We’re pleased to announce a significant milestone in Personal Capital’s growth: we now manage over $500 million in assets for our investment clients. This growth represents a staggering 10% month-over-month rate.
We’ve also reached another milestone. Personal Capital has over 500,000 registered users who use our free Financial Dashboard to get a better grasp of their finances. Not only can anybody sign up for our Dashboard to manage their cash flow, track their net worth, or discover how much they’re paying in annual fees through our Portfolio Fee Analyzer tool, users can now utilize our recently launched Investment Checkup tool to better ascertain their portfolio’s risk exposure.
We believe that for both our Dashboard users and investment clients, a wealthier retirement awaits. Simply by linking accounts to our apps, users gain an immediate sense of order in their financial lives. And if they’re looking for an expert view on their financial picture, our financial advisors are only a click on the Dashboard to set up an appointment over phone, video, or in person at one of our San Francisco or Denver offices. Getting a Personal Capital consultation means getting a full review and diagnosis on the health of your portfolio – in addition to alternative to implement that solution.
Our clients realize that paying over 1% in active management fees with no human advice is a suboptimal way to invest. (I.e., mutual funds are probably not the best solution. Unfortunately, nearly 60% of our users have over 50% of their portfolios in mutual funds). They also realize that paying commissions to a “financial advisor” at a broker-dealer doesn’t make sense (Over half of investment assets at Personal Capital came from these brokerages: Fidelity, Schwab, E*Trade, TD Ameritrade, Merrill Lynch, Wells Fargo, Morgan Stanley and Edward Jones).
Instead, our clients realize the value of having a financial advisor provide guidance throughout their different life stages. We help our clients with tax management, Smart Index investing, college savings strategies, retirement planning, and more.
THE PERSONAL CAPITAL CLIENT BASE
By Net Worth: The average Personal Capital client net worth is roughly $770,000 and the median net worth is roughly $457,000 compared to the median family net worth of $117,900 in America for those in the 45-54 age bracket. (Federal Reserve Survey of Consumer Finances, 2012)
By Age: The average Personal Capital client is 45 years old, with a median age of 42. The age range is 20 to 87. The median age in America is 36.8 in comparison (US Census Bureau, 2012).
Wealth by Age: Personal Capital clients between ages 40-50 are twice as wealthy as those 30-40. Personal Capital clients between 50-65 are 25% wealthier than those 40-50.
By State: Personal Capital clients come from nearly all 50 states across all different types of industries. We are truly a national company. The states with the largest number clients are: California, New York, and Texas. Our highest net worth clients with eight figure net worths all reside in California.
Are those with higher net worths more inclined to seek financial advice? Most likely. We should also conclude that those who care most about their finances read more about finance, are more willing to leverage technology to help their finances, and are more open to seeking financial help.
People who want a better financial life are why Personal Capital is dedicated to building the best technology, publishing the most insightful content, and employing knowledgeable and service-oriented financial advisors.
SECURE, PRIVATE, AND HELPFUL
At Personal Capital, we never rent, sell, or trade your personal information to anyone, ever. We have multiple levels of security and our management team founded PassMark Security, the company that designed the online authentication system that is now used by most major banks, including Bank of America. Personal Capital also uses military-grade encryption to protect your data. Furthermore, many of our users utilize our Financial Dashboard to spot unusual or potentially fraudulent activity.
We offer high tech and high touch, with a staff of over forty professional advisors who tailor a strategic plan for each individual household. We offer a much broader value proposition compared to algorithmic-only advisors.
Join over 500,000 Personal Capital users who are taking command of their wealth by using our free financial tools. If you need professional financial advice, we’re just a click away. Welcome to the digital wealth management revolution.
Personal Capital Advisors is an SEC registered investment advisor. Any reference to the advisory services refers to Personal Capital Advisors. SEC Registration does not imply a certain level of skill or training. This press release may certain forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Past performance is not a guarantee of future return, nor is it necessarily indicative of future performance. Keep in mind investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. The Personal Capital Client Profile was determined by an analysis of Personal Capital’s current investment client database.
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