Personal Capital Review – A Serious Investment Platform For Serious Investors!
Welcome to my Personal Capital review!
In the growing world of financial advice, robo-advisers are placed on the cheap end of the market spectrum while financial advisers sit at the expensive end.
And then there’s Personal Capital, a combination of both robo-advisor algorithms and human advisors.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
Let me be completely transparent with you, I'm not associated with Personal Capital in any form.
So, rest assured that I'm not here to pitch or sell anything to you.
Instead, I'm here to reveal the inner workings of this investment platform and why it's worth your time!
Personal Capital Review Summary
Product Name: Personal Capital
Founder: Bill Harris, Louie Gasparini, Rob Foregger
Product Type: Financial Investment and Wealth Management Platform
Price: Free to use (Annual Fees Apply to Investments Only)
Best For: People who are looking to take their finances and investments seriously.
Summary: Personal Capital is a financial management and investment platform with both Free and Paid features that investors can take advantage of. The Free features are comprehensive enough that they can compete with the top financial management tools in the market today. Their Wealth Management features, which requires you to make a minimum deposit, are solid and are run by both human and robo-advisors. However, the minimum deposit is quite high, so it may be off-putting for a lot of people.
What is Personal Capital?
Personal Capital is a wealth management service used by 2 million people, most of which use the free version of the program.
But there are more than 18,000 clients who subscribed to their various investment services.
To date, Personal Capital manages $8 billion in assets.
The company is currently located in San Carlos, California.
Inside Personal Capital
Personal Capital operates on two versions: the free Financial Dashboard and the Personal Capital Wealth Management.
While both are related services, you get very distinct functions from each one of them.
Let’s take a look at them individually.
Personal Capital Free Financial Dashboard
Even if you don’t intend on using Personal Capital for budgeting, the free version will provide you with valuable investment support.
The dashboard functions primarily as a financial aggregator, which means it can hold all of your accounts including savings, investments, checking, loans, and credit cards.
It assembles all of your current financial life in one platform.
You can even include employer-sponsored retirement plans, which happens to be the free version’s specialty.
The free Financial Dashboard offers the following capabilities:
- Budgeting. The free version allows you to track your cash flow and spending patterns. You can also analyze spending categories and individual transactions, so you’ll know where your money is going.
- Cash Flow Analyzer. The tool creates a budget for you and once it’s setup, it tracks income and expenses from different financial accounts linked to the platform. You can then set up financial goals like paying off a debt, or planning for retirement.
- 401(k) Analyzer. People are taking advantage of Personal Capital’s 401k Analyzer. This tool will show you what each fund in your plan is costing you and even suggest alternative allocations into lower cost funds.
- Retirement Planner. This planner uses “what if” scenarios to help you determine if your retirement plan is on track. You can also adjust for changes in situation like career change, birth of a child, and so on.
- Investment Checkup. Probably the most important investment tool of all. Once all of your investment accounts are consolidated into the platform, the tool will help you optimize your accounts. It can even recommend when to make adjustments to your portfolio to improve your performance.
- Net Worth Calculator. By tracking all of your assets and liabilities, you can quickly determine your net worth. This is important because your net worth determines your overall financial health.
- Personal advisor. While the platform is free, Personal Capital provides you with a personal advisor, but they won’t provide you investment advice. Instead, they’ll help you with questions regarding the service.
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Personal Capital Wealth Management
Personal Capital also has the Wealth Management feature, which is grouped together with robo-advisers.
But that’s not entirely the case. While the platform’s feature runs on automated investment tools, most of the grunt work is still done by active human investors.
This puts the service right in between human advisors and robo-advisors.
Personal Capital starts off by determining your risk tolerance, investment goals, and time horizon.
They also consider your personal preference in constructing your portfolio, managed accordingly to Modern Portfolio Theory (MPT).
They also rebalance your portfolio to maintain target allocations.
The portfolio is invested in six asset classes:
- U.S. stocks
- U.S. bonds
- International stocks
- International bonds
- Alternative investments, including real estate investment trusts, energy and gold
The downside here is that you need a minimum initial investment of $100,000 to access Wealth Management ($200,000 for regular access to financial advisors).
Other features of Wealth Management also include:
- Account custodian. Your Wealth Management portfolio is held with Pershing Advisor Solutions, one of the largest investment custodians and clearing agencies in the world. The company manages $1 trillion in assets worldwide.
- Account protection. All accounts are protected by SIPC or Securities Investor Protection Corporation. The coverage protects you against broker failure for up to $500,000 in securities and cash, or $250,000 in cash.
What Are The Annual Fees?
Insert Personal Capital Service Levels
- Up to $1 million: 0.89%
- First $3 million: 0.79%
- Next $2 million: 0.69%
- Next $5 million: 0.59%
- Over $10 million: 0.49%
Who's Personal Capital For?
Personal Capital is intended for two kinds of investors:
- Those who prefer to DIY, who can use the company’s free and comprehensive tools to gain valuable insights into their investments and finances.
- Those who have enough to take advantage of Wealth Management features to take their investments to the next level.
What I Like About Personal Capital?
#1 – Comprehensive And Free!
Their free Financial Dashboard provides you with a large number of investment tools that can compete with other financial investment platforms that you’d normally pay for.
Despite its budgeting feature limitation, Personal Capital has enough to make it worth your while.
#2 – A Complete View Of Your Finances!
When you’re making money online or offline, it’s important to keep track of how much you’re earning and how much you’re losing.
This is why their aggregation features provides you with an easy-to-use service and provides you with access to all of your finances in one location.
#3 – All-Inclusive Wealth Management Fee!
When you subscribe to Wealth Management, all of your fees are covered annually for everything. There are no hidden fees.
All-Inclusive Wealth Management Fee — Personal Capital's paid service annual fee includes everything to manage your account. So there's no hidden fees.
Personal Capital Ugly Truths Revealed!
#1 – It’s Very EXPENSIVE!
While you can take advantage of the free services, you still need to pay out of the butt if you want to take advantage of Wealth Management services.
I would also argue that there are cheaper trading platforms out there that only require a slightly lower minimum investment.
The high fees associated with the services are much higher than robo-advisors, which average at about 0.25% to 0.40%.
But I would point out that Personal Capital provides investment management services closer to traditional human investment managers with a little bit of automation.
Is Personal Capital a Scam?
Personal Capital is a very legitimate wealth management and investment platform that provides you with comprehensive features even when you’re subscribed for free.
The platform generally gives you how your finances look like and what you can do to improve them.
As someone who makes money online from different streams of income, it helps to keep track of how much you’re earning and losing from each source.
However, the investment requirements are quite expensive and may put off people from using the platform.
Regardless, the free features are more than enough to use this platform.
I would highly recommend the use of this platform if you want to monitor your finances.
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