In the world of finance where every decision can significantly impact one’s future, the quest for the right investing platform becomes crucial. Here, Empower positions itself as a potentially strong partner with its array of wealth management services and complimentary financial tools.
The question at hand, however, is: are Empower investments worth it? This service is notably pricier compared to its robo-advisory peers, yet it boasts of a bespoke investment approach purportedly leading to superior fiscal results.
While some may hesitate due to the higher fees, the platform does entice potential users with its offer of a no-cost portfolio consultation alongside its suite of free financial instruments, allowing for a taste of customized advice without commitment.
On the other side, Empower is not just about investing; it’s an all-encompassing personal finance application that promises to elevate users’ financial management through features like proactive savings, enticing cash back rewards, and hassle-free cash advances.
As we navigate through this Empower Review 2024, I aim to unfold all aspects of this app: from its benefits and drawbacks to its pricing structure. Whether you find saving a chore, budgeting a labyrinth, or simply wish to streamline your finances, Empower presents itself as a potential solution to guide you toward a more organized and empowered financial path.
What is Empower Investments?
Empower separates itself from competitors in the financial world by providing two primary services: a personal finance app and a wealth management service.
The Empower app is designed to take your financial management to the next level with features aimed at investment and retirement tracking. This app is more than just a tool for budgeting and monitoring expenses; it’s geared towards proactive savings, earning cash back, and offering cash advances when necessary to improve your financial wellness. It allows users to:
- Monitor and increase their net worth.
- Oversee their financial activities in one place.
- Keep tabs on investment portfolios and receive tailored advice.
- Strategize and prepare for retirement efficiently.
On the other hand, Empower wealth management service integrates robo-investing with the personalized touch of human financial advisors, offering a customized investment strategy that caters to individual needs. With an annual fee of 0.89% and a minimum investment threshold of $100,000, Empower aims to serve high-net-worth individuals seeking a comprehensive digital wealth management solution.
Unlike typical robo-advisors, Empower positions itself as a digital wealth manager, providing access to professional advisors who construct tailored portfolios aligned with clients’ financial objectives. Empower has successfully attracted over 17 million users, showcasing its significant impact and trust in the financial community.
Are Empower Investments Worth It?
If Empower investments are truly worth it depends on how individuals apply the insights and strategies it offers. Empower crafts diverse portfolios tailored to the user’s needs and risk appetite, primarily utilizing ETFs and its curated selection of stocks. At higher subscription levels, it also includes bonds and private equity for a more rounded investment approach, historically yielding stable returns over time.
Empower introduces “Smart Weighting” across all its tiers, a unique feature designed to optimize your portfolio’s composition to enhance returns without increasing risk. Traditional ETFs often lean heavily towards larger corporations, which can skew exposure. Empower’s method aims to balance out this skew by evenly distributing weight across various factors like industry presence, company size, and investment style, thereby aiming for improved risk-adjusted outcomes.
Empower adopts a conscientious approach by constructing socially responsible portfolios, steering clear of expensive ETFs and instead selecting high-performing companies based on ESG criteria from Sustainalytics. This selection is then strategically weighted, contributing to a part of the U.S. stocks allocation within your portfolio.
Beyond portfolio management, Empower’s app serves as a comprehensive tool for those looking to enhance their financial health through disciplined budgeting, proactive saving, and maximizing cashback opportunities.
With its integrated Empower Visa debit card and automatic savings function, the app is an excellent resource for individuals who’ve faced challenges in saving or budgeting before. By fully leveraging the app’s capabilities, users can potentially find themselves on a path to better financial management and growth.
So the short answer to the question, “are Empower investments worth it” is yes, Empower investments are worth it if the tools and advice are used correctly.
Empower Investments Pricing
We can break down Empower’s fees into two categories: wealth management and personal finance app.
For wealth management, Empower operates on a sliding scale fee system based on your total managed assets. Here’s how it works:
- For assets between $100,000 to $1 million, the fee is 0.89% per year.
- From $1 million to $3 million, the fee drops to 0.79%.
- For the next $2 million, the rate is 0.69%.
- Then, for assets between $5 million to $10 million, it’s 0.59%.
- Above $10 million, the fee further reduces to 0.49%.
There are no extra charges like commissions or transaction fees, and the fee covers advice on all your assets, not just those managed by Empower.
On the other hand, the personal finance app comes with a monthly subscription fee of $8 after a two-week free trial. This adds up to $96 per year. For this price, you get access to the full range of app features like automatic savings, cash-back rewards on purchases, and the option for interest-free cash advances up to $250 — all without interest, late fees, or credit checks.
While the cost is $96 per year, the benefits, such as the automated savings and cash-back rewards, make the subscription fee a worthwhile investment. Also, the cash advance option offers a financial safety net without the usual costs associated with borrowing money.
To take the Empower Investments app for a free spin to see if it fits your needs, Click Here to get started.