Empower Review – Know Your Net Worth and Improve It
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Empower's amazing range of free tools available for planning, debt management, retirement, and investing can take your knowledge to an entirely new level.
8/10
Cost
8/10
Features
9/10
Ease of use
8/10
Services
8/10
If you’ve ever researched money management software or investment tools, you probably quickly realized how many choices there are on the market. Many companies offer some form of financial planning from paid to free versions. Empower Personal Cash, previously known as Personal Capital, is one example of wealth management services, and it could offer enough to set it apart from all the other personal finance sites.
The sheer number of free planning tools Empower offers may be enough to entice you. These tools range from learning cash flow management to helping you reach your retirement goals. But if you’re looking for more hands-on guidance, you should know all the costs.
Related: Best Personal Finance Software
In this article
What is Empower Personal Cash?
Personal Capital was founded in 2009 and sold to Empowerment Retirement in 2020. It has now adopted the Empower name as well.
It is referred to as a robo-advisor and digital investment manager, which is a way to provide financial advice with little human interaction.
However, Empower also offers a team of financial advisors for clients with at least a $100,000 investment account minimum with the company. Clients who pay the annual fee for account management have unlimited access to a team of advisers, which is different from other robo-advising models.
- See all of your accounts in one secure place.
- Monitor all of your investments in real time.
- Track your complete, true net worth.
How does Empower work?
To use Empower, you either log on to the website or download the mobile app.
As I set out to learn more about the service, I was immediately struck by how easy it is to navigate the website and open an Empower account. You simply provide your email address and set up a password. Once you use the two-factor authentication, you’re in.
The next step is to link as many of your financial accounts as possible, including savings, checking, retirement, investment — even credit cards. The more information you put in, the more likely you are to get the most out of the dashboard and monitor all your accounts (and progress), plus account balances, in one place.
Once setup is complete, you will have a personal dashboard where your portfolio is housed. From there, you can start using the wide variety of tools that will be helpful for newbies and seasoned investors.
From there, if you have at least $100,000 in investments with Empower, then you have access to dedicated financial advisors.
How much does Empower cost?
The majority of financial tools are free for anyone to access. The only requirement is creating an account with a username and password.
There is an annual fee if you use Empower to manage your investments. The investment services pricing schedule breaks down as follows:
Investment amount | Management fee |
Up to $1 million in investments | 0.89% |
Up to $2 million in investments | 0.79% |
Up to $3 million in investments | 0.69% |
Up to $5 million in investments | 0.59% |
Over $10 million in investments | 0.49% |
Features
Free planning tools
One of the best features is the comprehensive and extensive list of free planning tools. These are accessible to anyone (as long as you sign up for a free account), no matter your net worth. These tools include:
Net-worth calculator. Because Empower is connected to all of your financial accounts, including a mortgage, if applicable, it calculates your net worth in real time. You'll see it clear as day when you log in.
Cash flow analysis and savings planner. With its ability to keep track of your spending, savings tools can help you create goals and showcase where you may have weak spots.
Use the free budgeting tools and financial organizing, and the app helps you stay on track.
Going one step further, its education savings planner can help you prepare for your child's upcoming education, regardless of whether it's next year or in 28 years.
Portfolio tracker. You don't need to enroll in an investment account with Empower. Link your brokerage and retirement accounts to provide an all-in-one look at your holdings.
Retirement planner. Using all your income and spending, the retirement planner can also predict what you'll need to retire and how far off the mark you may be. With that comes investment checkups to help you close in on your dreams.
Imports data directly
Empower connects to the financial institutions where you hold your assets, including IRAs, 401ks, credit cards, bank accounts, loans, and brokerages.
Transparent fee schedule to manage your investments
You will know the amount Empower charges for managing your portfolio and meeting with advisers upfront.
No software to install
You can view all of Empower’s features through a browser or the mobile app (both Apple and Android).
Advanced tools for clients
You can access additional tools if you pay for Empower to manage your investments. These include a personalized financial roadmap that recommends retirement and emergency savings actions.
Another advanced feature is the smart withdrawal tool, which provides customized advice for withdrawing from investment accounts. This provides advice on maximizing your budget, retirement withdrawals, and an optimized tax strategy.
Investment products
From mutual funds to exchange-traded funds (ETFs), Empower offers a full range of investment products to help you create a diversified investment portfolio,
Multiple layers of security
Because of the sensitive nature of the information, Empower uses an encryption service rated so highly that it is considered stronger than what most banks and brokerage firms are using.
- See all of your accounts in one secure place.
- Monitor all of your investments in real time.
- Track your complete, true net worth.
Who is Empower best for?
Those with a high net worth are most likely to benefit most from the tools, both the free ones and access to financial advisors. One of the biggest features is having all your investment information in one place, such as banking, retirement, emergency funds, and other accounts.
On the other hand, if you are interested in making investment decisions by accessing the free tools, you may also benefit from an Empower account. You do not have to use financial advisors; instead, you can access free tools to make your investment decisions.
Who shouldn’t use Empower?
If you are a beginner investor or early in your investing career, you might not benefit from an account compared to others. While the tools are free to anyone, you must invest a minimum of $100,000 to have access to advisors.
Fees should also be considered. If you have less than $200,000 in investments, you would be charged 0.89%. There are less expensive options on the market for managing this amount; some online accounts charge only 0.3% for advising.
Net Worth Calculator
Pros and cons
Pros
- Sophisticated investment tools that put all your financial information in one place for you.
- Variety of free tools, plus paid options
- Complete access to financial planners
- Tax strategy options
Cons
- Ideally suited for people who are familiar with investing and not beginners
- Higher account management fees
Empower vs. competition
Company | Account Management Strength | Cost | Offers personalized financial planning |
Empower | In-depth financial planning tools | Free-to-use tools, investments cost 0.59% to 0.89% AUM | Yes |
Betterment | Financial goal setting and achievement | 0.25% of assets annually for Investing, 1% for Crypto | Yes |
Wealthfront | True robo-advising with goal planning | 0.25% annual advisory fee | No |
Betterment
Betterment is one of the largest robo-advising companies and continues to remain popular. The site and mobile app offer multiple financial planning tools, plus access to advisers if you pay for the premium membership plan (which requires $100,000 in an investment account).
Wealthfront
Wealthfront is the truest form of robo-advising, with zero human advisers available. However, what it lacks in human interaction, it makes up for with advanced tools and investment technologies. It offers ideal solutions for anyone who wants a hands-off approach to investing or wants to dig into the weeds and learn investment strategies from the beginning. While the tools are free, they require a minimum $500 account balance to start investing.
- See all of your accounts in one secure place.
- Monitor all of your investments in real time.
- Track your complete, true net worth.
FAQs
What is the minimum amount required to invest with Empower?
To have access to a team of financial advisors, the minimum investment amount required is $100,000.
Is Empower worth the fee it charges?
Empower does charge between 0.59% to 0.89% (depending on the amount in the investment account) to manage and participate in financial planning. If your investments are under $1 million, then you will definitely find less expensive advising options available. However, Empower is extremely detailed and comprehensive, so the fee may be worth it if you are someone who needs guidance for all phases of investing, savings, budgeting, and retirement planning.
How much does Empower cost?
Unless you enroll in financial advising for investments, Empower is 100% free.
What does Empower do outside of investment management?
Lots! Connect your financial accounts and Empower displays your net worth, shows your track toward saving and retirement goals, highlights your monthly budget, and more.
The bottom line
Financial management, both online and through an app, has become very crowded. With so much competition, you may think Empower is simply like all the other options. However, the amazing range of free tools available for planning, debt management, retirement, and investing can take your knowledge to an entirely new level. If you do choose to invest, you will be paying a higher annual fee than other digital options, but in return, you’ll have access to a team of financial advisers and services.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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