Do you currently use Personal Capital to help you track your money and investments all in one place? This digital wealth manager provides plenty of useful tools and a comprehensive investment management service. However, are there any other platforms or apps that offer a similar service? Check out some Personal Capital alternatives below.
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Wealthfront is an automated investment management service with a low account minimum of just $500 (as opposed to $100,000 with Personal Capital), making it easy for new investors to get started. Its service may also appeal to hands-off investors as Wealthfront’s investment strategy revolves around passive investing through tax-efficient low-cost ETFs and Modern Portfolio Theory (MPT).
Users can also track their financial goals and net worth through Wealthfront’s Path tool. It pulls together all of your accounts in one place and recommends strategies for saving and investing, according to your goals, for example, buying a home, saving for a child’s college fund, or retirement planning.
Wealthfront is a robo-advisor, which means that investment recommendations received through the app are based on algorithms, not human advice. Wealthfront’s annual advisory fee is 0.25% on all assets managed (deducted monthly).
Just like Wealthfront, Betterment also uses MPT as a framework for its investing strategy. Its core portfolio is globally diversified and consists of stock and bond ETFs. Additional strategies are available for users who are interested in socially responsible investing (SRI) and income-generating funds.
Betterment is also a robo-advisor. When signing up, users have to answer a set of questions relating to their personal finance goals, and from these answers, Betterment builds a personalized portfolio. Its tax-smart technology works in the background, with automated rebalancing to optimize portfolios.
Betterment’s digital plan has no account minimum, making it a worthy choice over Wealthfront for those with less than $500 to invest. Betterment’s annual fee is 0.25% for this plan, with their premium plan costing 0.40% per year. Their premium plan has an account minimum of $100,000 and gives users access to their team of licensed financial experts which can offer advice on investments from other providers.
WiseBanyan, according to its slogan, is the world’s first free financial advisor. Their mission is to ensure that everyone can potentially reach their financial goals. They don’t charge traditional investing fees for assets under management, meaning more of their clients’ money stays invested. WiseBanyan makes money by offering paid-for products and services instead.
It’s worth noting that some of the additional services WiseBanyan charges for (such as its tax-loss harvesting service called WiseHarvesting) are available as part of other robo-advisors’ services as standard, although these will charge an annual advisory fee for assets managed.
WiseBanyan builds fully diversified tailored portfolios based on MPT. These are made up of a mix of ETFs in different asset classes. Each portfolio is designed to maximize real investment returns, based on the user’s personal investing preferences.
WiseBanyan automates the entire process, which is useful for people who want to just “set and forget” their investments and for beginner investors.
If you’re new to Personal Capital, you might be wondering exactly what services it provides. Unlike the alternatives above, it’s not a robo-advisor as users can access financial advice from human advisors. Personal Capital is a digital wealth manager that offers free financial tracking tools, as well as a wealth management program.
Anyone can use Personal Capital’s free software to set a budget, calculate their net worth and check financial progress.
Their managed investment service is most suited to people with at least $100,000 in investable assets. Personal Capital charges a straightforward advisory fee based on a percentage of assets under management. This ranges from 0.49% for investors with funds of more than $10 million to 0.89% for those with funds below $1 million.
When choosing a robo-advisor or digital wealth manager, there are several considerations to explore, such as how much cash you have to invest, as some providers stipulate account minimums. Another is the investment strategy itself, and then there are fees to consider of course – this could be the most crucial consideration of all.
Whether or not an app has human or purely robotic assistance and particular types of investment accounts may also have a bearing on which platform would serve you best.
*The information above is correct at the time of publishing.