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Note: Empower is formerly known as Personal Capital. In February 2023, Personal Capital completed its rebranding as Empower.
Empower: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 3.25 |
| Investment selection | 4.50 |
| Access | 4.50 |
| Ethics | 3 |
| Customer service | 4.25 |
| Overall score | 3.85 |
Is Empower Right for You?
However, prospective users should consider other platforms if they're in search of lower minimum requirements and fees. Empower is a great platform for robo-advice, wealth management, and private client services, but it falls short when it comes to fees. You'll pay a minimum of 0.89% per year to use its services if you have below $1 million in your account.
The mobile app is available on iOS and Android devices.
Empower vs. Merrill Guided Investing
Empower | Merrill |
Min. Investment | Min. Investment $1,000 or $20,000, depending on account type |
Fees | Fees 0.45% or 0.85% |
Investment choices ETFs, stocks, bonds, and private equities | Investment choices ETFs and mutual funds |
Empower and Merrill Guided Investing both suit hands-off investors who don't want to manage the daily legwork of maintaining an investment portfolio. Both of Merrill Edge's accounts — Merrill Guided Investing Online and Merrill Guided Investing with an Advisor — are better options for those in search of lower minimum requirements.
Empower and Merrill Guided Investing offer similar fees, but Empower is the better choice 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
Empower | Vanguard |
Min. Investment | Min. Investment |
Fees | Fees |
Investment choices ETFs, stocks, bonds, and private equities | Investment choices Vanguard ETFs and mutual funds |
When it comes to 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 Personal Advisor Services 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. Therefore, the highest you'll pay is 0.30% per year, and the lowest you'll pay is 0.05%.
Ways to Invest With Empower
Digital wealth management
Like many automated investing platforms,
- Investment services: This level is best for those with $100,000 to $200,000 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. In order to qualify, you'll need to have more than $200,000 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.
Many robo-advisors primarily offer one asset choice (such as ETFs or mutual funds), so Empower's investment selection tops the competition. It also uses Personal Strategy+ to manage employer-sponsored retirement plans such as 401(k)s and 403(b)s.
Compared to other digital advisors like Wealthfront and Fidelity Personalized Planning & Advice, Empower's fees are quite high. The upside to this, though, is that it still charges less than what most traditional advisor firms charge. While Empower charges 0.89%, traditional advisors usually charge 1%.
Investors can choose between two different portfolio strategies: The Personal Strategy and Socially Responsible Investing.
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: Is it Trustworthy?
The Better Business Bureau typically gives companies ratings between A+ and F. However, the BBB gives Empower an NR (No Rating) because Empower is currently responding to customer complaints that had previously been closed.
The BBB considers several factors when reviewing companies. These include type of business, time in business, customer complaint history, advertising issues, and licensing and government actions. But since its ratings don't guarantee a company's reliability or performance, you should also do your due diligence before opening an account.
In late 2022, 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 less expensive options were available elsewhere. An Empower representative said this was unfounded, and the lawsuit hasn't been settled yet.
Empower — Frequently Asked Questions (FAQ)
How much does Empower charge for investments?
Empower charges 0.49% to 0.89% management fee. The higher your account balance, the lower your fee will be.
Is Empower worth the fee?
Compared to other popular wealth management services, Empower's management fees are on the higher side. Those with $1 million or less will have to pay 0.89% per year. The management fees decrease as your account balance increases, but the lowest you'll pay per year is 0.49% (this fee is for users who hold over $10 million).
It's best to completely examine your financial situation and weigh Empower's benefits and drawbacks before opening an account.