Personal - Personal Capital Review–The Ultimate Net Worth Tracker

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1 - 501 Jonathan Mendonsa So personal capital is by far my favorite network tracker. It has an incredibly intuitive interface. It allows you to aggregate all the different accounts that you have and if you think about it maybe you have a 401k with your employer or maybe you have a taxable account with Vanguard that you put in after tax dollars. Maybe you have a traditional IRA or a Roth IRA maybe you have some stocks that are just orphaned over it at Fidelity maybe you have your employee stock purchase plan maybe you have multiple employers you know over time that you have accounts with and for whatever reason you haven't consolidated them or rolled over whatever it may be. Maybe you have bank accounts or you're sitting on a heavy cash position. All of these things require you to check in, to log in to those various accounts on all their different platforms. And it's overwhelming. It's no surprise to me that so many people have no idea what their net worth actually is and have long forgotten about money that they had because it's just it requires too much bandwidth to check in on them it's easier just to forget about it and move on. Personal Capitol eliminates that problem. One of the things when you initially set it up, their main selling point in my opinion, is this network dashboard. It just pops up as soon as you log into your account on the left hand side you're able to see all of the accounts you have in one place and then your it actually combines all of those into a single graph that allows you to calculate your net worth. Now if you really want to you can actually put it in your mortgage value into this as well. It allows you to put in custom assets that maybe you can't log or track I don't personally use it for that. And then whenever any of those investments goes up or down it is going to automatically reach out to those different accounts and it will bring that information into this place so you can look at all of it here. I mean it's just incredibly convenient. So what you'll do when you get into it is you link your account. So you link each individual account that you want to set up and then from there it kind of takes care of everything for you. I think when it comes down to for me it's just this simplicity is everything. What does it look like. If this was simple and we're in 2018 I mean you guys are living in the future and you don't need to be logging into 30 different sites just to get an update on where you're at Financially. This just takes care of all of it for you. You know I still play around with Excel sheets just because I like to do more like future value calculations and tweak different things at the margins. So I'm not saying that you're never going to look at your Excel sheet again. That monster that's been slowly adding tabs you know month after month as you think of something new you want to track but this does do all the heavy lifting for you. There's a few other features that it has and I'm going to be very honest with you I don't use any of those other features but it will track your cash flow. I actually still prefer and still use mint for my day to day budget and my month to month budget. So I actually have two different platforms set up but personal capitals what I'm using for all of my investable income this kind of magic money making machine that we're trying to build I'm tracking it on personal capital. Now if you really want to dig into some of the extra features that personal capital has it offers something called the investment checkup tool which can actually take a look at your portfolio and it will allow you to look and see whether or not you're overweight in any particular category in that particular portfolio. So if your equities are out of sync with where you want to be it allows you to kind of quickly analyze that and then you can make a decision on that. One of the things that also does is it will take a look at all the expenses that you're paying on your various accounts and it will highlight for you if any of them are out of sync. Now obviously at least for me. I don't have a ton of mutual funds that I'm in anymore that can trick me with some of these higher fees. But if you're really just now starting to pay attention and maybe you had accounts with past employers maybe you are a teacher that had a 4O3b maybe you've never looked at your investments before. People often will find that they are in some monstrously high fee situations and this is just a quick way for you to assess that and honestly knowledge is Power. Once you can identify that you're paying too much in fees, in many cases you can immediately make a decision to course correct and get into a fund that has much lower fees. In My wife's case, She by default would have been in a high fee program but she had Vanguard available as an option as a lower fee option. The difference in those percentages. As we've talked about is millions of dollars over your working career so that's worth looking into as well. There are so many other tools that personal capital includes and you can go into much detail than I can possibly include in this article, but for you math nerds you can really really get into the weeds with this. It can show you where your allocation is on the efficient frontier curve. This is a type of risk modeling. This is right up Big ERNs alley. Basically it assesses for you where you are on this curve in terms of being able to expect a higher return without increase your risk. So there's a point of diminishing returns with Rescate where you're really taking way more risk than you need to for very little in returns. It has a fantastic retirement planning calculator. so it actually does allow you to put in projected monthly spending projected investments and then actually allow you to determine whether or not you're going to be able to pull off this retirement. I feel like early on I broke it when I was trying to calculate my own because I kept trying to bump the number down a lot further than it would let me, so I will say that I don't think it was tailored for the early retiree but I went back and I double checked and they actually have updated this tool to now allow you to bump it all the way down to 18 I hope you can retire at 18 but I kind of doubt it So you know you can tweak those numbers but you can say Hey I wanted to be able to spend 60 grand a year and I plan on living off of my portfolio at the age of 40 can I pull this off. It runs 5000 different calculations and then finds the median on how likely it is that you can pull it off. And if you have one hundred thirty thousand dollars today in net worth and you're saving 200000 dollars a year then hey good news you have a 72 percent chance that this is going to hit your goals. I you know that's incredibly flexible but I love the fact that you can you know based on what age you are now which it knows because you've given it what age you want it to be. how much you actually have saved now. how much you plan on saving in the coming years. It can tell you pretty precisely whether or not you're going to be able to pull this off and then the cool thing is you can actually add an extra features like your Social Security estimate, your wife's Social Security Estimate, and you can make this as accurate as you want. They continue to make this tool better and I'll be honest with you. It is so much better than when I initially when I looked at it and used to set it up back in the day. For those of you that do have individual stocks and ETFS you can bring all of those in. And then you can kind of look at your cap weight and your allocation models. You know how much are you weighted and U.S. stocks. It's really funny when you look at mine because so much of it is weighted towards VTSAX x it basically all just says U.S. stocks that's all you got. But depending on if you're trying to build some other type of model you really can have a lot more flexibility as well. This is just you know ultimately there is way more that you can get into here and I'm sure all the features are wonderful. But the reason that I love it so much is the simplicity of being able to track my net worth in one single place. I highly recommend you check it out. You will not regret it. And yeah let us know what you think.
401k, 403b, ESPP, career, indexfunds, ira, networth, roth, savings, socialsecurity, stocks, teacher, traditional

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