Personal Capital Review – You Can’t Afford to NOT Read This

personal capitalPersonal financial management can sometimes become confusing and hard to track. Knowing your financial situation by tracking your income and expenses is a big part of most people’s monthly routine. Personal Capital helps people manage their finances with free software and keeps all their accounting records in one place. They also have professional  advisers who can help people to manage their wealth with financial decisions.

Everyone’s financial goals can be kept on track with software that includes checking, brokerage, mortgages, loans, retirement and savings accounts, all in one accounting package. On a secure site, people can obtain real time account information and receive their balances on investments or any account in the system. The latest technology is used to link all accounts. Accounts are customized for each individual to help them build retirement accounts, savings, and maintain their monthly cash flow. Personal Capital accounts are affordable and designed to meet the needs of each individual, with free financial advice.

Financial advisers who invest other people’s money are extremely expensive. They are not there to teach anyone how to handle their money, they are there to make decisions about your funds and hope for the best. Financial  advisers  may charge a percentage on each financial transaction or they may charge by the hour. A  financial adviser  that charges by the hour may cost an individual hundreds of dollars a month. Financial advisers  do not work with people who are trying to get out of debt or who only have a small amount to invest each month. They work with the wealthy, to make more money for them and themselves.

Financial  advisers are salespeople in banks and brokerage firms who only benefit financially when they get you to keep turning over your funds to different investments. The advisers  gain commissions and kickbacks on every investment that they buy and sell with your money. Personal Capital believes in Fiduciary Obligation, which means it has the individual’s interest in mind. This is a legal obligation to all Personal Capital clients. They act in your best interest and are there to make you money, not themselves.

With Personal Capital, individuals have an online accounting system, with help from financial  advisers  who are there to tailor your investments so you make money. The  advisers with Personal Capital are free and advise you are investments, so you can reach your financial goals. Individuals learn how to manage their own money, using their own home computers or Smartphone applications.

Individuals can learn to invest smarter with Personal Capital and their strategy for growing investments for their clients. Many people are taking unnecessary risks and paying high taxes on picking stocks, using mutual funds or just sitting with cash in portfolio accounts. Investors need a good strategy plan to build wealth. Personal Capital will help people to diversify their assets and allocate funds to gain better returns and reduce risks.

Investors have a habit of randomly picking funds and buying stocks but do not have a long-term plan in mind. They do not understand how the market works and how to set up a positive portfolio for financial growth. Personal Capital works with each individual to determine where their finances are now and where they want to be 20 or more years down the road.

personal capital

Not everyone will have the same portfolio, but an efficient portfolio will allow people to maintain their lifestyle in their retirement years. Capital takes the time to understand each person’s objectives, for the future and where their financials are at the present time. The primary driver to success is diversification of assets for higher returns while taking low risks.

Many individuals who are trying to do their own investing without the help of any advisers show poor results in their portfolios. Capital has an investment committee as well as  advisers  who have years of experience managing investments for individuals. Capital has been through the bear and the bull markets and knows how to invest wisely for great returns. With the advice from Capital, individuals will have better control over their own finances, by being as involved as they wish in all decisions made.

A portfolio of today should have a mixture of asset classes that are considered global perspectives. In order to achieve better returns many different types of equities and fixed income assets, both domestic and international, plus cash and alternative assets round out a diversified portfolio. It is no longer just a playing field of owning some stocks and bonds and holding cash on the sidelines.

Most people believe that the higher the risk, the higher the return will be on their investment. This is not always true. Diversification into different allocations of assets in the portfolio makes for a better combination that can bring better returns and less risk. Capital watches the market swings and the exposure in each asset class and develops a blend for a more efficient portfolio.

International and domestic markets are forever switching as to which one is performing better. During the dot-com bubble, most Americans were invested heavy in the domestic markets. When the dot-com bubble burst, Americans once again invested heavy in the international markets. People keep chasing the market and usually miss returns by not investing for long terms. Capital believes that a blend of equities of 25 to 30 percent international and 70 to 75 percent domestic exposure is a better diversification. Foreign stocks are extremely volatile compared to US stocks because of the fluctuation in the currency. Owning the right proportion of international stocks, from their emerging markets, can increase returns and make the risk less.

Commodities, Real Estate and Gold play a big part in the strategy for investing. These are considered alternatives in investing and fixed income investments, and should serve clients well during times of inflation.

personal capital

People need to be disciplined with their portfolios. Neglecting your portfolio may lead to a loss of income or worse. Capital will monitor your portfolio every day and make changes that will keep your finances on track  Re-balancing can find opportunities to lower your taxes and increase returns, particularly in a choppy market. Personal Capital charges a low fee for re-balancing your portfolio automatically. Mutual funds have embedded costs and brokers charge high fees and gain commissions to balance your share holdings.

Spending power could be limited in retirement years because of poor tax management. Individuals could be paying as much as 25 percent on their long-term profits, without the right tax advice. Mutual Funds have a high turnover, which generates extremely high tax bills at the end of each year. When you buy a fund, you may also be buying embedded gains, which is a liability. You may also be responsible for taxes on capital gains that other people have made. Exchange traded funds are a better choice for tax handling then mutual funds.

Personal Capital advises individuals on smart indexing for tax purposes. Tax-deferred accounts would hold all the high yielding securities. Those building a retirement income would be advised on, when to take their withdrawals for the best tax benefits, when to defer their capital gains and when to claim their losses. Each of these strategies will help the individual to maximize the value of their portfolio and reduce the taxes they need to pay.

Personal Capital is not set up to sell you products or force any individual into buying stocks, bonds or funds. Personal Capital is a registered investment  adviser   who has a fiduciary obligation to keep your interest in mind. Capital does not take any payments from fund companies. The investment committee will maintain your portfolio and will communicate with you whenever you have questions. They manage individual portfolios and give people a better financial future. The financial  advisers  will always complete your wishes and keep you informed on your financial stability at all times.


Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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