Client Relationship Summary (CRS) - Form ADV Part 3
Item 1: Introduction
FACET WEALTH, INC, is an investment adviser registered with the Securities and Exchange Commission offering financial planning and advisory services. This document gives you a summary of the types of services and fees we offer. Please visit www.investor.gov/CRS for free, simple tools to research firms and for educational materials about broker-dealers, investment advisers, and investing.
Item 2: Relationships and Services
Questions to ask us: Given my financial situation, should I choose an investment advisory service? Why or why not? How will you choose investments to recommend to me? What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
What investment services and advice can you provide me? Our firm primarily offers financial planning services where depending on your needs we assess your financial goals and provide guidance to meet and exceed them, as well as portfolio design and asset allocation, risk tolerance, investment management, cash flow and expense planning, debt management and planning, employee benefits planning, employer stock plan analysis, retirement planning, education planning, risk management and insurance planning, estate planning and beneficiary, income tax planning, trust planning, small business planning, and small business retirement plans. For clients for whom we manage assets, our firm has discretionary management without any material limitations although we work with our clients on establishing low cost, diversified portfolios aligned with the client’s long term goals. Our firm does not have a minimum account size. Please also see our Form ADV Part 2A (“Brochure”), specifically Items 4 & 7.
Item 3: Fees, Costs, Conflicts, and Standard of Conduct
Questions to ask us: Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me? What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have? How might your conflicts of interest affect me, and how will you address them?
What fees will I pay? Our fees vary depending on the services you require. Our flat fee arrangements are based on the amount of work we expect to perform for you, so material changes in that amount of work will affect the advisory fee we quote you. If you choose to utilize our investment management services, however, that is already included in the flat fee quoted and will not result in an increase in your fee. Fees generally range from $600 to $10,000 per year on a flat fee basis, depending upon the level and scope of the services required and the professional rendering the service(s). Facet typically bills monthly or quarterly in advance. You pay our fees even if you do not have any transactions and the advisory fee paid to us generally does not vary based on the type of investments selected. In addition, we charge a $1,000.00 investment platform fee per every $1,000,000.00 for any investment account over $2,000,000.00. This fee is billed quarterly in advance and debited from the client’s investment account. Please also see Items 4, 5, 6, 7 & 8 of our Brochure.
Third Party Costs: Some investments (e.g., mutual funds, variable annuities, etc.) impose additional fees (e.g., transactional fees and product-level fees) that reduce the value of your investment over time. Some investments (e.g., mutual funds, exchange traded funds, etc.) charge fees (product level or transactional fees), and custodians may charge brokerage commissions and/or transaction fees for buying or selling certain securities. Please see Item 5B in our Brochure for additional details.
Conflicts of Interest: We are Fiduciaries first, meaning we have to act in your best interest at all times and not put our interest ahead of yours. Each planner at Facet is a CFP® Professional, see CFP Board Certification, and are not compensated based on the types of investments we offer, the value of your accounts or additional deposits into your accounts. We do have a relationship with a broker/dealer, PKS, which in some specific situations we use to hold assets for clients that cannot be held on a custodial platform. We also have a relationship with an insurance broker for clients who want us to facilitate an insurance purchase. No client is under any obligation to purchase any product and net income from those products are donated to designated 501(c)3 organizations in an effort to support continued financial literacy. Please also see Item 4 and Item 10 of our Brochure for additional details.
How do your financial professionals make money? As a firm, we primarily benefit from the advisory fees received from our clients, referral partners and lead sources. However, our representatives are paid a flat annual salary and bonus based on client retention and client satisfaction rather than commissionable product sales or assets under management. This additionally limits any conflicts of interest in product or new account opening recommendations.
Item 4: Disciplinary History
Questions to ask us: As a financial professional, do you have any disciplinary history? For what type of conduct?
Do you or your financial professionals have legal or disciplinary history? We do not have any legal and disciplinary events. Visit https://www.investor.gov/ for a free, simple search tool to research us and our financial professionals.
Item 5: Additional Information
Questions to ask us: Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
For additional information on our advisory services, see our Brochure available at https://adviserinfo.sec.gov/firm/summary/285961 and any individual brochure supplement your representative provides. If you have any questions, need additional up-to-date information, please contact your financial advisor directly. If you have concerns about said advisor, please contact our Chief Compliance Officer, Chris Hufman at (443)376-6222. He can also provide you with another copy of this Client Relationship Summary.