What’s up with one billion dollars? I’ll tell you later.
The investing world has been slow to change – from branches and offices to online access – from once-a-quarter paper statements to real-time information – from brokers to advisors – from unreasonable cost to reasonable cost.
You’ve been looking for a change, and now you can have it. One of the places you can find it is at my company, Personal Capital. What does it mean for you?
- Online Access. Who wants to get in the car and drive down to your broker’s office? We live on our phones and computers. Everything from travel to fitness to buying things to paying for things – there’s an app for that. (By the way, I was one of founders of PayPal, one of the best online payment systems.) So why isn’t our money online? Well, now it is.
- Real-time Information. And why can’t we see all our money in one place? The typical affluent family has 15-20 financial accounts, and a confusion of mailing addresses, email addresses, phone numbers, log-ins and passwords. After twenty years in the financial technology business, I finally realized what the biggest problem actually is … chaos. Too many disorganized things to keep track of, and no ability to see the forest for the trees. We solve that with the best personal finance software in the world … available to anyone for free.
- Advisors versus Brokers. Brokers are salespeople – they push whatever products they make the most money on. Advisors – true advisors – are paid to do what’s best for you. We’re regulated by the SEC, and have a legal obligation to put your interest first, not our own. This is called the “fiduciary standard” – don’t invest your money without it.
- Reasonable Cost. The all-in cost of traditional brokers selling traditional mutual funds is often over 2%. The cost of our investment service – a better investment service – is less than 1%. And we even manage the tax impact of your investments, which can save you another half-percent per year (the equivalent of close to one percent of pre-tax earnings). The less you pay the more you keep.
So, what’s this about one billion dollars? It’s proof that many American families want what you want – a new and better way to manage their money. As of the new year, we now manage one billion dollars of investments for our clients. That’s triple the amount we managed at the start of 2014.
A billion dollars is a lot of money. It represents the lifetime savings of thousands of households. And it’s evidence that many of you are ready for something different than the old way of doing things.
As CEO, I want to thank you from everyone at Personal Capital for making this possible. And promise that it will only get better from here.
If you don’t already use our free software, try it now. Or look for Personal Capital in the app stores. I’d love to know what you think.
The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.