Retirement is a significant milestone in the lives of people, and we all want to enjoy it to the fullest. However, achieving a comfortable retirement requires careful planning, smart decisions, and strategic investments in various retirement savings vehicles. Fortunately, Personal Capital has come up with a new program called the Empower Program to help you maximize your retirement savings. In this article, we will explore how Personal Capital’s Empower Program works and how it can help you achieve your retirement goals.
What is Personal Capital’s Empower Program?
The Empower Program is a tool that allows you to connect your retirement accounts, including 401(k)s, IRAs, and taxable accounts, to Personal Capital’s platform. By doing this, you get a clear view of your entire portfolio, your asset allocation, and any hidden fees that can impact your returns. The Empower Program also offers personalized advice on how to optimize your investments, minimize taxes, and reduce fees.
How Does the Empower Program Work?
The Empower Program is an easy and seamless process that requires minimal effort on your part. To get started, you need to sign up for a Personal Capital account, which is free. Once you have created an account, you will be prompted to link your retirement accounts to the platform. Personal Capital uses state-of-the-art security measures to ensure that your data is safe and secure.
After linking your accounts, you will get a comprehensive view of your portfolio, including your asset allocation, investment fees, and any hidden fees that can reduce your returns. The Empower Program also provides suggestions for optimizing your investments, such as rebalancing your portfolio or swapping high-fee funds for lower-fee index funds.
Benefits of Using Personal Capital’s Empower Program
1. Better Investment Decisions: The Empower Program gives you a clear view of your portfolio, including your exposure to different asset classes and individual stocks. This makes it easier for you to make informed investment decisions that align with your retirement goals.
2. Reduced Fees: The Empower Program identifies any hidden fees that may be eating away at your returns and provides you with suggestions on how to minimize them. This can help you save thousands of dollars over the long term, which can add up to a significant amount in retirement.
3. Tax Optimization: The Empower Program provides personalized advice on how to minimize your tax liability in retirement. This includes suggestions on when to take distributions from your retirement accounts, how to avoid penalties, and how to structure your investments to minimize taxes.
Real-World Examples
Suppose you are currently paying 1.5% in investment fees and have a portfolio valued at $500,000. By switching to a low-cost index fund with 0.1% expense ratio, you can save up to $6,950 every year in fees. Over ten years, this amounts to almost $70,000 in savings.
In another example, suppose you have two retirement accounts, a 401(k) with $200,000 and an IRA with $100,000. By linking both accounts to the Empower Program, you can get a clear view of your entire portfolio, including your asset allocation and investment fees. If you discover that you are overexposed to a particular stock or asset class, you can rebalance your portfolio to align with your goals.
Conclusion
Maximizing retirement savings is an essential part of achieving financial security in retirement. Personal Capital’s Empower Program can help you achieve your retirement goals by providing personalized advice on how to optimize your investments, reduce fees, and minimize taxes. With the Empower Program, you can take charge of your retirement and enjoy financial peace of mind.
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