In a world where traditional finance management methods are becoming a thing of the past, technologies have ushered in a new era of investment and financial planning. I’ve seen firsthand how modern solutions have made navigating financial markets more intuitive and less intimidating than ever before.
Empower financial services, previously recognized as Personal Capital, have been at the forefront of combining cutting-edge investment management tools with the personal touch of traditional wealth management.
Not fitting neatly into the robo-advisor category, Empower positions itself as an automated investment manager, yet it retains the personal engagement typically found in traditional advisory relationships.
Offering a comprehensive suite of services from financial planning to retirement management, Empower seeks to redefine personal finance management. With its focus on not just budgeting but also enhancing savings and providing cash rewards, Empower stands out as more than just an app; it’s a holistic platform aimed at improving users’ financial well-being.
In this deep dive into Empower’s features, I’ll examine what makes it unique, its advantages, cost structure, and other essential factors.
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What Empower Financial Services Offers
Empower offers wealth management services for high net worth individuals, but my focus for the rest of this article will be on the personal finance app. Here are the main features you can expect from the Empower financial services app:
- All-in-One Budget Platform: By linking your various financial accounts, Empower provides an integrated dashboard that mirrors the functionalities of budgeting apps like Mint. This platform helps you track your net worth, monitor your monthly cash flow, and keep an eye on budget changes. It alerts you about upcoming bill payments, ensuring you never miss a deadline.
- Investment Planning and Retirement Management: Empower doesn’t just stop at budgeting; it extends its services to investment monitoring and retirement planning. By linking your investment accounts, you get a free investment review, analyzing your portfolio against broad indexes like the S&P 500. The platform’s interactive dashboard generates a personalized retirement plan based on your financial data, aiding in setting realistic retirement goals.
- Tax Efficiency and Investment Strategy: For those willing to invest $100,000 and above, Empower shifts gears to offer wealth management features akin to those of a robo-advisor. This includes access to financial advisors, a tailored investment plan, and strategies aimed at optimizing your tax situation and overall investment portfolio.
- Unique Tools and Analysis: Empower’s platform boasts tools like a savings planner, a retirement fee analyzer, and an investment checkup that scrutinizes your portfolio’s asset allocation. These tools are designed to offer insights into your financial standing and help refine your savings and investment strategies.
- AutoSave and Empower Card: Beyond the typical financial services, Empower introduces features like AutoSave, which intelligently adjusts your savings based on your spending habits, and the Empower Card, a Visa debit card that offers cash back and early paycheck access.
Empower Financial Services Pros & Cons
Pros:
- Centralized monitoring of expenses across all connected financial accounts.
- Issuance of an Empower Visa debit card for managing everyday transactions.
- AutoSave feature that adjusts savings automatically according to your financial activity.
- Potential to aid in credit score improvement through regular, tracked payments.
- Rewards program offering up to 10% cash back on eligible purchases.
- Access to a no-interest cash advance of up to $250, free from late fees and credit checks.
Cons:
- Incurs a 1% fee on foreign transactions.
- Requires possession of the Empower Card for immediate, free access to cash advance funds.
- Imposes a monthly service fee of $8.
- While the app and its financial tools are user-friendly, offering a comprehensive financial overview, wealth management services may come with higher fees.
- Some users might encounter promotional offers for additional services.
Empower Personal Finance App Cost
Free Services:
The Empower app itself doesn’t cost anything to use. It provides access to a suite of tools including calculators for retirement planning, net worth and cash flow tracking, and portfolio analysis. This is a fantastic starting point for anyone looking to get a better grip on their finances without initial investment.
However, there’s a sales aspect to consider. For those with assets exceeding $100,000, be prepared for potential contact from financial advisors associated with Empower. While it’s framed as advisory, it doubles as an opportunity for Empower to introduce their paid services.
Paid Wealth Management Services:
Empower offers a tiered fee structure for its financial advisory and wealth management services, tailored to the volume of assets being managed. It kicks off at 0.89% annually for assets up to $1 million, with reduced rates applying as the investment increases, dropping to as low as 0.49% for amounts over $10 million. This fee structure is fairly competitive, yet there might be cheaper alternatives out there for those willing to look.
Subscription Service:
Separate from the wealth management is the subscription model, priced at $8 monthly after a 14-day trial. This equates to an annual fee of $96. It covers features such as automated savings, the chance to earn cash back, and the option for a $250 interest-free cash advance. While this fee is a consideration, the benefits, like effortless saving and potential emergency funds, can outweigh the cost for many users.
Final Thoughts
Empower financial services provide a blend of technology and personal touch to help manage your money more effectively. They offer everything from a free app, perfect for budgeting and tracking investments, to personalized wealth management for those with substantial assets.
Keep in mind, while starting with Empower is cost-free, if your assets go beyond $100,000, you might be approached with offers for their paid services. With Empower, you’re looking at a comprehensive toolset designed to streamline and optimize your financial well-being.
If you’re navigating the complexities of personal finance, Empower could be a valuable ally. Click Here to get started today.
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