Pros, cons and who should create an account

Insider experts choose the best products and services to help you make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. The terms apply to the offers listed on this page.

Types of investment

ETFs, stocks, bonds and private equity

Types of investment

ETFs, stocks, bonds and private equity

Professionals

  • Free financial and wealth management tools; rates higher than those of traditional brick and mortar firms
  • Investment selection includes stocks, ETFs, bonds and private equity; portfolio management for employer sponsored plans (e.g. 401 (k) s or 403 (b) s)
  • Socially responsible investment strategies and tax optimization strategies
  • Individual advice for financial advisors

versus

  • High management fees
  • Users need at least $ 100,000 to get started

More information

  • Promotion: none at this time.

Overall rating

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 amount you can start with is $ 100,000, the platform is best for high net worth customers.

The mobile app is available on iOS and Android devices.

Personal capital vs. Merrill driven investment

Personal Capital and Merrill Guided Investing both cater to investors who don’t want to handle the daily work of maintaining an investment portfolio. Both Merrill Edge accounts – Merrill Guided Investing Online and Merrill Guided Investing with an advisor – are better options for those looking for lower minimum requirements.

Personal Capital and Merrill Guided Investing offer similar fees, but Personal Capital is the best choice for investors looking to access a wider selection of investment types. Personal Capital’s wealth management services and financial instruments are also hard to beat. While Merrill Guided Investing offers the option of an advisor’s guidance, two of Personal Capital’s service levels offer access to multiple dedicated advisors.

Personal capital vs. Vanguard Personal Consulting Services

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

Personal Capital clients with lower balances pay higher commissions and clients with higher balances pay lower commissions. The same goes for Vanguard’s wealth management account. Therefore, the maximum you will pay is 0.30% per year and the minimum you will pay is 0.05%.

Ways to invest with Personal Capital

Digital asset management

Like many automated investment platforms, Personal Capital is best suited to investors who value a hands-on approach. The company separates its portfolio management offerings into three tiers:

  • Investment services: This level is best for those with assets of $ 100,000 to $ 200,000. Offers unlimited access to financial planning and retirement guidance. Plus, you’ll get a custom ETF portfolio, numerous digital planning tools, and the support of human advisors.
  • Wealth management: The level of wealth management makes a qualitative leap. It offers you two financial advisors who offer ongoing guidance and support and complements it with a personalized portfolio and tax optimization strategies. Plus, you can take advantage of specialists in real estate, stocks and more. To qualify, you will need to have more than $ 200,000 but no more than $ 1 million.
  • Private customer: Reserved for those with more than $ 1 million in investment assets, this tier offers private equity investments, specialized support for wealth and retirement planning, two financial advisors, and priority access to its investment committee and specialists. Note, however, that the private equity option is only available to those with $ 5 million or more invested.

As for the types of investments, the first tier only offers ETFs. Personal Capital’s wealth management tier offers ETFs and stocks, while its private client services focus on ETFs, stocks, bonds and private equity investments.

Many robo advisors primarily offer a choice of assets (such as ETFs or mutual funds), so Personal Capital’s investment selection outperforms 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 consultants such as Wealthfront and Fidelity Custom Planning & Advice, Personal Capital’s fees are quite high. The benefit of this, however, is that it charges even less than most traditional consulting firms charge. While personal capital charges 0.89%, traditional consultants usually charge 1%.

Investors can choose between two different portfolio strategies: 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. It relies on both its technology and the supervision of advisors to create portfolios, and each includes portfolio rebalancing, tax optimization strategies such as tax loss collection, smart weighting, and access to advisors.

Socially responsible investments

With this socially responsible investment portfolio, you can make the platform focus your portfolio on companies that have high environmental, social and corporate governance (ESG) standards. Personal Capital focuses primarily on US and international stocks and with these portfolios.

Personal capital: is it reliable?

The Better Business Bureau assigns Personal Capital a B + rating to reflect its opinion on 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 considers many other factors when reviewing companies. These include the type of business, time spent in business, customer complaint history, advertising issues, and government and licensing actions. But since its ratings don’t guarantee a 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. There are currently no unresolved complaints, according to data from BBB.

Personal Capital: Frequently Asked Questions (FAQ)

Is personal capital legitimate?

Yes. The platform offers its advisory services through Personal Capital Advisors Corporation, a SEC registered investment advisor. All SEC registered companies are legally required to act as fiduciary companies, which means they must put the interests of their clients before their own.

The investment platform has also been in business since 2009 and offers FDIC insurance.

Is personal capital free?

No. Personal Capital The Personal Capital app charges annual resource-based fees, which means that the amount you pay each year depends on your account balance.

Is personal capital worth the commission?

Compared to other popular wealth management services, Personal Capital’s management fees are higher. Those with $ 1 million or less will have to pay 0.89% annually. Management fees decrease as your account balance increases, but the minimum you’ll pay per year is 0.49% (this fee is for users who hold more than $ 10 million).

It is best to fully examine your financial situation and evaluate the advantages and disadvantages of Personal Capital before opening an account.

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