Imagine you've worked hard and built a successful career. Now, you have a comfortable amount of money, but managing it all feels overwhelming. You want to plan for retirement, minimize taxes, and ensure your loved ones are cared for. But where do you even begin? Enter Farther Financial. They offer a personalized approach to wealth management, goal alignment, tax strategies, asset allocation, retirement planning, estate planning, and more. In this review, we'll explore their services, fees, and whether they might fit you.

What is Farther Finance?

Farther Finance is a modern wealth management firm founded in 2019 that specializes in helping rising professionals and individuals with significant wealth. It uses a hybrid approach that combines advanced technology and human financial planners.

With a $100,000 minimum investment, Farther charges a 0.80% annual management fee and provides comprehensive services without extra commissions or trade charges. Clients can integrate all their financial accounts into one platform, benefit from algorithm-based investing, and get personalized advice on various financial needs.

Farther manages $1.1 billion for 2,016 clients as of early 2024, highlighting its appeal and success in offering secure, innovative, and efficient wealth management solutions.

How Does Farther Finance Work?

Farther Finance combines modern technology with professional financial advisors to offer personalized wealth management services. Here's a simple explanation of how it functions:

1. Getting Started and Account Integration

Farther is designed for investors with a minimum of $100,000 to invest. To begin with Farther, you fill out a form on their website, providing some basic information about yourself and your financial goals. Once you're signed up, you connect all your financial accounts, like your savings, checking, and even your retirement accounts (401(k)).

2. Goal Setting and Strategy Development

After connecting all your financial accounts, Farther employs a "waterfall" system that helps you set and prioritize various financial goals, whether short-term, mid-term, or long-term.

The system then automatically directs your savings to the appropriate account to align your investment strategy with your financial objectives. Then, you get a dedicated financial advisor who helps you establish an investment plan and portfolio strategy tailored to your needs.

Fees and Financial Planning

Farther charges a 0.80% annual management fee for portfolios up to $2.5 million, with lower costs for more significant account balances. The price includes unlimited access to human financial advisors, covering financial planning sessions and trades without additional charges.

Although the fee might be higher than that of some robo-advisors, Farther's personalized service and automatic portfolio rebalancing provide comprehensive wealth management designed to meet individual needs.

Core Features

1. Cash Waterfall System

Farther uses an algorithm to automate how money is deposited and invested. You set your goals (short, medium, or long-term) and risk tolerance. Based on these priorities, the waterfall system then allocates new or extra money across different accounts.

Short-term goals get prioritized for capital preservation, while long-term goals might be invested in growth-oriented assets (like stocks). You can configure the algorithm with your advisor to ensure it aligns with your preferences.

2. Goal-Based Planning

Farther goes beyond basic investing. It allows you to set various financial goals, from a dream vacation this year to retirement savings. They use this information to create a personalized investment plan considering your time horizon and risk tolerance for each goal.

3. Robo-advisor Technology

Farther leverages automated investment management through its robo-advisor technology. It automates portfolio rebalancing, tax-optimization strategies, and low-cost diversification.

4. Human Advisors

While technology plays a big role, Farther doesn't ignore the human touch. You get a dedicated financial advisor who acts as your "money buddy" and is available via email, chat, or video call for personalized guidance and support.

5. Security Measures

Farther prioritizes the security of assets with investments insured by SIPC up to $500K per account and data encryption for protection.

How Can You Make Money Using Farther?

By investing your money through Farther, you can see it grow through the increase in value of your investments and from dividends. Farther helps you choose the right mix of investments based on what you want to achieve, how much risk you're comfortable with, and when you need your money back.

They charge a fee based on how much money they manage for you, ranging from 0.35% to 0.8%, which motivates them to help your investments perform well.

Farther uses a strategy tailored to your goals, mixing different types of investments, using accounts that save you on taxes, and selecting low-cost options to ensure you're not spending too much on fees. Their unique program automatically puts your cash into investments, so your money always works for you as best as possible.

Additionally, Farther offers unique investment options like private equity, real estate, hedge funds, and cryptocurrencies, giving you more ways to increase your money potentially.

Comparing Farther to Competitors

Conclusion

Farther Financial is a wealth management service that mixes tech and personal advice to help you manage and grow your money. Starting at $100,000, Farther charges 0.80% yearly to manage your funds and build your wealth through personalized investing plans.

They have a smart system to help you reach your financial goals, from saving for a trip to planning for retirement. They also provide investment options like private equity and cryptocurrencies so that you have more ways to increase your wealth potentially.

Compared to similar services, Farther stands out with its combination of human advisors and automated technology. However, its higher fees and $100,000 minimum investment might not fit everyone's needs. If you're looking for personalized financial planning plus the efficiency of tech, Farther could be a great choice.