Overview of Empower Finance
Empower Finance, formerly known as Personal Capital, is a comprehensive financial technology platform designed to help users manage, optimize, and secure their financial health. Here’s an overview of what the product does and its key features:
What Empower Finance Does
Empower Finance is a personal finance application that integrates various financial tools and services to provide users with a unified view of their financial status. It aims to simplify budgeting, spending analysis, investment management, and retirement planning, making it easier for individuals to achieve their financial goals.
Key Features and Functionality
Account Aggregation
Empower allows users to link multiple financial accounts, including checking, savings, credit cards, loans, and investments. This aggregation provides a comprehensive picture of the user’s financial situation.
Budgeting Tools
Users can create budgets, track spending across different categories, and set financial goals. The app sends alerts when spending approaches set limits, helping users maintain disciplined financial management.
Automated Savings
The AutoSave feature analyzes income and expenses to determine safe amounts to transfer into savings, promoting consistent saving habits.
Spending Tracking
The app categorizes transactions, enabling users to monitor spending patterns and identify areas for improvement. This feature helps in making informed financial decisions.
Cash Advances
Eligible users can access cash advances of up to $250 with no interest or late fees, providing a financial safety net for unexpected expenses.
Financial Insights and Recommendations
Empower offers personalized financial recommendations and insights to help users optimize their financial health. This includes analyzing investment portfolios for excessive fees and improper asset allocation.
Investment Management
Empower provides tools for investment management, including automatic rebalancing, tax-loss harvesting, and customized portfolio management. Users can access free investment management analytical tools, and those with at least $100,000 in investable assets can opt for fee-based investment advisory services.
Retirement Planning
The platform includes a retirement planner that allows users to adjust inputs and investigate the success of various retirement scenarios. It offers customized guidance and scenario analysis to help users plan for a secure retirement.
Tax Optimization
Empower practices tax-loss harvesting and tax location strategies to help clients reduce their tax liabilities and maximize after-tax returns.
Empower Card
Empower offers a Visa debit card with benefits such as up to 10% cash back on select purchases, early direct deposit access, and fee-free ATM withdrawals at over 37,000 locations.
High-Yield Savings
Users can earn a 3.75% APY with Empower Personal Cash™, which comes with no account fees, no minimums, direct deposit, and withdrawals of up to $100K.
Consolidation of Retirement Savings
Empower helps users consolidate their retirement savings by offering a wide range of investment options, no administrative fees, and guidance from professionals when rolling over old retirement accounts.
Premium Services
For qualified investors, Empower offers bespoke strategies, including custom portfolio management, direct equity investments, and private equity options. These services are tailored to the client’s unique financial situation and preferences.
Empower Finance stands out with its award-winning technology, ease of use, and comprehensive suite of financial tools, making it a robust solution for managing and optimizing one’s financial health.