What Is Empower Personal Finance Software?
The Evolution from Personal Capital
Empower acquired Personal Capital in 2020, and in February 2023, Personal Capital finished its rebranding under the new name Empower. This transition brought together one of the top digital personal wealth management platforms with Empower’s extensive retirement plan services, creating a comprehensive financial ecosystem.
Empower is more than just a personal finance app—it’s a comprehensive financial wellness tool designed to assist users in mastering their financial journey. The platform combines cutting-edge technology with objective financial advice, including retirement and budgeting tools that serve both individual investors and major corporations.
Core Platform Components
Free Financial Dashboard: The Empower Personal Dashboard provides robust money management tools that are some of the best available. The platform enables you to manage 100% of your finances from a single dashboard, connecting all your financial accounts for complete visibility.
Wealth Management Services: For investors with $100,000+, Empower offers personalized investment management that pairs robo-advisor algorithms with dedicated human financial advisors. This hybrid approach provides the efficiency of automated investing with the wisdom of professional guidance.
I discovered Empower’s power firsthand when consolidating my scattered investment accounts revealed I was paying $2,400 annually in hidden fees across different brokerages. The platform’s fee analyzer helped me optimize my portfolio and save significantly on management costs.
Comprehensive Feature Analysis
Free Financial Tools and Dashboard
Account Aggregation: Empower allows users to link their bank accounts, credit cards, brokerage accounts, 401(k)s, loans, mortgages and more to receive automatic updates on account balances. You can link just about any financial account for which you have online access, requiring only your username and password.
Net Worth Tracking: When users log into the app, the first thing they’ll see is a net worth tracker at the top of the page with an accompanying graph tracking changes over time. Net worth equals your assets minus your liabilities, automatically calculated from all connected accounts.
Cash Flow and Budgeting: The platform shows how much investment income you generate each month through interest and dividends. Empower categorizes your spending and helps you stay within budget limits, offering insights into your financial habits through comprehensive analytics.
Investment Portfolio Analysis: Unlike basic budgeting apps, Empower provides detailed breakdown of your investment portfolio with performance tracking. The investment checkup tool helps ensure optimal asset allocation while identifying hidden fees that might be eroding your returns.
Advanced Investment Features
Investment Expense Analysis: Empower’s software identifies high-fee investments and suggests lower-cost alternatives. They average just 0.07% in investment fund fees, some of the lowest of any financial planning service.
Retirement Planning Tools: The retirement planner helps users determine how much money they need to retire based on current savings, expected income, and lifestyle goals. This tool is particularly valuable for projecting various retirement scenarios.
Tax Optimization: For wealth management clients, Empower practices tax loss harvesting and tax location strategies to minimize tax impact and maximize after-tax returns.
Banking and Cash Management
Empower Personal Cash Account: The platform offers a cash management account with competitive interest rates. You can earn a top-of-the-market rate currently at 4.70%, which is more than 10 times higher than the national average of 0.46%.
Bill Tracking and Alerts: The system tracks bills and sends reminders for due dates, plus provides overdraft protection alerts to help you avoid unnecessary fees.
Wealth Management Services Deep Dive
Service Tiers and Requirements
Investment Services ($100,000 – $200,000): Entry-level tier providing access to financial advisor teams and basic portfolio management with algorithm-driven optimization.
Wealth Management ($200,000 – $1,000,000): Mid-tier service offering two dedicated financial advisors, enhanced tax strategies, and access to a broader range of investment options.
Private Client ($1,000,000+): Premium tier featuring extensive personalized service, estate planning assistance, advanced tax strategies, and access to alternative investments.
Advisory Team and Fiduciary Standards
All Empower advisors are fiduciaries with a legal duty to put your interests first. Certified Financial Planners (CFPs) are available upon request, ensuring you receive professional guidance from credentialed experts.
The advisory team creates a Personal Strategy Guide after initial consultation, providing customized recommendations based on your specific goals, risk tolerance, and financial situation.
Investment Management Process
Portfolio Construction: Advisors design custom portfolios using low-cost ETFs and individual securities when appropriate for higher-balance accounts. The platform’s algorithms handle day-to-day management including rebalancing and tax-loss harvesting.
Ongoing Monitoring: The service monitors your investment portfolio continuously with computer algorithms, automatically rebalancing positions and implementing tax optimization strategies as market conditions change.
Pricing Structure and Cost Analysis
Free Services
The Empower Personal Dashboard remains completely free with no hidden costs or mandatory upgrades. Free features include:
- Complete financial account aggregation
- Net worth tracking and budgeting tools
- Investment portfolio analysis
- Retirement planning calculators
- Cash flow monitoring
Wealth Management Fees
Standard Pricing:
- 0.89% annually for the first $1 million under management
- Tiered fee structure for balances over $1 million
- 0.79% on first $3 million, decreasing to 0.49% on assets over $10 million
Fee Comparison: While Empower’s fees are higher than basic robo-advisors, they’re significantly lower than traditional financial advisors who typically charge 1-2% annually. The comprehensive service and human advisor access justify the premium for many investors.
Security and Privacy Standards
Data Protection Measures
Empower employs bank-level security with AES-256 multilayer key management and multifactor authentication. Your personal information is encrypted, and Empower never sells customer data to third parties.
The platform never sends banking passwords to your browser, providing an additional layer of protection. As Fritz Robbins, Empower’s CIO, explains: “It’s safer for you to look at your bank account information through Empower than it is to log into online banking.”
Account Safety Guarantee
Empower provides a Security Guarantee stating the company will restore any losses that occur to your account due to unauthorized transactions through no fault of your own.
Pros and Cons Analysis
Major Advantages
Comprehensive Financial View: The ability to see all your financial accounts in one place provides unparalleled visibility into your complete financial picture.
Professional Investment Management: Access to dedicated financial advisors and automated portfolio management typically reserved for ultra-high-net-worth individuals.
Advanced Analytics: Investment fee analysis, retirement planning tools, and cash flow insights help optimize your financial strategy.
Low Investment Costs: The platform uses low-cost investment funds averaging just 0.07% in expense ratios.
Significant Limitations
High Account Minimums: The $100,000 minimum for wealth management services excludes many potential users from advisory services.
Limited Budgeting Features: While adequate for basic tracking, budgeting features aren’t as comprehensive as dedicated budgeting apps like YNAB or Mint.
Custodian Requirements: Wealth management clients must transfer assets to Empower’s custodian (Pershing LLC), which may complicate existing investment arrangements.
Higher Management Fees: At 0.89%, management fees exceed those of pure robo-advisors, though they include human advisor access.
Comparing Empower to Alternatives
Empower vs. Betterment
Betterment Advantages:
- No minimum investment requirement
- Lower fees (0.25% annually)
- Simpler robo-only approach
Empower Advantages:
- Human advisor access
- More comprehensive financial tools
- Advanced portfolio customization for high-balance accounts
Empower vs. Vanguard Personal Advisor
Vanguard Advantages:
- Lower 0.30% advisory fee
- Access to exclusive Vanguard funds
- Strong reputation for low-cost investing
Empower Advantages:
- More comprehensive financial dashboard
- Lower account minimum ($100k vs. $250k)
- Advanced technology platform
Empower vs. Quicken
Quicken Advantages:
- More detailed transaction categorization
- Advanced business features
- One-time purchase option
Empower Advantages:
- Free core features
- Investment management services
- Cloud-based accessibility
Mobile App and User Experience
App Functionality
The Empower mobile app is available for both iOS and Android devices with high ratings on both platforms. The app provides one-touch access to all your financial accounts, investment portfolios, and cash management tools.
Key mobile features include:
- Real-time account balance updates
- Net worth tracking with historical charts
- Investment portfolio monitoring
- Direct advisor communication
- Cash account management
User Interface Design
The app stands out with its sleek design and easy navigation, making financial management accessible even to those new to budgeting apps. Integration with major banks and credit institutions allows for real-time tracking of spending, savings, and investment performance.
Getting Started with Empower
Account Setup Process
Step 1: Registration Create your free account at Empower.com or download the mobile app. The signup process takes just a few minutes with basic personal information.
Step 2: Account Linking Connect all your financial accounts by searching for your institutions and providing login credentials. Empower supports thousands of financial institutions.
Step 3: Review and Organize Once accounts are linked, review the automatic categorization and make adjustments as needed. Set up your financial goals and budget parameters.
Step 4: Explore Features Familiarize yourself with the dashboard, investment tools, and planning calculators available through the free platform.
Wealth Management Consultation
If you have $100,000+ in investable assets, you can schedule a free consultation to discuss wealth management services. This meeting covers your financial goals, current strategy, and how Empower’s advisory services might benefit your situation.
Best Use Cases for Empower
Ideal User Profiles
High-Net-Worth Individuals: Those with $100,000+ who want professional investment management without traditional advisor fees and minimums.
Investment-Focused Users: People with multiple investment accounts who need comprehensive portfolio tracking and optimization.
Pre-Retirees and Retirees: Individuals approaching or in retirement who need sophisticated planning tools and professional guidance.
Busy Professionals: High earners who want automated investment management with human oversight but lack time for hands-on portfolio management.
Less Suitable Scenarios
Basic Budgeters: Users primarily focused on expense tracking and budgeting might find simpler, specialized apps more appropriate.
Beginning Investors: Those with limited assets might benefit more from lower-minimum robo-advisors until they accumulate enough for Empower’s advisory services.
DIY Investors: Hands-on investors who prefer direct control over every investment decision may find the managed approach restrictive.
Future of Empower and Personal Finance Technology
The platform continues evolving with emerging financial technology trends, including enhanced AI-driven insights, expanded cryptocurrency tracking, and more sophisticated tax optimization strategies.
Empower’s acquisition by the retirement plan giant positions it well for comprehensive lifetime financial management, potentially offering seamless transitions from accumulation to distribution phases.
For additional insights on personal finance management and investment strategies, explore these comprehensive finance resources and tools that complement your financial planning efforts.
Making Your Decision
Empower personal finance software represents a compelling solution for individuals seeking comprehensive financial management with professional oversight. The platform’s combination of free tools and optional advisory services provides flexibility for users at different wealth levels.
The free dashboard alone offers tremendous value for anyone wanting to consolidate their financial picture and gain insights into their spending and investment patterns. For those with substantial assets, the wealth management services provide professional guidance at costs significantly below traditional advisory models.
Consider Empower if you value comprehensive financial visibility, want professional investment management, and have the assets to justify the advisory fees. The platform particularly shines for busy professionals and pre-retirees who need sophisticated tools but lack time for hands-on financial management.
Your financial future depends on making informed decisions with complete information. Empower provides the tools and guidance to help you achieve your goals more efficiently than managing finances through multiple disconnected platforms.
Ready to take control of your complete financial picture? Which aspect of Empower appeals most to you—the free comprehensive dashboard, professional investment management, or the combination of technology and human expertise? Share your thoughts and questions about Empower in the comments below!