Personal Capital Review: My Favorite Free Personal Finance Tool

After many years of utilizing Personal Capital’s free financial tools to monitor my net worth, handle my income, and maximize my assets, allow me to share with you the most comprehensive and frank review regarding their no-cost financial utilization. For 15 years I was an ultra-high worth wealth manager at a major investment bank so I have a great understanding of what makes one net worth management platform superior to others. Personal Capital is by far the perfect zero cost financial tool you will discover on the net to take care of your finances and accomplish a more safe retirement. I’ve tested other financial applications, and nothing comes near to Personal Capital’s tools.

With Personal Capital, you are able to do the following stuff for free:

• Automatically monitor your net value
• Examine your financial investment portfolios for substantial fees
• Study your investment portfolios for appropriate property allocation
• Track and control your earnings and expenditures
• Run numerous retirement planning computations to guarantee a much better financial future 

Personal Capital presently manages over $7.5 billion in handled customer properties since 2H2018, and they observe over $500 billion in assets, and have over for 1.6 million subscribers users using there financial tools free of charge. This sum of money is a testament to their cash handling abilities and product offerings. Their competing benefit is the fact that they created their organization from the ground up with scientific knowledge at its core. Consequently, they are a lot more adaptable in tailoring options to meet consumer demand.

Additionally, Personal Capital is financially sound, generating $75 million in financing in 2016, and an additional $40 million in financing in 2017. Total financing boosted is $215.3 million as of 2H2018. Personal Capital is here to stay.


1) Simplify and Less Stress. Before Personal Capital, I had to log into eight various finance companies to keep track of over 30 several financial records starting from brokerage accounts, money market accounts, CD accounts, checking accounts, IRA, and my 401K. My financial holdings an financial information were all over the place. I’m sure your finances can use specific management as well. I can just log into Personal Capital to observe how things are doing in a single place. It’s vital that you have a complete view of your total monetary health so you understand where you can allocate resources.

2) Net Worth Overview. The days are long gone where you need to use an Excel spreadsheet to manually upgrade every asset and liability line item to determine your net value. Personal Capital improves your net profit instantly once you log in since every one of your accounts is connected. They offer a pie graph of your savings in addition to offering a historical chart of your net value development. In the event you are unable to find an account in their database, you may primarily include it yourself. Personal Capital will likewise easily e-mail you a weekly cross-sectional view of your recent net worth together with how the markets did, upcoming bills, hottest informative content and trading accounts that require your concentration. Below is an example headline snapshot.

3) Tracks Your Cash Flow. Spending range is Personal Finance 101. By monitoring your earnings as well as your investing like a hawk, it will be possible to save much more money compared to when you basically attempted to guess the whole thing. Consider all the times you withdrew cash from an ATM device and had not a clue where all the money went a few days after. Aggregating all your financial records enables you to notice where all your cash is going. In the instance above, this business owner generated over $38,000 in earnings and spent only $ 3,096. Now that’s terrific cash flow!

4) Helps You Balance Risk. Considering the variety of accounts, it’s usually difficult to see precisely what’s going where, or to remember what’s going on. For instance, a lot of people were too heavy stocks before the economic crash in 2009. With Personal Capital, it is simple to notice where the unbalances are in your net worth in order to make sensible changes. Since it’s a bull industry, traders are most likely too overweight stocks and far underweight bonds again. The Investment Checkup Tool evaluates your portfolio’s holdings according to size, type, and industry. Personal Capital excels for all who possess investments in the stock market.

5) Assist With Reducing Fees. Among my personal favorite programs Personal Capital offers is their Portfolio Fee Analyzer. I ran my 401K through their charge analyzer and realized that I am spending over $ 1,750 per year in administration fees. I had no clue that one of my wife’s Fidelity mutual fund holdings cost her $1,200 annually because of a 0.74% cost ratio unlike sub 0.3% for a similar Vanguard fund she was invested in. So by changing mutual funds that were essentially identical, I was able to save her $1,000+ a year, every year. It adds up. Without Personal Capital, she could have spent over $20,000 in unnecessary fees over the next 20 years. Portfolio costs play a huge factor in your overall return. Compounded year after year, we’re talking about some significant money!

6) Exhibits Your Portfolio’s Investment Effectiveness. According to your risk endurance and investment goals opinion poll, Personal Capital will provide you with a proper picture of where your present allocation is on the Efficient Frontier Curve. The Effective Frontier Curve is an excellent return for a specific degree of risk. You need to be on the bend and not above or below.

7) Suggests Exact Dollar Amounts to Invest. Financial tips are worthless when there are no actionable suggestions. Personal Capital will suggest the particular dollar amounts to trade with or reinvest in every asset class to take you to the best asset allocation. In this instance below, the investor is so heavily weighted in funds. In an effort to reach his suggested target allocation the trader ought to boost stock holdings by almost $ 200,000 together with bond holdings by close to $100,000. The fun aspect is determining which index funds to invest in every class. All expenditure related graphs and evaluation are available in the Spending tab.

 8) A Perfect Retirement Planning Calculator. A top rated systems group invented arguably the most effective pension calculator available since it utilizes actual information and Monte Carlo simulations to provide you with the most reasonable financial scenarios for your future. Other calculators just request one to guess input values to provide you with your economic future then. The issue with this process is the fact that we regularly disregard the amount we are saving and spending! You may input various life events including marriage or a home purchase in your cash flow declaration and recalculate your financial long term to understand how you’ll do. Everyone ought to try it out.

Extra Wonderful Features

Award Winning Technological innovation – Lauded by MacWorld as the Ideal Financial app on the web.

Easy to Use – All you’ve need to do is to register, click the “+” to link all your preferred accounts, complete the specific usernames and passwords and the whole thing can get downloaded on the Personal Capital dashboard. The more credit accounts you link, the more large image you will receive of your financial situation. It only requires a few minutes to register.

E-mail updates – Weekly you’ll receive an e-mail update of your net value, the recent Personal Capital news, along with a snapshot of the markets. You can also purchase Daily Capital, the Personal Capital blog to acquire ideas.

Tax Loss Harvesting – Personal Capital methods tax loss producing and tax location for their customers. Tax loss producing alone acquires as much as 1% in after-tax return a year.

Smart Indexing – Smart Marking often called Tactical Weighting is the method of purchasing the same weighted industries or styles. In bull markets, one market can expand to a significant percentage, which includes in the course of the dot-com bubble or a monetary bubble. When the industry adjusted, people lost a lot of cash. However, if they had used Smart Indexing, by consistently remaining disciplined with similar weightings in the markets, they could have outperformed.


When you are aware where your cash is going and where it’s being spent, you acquire a considerable amount of confidence in your financial wellness. Being retired from helping millionaires manage and grow their money, my new work is to help others and share the knowledge I’ve learned. Personal Capital is a great way to start.

You may or may not be wealthy now, but merely realizing you’ve got your financial situation in order and have an economic program immensely enhances your possibilities of being more successful. Get control on your finances by registering with Personal Capital at no charge and aggregating all your accounts. The financial administration tools are totally free and require fewer than one minute to register.

I wish there were helpful companies like Personal Capital around when I was younger. I know I would of made more money, saved more money in fees and had less aggravation with tracking my finances. 

My favorite free financial tool I use to manage my net worth is Personal Capital. Every quarter, I run my investments through their free Retirement Planner and Investment Checkup tool to make sure he stays finances are in check.