Optimize your finances with Personal Capital
We believe Personal Capital, available on mobile, desktop and tablet, is the best personal financial management suite out there. Why we like it:
Comprehensive account aggregation. Aggregates all your accounts into one view and updates them all whenever you open the app. It will even connect to obscure accounts we never thought it would, like the Illinois Bright Start college savings site and small-time Health Savings Account administrators..
The efficient frontier. Common in all sorts of portfolio planning, Personal Capital charts how efficiently your portfolio balances risk and return for an optimal return. It will also make suggestions to get closer to the efficient frontier.
Amazing analytics. Not only will it show your net worth, but also it looks at all your holdings and tells you your actual asset allocation vs. the target it recommends for your financial goals.
It's a cut above in terms of specificity of asset types for holdings like mutual funds. It's easy to just label a fund as an equity or a bond fund, but Personal Capital dives deep, allocating the fund's asset makeup across detailed categories like asset types and sectors. For example, for fixed income it differentiates between government, municipal, and corporate, and for US stocks it differentiates between large, mid and small cap and value, growth and blend. It gives you a truer, more accurate sense of how your entire portfolio is allocated.
Sophisticated scenario planning. Its retirement planner lets you set a target retirement age and income and it performs a Monte Carlo simulation, effectively creating 10,000 universes and seeing the odds of reaching your goals in each one. From that it calculates your percent chance of success with your current net worth and asset allocation. We also like that you can set interim spending goals like paying for college and you can adjust when you start taking social security.
Clear reminder on how spending affects your net worth. Liabilities like your credit card balance are represented as negative values against your net worth. Charge a latte? You see your net worth decrease by $5.
Security. Whenever you log in from an unrecognized device, you must do two-factor authentication by entering a PIN texted to your cell phone.
Flexibility. You can add offline assets like houses, cars and other alternative assets. It'll automatically value real estate with a Zillow Zestimate.
The price. It's free.
What do you think?
Use Personal Capital? Another financial management suite? What do you like and why? Leave a comment below!