Empower (formerly Personal Capital) is a wealth management and investing platform for advisor-assisted financial planning services, retirement solutions, and free money management tools.
Business Insider compared Empower to the best online financial advisors. Although fees are on the higher end, Empower is a great option for tax and estate planning for high-net-worth individuals.
Pros and Cons
Empower Pros
- Free budgeting and financial tools through the Empower app
- Comprehensive suite of wealth management services
- Self-directed and professionally managed accounts
- Retirement planning services for businesses
Empower Cons
- High $100,000 minimum for wealth management service and professionally managed accounts
- High management fees
Open an Account
$0 ($100,000 for wealth management services)
Options contracts cost $0.65 per contract (+$19.99 if traded over the phone)
- Free financial and wealth management tools; fees top that of traditional brick-and mortar-firms
- Investment selection includes stocks, ETFs, bonds, and private equities; portfolio management for employer-sponsored plans (e.g., 401(k)s or 403(b)s)
- Socially responsible investment strategies and tax optimization strategies
- One-on-one financial advisor guidance
- High management fees
- Promotion: None at this time.
Compare Empower
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
0% for active trading and automated investing
Get up to $1,000 in stock when you fund a new account.
- No account minimum
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
- Currently only available to US residents
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
$0 ($1 for fractional shares; $2,000 for margin trading)
0% ($5/month for Robinhood Gold)
- Free stock, option, ETF, and cryptocurrency trades; 0.01% APY on uninvested cash for non-Gold users and 4.00% for Gold members
- IPO investing available
- Cash management accounts available
- Website is easy to navigate; advanced charts for all users
- Lack of investing research and trading tools; can only take advantage of professional research if you're a Robinhood Gold member
- No joint accounts, education savings accounts, or mutual funds
- App store rating: 4.2 iOS/4.0 Android
- Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs.
$1 ($500 for automated investing)
$0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees)
- Low annual fee for investment accounts; crypto trust investments available
- Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available
- Cash account
- Mobile app and investing and retirement tools
- You need at least $100,000 to utilize additional investment strategies
- No human advisor access
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront- Consider it if: You're balancing several goals and want to streamline your finances.
- Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus.
Overview
Empower combines holistic wealth management and financial planning with automated trading solutions. It's a strong platform for professionally managed ETF portfolios, retirement solutions, and private client services.
Empower offers features for any level of investor but stands out for its comprehensive estate and tax planning services for high-net-worth investors. However, you won't get access to these services unless you meet the $1 million minimum investment requirement.
You must have at least $100,000 in your account to use Empower's wealth management services and access a team of financial advisors for unlimited advice and retirement planning help. There's a $250,000 minimum to get access to two dedicated financial advisors and unlock tax optimization strategies through individual stock allocations.
That said, plenty of other services are available on Empower for a lower minimum requirement. This includes free money management tools, DIY investment accounts, professionally managed ETF portfolios, and ongoing goal planning and monitoring. Empower also offers ESG investing solutions.
You can contact Empower's customer support team by phone or through the app Monday through Friday from 9 a.m. to 5 p.m. PT.
Empower's mobile app has a rating of 4.8/5 on the Apple Store and 4.3/5 on Google Play.
Ways to Invest
Here's how Empower works.
Empower Investment Accounts
An Empower Investment Account is best for experienced, goal-based investors who want the flexibility to invest in a wide range of assets, including mutual funds, ETFs, stocks, bonds, and CDs.
There is a $0 minimum investment requirement and no annual or initial account opening fees. Commission-free trades are available for the first 1,000 stock and ETF trades each calendar year. Afterward, it's $6.95 per trade.
You can use Empower's financial planning software to access free money calculators and tools. For example, the retirement planning tool allows you to stress-test your retirement plan in different retirement scenarios. Other useful tools are the Budget Planner and Net Worth Tracker.
Empower Premier Investment Account
You can also open an Empower Premier Investment Account as a do-it-yourself investor or as a hands-off investor who wants a professionally managed account.
There is no minimum investment requirement, account opening fee, administrative fee, transaction fee, or closure fee.
A Premier Investment Account offers two main investing styles:
- Do-it-myself investing: Receive personalized guidance and actionable information at any time with a wide range of mutual funds and accessible investment tools.
- Do-it-for-me investing: A financial advisor invests on your behalf with ongoing monitoring and management. Investors can access savings recommendations, tax-optimization features, and consultations with investment advisor representatives. You qualify for a dedicated financial advisor if your account balance is over $100,000.
Empower Digital Wealth Management
Empower's wealth management service includes a professionally managed portfolio, unlimited advice, and help with retirement planning from the platform's advisory team. The company separates its portfolio management offerings into three tiers:
- Investment services: This level is best for those with $100,000 to $250,000 in assets. It offers unlimited access to financial planning and retirement guidance. You'll get a personalized portfolio of ETFs, digital planning tools, and support from a team of financial advisors.
- Wealth management: The wealth management tier gives you two financial advisors who offer ongoing guidance and support, and it supplements this with a personalized portfolio and tax optimization strategies. Plus, you'll be able to take advantage of specialists in real estate and stocks. You'll need over $250,000 to qualify, but not more than $1 million.
- Private client: Reserved for those with more than $1 million in investment assets, this tier offers private equity investments, specialist support for wealth and retirement planning, two financial advisors, and priority access to its Investment Committee and specialists. Note, though, that the private equity option is only available to those with $5 million or more invested.
As for investment types, the first tier only offers ETFs. Empower's wealth management tier offers ETFs and stocks, while its private client services focus on ETFs, stocks, bonds, and private equity investments.
Although Empower's fees are quite high compared to similar platforms, it still charges less than most traditional advisor firms. While Empower charges up to 0.89% AUM, traditional advisors usually charge 1% AUM.
Investors can choose between two different portfolio strategies:
- The Personal Strategy: With the Personal Strategy, Empower invests your money into a globally diversified portfolio of stocks and ETFs. It relies on both its technology and advisor oversight to build portfolios, and each includes rebalancing, tax optimization strategies like tax-loss harvesting, smart weighting, and advisor access.
- Socially Responsible Investing: With this socially responsible investing portfolio, the platform will focus on companies with high environmental, social, and corporate governance (ESG) standards. Empower primarily focuses on US and international equities with these portfolios.
Empower Personal Strategy
Empower Personal Strategy is a multi-asset portfolio that combines automated solutions with professional insight to create personalized investment solutions and ongoing management.
A dedicated advisor helps build your portfolio and update your financial plan over the long term. You also get access to intelligent portfolio rebalancing with daily portfolio reviews.
Smart Weighting is another key component of Empower Personal Strategy portfolios. This proprietary indexing solution aims to reduce the impact of stock market bubbles by equally weighting securities by style, size, and sector.
Moreover, Personal Strategy is tax-optimized, focusing on three techniques:
- Tax efficiency: Portfolios built with tax-efficient ETFs and individual stocks rather than mutual funds for greater control and flexibility in case an opportunity for greater tax efficiency presents itself.
- Tax-loss harvesting: Selling investments at a loss to deduct up to $3,000 yearly in realized losses from ordinary income and offset capital gains. Tax savings may be 0.2% to 0.4% annually.
- Asset location: Aims to strategically place investments in the most tax-efficient account option based on tax-equivalent yields. Empower estimates asset location tax savings can be up to 0.30% annually.
Empower Personal Strategy+
Empower Personal Strategy+ is for those seeking assistance in monitoring and rebalancing their 401(k), 403(b), or similar employer-sponsored retirement plans.
With a non-Empower 401(k) or 403(b), you can get professional asset management of your retirement funds set to a custom target allocation with potentially higher average returns.
Investors receive a Personal Strategy section on their dashboard to track transactions and account activity.
Empower Retirement Plans
You can open a Premium IRA or a self-directed brokerage IRA through Empower. Both of these account options are available as traditional or Roth. The platform also offers SEP IRAs and a guaranteed retirement income plan.
An Empower Premium IRA is available as a self-directed or managed account, providing more than 130 mutual fund options for no initial minimum investment requirement. Mutual fund trading is commission-free. You can access professional guidance from an advisor and comprehensive financial planning.
The Brokerage IRA option is a DIY retirement plan offering mutual funds, ETFs, fixed-income securities, and individual equities. It doesn't come with professional account management or access to advice and guidance from an expert, but you'll still get access to the platform's free online investing and planning tools and commission-free trades for stocks and ETFs.
Fees
Empower's Investment Accounts have no initial minimum requirements. However, Empower's wealth management services require significant minimums, with the lowest tier requiring a minimum of $100,000 for access to unlimited advisor guidance and professionally managed accounts.
AUM fees are tiered:
| Account Balance | AUM |
| Under $1M | 0.89% |
| $1M to $3M | 0.79% |
| $3M to $5M | 0.69% |
| $5M to $10M | 0.59% |
| Over $10M | 0.49% |
Empower Retirement Advisory Services also tiers My Total Retirement managed accounts based on account balance:
| Account Balance | Annual Rate |
| Up to $100,000 | 0.50%(billed 0.125% quarterly) |
| Next $150,000 | 0.40% (billed 0.10% quarterly) |
| Next $150,000 | 0.30% (billed 0.075% quarterly) |
| Greater than $400,000 | 0.20% (billed 0.050% quarterly) |
Empower brokerage IRAs with balances under $100,000 are charged a $35 annual maintenance fee. Accounts with balances over $100,000 have no annual maintenance fee.
Certain mutual funds have no fees, while others charge $25 per trade with an additional $5 per exchange fee. Options contracts cost $0.65 per contract (+$19.99 if traded over the phone). US Treasury securities, corporate bonds, and agency bonds cost $20 per transaction.
Trustworthiness and Security
Empower prioritizes security through data encryption, third-party external auditors, and a cybersecurity program. Empower doesn't sell users' personal information.
Investment accounts are covered by SIPC up to $500,000, including $250,000 for cash deposits.
Empower has an A+ rating from the Better Business Bureau. BBB ratings typically range from A+ to F and reflect the bureau's opinions of a company's customer complaint history, business practices, and advertising and licensing information.
In 2023, Empower faced a lawsuit that accused the company of using fraudulent sales practices. The plaintiffs claimed that Empower neglected its fiduciary duties by manipulating investors to invest in Empower accounts when cheaper options were available elsewhere. An Empower representative said this was unfounded, and the lawsuit hasn't been settled yet.
Alternatives
Here's how Empower compares to similar platforms.
Merrill Guided Investing
$0 ($1,000 Guided Investing; $20,000 Guided Investing with Advisor)
0% (0.45% to 0.85% for robo-advice and guided portfolios)
- No minimums or commissions for self-directed accounts
- Investment insights and research provided by multiple third-party companies
- Can link Bank of America accounts
- 24/7 customer service with live chat available
- No specialty investments like cryptocurrency, futures, or precious metals
- Automated account has high advisory fee
Merrill Edge lets you invest for your minor without running into any minimum opening deposits, annual fees, or account maintenance fees. Merrill Edge also offers commission-free stocks, ETFs, and options.
Merrill Edge investment account- Promotion: Get up to $600 when you open a self-directed account.
Empower and Merrill Edge Guided Investing both suit passive investors who don't want the daily legwork of maintaining an investment portfolio. Merrill Edge's accounts — Merrill Guided Investing Online and Merrill Guided Investing with an Advisor — are better options for those searching for lower minimum requirements.
Whereas Merrill Guided Investing offers the option of guidance from one advisor, two of Empower's tiers of service offer access to multiple dedicated advisors.
Empower and Merrill Edge offer similar fees, but Empower is better for investors who want access to a wider selection of investment types. Its wealth management services and financial tools are also difficult to beat.
Vanguard
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor)
0% (0.20% to 0.30% for professionally managed portfolios)
- Commission-free stocks, ETFs, and options
- Brokerage, automated, and advisor-managed accounts available
- Thousands of low-cost mutual funds
- Multiple resources with expert analysis and market insights
- Several retirement accounts and services for retirement plan participants
- Higher options contract fee than other discount brokerages (Vanguard charges $1 per options contract)
- No separate trading platforms for advanced traders; no fractional shares
- No cryptocurrencies
Vanguard is a reasonable low-cost option for all types of investors. Whether you're an active trader, passive investor, or retirement-focused individual, you should be able to find what you're looking for.
Vanguard- Promotion: None at this time.
- App store rating: 4.7 iOS/ 1.8 Android
- Consider it if: You're a long-term focused investor looking for access to a variety of account types and investment choices.
- Awards: Morningstar gave Vanguard a 'High' assessment in its 2022 Robo-advisor Landscape report, listing it as the #1 platform out of 16 robo-advisors
Vanguard and Empower are both strong online financial advisors for hybrid portfolio management and holistic retirement planning.
You'll pay less in all fees with the Vanguard Personal Advisor Services account. But Empower's wealth management services give you access to more investment types than Vanguard does.
Empower clients with lower balances pay higher fees, and customers with higher balances pay lower fees. The same applies to Vanguard's wealth management account. However, Vanguard requires a $500,000 minimum investment to get access to a dedicated fiduciary. If your account balance is under $500,000, Empower is a better option.
Why You Should Trust Us
We rated Empower using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 to 5.
Business Insider's Overall Empower Rating
| Feature | Rating (out of 5) |
| Fees | 3.50 |
| Investment selection | 4.50 |
| Access | 4.50 |
| Ethics | 4.00 |
| Customer service | 4.00 |
| Overall score | 4.07 |
FAQs
What is Empower, and what services does it offer?
Empower is an online investment and wealth management platform. It offers services for individual investors seeking holistic wealth management and guidance with or without the help of an advisor. Empower was formerly known as Personal Capital.
Is Empower suitable for retirement planning?
Yes, Empower is suitable for retirement planning. It offers various IRA account options, goal-based planning tools, spending plans, recession simulators, and money management resources.
How does Empower cater to beginners?
Empower caters to beginners with holistic financial planning services, advisor-managed accounts, and passive-investing strategies. However, Empower's wealth management services have a higher price point and are better suited for high-net-worth investors.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. https://www.sofi.com/invest/clawpromotion/rules.
