where you stand. 

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research