Empower (Personal Capital) Review: Free Tools vs Paid Wealth Management

Quick Verdict

Empower’s free dashboard is genuinely excellent—use it even if you never pay a dime. The paid advisory service (0.89% annually, $100K minimum) is worth it for investors with $250K+ who need tax optimization, dedicated advisors, and behavioral guardrails. But if you enjoy managing your own portfolio and have simple tax situations, the fee likely exceeds the value.

Here’s the math that matters: On a $250,000 portfolio, you’re paying $2,225/year. Empower claims tax optimization can add “up to 1.0% annually”—that’s $2,500. If their claim holds, you’re net positive. If it doesn’t, you’re paying for hand-holding you may not need.

The Track Record: What We Know (And Don’t Know)

Let’s be direct: Empower doesn’t publish portfolio performance data like stock-picking services do. There’s no “we beat the S&P 500 by X%” claim to verify.

What they do claim:

• Up to 1.0% annually from tax optimization strategies (tax-loss harvesting, asset location, tax-efficient investing)
• Up to 2.0% annually from behavioral coaching (citing Vanguard’s Advisor’s Alpha research from July 2022)
• 84% of clients feel more confident about their finances after speaking with advisors (post-call survey, April 2023-March 2024)

The tax optimization claim is plausible. If you have a $500K portfolio split between taxable and tax-advantaged accounts, proper asset location alone can save meaningful money. Tax-loss harvesting during drawdowns adds more. The question is whether your situation has enough complexity to capture these gains.

The behavioral coaching claim is harder to quantify but arguably more valuable. Vanguard’s research suggests the biggest value advisors provide isn’t investment selection—it’s keeping you from panic-selling during crashes. If you sold in March 2020 or December 2022, you know exactly what behavioral mistakes cost.

What Empower has going for it:

• Scale: Over $1.7 trillion in assets under administration, serving millions of users
• Fiduciary status: Advisors work for you, not on commission
• Custody: Assets held at Pershing (BNY Mellon), not at Empower—your money is protected even if Empower disappeared
• Industry recognition: Second-largest retirement plan provider in the nation

What’s missing:

• No published performance benchmarks
• No third-party verification of tax optimization claims
• No comparison to simply buying a target-date fund and forgetting about it

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What You Actually Get

The Free Tier (Worth It for Everyone)

Empower’s free dashboard is legitimately excellent. This isn’t a stripped-down teaser—it’s a full-featured financial planning platform:

Net Worth Tracking: Connect all your accounts—banks, brokerages, 401(k)s, credit cards, loans—and see your complete financial picture in one place. Real-time updates, automatic categorization.

Retirement Planner: Model different scenarios. What if you retire at 60 vs. 65? What if you increase savings by $500/month? What if the market returns 5% instead of 7%? This tool alone is worth the (free) price of admission.

Portfolio Analysis: See your asset allocation across all accounts, identify fee drag from expensive funds, spot concentration risks you didn’t know you had.

Budgeting & Cash Flow: Automatic transaction categorization, spending trends, and cash flow projections.

Investment Checkup: Compare your portfolio’s performance, diversification, and fees against benchmarks.

The catch? Empower uses these free tools as lead generation. If you have $100K+, expect calls from advisors. But you can use the tools indefinitely without paying anything.

Awards:

• NerdWallet “Best Budget App for 2025”
• Forbes Advisor “Best Budgeting App for Tracking Net Worth”
• 4.1 rating on Apple App Store

Investment Services ($100K-$249K): The Entry Tier

Fee: 0.89% annually What you get:

• Team of financial advisors (not dedicated—you talk to whoever’s available)
• Professionally managed ETF portfolio
• Financial and retirement planning guidance
• Tax optimization strategies
• Disciplined rebalancing

The honest assessment: At this tier, you’re paying 0.89% for what’s essentially a robo-advisor with phone support. Betterment charges 0.25% for similar automated management. The question is whether occasional human guidance is worth the 0.64% premium.

For most people at this asset level, the answer is no. You’re not getting dedicated advisors, you’re not getting individual stock investments for enhanced tax optimization, and you’re not getting the full planning suite.

Wealth Management ($250K-$999K): Where It Gets Interesting

Fee: 0.89% annually What you get (in addition to above):

• Two dedicated financial advisors who know your situation
• Individual stock investments (not just ETFs) for better tax optimization
• Proactive portfolio reviews
• Specialist support for complex situations (real estate, stock options, RSUs)
• Tax-loss harvesting with individual securities

This is where Empower’s value proposition sharpens. Dedicated advisors who know your situation can catch opportunities a robo-advisor misses. Individual stock investments allow more granular tax-loss harvesting. If you have RSUs, stock options, or real estate holdings, specialist support matters.

The math: $250K × 0.89% = $2,225/year. If tax optimization saves 1% ($2,500), you’re ahead. If behavioral coaching prevents one panic-sell during a 20% drawdown, you’ve saved $50,000.

Private Client ($1M+): The Premium Tier

Fee structure:

• First $3M: 0.79%
• $3M-$5M: 0.69%
• $5M-$10M: 0.59%
• Over $10M: 0.49%

What you get (in addition to above):

• Priority access to specialists and Investment Committee
• Tax & estate planning specialists
• Private equity access (for accredited investors)
• Private banking services (at $5M+, through BNY Mellon)
• Charitable giving guidance
• Insurance coverage review

Family benefit: Parents and children of Private Clients get a flat 0.79% fee with no minimum and full Private Client services.

At this level, the fee percentage drops and the service level rises. For a $2M portfolio, you’re paying 0.79% ($15,800/year)—significant, but you’re getting comprehensive wealth management that would cost more from a traditional advisor.

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How Empower Invests Your Money

Smart Weighting™

Empower uses a proprietary approach called “Smart Weighting” that maintains more evenly weighted exposure to sectors and styles compared to traditional market-cap indexing. According to the company, hypothetical back-tests showed this methodology outperformed the S&P 500 with lower volatility.

The caveat: “Hypothetical back-tests” is not the same as “actual performance.” Every investment strategy looks good in a back-test. Real-world results may differ.

Tax Optimization (The Real Value Proposition)

Empower’s three-part tax strategy:

1. Asset Location: Putting high-yield investments in tax-sheltered accounts, growth investments in taxable accounts
2. Tax-Loss Harvesting: Selling losers to offset gains, writing off up to $3,000 against income annually
3. Tax Efficiency: Using individual stocks (at Wealth Management tier and above) instead of mutual funds to avoid embedded capital gains

The company claims this can improve returns by up to 1.0% annually. That claim is directionally correct—academic research supports tax optimization adding value. Whether your situation captures the full 1.0% depends on:

• How much you have in taxable vs. tax-advantaged accounts
• Your income and marginal tax rate
• How often the market provides tax-loss harvesting opportunities

Investment Philosophy

From Empower’s website: “Active stock picking and market timing hurt many more people than they help, so we are not searching for the next home run or jumping in and out of markets. Fees and taxes matter, so we attempt to minimize both.”

This is a sensible, evidence-based approach. They’re not promising to beat the market through stock selection—they’re promising to capture market returns while minimizing the friction of fees and taxes.

Pricing: The Complete Picture

What You Pay

Hidden costs: The advisory fee doesn’t include underlying ETF expense ratios (average ~0.08%). On a $250K portfolio, that’s another ~$200/year.

Billing: Monthly, in arrears. You can cancel anytime without prepayment risk.

The Breakeven Calculation

At 0.89%, you need Empower to add at least 0.89% in value to break even. Here’s how that might happen:

If you capture even half of these benefits, the fee pays for itself. If you’re already disciplined, tax-aware, and comfortable managing your own portfolio, it likely doesn’t.

Versus the Competition

Empower is expensive compared to pure robo-advisors but cheaper than traditional advisors. The question is which comparison is relevant for you.

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The Trade-Offs

What Empower Does Well

Best-in-class free tools. The dashboard, retirement planner, and portfolio analyzer are genuinely useful even if you never pay for advisory services. Following Mint’s discontinuation in early 2024, Empower absorbed many former Mint users and now offers arguably the best free financial dashboard available.

Tax optimization focus. For investors with significant taxable accounts, the tax strategies can genuinely add value. Individual stock investments at the Wealth Management tier enable more granular tax-loss harvesting than ETF-only approaches.

Human advisors who know you. At the $250K+ tier, dedicated advisors who understand your situation can catch opportunities and prevent mistakes that algorithms miss.

Fiduciary standard. Advisors work for you, not on commission. No conflicts of interest pushing products.

Scale and stability. With over $1.7 trillion in assets under administration, Empower is one of the largest retirement and wealth management providers in the U.S. Your assets are held at Pershing (BNY Mellon), adding another layer of protection.

What Could Be Better

No published performance data. Unlike stock-picking services, there’s no track record to verify. You’re trusting their claims about tax optimization without independent confirmation.

0.89% is steep at the lower tier. For $100K-$249K, you’re paying premium prices without getting dedicated advisors or individual stock investments. Betterment offers similar automated management for 0.25%.

Sales pressure from free tools. Empower uses the dashboard as lead generation. If you have $100K+, expect persistent outreach from advisors.

No stock picking. If you want specific stock recommendations, this isn’t the service. Empower manages portfolios; they don’t tell you which individual stocks to buy.

Complex fee structure. Different tiers, different services, percentage-based fees that grow with your portfolio—it takes work to understand what you’re actually paying for.

Who Should Use Empower

The Free Dashboard: Everyone

Seriously. If you have financial accounts scattered across multiple institutions, Empower’s free dashboard is worth setting up. The net worth tracking, retirement planner, and fee analyzer cost nothing and provide genuine value.

Paid Advisory: Specific Situations

Consider paying if:

• You have $250K+ in investable assets (to get dedicated advisors)
• You have significant assets in taxable accounts (where tax optimization matters)
• You have complex situations: RSUs, stock options, real estate, multiple income sources
• You struggle with behavioral discipline (panic-selling, chasing performance)
• You don’t enjoy managing your own portfolio
• You want comprehensive financial planning, not just investment management

Skip the paid tier if:

• You have less than $250K (the entry tier doesn’t offer enough value for 0.89%)
• Your assets are mostly in tax-advantaged accounts (limited tax optimization opportunity)
• You enjoy managing your own portfolio and have the discipline to stick to your plan
• You want stock-picking recommendations (this is portfolio management, not stock tips)
• You’re comfortable with a pure robo-advisor at 0.25%

Who Should Look Elsewhere

Want stock picks? Try Motley Fool Stock Advisor for growth stock recommendations or Alpha Picks for quant-driven selections.

Want cheaper robo-advisory? Betterment offers similar automated management at 0.25%. See our Betterment review for the full analysis.

Want pure DIY with great tools? Stick with Empower’s free tier and manage your own portfolio at Schwab, Fidelity, or Vanguard.

Want active trading tools? TradingView or Koyfin offer professional-grade analysis for self-directed investors. Check out our TradingView review and Koyfin review for detailed comparisons.

Best Alternatives to Empower

For Lower-Cost Automated Management

Betterment — 0.25% annual fee, no minimum. Offers similar automated portfolio management, tax-loss harvesting, and goal-based planning at roughly one-third the cost. Trade-off: less human advisor access, no dedicated advisor relationship. See our Betterment review for the full breakdown.

Schwab Intelligent Portfolios — 0% advisory fee, $5K minimum. Truly free robo-advisory (they make money on cash allocations and fund expenses). Trade-off: no human advisors, required cash allocation drag.

Vanguard Personal Advisor — 0.30% annual fee, $50K minimum. Combines automated management with virtual advisor access. Trade-off: less comprehensive planning than Empower’s higher tiers.

For Stock-Picking Recommendations

Motley Fool Stock Advisor — $199/year. Two stock picks monthly with a 22-year track record. Completely different value proposition: they tell you what to buy, not how to manage your portfolio.

Morningstar Investor — $249/year. Research tools and analyst ratings for self-directed investors who want to pick their own stocks with professional-grade analysis. Read our Morningstar Investor review to see if it fits your research style.

For Comprehensive Wealth Management

Traditional financial advisor — 1.0-1.5% annually. More expensive than Empower but potentially more personalized. Best for complex estates, business owners, or those who want in-person relationships.

Final Verdict

Empower occupies a specific niche: it’s for investors who have outgrown pure DIY but don’t want (or can’t afford) a traditional advisor.

The free tools are a no-brainer. Use them. The dashboard, retirement planner, and portfolio analyzer are best-in-class and cost nothing.

The paid advisory is situational. At the Wealth Management tier ($250K+), the combination of dedicated advisors, tax optimization, and behavioral coaching can genuinely add value—potentially more than the 0.89% fee. Below that threshold, you’re paying premium prices for limited service.

The real question isn’t “Is Empower good?” It’s “Do I need what Empower offers?”

If you’re disciplined, tax-aware, and enjoy managing your own portfolio, stick with the free tools and invest through a low-cost brokerage. You’ll save the 0.89% and capture most of the returns yourself.

If you’re not disciplined, have complex tax situations, or simply don’t want to think about your portfolio, Empower’s paid tier might be worth it—especially at the $250K+ level where you get dedicated advisors and individual stock investments.

The math works if the tax optimization and behavioral coaching add more than 0.89%. For the right person, they will. For the wrong person, it’s an expensive subscription to peace of mind you could achieve for free with a target-date fund.

For a broader comparison of wealth management and research tools, explore our guide to the best stock research websites.

Start with Empower’s Free Dashboard

Frequently Asked Questions

Is Empower (Personal Capital) worth the money?

For the free tools, absolutely yes. The dashboard, retirement planner, and portfolio analyzer are best-in-class and cost nothing. For the paid advisory (0.89% annually), it depends on your situation. Investors with $250K+ who have complex tax situations, struggle with behavioral discipline, or don’t want to manage their own portfolios can capture value exceeding the fee. Those with simpler situations or strong DIY discipline are likely better served by the free tier plus a low-cost brokerage.

What are the best alternatives to Empower?

For lower-cost automated management, Betterment charges 0.25% (vs. Empower’s 0.89%) with similar features. Schwab Intelligent Portfolios offers free robo-advisory. For stock-picking recommendations (a different service entirely), Motley Fool Stock Advisor provides specific stock picks for $199/year. For pure research tools, Morningstar Investor offers analyst ratings and fair value estimates.

Empower vs Betterment: Which is better?

Empower costs more (0.89% vs. 0.25%) but offers dedicated human advisors at the $250K+ tier and individual stock investments for enhanced tax optimization. Betterment is better for cost-conscious investors who want automated management without human advisor relationships. Choose Empower if you want dedicated advisors and have complex situations; choose Betterment if you want low-cost automation.

How do I cancel Empower advisory services?

Empower bills monthly in arrears, meaning you pay after receiving services. You can cancel at any time without prepayment penalties. Your assets are held at Pershing (BNY Mellon) and can be transferred to another brokerage. The free dashboard tools remain available even after canceling paid advisory services.

What is the minimum investment for Empower?

The free dashboard has no minimum. Paid advisory tiers require: $100,000 for Investment Services, $250,000 for Wealth Management (with dedicated advisors), and $1,000,000 for Private Client services. The Wealth Management tier ($250K) is where most of the value proposition materializes—below that, you’re paying 0.89% without getting dedicated advisors or individual stock investments.

Does Empower provide stock recommendations?

No. Empower is a wealth management service that builds and manages diversified portfolios—they don’t recommend individual stocks for you to buy. If you want stock-picking recommendations, services like Motley Fool Stock Advisor or Alpha Picks provide specific buy recommendations. Empower focuses on portfolio construction, tax optimization, and financial planning.

Is my money safe with Empower?

Yes, your assets are protected through multiple layers of security. Empower holds client assets at Pershing, a BNY Mellon company that custodies over $2.5 trillion in assets globally. This means your investments are held separately from Empower’s operating funds—even if Empower went out of business, your assets would remain protected and transferable. Pershing provides SIPC coverage up to $500,000 (including $250,000 for cash) per account, plus additional excess SIPC coverage. Empower itself uses 256-bit encryption, two-factor authentication, and read-only account connections for the free dashboard (linking accounts doesn’t allow transfers or transactions).

How does Empower’s tax-loss harvesting work?

Tax-loss harvesting at Empower involves systematically selling investments that have declined in value to realize losses that offset capital gains elsewhere in your portfolio. The service monitors your taxable accounts daily and automatically harvests losses when opportunities exceed a minimum threshold (typically $100-500 depending on account size). After selling, Empower purchases a similar but not “substantially identical” security to maintain your market exposure while complying with IRS wash-sale rules. At the Wealth Management tier ($250K+), Empower uses individual stocks rather than just ETFs, enabling more granular harvesting—you might sell Apple shares at a loss while buying Microsoft, capturing the tax benefit while staying invested in tech. Empower claims this strategy can add up to 1.0% annually, though actual results depend on market volatility and your specific tax situation.

What happens to my existing investments if I sign up for Empower?

Empower can work with your existing holdings rather than forcing an immediate liquidation. When you transfer accounts to Empower’s advisory service, their team analyzes your current positions for tax implications before making changes. If selling would trigger significant capital gains, they may hold certain positions temporarily or phase out of them gradually to minimize the tax impact. For positions with substantial unrealized gains, Empower can incorporate them into your overall asset allocation strategy rather than selling immediately. The transition process typically takes 2-4 weeks, during which you’ll discuss your preferences with an advisor. You can also specify assets you don’t want sold (concentrated stock positions, legacy holdings with sentimental value), though this may limit optimization opportunities.