Farther 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 ofwhat 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 may be a firm worth checking out. Continue reading our full review to learn more about its features and pricing.
Quick Summary
- Combines the best elements of robo and human advisors
- Low minimum investment requirement
- Annual advisory fee is on the high side
Farther Details | |
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Product Name | Farther |
Min Invesment | $100,000 |
Annual Fee | Varies, advisor to advisor |
Account Type | IRA, Roth, 529, Donor-Advised, Taxable |
Promotions | None |
Table of Contents
How Does Farther Compare To Other Advisors?
Is It Worth It?
Farther Features
Who Is Farther Finance?
Farther was founded by Brad Genser and Taylor Matthew to leverage technology and human skill combined to bring the best financial planning possible at a fair price for consumers.
In 2023, they announced a $31 million Series B investment round, continuing their growth.
How Does Farther Work?
Farther bills itself as a wealth management firm that combines technology with the experience of seasoned financial advisors.
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, it's not a robo-advisor. 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 acompany 401(k)or a standardchecking account).
In addition to the technology, clients can meet with fiduciary financial planners on an as-needed basis. These advisors have experience assisting withtax planning, business purchasing,home-buying, and every major part of managing your financial life.
Advanced Goal-Setting
One of the coolest technology features of Farther 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 savingsfor 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 willautomatically transfer money to selected accounts above your preset floor.
Are There Any Fees?
Yes, Farther 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.
How Does Farther Compare To Other Advisors?
When compared to other robo-advisor platforms, Farther is quite a bit more expensive. Platforms like Wealthfront,Betterment, andM1 Financeall 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.
TheXY Planning Networkis a network financial planners who focus on Generation X and Millennial investors. TheFinancial Gymis a membership-based financial company that provides education and support for people seeking financial health. AndFacet Wealth is a financial planning service that charges flat annual advisory fees ranging from $1,200 to $6,000.
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Rating | |||
Advisory Fee | 0.80% | $1,200 to $6,000/yr | 0.25% |
Min Deposit | $100,000 | $0 | $500 |
Human Advisors | |||
Cell | OPEN ACCOUNT | READ THE REVIEW | READ THE REVIEW |
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 likeEmpower (formerly 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 thetop robo-advisors instead.
Farther Features
Account Types |
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Minimum Investment | $100,000 |
Management Fees | 0.80% of assets under management |
Socially Responsible Investments | No |
Access to Human Advisor | Yes, included in management fee |
Automatic Rebalancing | Yes (whenever your portfolio reaches a 20% or higher deviation from your target allocation) |
Tax-Loss Harvesting | No |
Customer Service Number | Phone calls only available by scheduled appointment |
Customer Service Email | hello@farther.com |
Other Customer Support Options | None |
Mobile App Availability | iOS and Android |
Promotions | None |
