Personal Capital Tutorial

Personal Capital Tutorial



hi it's Erica Kellerman of the worth project Co at the worth project you'll find simple personal finance information to make money work for you so you can live more of the life that you want right now today I'm gonna walk you through a quick overview of how to use your personal capital dashboard so a lot of personal capital is really user friendly but hopefully this video will shortcut your setup process so I know for me it's a lot easier to set things up when I watch a quick video so I want to show you some basic things that I've learned along the way if you don't already know personal capital has a free tool that can help you manage all of your money in one place I personally use it to aggregate all of our bank and investment accounts in one place so I can get a snapshot of our money at any time I also use their retirement planner their college savings calculator and their investment fee analyzer so one last thing before we dive in personal capital has investment services I haven't used those I personally don't have an opinion on them in this video I'm just covering the basics of their free tools the calculators and the dashboards RACI how this works let's dive in all right guys let's get logged in to personal capital and get started with this if you've already set up an account you can just log right in if this is the first time you're logging in you'll be met with a little warning right here in the center saying you can connect your accounts since I've already connected a few accounts I log right in and I get straight to my dashboard if I'd like to link other accounts I can just come over here and click this pick a bank or type in a bank and I can add any any other accounts that I have so any bank accounts investment accounts a mortgage account a credit card you can add all that I can also add my home value with Zillow and then it will give me a really easy estimate of my net worth so you can see as soon as you log in it takes the balances and updates them for every single account that you've connected so these are all of my ass I don't have any liabilities LinkedIn here if I was to have linked a credit card or a mortgage account that would show up as a liability so this is my first stop when I log into personal capital I come over and look at the net worth calculation and just get an update this nice snapshot of everything that I have going on this is really nice because I don't have to log into all my different bank accounts and keep track of things I can just log into one place and see a snapshot of everything that I have on the next part of this dashboard you'll come over here and you'll see how your net worth has changed over the last 90 days so since I just signed up today my net worth has increased this much over one day but as you use it for longer you can kind of track how it goes up and down over 90 days you'll also be able to come down here see your cash flow so you'll see the deposits that were made over it the last month and other income that you've received over the last month as well as your expenses you can also click on this budgeting tool I don't use this really but if you track your money by category you can come over here and do that so I have a couple of expenses that have come through if you wanted to kind of change the category you can look at what the expense was and recategorize it as you know let's say entertainment that will then update your expenses to show that you know I've spent let's see 12 dollars on clothing and chews $5 on entertainment and $1 on online services so it gives you a really easy overview of what you've spent on what during the month so let's head back to the dashboard scrolling down on the dashboard a little bit more you have your portfolio balance this shows you your investments that you have just a snapshot of what you have in investments again I signed up for this account today just to show you guys a little bit of what's going on so it shows my portfolio balance increasing by this much just in one day and then also it tracks your goals to retirement savings so I had already put in a goal of 1500 per month to save for retirement spend this shows you how on track you are with that goal I've saved nothing retirement this month according to these accounts so it shows me completely off track okay once you are done looking at your dashboard this is really where I always come first it just gives such an easy easy nice snapshot of everything I probably log into personal capital once or twice a month just to get a sense of where things are it's so much easier than my husband used to keep all of this in spreadsheets and updated quarterly so we can see what our account balances were but this just makes everything so much easier all right so I'm going to take you to the very first tool that I started using which is the retirement planner so this tool will help you to see whether you were on or off track for retirement so I've put in a scenario so far so when the first time you click on retirement planner which is under planning you'll go through and you'll put your name your age and when you want to retire so for this one I put that I want to retire at 65 and I'm currently 34 right now and then I input how much I'm saving every single year for retirement and how much I also want to spend in retirement every single year so it goes through and it shows you you know what your what your odds are of actually being able to make that in retirement so for what I've put in I have a thirty nine percent chance that I'm gonna be able to support myself in retirement so my monthly retirement spending ability is projected to be thirty eight hundred dollars per month what I had wanted was it for it to be fifty four hundred dollars per month however what I love about this is you can come down here and make adjustments so right now I have my savings fifteen thousand dollars per year and I have my social security estimate starting at age sixty seven for sixteen thousand dollars per year you can decide whether or not to include Social Security it's up to you you can edit your assumptions so I can go in and edit each one of these and it will change the outcome so let's say I have saved so far twenty thousand dollars I'm using the dashboard estimates because I've linked all my counts personal capital can see exactly how much I've saved for retirement let's say I'm saving 15,000 which is what I had originally put in and then I remember that actually my employer contributes a little bit so I'm gonna up that to eighteen thousand five hundred because that is actually how much I am saving including my employer contributions and you know what I'm gonna actually bump this up every single year my goal is to say just let's just say one percent more so by changing this to you know include the employer contributions that I have or bump up my savings and then increasing it by one percent per year I can then run a new simulation and see that I'm looking better for retirement so I'm gonna save that and that's now gonna be my new goal is to save this much you can also add other income event events so let's say you're maybe you'll get an inheritance maybe you'll get a pension or you'll have some rental income in retirement let's go with that I'm gonna have some rental income in retirement and let's say it's gonna be about twenty five thousand every year but it's not going to start until fifteen years from now because that's when the mortgage will be paid off so we can put that in and see what that does for a scenario and now of a sudden I am in great shape for retirement so this takes into account everything that you want to tell it it brings it in and it gives you a really you know nice overview of how on or off track you are you can also put in other spending goals and so this is where we start getting into the education planner and so I've put in my spending goal of sixty-five thousand dollars per year and let's say that before retirement you know I maybe want to save for a wedding maybe want to save for a vacation a huge vacation or something or I want to purchase a home so let's say I'm gonna purchase another home when I move out of the property that I'm eventually going to rent and I'm going to need a down payment of let's call it $50,000 so I'm going to buy that in five years we can add that and you will see really hasn't done much to my ability to meet my retirement goals and you can come over here and see it right here these orange ones are expenses so that's where my home purchase will happen it'll bring my account balance down a little but it will keep growing then I start getting my rental income my retirement and my social security so we will just save this scenario and now I'm going to show you how the education tool works so I was so excited to find this tool because we have a new baby joining us and I needed to figure out how much to start putting away in a 529 I really had no idea so I used some calculators but I really wanted to get a really good estimate because I wanted to start off on the right foot so you will go and put a new education goal I'm selecting I've already input that it's a daughter to be honest I don't know if I'm having a girl or boy if I put in a daughter and I'm going to save for higher education so the birth date March 1st and then you can put in what the education goal is so you can either let's say you haven't connected BIF 529 to personal capital you can put in manually put in how much money you have in that but I have actually already connected an account that I'll use for this estimation so we have this one account I'm going to put a hundred percent of this account towards education so when will this baby go to school they'll go to school in they're 18 they'll go to school for four years so then how much do you plan to cover and gives you some estimates based on your state so I had already put in that we're in California so hopefully this child will go to school in California and it gives you some estimates so California public in state institution average of 23,000 out of state 36 and private is 41 so just to get us started I'm going to say you know what I'm gonna try and cover $25,000 per year of college for this baby for four years once you put that in it suggests hey you know what you want to contribute three hundred and twenty-seven dollars per month to hit this goal well that's great so I'm gonna plan on doing that and contributing that monthly but since this baby was just born you can also had one-time deposit so let's say this baby was just born and the grandparents were feeling generous oops and them not quite that generous generous and they wanted to contribute a one-time deposit of $5,000 so we will go ahead and add that and we'll see if we're on track or off track for college so right now you can see this blue is what I'm planning to have saved this lighter gray is California public undergrad the middle is out-of-state and the dark gray on the right is private so right now we're looking pretty good for public school it looks like I'm going to be able to cover those costs and if you come down here it tells you that hey I'm actually gonna have a $7,500 surplus if I keep saving at that rate of 327 a month and my projected tax savings from opening a 529 are almost $14,000 so here's what I also really love about this is I can get really really specific with the college so let's say I want to make sure my child goes to UC Santa Barbara which is where I went for undergrad so all of a sudden I can see that oh actually even though an average California public undergrad is $23,000 per year UC Santa Barbara is this one on all the way on the right in the yellow and that's gonna be about $38,000 per year so I'm not coming that close to covering that so I can edit my contributions if I want to and raise that or I can change this maybe to a different College a cheaper school or I can just decide that you know what all I'm going to do is is a plan to pay that twenty five thousand dollars per year for this baby and they will need to figure out a way to make up the rest because college is expensive and then if you hit preview you can add this to your overall plan and see how saving for college will affect your retirement so now you can see down here I have a new spending goal and we can see that come through let's see red over here when I am fifty-two my child will go to school and how does this factor into my whole retirement plan so it really didn't change my ability to retire with the income that I want so everything looks pretty good so far so this is really why I love both the retirement planner in this college savings tool because it it takes in to account your whole entire financial life and gives you I don't know that peace of mind to really feel good about what you're doing or to make adjustments and feel like you're in the know and you know what you need to change in order to get on the right track or to stay on the right track the next tool that I think is really helpful is this retirement fee analyzer so you've probably heard a lot about fees and how much they affect your overall portfolio in the earnings and how much you can actually lose from your attire meant to fees if your fees are too high so this attempts to break down what your fees are and how much of your retirement earnings are going to be lost to fees so this pulls in what you've connected so I've connected a couple of investment accounts so this first one it brought this one over this is my expense ratio is point one nine percent which as we're looking up here it starts off with my annual fees or 0.88% and benchmark for retirement portfolio they're saying should be about half a percent so they're estimating that I'm losing three years of my retirement to fees or twenty-one percent of my earnings overall will be lost to fees total of a hundred and thirty nine thousand dollars so coming down we can start going through all the different funds and accounts to see exactly where that's coming from so looking at this first one this this is what it pulled in I have an expense ratio of 0.1 nine percent so that's well below that benchmark so that's really not what's causing it to go up so that one looks fine and it's nice to just be able to see what my fees are and look in one place coming down here so there are also investments for which they actually can't pull the fees they don't have the data so you need to if you would like this to be included you need to give them that fiesta m't so this is one of the funds that they don't have an estimate for for me so I had put in that it's a one and a half percent expense ratio but you know what then I went back and I looked it up and it's actually closer to a point two percent expense ratio so I changed that slider here gave them the information and we come back up here and fees are so much better point two percent compared to the benchmark of half a percent I'm only going to lose five percent of my earnings to fees by the end and only thirty three thousand dollars so not only is this you know such a great illustration for how much fees affect your retirement and your investments overall but it's also just such an easy place for you to kind of start getting wrapping your head around how much fees are and how much they affect things and then finally I'm going to show you just one more thing in here I don't use this that often but it is really interesting to look at sometimes you'll think about you know how much of my portfolio is in stocks what's it bonds what's in alternatives what's domestic and when you have a lot of accounts it's really hard to keep track of the overall what is what how much of your account is invested in stocks and how much is invested in bonds this brings it all together so I may have a couple of investment accounts this aggregates everything so I can see oh well I am 57% invested in US stocks and 20% invested in international and you can go even deeper than that so for each of these categories you can click deeper and see exactly what those what that US stock investment is made up of so it really helps you dig into the details of everything that you have and just get a really nice overview of what all of your different holdings are like I said I don't use this that much it's just nice to kind of see what's going on and feel like you know what you have in all of these different accounts so like I mentioned I spend most of my time on this dashboard and then whenever I need to do something or whenever something changes I'll come over to the retirement planner I'll look at the retirement I will look at the education expenses especially when I was setting up the 529 so there are just a lot of really great easy tools in personal capital that makes managing your money so so much so much easier and not feel like such a chore so if you have any questions that weren't answered in this tutorial go ahead and drop them in the description box below and in that description box you will also find a link to a blog post with a little bit more step-by-step instructions to help you go through all of these tools on your own if this video is helpful but you want to see the step by step a little bit more in depth plus a review of my experience using a personal capital then click the link in the description below to see that on the work project cup if you like this video then please give it a thumbs up subscribe and share this video with your friends and remember this channel is all about helping you make the smartest moves with your money so you can live a life you truly enjoy thanks so much for watching and I will see you in the next video

18 thoughts on “Personal Capital Tutorial

  1. Based on how competent you sound and how needed this video is for anyone with the app I'm shocked you don't have 100 times the subscribers. So I subbed, there ya go. If you keep making videos, maybe think about a little editing to improve the tempo of the video and maybe smooth out those vocals you'll reach that next level of pro! Good luck and keep doing this kind of thing, people like it!

  2. Great video, you covered pretty much everything. I am with Personal Capital now for 1.5 years. They manage my accounts for a rate of 0.8% annually, which is a bit lower than most mutual funds. So far I am pretty happy with them. They sold all my funds and invested in stocks and Etf's. This way they can rebalance much easier or sell or buy underperforming stocks. They have no direct access to your money, which is secured by Pershing. To me, Personal Capital is very user friendly. Everything is in one place. The mobil app, which I use several time a day, is also very functional. Overall I can only recommend them.

  3. Hello-I noticed on the dashboard it only shows up to age 65 and I was wondering if that can be extended out since I don’t plan on retiring until at least 70? Thank you very much for your time. Great video.

  4. Thanks, Great video , How about the security ? , If Personal capital account gets hacked do I compromise all my linked accounts, Do Personal capital store my linked account passwords ? Any Idea ?

  5. Thank you for the tutorial! I've been updating multiple spreadsheets to keep track of everything for years, similar to your husband, so will definitely check Personal Capital out.

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