Personal Capital Review 2021 – Pros And Cons

What gets measured gets managed – Peter Drucker in The Practice of Management. I am sure, everyone has found value in some form of measurement to track goals which are important to them.

In order to accelerate our Financial Freedom Countdown; we should at any point in time know which direction we want to go. 1. Knowing our current financial situation and 2. Also tracking how far we are away from our goals will not only keep us motivated; but it will also inform our investment choices and the risks we are willing to take with respect to our Human Capital or investments.

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Personal Capital is a Registered Investment Advisor with over $12B in assets under management.

What is Personal Capital?

They are ranked #3 on RIA Channel’s list of the Top 100 Wealth Managers in 2019, as featured in Forbes. Personal Capital provides a free tool which enables you to track your net worth; cash flow, budget, emergency fund.

Personal Capital Dashboard Net Worth Tracker

In order to figure out your net worth, we must track what we own (assets), minus what we owe (liabilities). Personal Capital capital aggregates all the information; in a visual form indicating how your net worth has changed over a period of time. It is pretty inspiring to see the line going higher and higher over a period of time.

Cash Flow Tracker The Cash Flow tracker is one of the best features to visualize if you are on the right track or adjustments need to be made.

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Budgeting

Personal Capital added the budgeting feature at a later point. When you first create an account, Personal Capital uses your last month expenses to define your budget. You can also set your monthly budget if you don’t believe the prior month is an accurate representation going forward.

Emergency Fund

This is a sum of all your linked bank accounts. I use a strategy to earn over 8% interest on my emergency funds with various bank accounts.  So this feature is useful to know my total emergency cash, across all accounts at a quick glance.

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