- Free budgeting and planning tools.
- Access to financial professionals.
- Ability to open a brokerage account.
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Updated March 13, 2024
In a nutshell
Empower is a budget planning and portfolio management tool that includes access to a robo-adviser and live financial professionals. Empower Retirement acquired the Personal Capital budgeting tool in 2020, changing the name from Personal Capital to Empower as part of the process.
- Connect bank, investment, retirement, real estate and credit card accounts to track your total net worth.
- Free budgeting tools, including meeting with a financial professional.
- Access to investment services with a minimum of $100,000.
Empower
Empower
Fees
No fees for personal finance dashboard or investment account, between 0.49% and 0.89% for wealth management.
Account minimum
$100,000 for robo-adviser product, $250,000 for wealth management, $1 million for private client
Why we like it
For those who want a complete picture of their net worth and planning tools for retirement and other goals, the set of robust tools can be insightful
The AP Buyline roundup
Empower offers access to free and comprehensive financial planning tools and calculators designed to help you reach financial goals and plan for retirement. You can connect almost any account, including real estate and investment accounts, as well as bank and credit card accounts.
The free tools are robust and comprehensive, but the sign-up emphasizes meeting with a financial professional, which some users might find it off-putting. Additionally, there’s a high minimum for those who want access to investment management similar to a robo-adviser.
Pros:
Cons:
- High minimum balance ($100,000) for managed investment help.
- Management fees can be high.
- Sign-up process can be off-putting.
Who is Empower for?
Empower might work well for someone who wants access to free budget planning tools that incorporate investments into the picture. Additionally, Empower offers access to financial planning professionals, including a free consultation when you sign up. If you’re looking for some guidance and you want a way to plan your future without worrying about paying for access, Empower can be a good choice.
Empower features
Money management dashboard
Connect your accounts, including investment, real estate, bank, credit card and others to get a holistic view of your finances. You can see your net worth and visually understand your cash flow.
Retirement planner
Empower’s free retirement planner allows you to run different scenarios to tweak your approach. It’s also possible to see how different goals, like paying for college or buying a new home, can impact your retirement. You’ll even get a spending plan you can use in your future years.
Investment checkup
With the help of the investment checkup, you can get information on your portfolio’s risk as well as identify where your asset allocation might be off. You can also review costs associated with your investments to reduce the impact of fees on your overall returns.
Wealth management
Empower also offers client-based services for those who have at least $100,000. With a $100,000 minimum, it’s possible to access managed ETFs and get unlimited access to a financial professional. This is similar to robo-advising with support from financial advisers. Other tiers of wealth management are more personalized but have higher minimums.
The fine print
Even though the comprehensive planning tools are free, Empower spends some time trying to get you to use financial planning services. Overall, though, if you’re looking for robust calculators designed to help you make planning decisions based on a total picture of your finances, this can be a good choice once you get through the sign-up process.
Usability
Once you get signed up, it’s very easy to navigate from your money management dashboard to drill down into various aspects of your finances. You can connect debt accounts and manage your debt as well as connect investment and retirement accounts. Various tools, such as the retirement planner, allow you to run different scenarios. The visuals are easy to understand and attractive.
Options and settings
You can choose communication preferences, such as emails and education, as well as decide which income to exclude from your cash flow and budgeting. Other than that, a lot of the control you have depends on the accounts you decide to connect. The more accounts you connect, though, the more complete your financial picture is likely to be.
Technology
Empower runs well on its web app, updating your balances frequently, including incorporating historical data. You can get the Empower mobile app for iOS and Android. You can also access Empower through your desktop computer’s web browser.
Costs
Empower is free to use for budgeting, expense tracking and cash flow insights. You won’t pay for the retirement and investment checkers. Additionally, there’s a fee-free brokerage you can access to manage your own portfolio.
There are management fees if you choose to access wealth management services. These range from 0.49% to 0.89%, depending on how much you have under management.
Education
Empower offers tips and information to users. Additionally, they send out regular financial education emails and investment insight emails that can be useful.
Customer service
Empower offers email customer support, and phone support from 6 a.m. to 3 p.m. Pacific, Monday through Friday.
Security and reliability
Empower offers multi-factor authentication. Additionally, accounts are connected using Yodlee, which uses encryption methods to keep your data safe and private.
Company reputation
Customer reviews of Empower are generally good, with a 4.7 rating out of 5 in the Apple store and a rating of 4.2 out of 5 stars in Google Play.
How does Empower make money?
Empower makes money from the management fees it charges for its wealth management services.
The perks
Empower's free tools are robust and easy to use. You can get a good feel for cash flow and a holistic view of your money without needing to pay for an app. Plus, you can access financial professionals if needed. Additionally, you can invest through Empower’s investment brokerage and manage your own account with zero minimums and no trading fees.
Empower
Empower
Fees
No fees for personal finance dashboard or investment account, between 0.49% and 0.89% for wealth management.
Account minimum
$100,000 for robo-adviser product, $250,000 for wealth management, $1 million for private client
Why we like it
For those who want a complete picture of their net worth and planning tools for retirement and other goals, the set of robust tools can be insightful
Where Empower doesn’t measure up
The management fee for what amounts to robo-advising is higher than you might see with other robo-advisors like Betterment. However, you do get greater access to financial professionals as part of that management fee. Additionally, the sign-up process can be frustrating as you navigate the attempt to get you to commit to scheduling a meeting with a financial adviser.
Alternatives to Empower
| Minimum investment | Accounts offered | Available investments | Account and trading fees | Customer service | |
|---|---|---|---|---|---|
N/A | Budgeting tools, expense tracking | N/A | Subscription: $99 annually or $14.99 monthly | Knowledge center, email, chat | |
N/A | Expense tracking, subscription management | N/A | Subscription: $4-$12 per month, with 30% to 60% of savings from subscription negotiation | Email, chat | |
N/A | Expense tracking, alerts, reports | N/A | Subscription starts at $2.99 per month | Chat, community, phone |
Frequently asked questions (FAQs)
Is Empower legit?
Yes, Empower is a legitimate company that offers free budgeting tools and access to investment and wealth management services.
How much does Empower cost?
Budgeting tools and calculators are free. The brokerage is free as well. Only the management services cost money.
Does Empower use real humans?
Yes, you can access financial advisers through Empower. When you sign up you can also schedule a free consultation.
AP Buyline’s content is created independently of The Associated Press newsroom. We might earn commissions from links in this content. Learn more about our policies and terms here.