Thank you for taking the time to check out my Personal Capital Review. Most of the financial investment platforms these days either offer you robo advisors or expert human advisors to help you out. Both of them have their advantages and disadvantages.
However, there is one platform which stands out from the rest. It is Personal Capital. The benefit of Personal Capital is that it provides you the combination of robo advisors and human advisors. You can use the mix, or you can choose anyone.
Like always, it is wise to conduct your due diligence before using the platform. We will today help you out with the same by sharing with you our Personal Capital review. It details various aspects of the platform to help you make the final decision.
What is Personal capital?
Personal capital, in a nutshell, is a wealth management service. It caters to a total of 2 million people as of now. You get to choose from the free version or the paid version of the program. According to the platform, over 18,000 clients are using different products offered by them.
Personal capital states that it manages $8 billion in total assets. The company has its headquarters in San Carlos, California.
What does Personal capital have on offer?
Broadly, you can divide the services offered by Personal Capital in 2 categories. The first one is the free financial dashboard.
The second one is the Personal Capital wealth management service. The features of both of these services are pretty distinct. I will first highlight the tools and services in the free financial dashboard.
Free Financial Dashboard of Personal Capital:
The basic service on offer in the free financial dashboard is a budgeting application. However, there are some other tools as well which come in handy.
The free budgeting app provides you with proper investment support and various financial aggregator services. It keeps track of your finances including credit cards, savings, investments, loans and checking accounts.
You can integrate all your funds in a single dashboard which helps you to monitor it easily. It is well-thought and has features like employer-sponsored retirement plans. Thus, in the free version itself, you can access all the necessary tracking tools to manage your finances.
The capacity of the financial dashboard spans across many different services like:
The budgeting feature allows you to track your spending and savings. It also allows you to categorize the expenditures and even mark them as individual transactions wherever applicable.
• Cash flow analyzer:
Cash flow analyzer gives you a glimpse into your income and expense report. You can link your financial accounts with the dashboard without any problem. You can even set up goals like paying off a debt or saving for retirement.
• 401(k) analyzer:
401(k) analyzer will help you understand the funds which cost you the most and the low-cost funds in your 401(k) plan. It will help you plan your savings accordingly.
• Retirement planner:
Retirement planner gives you an idea whether your retirement savings are on track or not. You can even change the plan according to your life events like the change of career or birth of a child. It offers you various scenarios which you can add to your retirement savings.
• Investment checkup:
It is the most crucial tool which free dashboard offers. You can consolidate all your investments in it. It will help you gain insights on your overall investment strategy and find out if you are lacking. You can even make adjustments to your portfolio depending on the information which you get.
• Net worth calculator:
The net worth calculator takes into account your assets and liabilities. It helps you calculate your actual net worth.
• Personal advisor:
The personal advisor answers your questions regarding various services which Personal Capital has on offer.
When you look at the number of features in the free financial dashboard itself, you will realize why it is so useful.
Wealth management services by Personal Capital:
We will now go into the details of the wealth management services offered by Personal Capital. These services are a mix of human advisors and robo advisors.
The platform in itself runs using automated tools, but humans do the actual heavy lifting. That is why; you can quickly gain the best of both the worlds.
The platform will assess your investment goals, time horizon, and risk tolerance. The platform will consider your personal preference while investing; to create a proper portfolio for you. It is not just dependent on a single asset class. It has six different asset classes which are:
1. US equity
2. US bonds
3. International Stocks
4. International Bonds
5. Alternative investments like real estate, energy, gold, investment trusts
The only downside to the wealth management service is that the initial investment is $100,000. If you want access to financial advisors, you will have to deposit $200,000. There are a few additional features of their wealth management service like:
• Custodian services:
They have tied up with Pershing Advisor Solutions. It is one of the largest investment custodians globally. The overall assets which they manage are $1 trillion. Thus, you can easily use the custodian services.
• Account protection:
The Securities Investor Protection Corporation protects all the accounts. It covers you against any mistake by the broker. The cover is up to $500,000 in securities. It is limited to $250,000 in cash.
When you look at the combination of these features, you will realize that every function which you might need from the wealth management platform is available. Let us now look at the fees before we go ahead.
What are their fees?
The fees are dependent on the investment which you have. The different tiered structure is as follows:
• If your investment is below $1 billion, you will pay 0.89% in fees.
• For the next $3 million, you will pay 0.79% in fees.
• For the next $2 million, you will pay 0.69% in fees.
• For the next $5 million, you will pay 0.59% in fees.
• If your portfolio size is over $10 million, you will pay 0.49% in fees.
The fees are a bit on the higher side. However, when you consider the overall services available and their track record, Personal Capital wealth management service can indeed be a good option.
What should you know about Personal capital?
Before you make your decision about it, there are a few things which will highlight in our Personal Capital review below.
1. Wealth management services are costly:
While the free financial dashboard is easy to use and does not cost you any money, the wealth management services are pretty expensive. It is the only thing which you need to know when planning on using Personal Capital.
Is it suitable for you?
Personal capital offers a variety of services which are suitable for almost all investors. If you are a DIY investor, you can use the free tools.
If you are a high net worth individual, you can indeed use their wealth management platform. Thus, irrespective of the bracket in which you fall, Personal Capital is a good solution for you.
• A free financial dashboard on offer
• Easy to consolidate your finances
• Wealth management services available
• Reliable custodian services on offer
• Long history
• Fees are on the higher side
Personal Capital Review: Verdict
In a nutshell, Personal Capital is one of the best options which you have for consolidating your finances and monitoring them.
If you’re looking for a wealth management service, then the Personal Capital is a good option. In the finance space, it is a worthy contender that can help you manage your wealth and take control of your finances.