Pros and cons and who should create an account

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general evaluation

Is Personal Capital Right For You?

Personal Capital is a digital platform that offers wealth management, free financial tools, cash management accounts, and more. Since the lowest starting amount you can get is $100,000, the platform is best for high net worth clients.

The mobile app is available on iOS and Android devices.

Personal Capital vs. Merrill Guided Investment

Both Personal Capital and Merrill Guided Investing are suitable for non-intrusive investors who do not want to run the day-to-day business of maintaining an investment portfolio. Both Merrill Edge – Merrill Guided Investing Online and Merrill Guided Investing with Advisor – are better options for those looking for minimal requirements.

Personal Capital and Merrill Guided Investing offer similar fees, but Personal Capital is the best option for investors who want access to a wide variety of investment types. It’s also hard to beat Personal Capital’s wealth management services and financial instruments. While Merrill Guided Investing offers the option of mentoring from a single advisor, its two levels of Personal Capital service provide access to multiple dedicated advisors.

Personal Capital vs. Vanguard Personal Advisor

When it comes to fees, you will pay less in all aspects with a Vanguard Personal Advisor Services account. But Personal Capital’s wealth management services give you access to more types of investment than Vanguard Personal Advisor Services.

Personal capital clients with lower balances pay higher fees, and clients with higher balances pay lower fees. The same applies to the Vanguard Wealth Management account. Thus, the highest you will pay is 0.30% per annum, and the lowest you will pay is 0.05%.

Ways to invest with personal capital

digital wealth management

Like many automated investing platforms, Personal Capital is best suited to investors who value a hands-off approach. The company divides its portfolio management offerings into three levels:

  • investment services: This level is best for those with assets from $100,000 to $200,000. Provides unlimited access to financial planning and retirement guidance. Plus, you’ll get a customized portfolio of ETFs, abundant digital charting tools, and support from human advisors.
  • wealth management: Level Wealth Management takes things to a higher level. It gives you two financial advisors who provide ongoing guidance and support, supplement this with a personalized portfolio, and tax optimization strategies. In addition, you will be able to benefit from professionals in real estate, stocks, and more. In order to qualify, you will need more than $200,000 but not more than $1 million.
  • private client: Intended for those with more than $1 million in investment assets, this level offers private equity investments, specialized wealth and retirement planning support, two financial advisors, and priority access to investment committee and specialists. Note, however, that the private equity option is only available to those who have invested $5 million or more.

As for investment types, the first tier only offers ETFs. The Personal Capital Wealth Management category offers ETFs and equities, while private client services focus on ETFs, stocks, bonds, and private equity investments.

Many robo-advisors primarily offer one choice of assets (such as ETFs or mutual funds), so choosing a personal capital investment is ahead of the competition. It also uses Personal Strategy + to manage employer-sponsored retirement plans such as 401(k)s and 403(b)s.

Compared to other digital advisors like Wealthfront and Fidelity Personalized Planning & Advice, Personal Capital fees are quite high. However, the upside to this is that it still charges less than most traditional consulting firms charge. While Personal Capital charges 0.89%, traditional advisors typically charge 1%.

Investors can choose between two different portfolio strategies: the personal strategy and socially responsible investing.

personal strategy

With Personal Strategy, Personal Capital invests your money in a globally diversified portfolio of stocks and ETFs. They rely on both technology and advisory oversight to build portfolios, and each includes portfolio rebalancing, tax optimization strategies such as tax loss harvesting, smart weighing, and access to advisors.

Socially Responsible Investing

With this socially responsible investment portfolio, you can make the platform focus your portfolio on companies that have high standards of Environmental, Social, and Corporate Governance (ESG). Personal Capital mainly focuses on US and international stocks and with these portfolios.

Personal capital: is it trustworthy?

The Better Business Bureau gives a personal capital rating of B+ to reflect its opinion of the investment platform’s interactions with its clients. BBB ratings range from A+ to F, so this is a fairly high score.

The BBB also takes into account many other factors when reviewing companies. These include the type of business, time in business, customer complaint history, advertising issues, licensing and government procedures. But since their ratings do not guarantee the company’s reliability or performance, you should also do your due diligence before opening an account.

Personal Capital has closed 10 complaints in the past three years and seven in the past 12 months. It has no unresolved complaints at the moment, according to BBB data.

Personal Capital – Frequently Asked Questions (FAQ)

Is personal capital legitimate?

yes. The platform offers its advisory services through Personal Capital Advisors Corporation, an investment advisory firm registered with the SEC. All companies registered with the SEC are legally required to act as trustees, which means that they must put the interests of clients over their own.

The investment platform has also been in operation since 2009, and provides FDIC insurance.

Is Personal Capital Free?

No, Personal Capital Personal Capital app charges an annual asset-based fee, which means the amount you pay annually depends on your account balance.

Is Personal Capital Worth the Fee?

Compared to other popular wealth management services, personal capital management fees are higher. Those with $1 million or less would have to pay 0.89% annually. The management fee goes down as your account balance increases, but the lowest you’ll pay annually is 0.49% (this fee is for users with more than $10 million).

It is best to examine your entire financial situation and weigh the advantages and disadvantages of personal capital before opening an account.

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