Farther Finance is a new type of hybrid financial planning firm. It's not a fully automated service. But it is a financial planning company that tries to leverage technology at every turn.
From cash sweeps to algorithm-based investing, Farther has a lot of what robo-advisors offer. But it also offers robust human financial planning services for all of its clients.
If you’re seeking a financial planner to help you manage and grow your wealth, Farther Finance may be a firm worth checking out. Continue reading our full review to learn more about its features and pricing.
- Combines the best elements of robo and human advisors
- Low minimum investment requirement
- Annual advisory fee is on the high side
Farther Finance Details
IRA, Roth, 529, Donor-Advised, Taxable
How Does Farther Finance Work?
Farther Finance bills itself as a “family financial advisory” firm for everyday people in the 21st century. It believes that old wealth management models were designed for billionaires. But it wants to use technology and fiduciary financial planners to help the average busy professional grow his or her wealth.
Robo And Human Advisors
Although Farther has robo-advisory elements, that's not its primary focus. Farther’s clients will interact with both technology and humans.
Farther allows users to connect all their accounts to the platform. That way, everything can be managed in one place. This includes accounts managed by Farther and accounts managed by other brokers (for example a company 401(k) or a standard checking account).
In addition to the technology, clients can meet with fiduciary financial planners on an as-needed basis. These advisors have experience assisting with tax planning, business purchasing, home-buying, and every major part of managing your financial life.
One of the coolest technology features of Farther Finance is its “waterfall” system. Users can specify a number of financial goals. Some can be short-term (a vacation this year), mid-term (buying into a business or buying a house), and long-term (retirement, college savings for younger kids, etc.).
The waterfall system ensures that each dollar you save is automatically deposited into the correct account and that the portfolio within the account matches your risk tolerance and your timeline. Goals with shorter timelines are tilted towards preserving capital, whereas long-term goals are tilted towards growth.
One of the amazing features associated with Farther is the unique methods for transferring money towards goals. You can do a one time transfer to the account, set up automated transfers, or set a “checking account floor." In the latter case, Farther will automatically transfer money to selected accounts above your preset floor.
Are There Any Fees?
Yes, Farther Finance charges a 0.80% annual management fee for all client accounts. There is no additional charge for financial planning sessions. And it also doesn't charge any commissions or fees on trades. See the best free trading apps of 2020.
How Does Farther Compare To Other Advisors?
When compared to other robo-advisor platforms, Farther Finance is quite a bit more expensive. Platforms like Wealthfront, Betterment, and M1 Finance all charge lower rates. Personal Capital, which also gives investors access to personalized financial advisors charges 0.89% on the first million in assets under management.
At low levels of wealth, Farther can be a great deal. Many wealth management firms won't work with individuals until they have at least a few hundred thousand in assets. However, someone with $50,000 in managed accounts would pay just $400 for access to Farther’s technological solutions and financial advisors.
However, as balances grow, the value may diminish. People with larger portfolios who are interested in Farther’s people-first approach to finances may want to compare Farther’s offerings to traditional financial planning options.
The XY Planning Network is a network financial planners who focus on Generation X and Millennial investors. The Financial Gym is a membership-based financial company that provides education and support for people seeking financial health. And Facet Wealth is a financial planning service that charges flat annual advisory fees ranging from $1,200 to $6,000.
$1,200 to $6,000/yr
Is It Worth It?
Farther’s primary value proposition is on the financial planning side. If your financial life is starting to become complicated, it may be worth moving your money to Farther or to hire another fiduciary financial advisor.
Farther's 0.80% annual management fee is high compared to technology-only platforms. But it's on par (or lower) with others in the financial advisory space. While a few companies like Personal Capital have started to connect automated investing and financial planning, competition is always a good thing for consumers. So it’s exciting to see a new entrant into this space.
Farther’s integration of technology and human advisors may appeal to tech-savvy investors who would still like the option of talking to an advisor here and there. But those who are just looking for low-cost, automated investing may want to choose one of the top robo-advisors instead.
Farther Finance Features
0.80% of assets under management
Socially Responsible Investments
Access to Human Advisor
Yes, included in management fee
Yes (whenever your portfolio reaches a 20% or higher deviation from your target allocation)
Customer Service Number
Phone calls only available by scheduled appointment
Customer Service Email
Other Customer Support Options
Mobile App Availability
iOS and Android
Farther Finance Review
- Commissions and Fees
- Customer Service
- Ease of Use
- Tools and Resources
Farther Finance is a financial advisory firm that uses technology and financial planners to help average investors grow their wealth.
- Unlimited access to human financial advisors
- Low minimum deposit
- Advanced goal-setting tools
- Automatic portfolio rebalancing
- Advisory fee is higher than most robo-advisors
- No automatic tax-loss harvesting
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.