Empower, formerly known as Personal Capital, remains one of the most powerful personal finance tools available today. With a new name and a fresh look, Empower continues to provide users with free financial tools that help track net worth, manage budgets, and plan for retirement. In this Empower review, we’ll explore the features, benefits, and how this financial software can help you build wealth.
What is Empower?
Empower is a personal finance and investment tool that helps users track their overall financial health. It offers a comprehensive money management platform that connects all your financial accounts in one place, giving you a complete view of your financial situation. Unlike simple budgeting apps, Empower goes beyond expense tracking to include investment analysis, retirement planning, and net worth tracking.
How Does Empower Work?
Empower functions by linking all your financial accounts and aggregating the data to give you a complete financial picture. Here’s how you can set up and use Empower:
Step 1: Create an Empower Account
Visit the Empower website or download the mobile app to sign up for a free account.
Step 2: Link Your Financial Accounts
Connect your checking, savings, credit card, and investment accounts by securely entering your login credentials.
Step 3: Sync and Verify Accounts
Empower will sync and update your financial data in real-time, ensuring an accurate overview of your finances.
Step 4: Monitor Your Finances
Once all accounts are linked, you can access tools such as budget tracking, investment analysis, and retirement planning in your dashboard.
Free Tools Provided by Empower
One of the key advantages of Empower is the wide range of free financial tools available to users. Here’s a closer look at these tools:
1. Budget Planner
Empower’s budgeting tool helps users analyze their spending and savings habits. You can:
- Categorize transactions by type, merchant, or date.
- Set spending targets to keep expenses in check.
- Track financial goals over time.
- Customize expense categories to fit your needs.
2. Net Worth Tracker
Empower allows you to track your net worth by automatically updating account balances and investments. This feature includes:
- A comprehensive financial snapshot.
- Integration with Zillow for real estate valuation.
- Easy visualization of financial progress over time.
3. Savings Planner
The savings planner tool helps users set and meet their savings goals by:
- Offering an annual savings projection.
- Estimating progress towards retirement goals.
- Encouraging disciplined savings habits.
4. Investment Checkup Tool
This feature provides an in-depth analysis of your investment portfolio. It includes:
- A breakdown of asset allocation (stocks, bonds, cash, and alternatives).
- Risk assessment to match investment goals.
- Historical portfolio performance insights.
- Recommendations for portfolio optimization.
5. Retirement Planner
Empower’s retirement planner evaluates whether you’re on track for retirement by:
- Projecting future monthly retirement income.
- Analyzing savings rates and investment returns.
- Providing insights on how market downturns could impact your portfolio.
- Offering a recession simulator to test your financial resilience.
6. Education Planner
For those saving for higher education, Empower’s education planner helps estimate future education costs by:
- Factoring in tuition, housing, and supply expenses.
- Accounting for inflation.
- Providing savings recommendations to meet educational goals.
How Empower Helps You Build Wealth
Empower is not just a budgeting app—it’s a wealth-building tool. Here’s how it can help improve your financial health:
1. Get a Clear Financial Picture
With all financial accounts linked in one place, you can make informed decisions about spending, saving, and investing.
2. Automate Your Net Worth Tracking
Instead of manually calculating your net worth, Empower does it for you, updating your financial position in real time.
3. Optimize Investments
The investment checkup tool helps ensure your portfolio aligns with your risk tolerance and financial goals.
4. Stay on Track for Retirement
Empower’s retirement planner estimates future financial needs and provides a roadmap to achieve retirement goals.
5. Improve Spending Habits
The budgeting tool highlights unnecessary expenses and helps users cut back on wasteful spending.
How Does Empower Make Money?
Although Empower’s financial tools are free, the company generates revenue through its wealth management services. Once your net worth surpasses $100,000, you may receive a call from Empower’s advisors offering professional financial management services. However, users who are not interested in these services can continue using the free tools without obligation.
Is Empower Safe to Use?
Security is a priority for Empower. The platform uses:
- Bank-level encryption to protect user data.
- Two-factor authentication for secure logins.
- A commitment to not selling user data to third parties.
Who Should Use Empower?
Empower is ideal for:
- Individuals looking for a free tool to track their net worth and investments.
- Investors who want insights into asset allocation and portfolio performance.
- People planning for retirement and seeking long-term financial projections.
- Budget-conscious individuals who need a comprehensive financial overview.
Empower Review 2025: Final Verdict
Empower (formerly Personal Capital) continues to be a top-tier financial tool for anyone looking to build and manage their wealth effectively. With free budgeting, investment tracking, net worth monitoring, and retirement planning tools, Empower is an excellent choice for both beginners and experienced investors.
If you’re serious about taking control of your finances and planning for a secure financial future, Empower is a must-have tool. Best of all, it’s completely free to use—so why not give it a try today?
