Internet has now become the best way to learn about anything. It has also become a place where you can find anything you want. There are so many tools and websites available online which can help you in numerous ways and if you are looking for a useful way to track your investments, you just can’t go wrong with Personal Capital. There are a myriad of websites and online tools which aim to help you track your investments but Personal Capital is a wholesome tool. It doesn’t just let you track your investments, it also helps you understand the intricacies of investments in a detailed way. These include understanding asset allocation, improving investment planning etc. The many features of this tool make it a great way to help you analyze and improve your finances. These include:
- The tool will automatically link all your investment accounts and keep your holdings updated throughout the day.
- It will keep a record of the fees you will pay for each mutual fund you own.
- The tool will provide you with a detailed asset allocation data for all your investments. It will also alert you if your asset allocation is too under weight or over weight when compared to the target model. The target model will be based on numerous factors such as your age, risk tolerance etc.
- It will also calculate your retirement income, your projected social security, annuities, pensions, and other different retirement income sources.
The best part about Personal Capital is that even though it does offer so many features, it is an absolutely free tool. All you need is an account on their website and you can connect all your investment accounts and bank accounts in one place. Interesting, right?
This post will now review the different aspects of this website and how they affect your productivity and usage. Let’s get started.
The dashboard of any account is the first thing you see and its design should give you an effortless overview of all important things. Personal Capital lives up to these expectations and gives you a dashboard which is very clean and informative. You can keep track of all your accounts as soon as you open the website and login. It gives you an overview of your net worth, cash flow, holdings, and much more. The cash manager section allows you to see all your spending in one place.
Tracking of investments
This tool is ideal for tracking all your investments and does a pretty good job at it. Simply go to the investments category and you will see every detail displayed neatly on your screen. The layout is very well laid and informative. It shows a list of all your accounts along with your balance, gains, and losses. There is a graph as well which shows your progress which can also be pretty informative. You get accurate information about all your investment accounts which you can use.
Asset Allocation tools
The website offers many asset allocation tools which is a very useful tool that gives you an analysis of how you are investing and allocating your assets. The tool will break down all your investments according to the asset class they belong to. It is probable that some exchange traded funds might belong to more than just one asset class. In such cases, Personal Capital will the funds into all the asset classes it belongs to. A click on any of your investment will reveal the details of the asset classes it belongs to. Do you have monthly payments from a settlement? This, along with an annuity, is also classified as an asset and should be treated as such.
Mutual Funds and Exchange Trade Fund expenses
Personal Capital offers its users two tools using which they can keep their investment expenditures low. It is important to keep your expenses low if you want to succeed in your investment business. The first tool is a complete breakdown of all your investment funds. This means you can see which funds are mutual while which ones are Exchange Trade Funds. This breakdown is very useful and allows you to make more conscious and informed decisions about your investments and make necessary changes.
The second tool is called 401 (k) fee analyzer and is a very powerful tool. It is meant to help you minimize your investment costs. The tool will base its analysis on data which is not specific to your retirement income and funds. For more precise results, you should get additional information regarding 401 k expenses from your employer. It will give you an expense ratios of the funds you own but that is not it. The tool will also give you information about the costs these funds charge you. This information is hidden from the expense ratio.
Anyone with 401 k will benefit from this tool!
Like every other tool out there, Personal Capital is not perfect and has certain things about it which one may not like. The first thing is that the target model which is used by the application is created by Personal Capital automatically and is based on factors such as your age, risk tolerance, investing style etc. This works for most of us but having a custom option is helpful.
The tool also does not include any information related to the cost basis of your investments which is a useful bit of information anyone would benefit from.
Despite its cons (which are very minor and few), Personal Capital is a tool that is very informative and helpful in analyzing your assets and investments.