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Personal Capital is a company which provides the service of accounting to its clients. There is a combination of both robo-advisors and human advisories used in the company, and if you have a balance of over $200,000 you will be assigned two advisors for your account. The management services that companies like personal capital or betterment provide will help small companies as well as those with large investments in their personal lives.
They offer free investment planning tools for those who want it as well as the financial advisor services. You can use the tool to track your accounts, spending, retirement fund and bills. You can view everything in one place and essentially get a broad view of your entire financial situation.
Smart indexing
Smart Indexing is a part of personal capital which is focussed on investing equally in all sectors and reducing the risk therefore of losing out- and increasing returns. Having you finger in multiple pies essentially is the perfect way to invest without worry.
Tools
Some of the tools that personal capital include are:
- Investment checkup
- Fee analyser
- Spending tracker
All of these tools are free to anyone and you do not need an account with the company in order to use them. You can track your spending habits month in month and in turn work out ways you can save in certain areas, and then you can adjust your habits in order to save more money for your family.
Personal Capital also gives you a form of analysis for your spending. It is similar to what you will see in mint, and it looks at your cash flow as a whole and divides your spending into different categories. You can get your bills, the mortgage, car loan, insurance and other expenses like food and lifestyle narrows down so that you can see exactly where your money is going each month.
They also offer a retirement planner which is an incredibly helpful tool for anyone looking to invest in the future. Have you ever noticed how you put money into your retirement without even thinking? By being able to see what you have available and plan what to spend, you will be able to make sure that your retirement is the best.
Is it right for you?
The question now is to work out whether this piece of software is the right financial tool to fit your needs. Personal capital will generally fit two different groups of people:
DIY investors who want to use the tools available to gain a deeper look into their finances and work out where to invest.
Investors who do so by trade and fall between $100,000-200,000 in their accounts. With such as large sum in their possession, these investors will often want to seek some professional advice on how to use their money and where to put it. It can be easy to get overwhelmed with a large sum which is why having access to a team of specialist advisors is the best choice. Is Personal Capital right for you?