Personal Capital – Pros, Cons, and Benevolent Features

Personal Capital is amongst the topmost financial technologies available in the market. The application was founded in the year 2009. The mission of bringing it into the market was providing a soliciting combination of cutting edge technology with abstract financial consultation.

With the application of proper planning, the founder company had really gone into the processing booming, Therefore, the company started to think about undergoing diversification. In the preliminary stage of such expansion, the company has decided to go public with an initial public offering too.

How Personal Capital Works?


The application software is an online financial advisor. It combines robo-advisor algorithms enabling access to financial advisors. With the involvement of such advisors, Personal Capital is transcribed into more personal experience.

The investor will be required to invest a minimum $100000 bucks. Therefore, a net balance in the form of investment up to the level of $200000 is required to be assigned by partners in an advisory campaign.

Read More – 7 Best Money Market Mutual Funds in 2020

The advisory software charges at 0.89 percent in respect of Management Fees. The charges can be reduced to a limit of 0.49% for accounts with a larger balance.

The fees payable to Personal Capital arrive with a realm of financial and investment planning tools. The investor fees come with the ability to link the existing accounts. Therefore, other attributes like portfolio performance, retirement progress, sending, and net worth could also be tracked.

The investor will offer access to a retirement paycheck with which they can plan their withdrawals.

Personal Capital offers three tiers of services:

  • There are clients who behold assets with $100000 to $200000 valuation. Assets of these valuations are invested in a portfolio of exchange-traded funds. It carries a weighted average expense ratio of 0.08%,
  • The second tier of services is offered to clients with $200000 to $1 million assets. Besides the benefits mentioned above, they are entitled to customize a portfolio. Such a portfolio includes individual stocks and ETFs.
  • Clients with assets beyond $1 million receive, besides all those mentioned above, the allowance to invest in individual bonds,

Best Features of Personal Capital:


Personal Capital is intrigued by various benevolent features. Some of these may include:

  • Planning for Retirement: The planner software helps the user to find out whether the person is a retirement target. It provides guidelines for retiring persons against the withdrawal of money during retirement so that optimum tax benefit could be accessed.
  • Proper allocation of resource: Personal Capital provides a Cash Flow Analyzer Spending tool. The tool helps in analyzing the weekly, monthly, and yearly income and spending habits of an assessor.
  • Education Planning: The application software helps the user to compare the costs of education at various levels, stream, and the fluctuation of cost in respect of various colleges. Therefore, the assessor will be able to determine the annual savings needed to meet the educational goal for the wards.
  • Personal Capital Cash: New cash account with Personal Capital lets the user earn against his savings. Currently, an investor is entitled to get interested in up to 2.30 percentile. APY does not require paying any fees. Such an account has no criteria of minimum balance neither there is any limit of transaction.
  • Personal Capital offers the opportunity of excluding any recommendation after its performance is over with.


  • The financial application software provides for personal financial management and budgeting. Besides, it helps in investment management too.
  • A financial dashboard that incorporates a huge number of investment tools is offered free of cost to the users. The dashboard offers investment advice beyond the Personal Capital Wealth Management account too.
  • Personal Capital offers tax optimization strategies too
  • Investment through Personal Capital is considered socially responsible investing. Investment with the tool offers some social attributes to the investment.


  • The financial loop requires a high minimum investment; the amount is $100000. It would eliminate all small and most of the medium-size investors.
  • The fees charged for service offering stays at 0.89%; the rate is also higher than what the robo-investors could catapult.
  • The ability to provide for budget allocation is limited if considered with respect to peers like Mint, Quicken etc.


Personal Capital seems appealing to two kinds of investors. These financial lenders are actually falling on reversed ends of the entire spectrum.  There are DIY investors who use the free and comprehensive tools of the company to gain insight into their portfolio. Besides, there are high net-worth investors who deposit enough to gain access to dedicated financial investors. Therefore, the service one average investor is entitled to be sufficient to help them get satisfaction.

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