Product Overview of Personal Capital
Personal Capital is a comprehensive financial technology (fintech) platform designed to help users manage their finances, investments, and retirement plans effectively. Founded in 2009, the platform offers a robust set of free and paid tools to cater to a wide range of financial needs.
Key Features and Functionality
Account Aggregation and Financial Overview
Personal Capital allows users to link all their financial accounts, including bank accounts, credit cards, brokerage accounts, retirement accounts (such as IRAs and 401(k)s), mortgages, and loans. This integration provides a unified view of the user’s financial situation, enabling real-time tracking of net worth, income, and expenses.
Budgeting and Cash Flow Tracking
The platform includes a cash flow tracking feature that automatically downloads and categorizes transactions from linked accounts. Users can set spending goals, view detailed reports on income and expenses, and compare spending trends over different periods. This helps in managing cash flow and ensuring that expenses do not exceed earnings.
Investment Tracking and Analysis
One of the standout features of Personal Capital is its comprehensive investment tracking and analysis. Users can link their investment accounts to gain insights into portfolio performance, asset allocation, and investment diversification. The platform provides tools such as portfolio visualization, which shows the allocation across various categories (e.g., U.S. stocks, international bonds, alternatives), and performance comparisons against major market indices like the S&P 500.
Retirement Planning
Personal Capital’s retirement planner is a powerful tool that helps users assess their readiness for retirement. By entering desired retirement dates, expenses, and other financial goals, users can receive detailed projections on how their investments will perform during retirement. The planner allows for adjustments to spending, savings, and portfolio allocation to ensure users are on track to meet their retirement goals.
Wealth Management
For users with at least $100,000 in investable assets, Personal Capital offers professional wealth management services. This includes access to dedicated financial advisors, tax optimization, customized portfolios, and other benefits. The fees for these services scale down as the assets under management increase, ranging from 0.89% for assets under $1 million to 0.49% for assets over $10 million.
Additional Tools
- 401(k) Fund Allocation: Personal Capital can analyze employer-sponsored retirement plans and provide asset allocation suggestions.
- Net Worth Calculator: Users can track their assets and liabilities to calculate their net worth.
- Cash Management Account: Functions similarly to a bank account, providing a place to manage cash.
- Fee Analyzer: Helps identify hidden fees in investment accounts.
Security and Accessibility
Personal Capital ensures the security of user data by partnering with Yodlee Interactive to store and secure customer brokerage credentials. The platform is available as a desktop app and through award-winning mobile apps for iOS and Android devices, making it accessible from anywhere.
In summary, Personal Capital is a versatile financial management tool that offers a wide range of free features for budgeting, investment tracking, and retirement planning, along with optional professional wealth management services for those with significant investable assets. Its comprehensive and user-friendly interface makes it an invaluable resource for anyone looking to manage their finances effectively.