Smith 
I’ve always wanted a tool that could sync all my financial accounts—investment portfolios, checking and savings, credit cards, and loans—in one place while also providing an investment analysis. While Mint is great for numbers, it doesn’t give much financial insight. Blueleaf, which I use for my clients, excels in both areas, but it’s not available for DIY investors. So when I found out about Empower (formerly Personal Capital), I was thrilled and immediately signed up to sync all my investment accounts.
What Is Empower (Formerly Personal Capital)?
Empower is an online tool for your desktop or phone that helps you monitor all your financial accounts in real-time, whether it’s your checking account, a CD, or your retirement funds. It also provides objective investment advice aimed at making you money and offers investment options tailored to your goals. Unlike traditional financial advisors who charge high fees, Empower is more accessible. It’s designed to help you manage your money without the high cost.
Empower’s Fiduciary Obligation
One standout feature of Empower is its fiduciary obligation. Unlike banks and brokers who might prioritize their gains over yours, Empower commits to putting your interests first. This is incredibly important because it means their advice is geared towards making money for you, not for them.
How Empower Works
Empower offers both a free version and a premium version with direct investment management. Your account is held by Pershing Advisor Solutions. The free version gives you full access to the platform and a free consultation with a financial advisor, who can be reached by phone, email, or chat. The premium version, known as the Wealth Management program, includes active management of your portfolio. The fee structure for the premium service is tiered, starting at 0.89% for the first $1 million. These fees apply only to assets managed by Empower, with no additional trading or administrative fees.
Investment Strategy
Empower uses Modern Portfolio Theory (MPT) for portfolio management, focusing on diversification across broad asset classes such as US and international stocks and bonds, alternative investments, and cash. This strategy aims to optimize your portfolio by considering all of your investment holdings, even those not managed by Empower, like your 401(k).
Empower Tools and Benefits
Empower offers a host of useful tools:
- Investment Checkup: Analyzes your portfolio and assesses risk.
- 401(k) Fund Allocation: Helps you analyze and optimize your employer-sponsored 401(k) plan.
- Retirement Planner: Runs numbers to help you prepare for retirement, incorporating life changes like the birth of a child.
- Net Worth Calculator: Tracks your net worth by monitoring all your financial accounts on the platform.
- Cash Flow Analyzer: Tracks income and expenses to help you manage your budget.
- Mobile App: Available on iPhone, iPad, Apple Watch, and Android, providing access to all features on the go.
- Tax Optimization: Available to premium clients, using strategies like tax-loss harvesting to minimize tax impacts.
Site Security
Empower employs military-grade encryption and performs regular third-party security audits. Device authentication ensures that only linked devices can access your account.
Crash Test Your Portfolio
Empower also offers a tool to analyze the costs of your investments, including your employer’s 401(k) plan, helping you identify potential cost savings.
Is Empower for Me?
If you’re working on getting out of debt, Empower might not be the best fit—Mint could be a better option for you. But if you’re building up your retirement assets and want to maximize your nest egg without risking it all on penny stocks, Empower is definitely worth a try. With most features being free, there’s no reason not to explore what it offers.
Final Thoughts
Empower (formerly Personal Capital) stands out for its ability to consolidate your financial accounts and provide insightful investment advice. Unlike costly financial advisors, it offers accessible, quality financial management. Empower’s fiduciary obligation and dedication to user interests make it a trustworthy choice for managing your investments.
In summary, Empower offers a comprehensive suite of financial tools with an intuitive interface, making it easy for both beginners and seasoned investors to manage their finances effectively. While it has some limitations, the benefits and features, especially the free ones, make it a valuable tool for anyone looking to manage their investments and financial planning in one place.
