Personal Capital and Mint are two of the most prominent web-based financial service providers today.
Both offer many similar services, but each focuses on a few aspects of your finances that the other does not.
Both services are free, while Personal Capital offers a premium service in which they handle your investments for you.
Which service is the best for you?
Both accomplish a few things well and leave out a few others, but which is ideal for you will depend on your goals.
But first, let's take a quick look at each to see which one will best suit your needs.
Summary of Personal Wealth
We're going to provide short reviews of each platform because we only have time to cover two services in this article. I've written a more in-depth review of Personal Capital if you'd prefer.
Personal Capital is a financial aggregator, which means you can access all of your financial accounts from one location. Investments, savings, checking, credit cards, and other lending accounts all fall under this category. It takes care of your investments, but it does so much more.
Personal Capital comes in two flavors: a free version and a paid version with direct investment management.
A personalized analysis of your financial condition is offered with the free edition. Personal Capital will examine your current financial portfolio and determine the risks and possibilities you may have. Following that, they will provide suggestions based on the findings.
The dashboard, 401(k) analyzer, investment check-up feature, and retirement analyzer are all available for free in the free edition. The mobile app will also be available to you.
Personal Capital's Wealth Management service, which gives the platform direct control over your investment portfolio, is available in the subscription edition. After that, Personal Capital's investment advisors will actively manage your money.
Fees for the premium Wealth Management package at Personal Capital are presently as follows:
One of the best things about working with Personal Capital is that the pricing structure is all-inclusive, meaning there are no hidden costs such as commissions, account management fees, or other investment expenses. And the fee only relates to the amount of money you have under control.
The fee does not apply to accounts that are part of the platform but are not actively managed by Personal Capital, such as a 401(k) plan or investments held with other brokerage firms.
- 0.89 percent of the first million dollars.
- The first $3 million is worth 0.79 percent of the total.
- Up to $5 million, 0.69 percent of the next $2 million
- Up to $10 million, 0.59 percent on the next $5 million
- On balances over $10 million, 0.49 percent
Minimum Personal Capital Account
The paid version requires a minimum commitment of $25,000 to get started.
Investment Strategy for Personal Capital
Personal Capital evaluates your risk tolerance, life goals, and personal preferences to calculate the amount of growth (risk) they should include in your investing portfolio. They manage your portfolio using Modern Portfolio Theory, or MPT, as many other investment management firms do. Asset class selection, according to MPT, is more essential than individual security selection.
They often invest in index funds that include US equities, US bonds, international stocks, international bonds, alternative investments (such as commodities), and cash. They don't, however, confine their investments to index funds. They'll also have a mix of 70 to 100 particular US stocks, which they'll employ for increased diversification and tax efficiency. However, index funds are only utilized for clients with less than $100,000 in assets under management.
Personal Capital considers your other interests that are not under their direct supervision when constructing your portfolio because they combine all of your investments.
Financial counselor to individuals. Regardless of whether you utilize the free or premium version of Personal Capital, you will be allocated a personal financial counselor. You can seek guidance from this person whenever you need it.
The Private Client Group at Personal Capital. This service is available to investors with a minimum investment of $1 million on the site. It provides personalized wealth planning and investing advice, as well as direct access to a qualified financial planner and a team of registered advisors. This level of service also includes private banking and legacy planning, which can assist you in establishing trusts for your heirs.
Optimization of the tax system chevalier Another benefit of the Wealth Management program is that it aims to reduce the tax impact of your investments. Individual stocks, which are easier to buy and sell and can be utilized for tax loss harvesting (TLH), are employed to do this. TLH refers to the practice of selling underperforming stocks to balance gains on profitable stock sales. It establishes a backdoor tax deferral scheme, allowing your investments to expand with minimum tax consequences.
They also use a tax allocation strategy, in which income-producing investments, such as high-yield stocks and REITs, are held in tax-deferred accounts. In contrast, capital-generating investments, such as stocks and ETFs, are held in taxable accounts, allowing for tax loss harvesting to reduce capital gains taxes.
Personal Capital is a mobile app that helps you manage your money
Personal Capital has a mobile app for iPhones, iPads, Apple Watches, and Android devices. Everything that is available on the desktop platform is available on the mobile version, and it is completely free.
Other Characteristics of Personal Capital
Personal Capital offers a variety of tools and features that help users.
The following are some of the tools:
Personal Capital is a comprehensive financial management software that focuses heavily on effective investment management. It is one of the greatest services available in its field.
- Plan The Retirement This calculator can tell you if you're on schedule to retire, as well as make modifications for big life events like job/career/income changes, illness, childbirth, or college savings.
- Allocating 401(k) Funds Personal Capital can't administer your company's retirement plan, but they can analyze it and give asset allocation recommendations based on all of the plan's investment possibilities.
- Calculator for Net Worth Keep track of your assets and liabilities, so you can quickly calculate your net worth. This tool will assist you in determining whether or not you are on track to meet your long-term financial objectives.
- The Cash Flow analyzer creates a budget with this tool to track all of your income and expenses, regardless of where they come from. This will help you see where you're spending money so you can save, invest, and pay down debt.
- Checking tool for investments This might help you estimate the risk in your portfolio, which includes your retirement strategy. It will give recommendations to assist you in enhancing your asset allocation plan so that it is more in line with your objectives and personal preferences.
Summary of Mint
One of the most appealing features of Mint is that it is absolutely free to use. The service is simple to use and sign up for. Mint is an aggregator for your complete financial life, similar to Personal Capital. Checking and savings accounts, credit cards, loans, and investment accounts are all examples. The program claims to be able to link with "almost every internet-connected US financial institution."
The service is useful for budgeting, but it also allows you to manage your finances and keep track of all of your bank accounts in one place.
Mint includes the following features:
This is Mint's strong point and the main reason you'd want to utilize it. Your accounts and transactions will be automatically divided into the proper categories once you've synced them. The updates are then made in real-time. You can even create sub-categories for specific spending to tailor the presentation to your preferences. You'll be able to track, analyze, and alter your expenses and spending habits after your account is set up.
Even after your expenses have been classified, the system allows you to make changes to them. Mint will automatically group similar transactions into the same expense categories once you make modifications.
Mint allows you to connect an unlimited number of accounts, allowing you to enter any and all bills, including credit cards and other loan installments. It not only notifies you of approaching due dates but also displays your available cash and credit alongside the upcoming payments. You may pay bills with a bank account or a credit card, and you can even set up automatic payments. You may use the function on both your PC and your mobile device.
Savings and personalized advice
Mint analyses your accounts and then provides recommendations based on your lifestyle and goals to help you save money. They also offer an entire page dedicated to credit card savings (under the "Find Savings" tab at the top of the main website).
However, because they examine all of your financial accounts, they may be able to identify and recommend banks and investments that give higher returns, lower insurance rates, and more appealing credit card cashback offers.
Within the Mint application, you may set goals. Saving money for a specific goal (education, retirement, vacation, etc. ), paying off debt, or paying off your mortgage are all examples of this.
Alerts from Mint
When you sign up for notifications, you'll receive an email or a notification on your smartphone when your finances change significantly. When you make a significant purchase, have an imminent bill payment, incur late fees, have your loan rate changed, or are on the verge of going over your budget, you will receive an alert.
App for Mint
The Mint mobile app includes access to the entire Mint suite. While you are on the go, you will have access to all of the information and services available on the website. You may access your finances at any time and from any location. Apple's iPhone and iPad, as well as Google's Android, can use the app. All mobile apps are free, just like Mint.
Monitoring your credit score
Mint offers free credit monitoring and does not require a credit card. As a result, it is a completely free credit monitoring service. You may acquire your credit score in under two minutes, get daily credit monitoring, and receive credit alerts when Equifax (one of the three major credit agencies) receives new information from your creditors. The site also explains how to increase your credit score by identifying the factors that influence it.
Mint for Investing
Mint does not handle your investments, but it provides a comprehensive picture of your portfolio, replete with charts and graphs as an aggregator. They do offer guidance, recommendations, and tools to assist you in better managing your investments based on your individual circumstances.
Mint, for example, may analyze your retirement and brokerage accounts and alert you to investing costs that are hidden in locations you can't see. They'll inform you of the fees and offer suggestions for avoiding them.
If you're looking for a free budgeting application that also monitors your credit score, Mint could be the service for you.
Personal Capital vs. Mint: Where Do They Compare?
Personal Capital and Mint are both financial account aggregators, which means they allow you to manage and track your whole financial life from one place. Furthermore, each provides its service for free.
Both businesses include mobile apps with useful account alerts to keep you on track with your finances.
Personal Capital vs. Mint: What Makes Them Differ
When it comes to their fundamental missions, the two seriously disagree. Mint, for example, is primarily a budgeting program. In that way, it is the superior platform if your primary goal is to get financial control.
They not only assist you in sticking to your budget, but they also offer advice on how to do it more effectively. Because many people require budgeting guidance and ongoing credit monitoring, the free credit score monitoring tool is an extra value.
Personal Capital shines when it comes to investing. Personal Capital provides professional investment management, whereas Mint provides extra investing guidance.
This offers a range of investment assistance, from aiding you with your own DIY investing efforts to full wealth management.
The Winner Is...
It is debatable.
In most head-to-head comparisons, one service rarely outperforms the other, and Personal Capital and Mint are no exception. Mint is the apparent victor if your major focus is on budgeting and credit monitoring — which usually comes before you start investing.
On the other hand, Personal Capital should be your first choice if you're searching for investment experience and management. This is especially true for high-net-worth individuals who may be interested in asset management, private banking, tax planning, and estate planning.
As similar as they may appear on the surface, these two services have distinct specializations that make them extremely separate platforms.
How do you feel about Personal Capital and Mint? Have you dealt with either of these situations before?