Empower (formerly Personal Capital) is a wealth management and investing platform for advisor-assisted financial planning services, retirement solutions, and access to free money management tools.
Business Insider compared Empower to the best online financial advisors. We found its offerings to be decent but more expensive than similar platforms.
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 at no additional charge
- 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.
Empower 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.
With an Empower investment account, you can access personalized retirement planning services, tax-optimization strategies, data-driven portfolio construction, and various investable securities.
DIY traders can benefit from a do-it-yourself investment account with no account minimum and commission-free stocks and ETFs for the first 1,000 trades each calendar year.
However, automated investing services are quite expensive. Sophisticated investors seeking holistic wealth management services from professionals will get the most out of an Empower investment account. However, you must have at least $100,000 in your account to qualify.
Retirement plans, custodial accounts, and socially responsible investing are also available.
Beginners and those looking for lower minimum requirements and fees should consider one of the best investment apps for beginners or best online brokerage accounts instead.
Ways to Invest with Empower
Here's how Empower works.
Empower Investment Accounts
Empower's goal-based investment accounts are a flexible, low-cost alternative to Empower's expensive digital wealth management services.
An Empower Investment Account is best for experienced DIY investors looking for the flexibility to invest in thousands of 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.
Additional features include automatic investments, unlimited access to your money, and optional debit card or check-writing features.
Empower Premier Investment Account
You can also open an Empower Premier Investment Account as a do-it-yourself investor who wants access to a financial advisor 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, advice, tax-optimization features, and advisor consultations.
You need at least $100,000 in your account to unlock additional benefits with Empower's personalized advice from an advisor. Otherwise, there is no account minimum for Empower's Investment and Premier Investment Accounts.
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. Plus, you'll get a personalized portfolio of ETFs, copious digital planning tools, and support from human advisors.
- Wealth management: The wealth management tier takes things up a notch. It 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, stocks, and more. 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 0.89%, traditional advisors usually charge 1%.
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 portfolio rebalancing, tax optimization strategies like tax-loss harvesting, smart weighting, and advisor access.
- Socially Responsible Investing: With this socially responsible investing portfolio, you can have the platform focus your portfolio on companies that have high environmental, social, and corporate governance (ESG) standards. Empower primarily focuses on US and international equities and 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.
Empower 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) |
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.
Empower Trustworthiness
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 claim 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.
Empower Alternatives
Here's how Empower compares to similar platforms.
Empower vs. Merrill Guided Investing
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.
Empower and Merrill Edge offer similar fees, but Empower is better for investors who want access to a wider selection of investment types. Empower's wealth management services and financial tools are also difficult to beat.
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 vs. Vanguard Personal Advisor Services
Regarding fees, you'll pay less in all aspects 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. But Vanguard requires a $500,000 minimum investment to get access to a dedicated fiduciary.
Vanguard Personal Advisor review
Empower FAQs
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.
Yes, Empower is suitable for retirement planning. It has various IRA account options, goal-based planning tools, spending plans, recession simulators, and money management resources.
Empower caters to beginners with holistic financial planning services, advisor-managed accounts, and passive-investing strategies. However, many of its best features require high minimums, which may deter some beginners.
Why You Should Trust Us: How We Reviewed Empower
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 | 4.50 |
| Overall score | 4.15 |
