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Betterment vs. Personal Capital

Betterment and Personal Capital are two outstanding platforms for financial growth. But, both these platforms are different in many ways. Betterment is a Robo-advisor and supports investors with investment management. On the other hand, Personal Capital is a Wealth Management service that offers a financial account aggregator.

But choosing one platform over another is not an easy task. Therefore, you need to read this Betterment vs. Personal Capital platform comparison and make an informed decision. The post will simplify your decision-making task by highlighting the advantages and disadvantages of both tools.

What is Personal Capital?

Personal Capital is an incredibly comprehensive tool with a wide range of budgeting features. That’s will take your investing games to another level. You can also go in-depth with your financing. Personalized investment managing, retirement tracking, and planning tools are a few outstanding tools that Personal Capital offers. It also gives you the ability to talk to real human financial advisors with a high level of expertise.

So if you are familiar with Personal Capital then you might know that they have a high-end financial management service with more than 13 billion dollars as an asset under management. The service makes up only 24,000 of their 2.6 million clients and most of these customers are using the free version of this software.

So whether you don’t need the asset requirements or you have no desire for Personal Capital to manage your investments yourself. Even the free version of Personal Capital has so many fantastic investment tools that are worth your time.

Pros

  • Innovative investment interface
  • Dedicated financial advisors
  • Convenient account aggregation

Cons

  • Big management fees
  • High wealth management minimum
  • No active stock-picking below $200,000

What is Betterment?

Betterment is a Robo-advisor, which means that the platform will invest your money for you. This indicates that you don’t have to find some fancy investment manager and another investment opportunity. The idea of automated investing can be a touchy subject, especially for beginners. But, considering the features and tools that the platform offers, you will find this a valuable tool.

Automated investing is an important feature for beginners and anyone who has an investment interest, with little or no knowledge. Overall, Betterment is an incredible automated investment option. Besides, Betterment offers a myriad of other investment features and options. This includes standard individual investment accounts, joint accounts, and educational options.

So, when it comes to investment vehicles, Betterment has outstanding options. That way you can easily choose an option depending on your investment strategies and goals. Now you may be wondering how you can decide your goals and strategies when you do not know the investment market.

Many platforms such as Acorns are available that allow you to pick strategies from different portfolios. It assigns a risk score for your portfolio and recommends the best strategy for that risk goal. But, Betterment is highly similar to that. However, they mainly focus on goal-based investing. These goals are based on what you are trying to achieve.

Pros

  • No minimum deposit requirement
  • Automatic portfolio balance
  • Tax-loss harvesting

Cons

  • Lack of customization
  • Limited investment choices
  • High fees for financial advice

Betterment vs. Personal Capital – A Clear Comparison

Considering the above definition, many beginner investors will agree that Betterment seems like a better option. After all, it offers a lower annual advisory fee. But while choosing an option, you have to look at many other factors as well.

For instance, Personal Capital functions as a Robo-advisor for different tasks. But, Betterment is a complete Robo-advisor. Therefore, you must compare the features of both platforms and make an informed decision.

Personal Capital offers full-service financial advisory and also provides financial advice. These services enable investors to make routine financial decisions and help with charting major directions such as estate planning.

Conclusion

Betterment and Personal Capital are two major platforms in the world of investing. Both platforms are stable, popular, and highly rated. These platforms separately help millions of users every year. Hopefully, the above Betterment vs. Personal Capital comparison offered enough information about both platforms so you can choose the right tool.

Personal Capital offers complex portfolio management and high net investment options. The features that the platforms offer are outstanding at a point that the high management fee becomes justified. Personal Capital is not suitable for every investor. It appeals only to a group of people.

On the other hand, Betterment has lower restrictions, so it is suitable for beginners. A milder learning curve and an easy onboarding process attract more beginner investors. Betterment also shares training resources with the users and has a diverse community.

If you want to learn more about Betterment, you can check this blog. And for more information about Personal Capital, you should read here.

Related Betterment Comparison Posts:

Jeremy Biberdorf

Jeremy Biberdorf is a long time internet marketing professional turned full-time online entrepreneur and blogger. Check out his site modestmoney.com for investing advice and reviews of the best investing platforms such as M1 Finance and SoFi.

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Jeremy Biberdorf

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