Building long-term wealth is challenging amidst market uncertainty – but finding an advisor you trust can make the journey much smoother. Are you looking for advanced investment management combined with financial planning? If so, Empower should be on your radar.
In this comprehensive guide, we‘ll explore whether Empower fits your needs as an investor aiming to efficiently manage wealth.
What is Empower?
Founded in 2009, Empower epitomizes how technology can elevate wealth management. It oversees $65 billion in assets for over 1.4 million clients – positioned as one of the largest digital wealth advisors globally.
Intuit acquired Empower in 2021 for $7.1 billion – a strong vote of confidence in its market-leading platform. The deal also armed Empower with greater resources to deepen its capabilities using AI and machine learning.
Empower founder Ed O‘Brien studied computer science at Harvard alongside tech luminaries like Bill Gates. He believed smarter software algorithms combined with human insight could empower regular investors to achieve better financial outcomes.
Today, Empower aims to deliver excellence across 3 facets:
Sophisticated portfolio management: Personalized, automated strategies adapted as your needs change.
Financial planning & guidance: Retirement planning, cash flow analysis, goal setting and more.
Account aggregation: Unified view of holdings, transactions, documents and performance.
Why Choose Empower? Key Benefits
You preserve ownership: Empower is a registered investment advisor with a fiduciary duty to act in your best interest – not a broker seeking to maximize commissions.
Strategies match your risk appetite: Empower‘s Nobel prize-winning portfolio construction methodology aligns investments to your distinct requirements.
Costs are competitive: Typical advisory fees range from 0.50% – 1.00% based on assets under management – cheaper than traditional wealth managers charging over 1%.
Taxes are minimized: Assets held long-term in tax-advantaged accounts while opportunistic losses are harvested to offset capital gains.
Flexibility to customize: Add outside assets easily and access direct indexing, ESG screens, and tax transitions if desired.
Top-tier security: Empower achieved an SSAE 18 SOC 1 Type 2 audit with high-grade encryption protecting personal data.
Round-the-clock access: Check your financial position 24×7 via Empower‘s well-designed web and mobile apps.
Dedicated support: Reach out to Empower‘s advisors through email, chat or phone with any pressing money question!
Empower‘s Key Capabilities
Now let‘s explore the platform‘s capabilities that enable advanced wealth management tailored just for you.
Actionable Financial Dashboard
Empower automatically aggregates financial data across thousands of institutions to construct an integrated dashboard revealing:
- Assets & liabilities
- Portfolio performance
- Asset allocation
- Projected retirement readiness
Unlike siloed experiences offered by some banks and brokerages, you can analyze your entire financial picture in one place.
Custom benchmarking shows if you‘re on track towards targets. Empower‘s retirement planner and other tools also suggest timely actions like increasing 401k contributions or opening IRAs.
Personalized Investment Management
Based on your risk tolerance and preferences, Empower designs an investment portfolio using its Smart Weighting methodology spanning:
- Equities (stocks)
- Fixed income (bonds)
- Alternatives
A 2022 survey found Empower clients averaged a 14.9% 10-year net annualized return – a testament to the quality of portfolio construction.
As major life events occur, holdings shift dynamically to remain optimized per your changing situation. You stay invested during market swings, avoiding emotional decisions.
Empower offers direct indexing for greater customization and tax management if desired. Values-based exclusions around sectors or ESG factors can also be specified.
Retirement & Financial Planning
While investing is crucial for wealth generation, sound decision-making across your broader financial life accelerates your progress.
Specialized tools like Empower‘s Retirement Planning Calculator provide tremendous clarity – integrating external retirement accounts, pensions, social security benefits and other income streams to estimate your readiness.
You can forecast college savings needs for children, budget more effectively and simulate major purchases before acting by modeling cash flows over long time horizons.
Business Owner Services
For executives and entrepreneurs concentrated in single stock positions, Empower helps prudently diversify while accounting for taxes, governance restrictions and liquidity needs.
Guidance on securitizing equity, establishing credit lines or packaging concentrated stock into funds empowers business owners to access capital without relinquishing control.
During liquidity events, Empower‘s team can suggest portfolio restructuring, tax efficient charitable plans and wealth transfer tactics.
What Does Empower Cost?
Wealth Management ($100k – $250k) – 0.50% avg. fee.
Wealth Management Plus ($250k -$1M) – 0.75% avg. fee.
Private Wealth (Over $1M) – 1.00%+ avg. fee plus fixed fees for advanced services.
Fees depend on your tier, outside account linkages, and where assets are custodied. They can range from 0.30% for basic investment-only management up to over 1.00% for those requiring sophisticated planning.
Compared to traditional advisors charging over 1.5%, Empower provides exceptional value and technology for your money.
Who Is Empower Best For?
Young professionals: Accelerate early wealth compounding with automated, diversified investing in an easy-to-use platform.
Tech executives: Balance concentrated stock positions prudently while modeling financial scenarios to inform decisions.
Business owners: Get guidance around managing concentrated stock, securing financing and business exit planning.
Affluent families: Facilitate estate planning conversations, coordinate trust assets across generations and ensure wealth lasts.
Retirees: Protect assets supporting your lifestyle while efficiently converting retirement accounts to income.
Essentially, if you have complex financial circumstances or just want to grow your wealth worry-free, Empower is an excellent fit!
Ready to Get Started?
I hope mapping out Empower‘s wealth management capabilities and approach has been useful as you advance your personal finance journey!
Schedule a consultation with one of their advisors to receive an initial portfolio analysis and discuss long-term plans for your money.
Wishing you prosperity ahead – please reach out if any other questions arise!
