Empower (Formerly Personal Capital) Review – Managing All Your Investments in One Place

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Empower offers a suite of finance devices and entree to a financial advisor, wholly free. Best of all, they fto you aggregate each of your financial accounts, and past they supply an investment-related study of your full portfolio. Find retired much astir this awesome work successful my complete reappraisal of Empower.

One point that I person craved for investors is simply a instrumentality that allows you to sync each your financial accounts – your finance portfolio, checking and savings accounts, credit cards, and different indebtedness accounts – successful 1 spot and past provides an investment-related study of your full portfolio.

Mint does a awesome occupation of giving you numbers but falls short of providing immoderate financial insight.

Then there’s Blueleaf, which I subscribe to for my clients and find to beryllium fantabulous connected some accounts, but it’s not disposable to nan DIY investor.

So erstwhile I discovered Empower (formerly Personal Capital), I was truthful excited to study much that I instantly signed up and synced each of my finance accounts to it.

  • Use their Fee Analyzer™ to find hidden fees
  • The app is 100% free
  • See each your money accounts successful 1 place, successful existent time

What Is Empower (Formerly Personal Capital)?

Empower is an online tool, disposable from your desktop aliases phone, that will thief you:

  • Monitor each of your financial accounts successful real-time – whether checking account, certificate of deposit, aliases retirement account
  • Get nonsubjective finance proposal designed to make you – not nan advisor – money
  • Provide finance options that are tailored to your goals

This is fantastic. You see, financial advisors that attraction chiefly connected wealthiness guidance tin beryllium costly to support around.

They complaint either a percent of assets managed aliases a level hourly complaint that tin tally arsenic precocious arsenic respective 100 dollars per hour, positive trading commissions and administrative fees.

So, while these advisors tin surely beryllium excellent, they’re mostly unreachable unless you person millions of dollars to invest.

What’s more, these wealthiness advisors aren’t really location to thatch you really to put together a budget. They strictly negociate your money.

Empower to nan rescue.

I cognize what you’re thinking. “Okay, great, but why should I spot these caller guys?” I’ve sewage to beryllium honorable pinch you. There were 2 words I saw connected Empower’s website that made my bosom skip a beat.

Those 2 words? Are you ready?

Fiduciary Obligation

Here’s a transcript consecutive from their website:

Objective Advice: The sorry truth is that bankers and brokers are motivated to thief themselves, not you. They are salespeople paid to push products, earning commissions and kickbacks erstwhile they do. In stark contrast, Empower is an finance advisor. We judge a fiduciary obligation to enactment successful your champion interest, and our proposal must beryllium aimed astatine making money for you, not for us.

This is perfectly cardinal pinch immoderate financial advisor you talk to, whether successful personification aliases online. Fiduciary work intends nan statement has a ineligible responsibility to put their interests supra their own.

Whereas normal brokers get paid commissions by getting you to churn your investments complete and complete (which costs you thousands of dollars successful mislaid percentages present and there), Empower is putting a request connected themselves to put your interests supra theirs.

This is huge!

Seriously, location are awesome points for Empower from maine connected this one.

How Empower Works

Empower offers a free type and a premium type that features nonstop finance management. Whichever type you use, your relationship is really held by Pershing Advisor Solutions, which acts arsenic a trustee for your account.

The Free Version

With nan free version, you get afloat usage of nan Empower level arsenic good arsenic a free consultation from a financial advisor.

That advisor will springiness you a personalized study of your investments and recommendations arsenic to what you tin do pinch your portfolio. Your financial advisor tin beryllium contacted by phone, email, aliases by online chat.

In fact, nan only characteristic that differentiates nan free type from Empower’s premium merchandise is its personalized portfolio management.

Other than that, nan free type includes each of nan galore features and benefits that are disposable connected nan platform, including nan expertise to aggregate each of your financial accounts, nan 401(k) analyzer, nonsubjective finance proposal and finance check-ups, real-time financial dashboard, and entree via nan mobile app.

To show you really broad their free level is, return a look astatine this screenshot of their Portfolio Review from my free account:

This is conscionable nan “Holdings” tab connected this feature. You tin besides get accusation connected your capacity and plus allocation. I can’t accent capable really valuable this accusation is for each types of investors – beginner aliases seasoned.

The Premium Version

Also known arsenic their Wealth Management program, Empower’s premium programme includes progressive guidance of your finance portfolio.

Like different akin products, they first find your risk tolerance, individual preferences, and finance goals. Using that evaluation, they past create a portfolio tailored to fresh wrong those parameters.

The interest building for this work is arsenic follows:

  • 0.89% of nan first $1 million
  • 0.79% of nan first $3 million
  • 0.69% of nan adjacent $2 million
  • 0.59% of nan adjacent $5 million
  • 0.49% connected balances complete $10 million

These fees are rather reasonable erstwhile compared pinch fees of 1% to 2% that are customarily charged by progressive finance guidance services.

The fees use only to nan assets you person nether guidance astatine Empower and not to different investments that whitethorn beryllium aggregated connected nan site, specified arsenic your 401(k) plan.

And that’s it. There are nary further fees. Empower does not complaint trading, commission, administrative, aliases immoderate different types of finance fees. Your only costs is nan annual, all-inclusive percent that applies to your portfolio level.

Investment Strategy

Empower uses Modern Portfolio Theory (MPT) to negociate your portfolio. MPT focuses little connected individual information action and much connected diversification crossed wide plus classes. Those plus classes include:

  • US Stocks (Which Can Include Individual Stocks)
  • US Bonds
  • International Stocks
  • International Bonds
  • Alternative Investments (Including ETFs and Commodities)
  • Cash

Though Empower makes usage of costs successful constructing your portfolio, they whitethorn besides see up to 100 individual securities successful bid to debar being excessively heavy concentrated successful a mini number of companies.

I besides discovered done my reappraisal that Empower uses an integrated finance attack to managing your investments, which is simply a beautiful unsocial feature. This intends that they facet successful each of your finance holdings – including those not managed by Empower – successful managing your portfolio.

For example, though they don’t negociate your 401(k) account, your 401(k) allocations will be considered erstwhile making decisions astir your investments that are really managed by Empower.

There is simply a agelong database of devices and benefits successful utilizing Empower. Some of nan much absorbing ones include:

The Investment Checkup

This instrumentality analyzes your finance portfolio and gives a consequence appraisal of it to make judge that your level of consequence is accordant pinch your goals.

This will thief you to create an plus allocation that will get you wherever you request to spell pinch your investments. Here’s a screenshot of their Investment Checkup from my Empower dashboard:

401(k) Fund Allocation

This instrumentality tin beryllium utilized to analyse your employer-sponsored 401(k) plan, moreover though it is not nether nan nonstop guidance of Empower.

It tin beryllium utilized to thief you pinch your plus allocation, astatine slightest based connected nan finance options that your scheme includes. This is an fantabulous instrumentality since astir 401(k) plans don’t person immoderate benignant of finance guidance advice.

Retirement Planner

You tin often find status planners aliases status calculators connected various sites passim nan Internet. But what amended spot than to person it disposable wherever you besides person each of your finance accounts listed?

Empower’s Retirement Planner allows you to tally numbers connected your status to make judge that you will beryllium prepared erstwhile nan clip comes.

It allows you to incorporated awesome changes successful your life into your retirement planning, specified arsenic nan commencement of a kid aliases saving for college.

Net Worth Calculator

Since Empower aggregates each of your financial accounts connected nan aforesaid platform, they tin besides supply you pinch ongoing monitoring of your net worth.

This will alteration you to get nan astir broad position of your financial business since it not only takes into relationship your assets but besides your debts.

Net worthy is nan champion azygous parameter of your wide financial strength, and this will springiness you an opportunity to way it.

Cash Flow Analyzer

Though our attraction successful this article has been chiefly connected nan finance broadside of Empower, it’s important to admit that it besides includes a budgeting capability.

The Cash Flow Analyzer tracks your income and expenses from each sources, letting you cognize wherever you’re spending money (or spending excessively overmuch of it), which will thief you to make adjustments that will amended your wide budget.

Mobile App

Empower’s mobile app is simply a free characteristic that tin beryllium downloaded connected Apple iPhone, iPad, Apple Watch, and Android. The mobile type has everything that is disposable connected nan desktop platform.

It will alteration you to way your finance portfolio, arsenic good arsenic your banking and in installments paper activity while you’re connected nan go.

Tax Optimization

Empower uses taxation optimization successful nan guidance of your portfolio. This characteristic is disposable to premium Wealth Management clients, and not if you are utilizing nan free version.

They usage respective strategies arsenic portion of taxation optimization. For example, they see income-producing investments successful tax-deferred accounts, while growth-oriented investments – that person nan use of little superior gains taxes – are held successful taxable accounts.

In addition, they don’t usage communal costs but alternatively usage exchange-traded costs pinch a operation of individual stocks since stocks tin beryllium easy bought and sold for tax-loss harvesting.

And speaking of tax-loss harvesting, they usage this strategy to waste losing stocks, which offsets nan gains connected nan waste of winning stocks. This strategy minimizes nan antagonistic effect connected your finance portfolio from income taxes.

Site Security

Empower uses bank-level, military-grade encryption connected nan platform. They besides execute ongoing third-party information audits to trial their systems. They besides usage instrumentality authentication truthful that each instrumentality you nexus your relationship to must first beryllium authenticated successful bid to beryllium used.

Crash Test Your Portfolio

Investing expenses and taxes are nan 2 things you tin perfectly count connected wrong nan investing world. You can’t trust connected gains each year, but you tin guarantee you will beryllium taxed and you will salary expenses.

That makes reducing those expenses 1 of 2 ways you tin power your investing destiny.

Thankfully, Empower realizes this and offers you a really awesome instrumentality to analyse nan costs of your investments.

Where this gets absorbing is you tin do an study of your employer’s 401 (k) scheme (as discussed above)  to observe whether your scheme is amazing, conscionable okay, aliases unspeakable erstwhile it comes to costs.

You mightiness beryllium nan personification to spell to HR to uncover conscionable really costly your scheme is, laic retired a caller scheme that would trim costs for everyone, and extremity up getting a promotion conscionable for moving a costs analysis.

Even if you don’t get promoted to caput finance advisor for your employer, astatine nan very least, you’ll prevention your ain status from exorbitant fees. And that’s a immense triumph we tin each settee for.

Summary of Empower Financial Platform Features

Is Empower for Me?

The thought of wealthiness guidance intends you request to person wealthiness to manage. If you’re struggling to get retired of debt, that’s okay, but Empower astir apt isn’t nan champion fresh for you.

In that case, Mint mightiness beryllium a amended option, and you tin spot a afloat comparison successful my complete Personal Capital vs Mint review.

However, if you are building up your status assets and want to beryllium capable to maximize your nest ovum without gambling connected penny stocks, past you should decidedly motion up for nan service.

All of nan features, speech from nan personalized portfolio management, are perfectly free, truthful there’s really nary logic not to springiness them a try.

Final Thoughts – Empower (Formerly Personal Capital) Review – Managing All Your Investments successful One Place

In nan quest for a instrumentality that offers some financial consolidation and insightful finance analysis, Empower (formerly Personal Capital) emerges arsenic a frontrunner.

Unlike its competitors, Empower provides an all-in-one solution, ensuring users tin show their full financial spectrum while besides gaining nonsubjective finance advice.

With galore financial advisors charging exorbitant rates, Empower offers a much accessible replacement without compromising connected quality. Their fiduciary responsibility demonstrates a committedness to prioritize users’ financial interests supra each else.

This dedication to transparency and accountability not only distinguishes Empower from galore successful nan marketplace but besides earns it precocious commendation for its genuine dedication to nan user’s financial growth.

How We Review Brokers and Investment Companies:

Good Financial Cents conducts a thorough reappraisal of U.S. brokers, focusing connected assets nether guidance and notable manufacture trends.

Our superior nonsubjective is to connection a balanced and informative assessment, assisting individuals successful making informed decisions astir their finance choices. We judge successful maintaining a transparent editorial process.

To execute this, we stitchery information from providers done elaborate questionnaires and return nan clip to observe supplier demonstrations. This hands-on approach, mixed pinch our independent research, forms nan ground of our information process.

After considering various factors, we delegate a prima rating, ranging from 1 to five, to each broker.

For a deeper knowing of nan criteria we usage to complaint brokers and our information approach, please mention to our editorial guidelines and afloat disclaimer.

Empower (formerly Personal Capital) Review

Product Name: Empower - Personal Capital

Product Description: Personal Capital is simply a financial advisor and finance guidance company. They supply services specified arsenic wealthiness management, status planning, and portfolio management.

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Summary

Empower, primitively known arsenic Personal Capital, offers a broad suite of financial devices that thief users way and negociate their finances. Its superior features see a dashboard that gives an overview of each assets, liabilities, and investments, a budgeting instrumentality to way and categorize spending, and an finance checking instrumentality that provides insights into one’s portfolio. The level prides itself connected its intuitive personification interface, ensuring that some novices and seasoned financial experts tin navigate and utilize its features pinch ease.

  • Cost and Fees
  • Customer Service
  • User Experience
  • Product Offerings

Pros

  • The App Is Free to Use
  • User-Friendly Interface
  • Provides a Comprehensive Overview of Your Financial Situation
  • Offers a Variety of Tools to Help You Manage Your Finances

Cons

  • Limited Features
  • Investment Management Fees
  • Limited Access to Advisors
  • Limited Investment Options
  • Potential Conflicts of Interest