1 Minute Review
Personal Capital is a digital financial advisory service that offers tools and services beyond the norm. The crux of Personal Capital’s power lies in the intersection of smart financial strategy and state-of-the-art financial technology.
Its high-powered investment management technology makes it an ideal virtual financial advisor and portfolio manager for high-net-worth individuals. But its financial tools and services can benefit anyone.
- High-net-worth individuals looking for a comprehensive digital financial manager
- Retirement planning
- Self-starters who can use the Personal Capital Financial Tools to track finances and set long-term financial goals
- Handle your portfolio, financial planning and spending accounts with cutting edge digital financial management technology
- Panoramic view of your finances on display 24/7 using precise analytics and a dashboard that displays all your accounts together
- Executive-level financial planning and investment management
- Relatively high minimum balance for investment management services
- Fully-comprehensive financial management, including a dedicated relationship with a financial planner
- Portfolio customization and estate, legacy and tax services only available at higher tiers that require $200,000 to $1 million minimum in investments
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Overview of Personal Capital
Personal Capital uses technology to empower its members to easily make educated financial decisions. Integration of your finances into a single 360° view lets you determine your financial goals and map out an intuitive strategy to meet them.
Whether you’re here to start getting a handle on your finances or ready to start investing with a digital advisor, Personal Capital has something to help you grow your wealth intelligently.
Personal Capital has a variety of services offered beyond financial advising. Take a look at the array you can take advantage of when you sign on.
Wealth Management Services
- Using The Personal Strategy® philosophy, Personal Capital deftly manages your wealth at 3 tiers. The optimal tier for your depends on the size of your portfolio.
- Investors with $100,000 to $200,000 use the Investment Services tier. Here, you’ll receive expert direction from a team of financial advisors, who will help devise financial and retirement strategy. Personal Capital will manage your portfolio, composed of exchange-traded funds (ETFs) and provide on-request reviews of your asset allocation.
- If you have between $200,000 and 1 million in assets, you’re bumped up to the Wealth Management tier. 2 dedicated financial advisors along with sector-specific specialists (think real estate or retirement) will oversee your account. Your bespoke portfolio is personalized to your needs and subject to frequent reviews and ongoing monitoring. At this tier, your portfolio’s tax optimization is kicked into high gear with allocation to individual stock investments.
- Once you reach at least 1 million in assets, you get the full treatment at the Private Client tier. Along with 2 dedicated advisors and specialists, the Private Capital Investment Committee is always available to you. Specialists will work with you to zero in on wealth and retirement planning. Your portfolio is fully-optimized, adding private equity investment options.
Socially Responsible Investing
- Customize your portfolio and investment strategy to support socially responsible investing. This strategy focuses on ESG, or Environmental, Social and Governance, 3 factors that are considered when rating a company on how well it does on several markers for social responsibility. A portfolio designed around Socially Responsible Investing throws its weight behind companies who rank high for meeting ESG standard.
Personal Capital Cash is a unique cash account that can work for you whether you’ll be keeping a high or low account balance. It’s main draw is its integration with the rest of your finances, adding to the holistic, evolving analysis of your changing financial picture.
There’s no account minimum and no fees. If budgeting is a priority, you can link Personal Capital Cash to your checking account to pay and track monthly bills.
There are several features that make Personal Capital Cash a great account for high-net-worth individuals. For example, you can withdraw up to $100,000 per day or take advantage of free wire transfers up to $1 million. And you can keep track of all of your direct deposits and transactions with linked accounts like your Personal Capital Investments and checking account balance.
Here’s a quick shot at the financial tools that make Personal Capital unique.
Money Management Tools
- Net Worth: real time, precise view of how much money you have versus what you owe, always giving you a realistic view of your finances
- Savings Planner: calculates a target annual savings goal that will 70% guarantee you’ll meet your retirement income goals
- Budgeting: classify and track both what you’re spending your money on and what you’re saving. You can set a monthly budget and keep an eye on if you’re going over or under.
- Cash Flow: shows your monthly cash flow, making it easy to plan to meet your budget and savings targets
Long-Term Financial Planning
- Retirement Planner: analytics show your retirement savings to keep you on track to meet retirement goals along with calculating your projected retirement income
- Education Planner: set and monitor saving targets that aim to meet your projected educational expenses
- Investment Checkup: use this to analyze your portfolio against ideal target allocation, which is determined by your risk tolerance and financial goals
- Fee Analyzer: shine a light on hidden fees that may be siphoning money from your investment accounts
Exclusively for Personal Capital Clients
Personal Capital also features planning and saving tools you won’t find anywhere else. You’ll have access to apps to help you prepare and invest for your future.
- Financial Roadmap: designs a custom financial blueprint, acting as the most direct path to meeting your goals
- Personal Strategy: your custom-fit portfolio, focusing on diversification across asset classes aiming to fulfill your financial plans
- Smart Withdrawal: a great tool for retired people to keep your retirement income spending on track. You can stick to your budget, reduce tax obligations and continue to maximize your portfolio’s potential throughout your retirement.
- Employer Plan Analysis: ensure that your retirement investments are in alignment with your financial goals and strategy. You can link your available retirement account options and Personal Capital will calculate an appropriate allocation to meet your long-run financial goals.
Personal Capital is free to use and their account minimums vary across its various sectors. If you’d like to utilize any of their financial advisory and investment management services, you have to meet a minimum asset requirement starting at $100,000.
Here are the requirements for each tier:
Personal Capital Cash: no minimum balance requirement
Investment services: $100,000 to $200,000 in assets
Wealth management: $200,000 to 1 million in assets
Private client: over $1 million in assets
Becoming a Personal Capital member is completely free — anybody can utilize its Financial Tools and educational resources to their benefit. And Personal Capital Cash is mostly fee-free
Personal Capital offers a standard investment management fee structure. Depending on which service you use, you’ll pay a set percentage of your assets under management (AUM) annually.
Investment services and wealth management: 1st $1 million: 0.89% of AUM
1st $3 million: 0.79% of AUM
Next $2 million: 0.69% of AUM
Next $5 million: 0.59% of AUM
Over $10 million: 0.49% of AUM
How to Open a Personal Capital Account
Anybody can benefit from becoming a Personal Capital member. Its free financial tools are incredibly useful for educating yourself on all things personal finance.
Even if you’re not ready to set aside $100,000 for investment management, you can start your journey there using the money management tools. Signing up for Personal Capital is easy — just click here to get started.
Once you’re a member, you can sign up for Personal Capital Cash or Wealth Management if you’d like. On your 1st consultory call, you’ll go over tax optimizing your portfolio, analyze your cash flow and budgeting and receive advice on your 401k along with going over Personal Capital’s dedication to diversification.
When signing up for Wealth Management services, you’ll complete a 4-step process, made easy by the easy to use Personal Capital interface :
- Link any financial account you’d like to include in the consideration of your finances. Connect your IRA, 401k, mortgage, loan, credit card and bank accounts.
- Virtually meet your financial advisor to discuss your goals, life plans, retirement and investment strategy and goals.
- Design a financial plan and investment strategy to meet your goals.
- Begin investing with tax-optimized strategies.
You can download the Personal Capital app here. You can also find it in the Apple App Store or on Google Play.
The Personal Strategy® methodology relies on diversification, tax optimization, intuitive rebalancing and dynamic allocation as its main tenets. If sustainability and social responsibility are important factors in your asset selection, you can use Personal Capital’s Socially Responsible Personal Strategy (SRI) to dial in your portfolio and invest in companies that fulfill ESG expectations.
Your Personal Capital advisors will work to gain a deep understanding of your complete financial blueprint, using their findings to determine the best asset allocation strategy to achieve your goals.
Whether you’ve got a few bucks or a few million in your bank account, Personal Capital is a high-powered personal financial hub that can benefit anybody. Get a handle on your financial strategy using its free financial tools and educational financial insights. Or get digital with your portfolio with its world-class wealth management services to strategize, allocate and monitor your portfolio from the convenience of your smartphone.
Become a Personal Capital member for free today to get a comprehensive analysis of your finances.