Personal Capital – Review

Personal Capital – Review

In order to take on your personal finances, you need to know your net worth and keep track of spending, which is exactly what Personal Capital is for. This free tool is essential to becoming more financially aware and ensure you are on the right path.

1. Easy to use

Personal capital is very intuitive to use. It provides an easy way to connect all of your bank accounts and other financial institutions like your 401K account, IRA account, etc. Once you link your accounts, personal capital automatically pulls balances from all your accounts. It’s a great way to keep a tab on all your finances in one place. I found support for almost all major financial institutions on personal capital.

personal capital - account
personal capital – account

You can even add your home or any other real estate assets you may own for tracking your net worth. It has a nice out of the box support to look up your property on Zillow

If you have additional assets which are not supported by personal capital, you can even add your accounts manually.

Along with the standard assets like bank accounts, IRA accounts, 401k accounts, you can also add other assets which you wish to track. Some of them include: 

2. Easy to track your cash flow

Personal capital provides you a great overview of all your spending and you can setup neat categories (you can even add your own category). It allows you to analyze your cash flow on a monthly or yearly basis. This can give you a good idea of how much you really need to plan your budget. I personally don’t use personal capital for budgeting. Please check out the review of EveryDollar app here.

3. Free Investment Checkup

Personal capital provides excellent insights into your investment portfolio across your accounts. One of the common pet peeves for investors is the high fees they may have to shell out in their investment portfolios. Personal capital can analyze your accounts and let you know how much you could save in fees if your choose their recommendation asset allocation.

Personal capital can also provide you with recommendations of your target asset allocation based on a variety of factors like age, risk appetite, fees, returns, etc. A sample recommendation is provided below. 

5. Easy to track your net worth

Track your net worth by linking your bank accounts, investment accounts and any other assets/liabilities you may have and it automatically synchronizes your accounts into a neat dashboard. I personally love the dashboard feature and the retirement planner which allows me to get an estimate of where I stand with my goals. I highly recommend you use personal capital to track your net worth. 

6. Retirement Planner

Personal capital provides an excellent retirement planner based on a few parameters like your current savings, planned yearly contributions, asset allocation, and other goals like house purchase, college savings, etc. 

I really liked the way it can provide you with a detailed cashflow for your entire retirement based on the life expectancy you provide. You can play with some of these parameters to check how well you fare. 

 Personal capital provides some very specific recommendations to help optimize you cash flow in retirement. A few sample recommendations include:

I am a huge fan of personal capital simply because of the ease with which I am able to keep track of my net worth and get actionable tips on my portfolio without having to spend a penny!

I highly recommend you to use personal capital for net worth tracking. 

Note: Once your net worth crosses $100,000 they could contact you by email or inside of the app nudge you to consider them as their investment adviser. I have politely declined all such offers and I don’t intend to use them. 

Disclaimer – This page doesn’t contain any affiliate links and I don’t receive any money from Personal Capital to write this review.

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