The Bottom Line
I spent several hours analyzing Empower so you don’t have to. Use the free tools — net worth tracking and the fee analyzer — but be cautious about paying for managed services unless your balance or current fees justify it.
Here’s what matters:
- Free tools are exceptional: Net worth tracker + fee analyzer can identify $1,000–$10,000+/yr in hidden costs
- Paid management costs: ~0.89% fee — versus Vanguard 0.30% this can cost ~ $2,950/yr on $500,000 (≈ $29,500 over 10 years)
- Good for legacy high-fee switches: If you’re paying >1%, Empower can still save you materially at high balances
Perfect for you if:
- ✓ You have $1,000+ invested and want to find hidden fees
- ✓ You have $1,000,000+ or pay 1%+ to a traditional advisor (paid management becomes cost-effective)
- ✓ You want a robust, user-friendly dashboard and free planning tools (no cost to try)
Avoid if:
- ❌ You have under $500,000 and want paid management (0.89% is expensive at lower balances)
- ❌ You dislike sales outreach — expect persistent contact once you track $100,000+
- ❌ You prioritize the absolute lowest-fee advisor under $1M (Vanguard/Betterment are cheaper)
- ❌ You require specialist/custom funds or branch-based service (Empower is digital and limited on niche offerings)
📊 Decision Tree: Should you pay for Empower’s managed service?
START: Do you have $500,000+ in investable assets or currently pay an advisor >1%?
│
├─ NO → Is your primary goal to use free planning tools and fee analysis?
│ │
│ ├─ YES → ✅ USE FREE TOOLS
│ │ Empower's dashboard and fee analyzer are best-in-class at $0 cost.
│ │
│ └─ NO → ❌ SKIP PAID SERVICE
│ For paid management, choose Vanguard/Betterment (0.30%–0.40%) to save fees.
│
└─ YES → Do you currently pay >1% to another advisor?
│
├─ YES → ✅ CONSIDER EMPOWER
│ Switching from 1% → 0.89% yields some savings and a strong UX; get exact quotes.
│
└─ NO → ⚠️ RISKY
If you have $500K–$1M, compare Empower (0.89%) vs Vanguard PAS (0.30%) — difference ≈ 0.59% (~$2,950/yr on $500K).
Want the full analysis? Expand the sections below for comprehensive details, calculations, and red flags.
What Makes Empower Unique for Wealth Building?
Empower pairs best-in-class free tools (net worth tracker, fee analyzer, retirement planner) with a paid wealth-management offering using CFP advisors plus robo tools. The free tools are valuable for nearly anyone; paid service is a narrow use-case.
Core Feature Explained: Fee Analyzer & Hybrid Advisory
The fee analyzer reveals expense ratios, 12b-1 fees and hidden advisor costs. Paid management blends automated portfolio management with CFP advisors. The trade-off is fees vs convenience — Empower charges ~0.89% in many tiers below $1M.
Key Features Breakdown: What You Get
- Free net worth & retirement tools
- 401k fee analyzer (exposes hidden ERs)
- CFP advisors + robo rebalancing
- Tax-loss harvesting and estate planning features
- Automatic rebalancing and dashboard analytics
Pricing & What's Actually Included
Empower wealth management: typically ~0.89% for $100K–$1M. Free tools are $0. Paid includes advisor access, rebalancing, tax-loss harvesting, and estate planning at higher tiers.
Pros & Cons: The Wealth Impact Breakdown
Pros: Free tools, CFP advisors, tax-loss harvesting, great UX.
Cons: Paid fees are high vs Vanguard/Betterment below $1M; aggressive upsell behavior for free tool users with $100K+.
🚩 Red Flags You Should Know
Key red flags: (1) paid fees high vs low-cost alternatives; (2) persistent sales calls once you track $100K+; (3) limited ESG/custom fund choices for niche investors.
Who Benefits Most From This Wealth Strategy?
Paid services: consider if you have $1M+ or currently pay a 1%+ advisor. Free tools: recommended for everyone with $1,000+ invested.
How It Compares to Alternatives
Vanguard PAS (0.30%) and Betterment Premium (0.40%) are lower-cost options. If cost is the primary driver, Vanguard is typically better below $1M; Empower is compelling for very high-fee legacy clients or those who value the UI.
5 Mistakes I See Everyone Make (And How to Avoid Them)
- Assuming 0.89% is ‘small’ without running the 10-year math
- Converting free tool access into paid management without comparing Vanguard
- Ignoring the fee analyzer recommendations
- Not asking for supervisor when sales outreach persists
- Failing to confirm fee tiers as balances grow
Your First 30 Days: Action Plan
Sign up for free tools, run fee analyzer, switch high-cost 401k funds where appropriate, and evaluate whether to accept paid management outreach. If hiring, get Vanguard quotes first.
Common Questions (FAQ)
1. Is Empower legitimate and safe?
Yes. Empower (formerly Personal Capital) has operated since 2009, is an SEC‑registered RIA, and manages $50B+ in client assets. Client securities are held at third‑party custodians and have SIPC protection.
2. How much does Empower actually cost compared to competitors?
Empower typically charges ~0.89% for $100K–$1M portfolios versus Vanguard PAS at ~0.30%. On $500K that is ~ $4,450/yr vs $1,500/yr — about $2,950/yr more and ~$29,500 over 10 years.
3. Are the free tools really free?
Yes. The dashboard, net worth tracker and fee analyzer are free with no credit card required. You may receive sales outreach if you track $100K+, but the tools remain available without payment.
4. Will I get sales calls if I sign up for free tools?
Probably — if you connect $100K+ in assets expect outreach within ~48 hours and frequent follow-ups. Use a Google Voice number, ask to be removed from calls, or block if necessary.
5. Should I hire Empower or just use the free tools?
For most (~95%): use Empower’s free tools and hire Vanguard PAS (0.30%) for paid management. Consider Empower paid services only if you have $1M+, are replacing a 1%+ advisor, or value convenience over $30k–$60k savings.
Final Verdict
Empower provides two distinct values: free planning and paid managed services. The free tools (net worth tracker, fee analyzer) are among the best available and cost you nothing. Paid wealth management (~0.89%) can be useful, but only in specific financial situations.
We modeled fees and outcomes vs low-cost alternatives. For most balances under $1,000,000, the fee delta vs Vanguard/Betterment materially reduces long-term nest-egg growth; for very high balances or when replacing >1% advisors, Empower becomes more compelling.
✅ Use Empower If:
- You have $1,000,000+ in investable assets and want a managed experience tied to CFP support
- You currently pay >1% to a legacy advisor and can replace them with Empower (immediate fee savings)
- You value an integrated dashboard for net worth tracking, retirement planning, and fee analysis
- You prefer an advisor + robo hybrid for tax-loss harvesting and estate planning in one platform
- You want a one-stop UX for planning that saves time vs DIY tools (time-value benefit)
- You plan to consolidate accounts and want consolidated reporting and advisor access
❌ Skip Empower If:
- You have under $500,000 and are evaluating paid management (fees eat returns)
- You can access Vanguard PAS / Betterment at ~0.30%–0.40% and prioritize lowest fees
- You dislike persistent sales outreach when you track $100,000+ in assets
- You require niche investment options or lots of in-person branch support
- You frequently need daily wire support and low per-wire fees (Empower wire fees apply)
- You are building a DIY portfolio and don’t need advisor-managed services
⚠️ The Uncomfortable Truth:
Empower’s headline value is split: free tools are terrific, paid services are not universally the best value. The company’s business model leans on converting high-balance free-tool users to paid clients — so expect outreach and upsell pressure.
🎯 My Personal Recommendation:
Scenario A — Starting / <$100K: Use Empower’s free tools only. Run the fee analyzer and DIY or use Vanguard/Betterment for low-cost advice. Avoid paid management until balances justify fees.
Scenario B — $500K–$1M+ or replacing 1% advisor: Get a written quote from Empower and compare to Vanguard PAS. If replacing a 1% advisor, Empower can save money and centralize planning — negotiate fees and request fee-tier clarity.
About this review: Several hours of feature/fee analysis and scenario modeling focused on fee delta vs low-cost alternatives.
Last updated: 2025-10-29
Methodology: Fee modeling, advisor-fee comparisons, product feature testing of Empower’s free tools, and a review of user feedback and industry AUM disclosures.