[Ursu]

I just signed up with the budget app, Empower. So far, I like the platform.

It offered a free meeting with a financial advisor, which I took advantage of.

Ultimately, they want to manage my 401k and roth with the following fees: 0.49% for 401k and 0.89% for Roth.

I’m wondering if anyone who uses Empower has them manage their accounts. These fees seem high.

I’m not going to proceed at this time. One of the recommendations was that I diversify and add some small cap and mid cap, that made sense to me.

I am 100% in VTSAX.

I am wondering which small and mid cap investments you all would recommend, I’m with Vanguard.

Thanks!

[Frank]

This is the old Personal Capital system. They will put you in something very complicated that really isn’t any better from a portfolio of a few funds.

Just say no.

If you want a simple diversification that improves on VTSAX, just add a small cap value fund like VIOV.

That would be better than Empower/Personal Capital, especially for accumulation.

[Diya]

I broke up with Empower early this year, thanks to this group. I wouldn’t recommend them at all.

Educate yourself and use this group as a resource.

You can also find a fee based FA through this group to review your portfolio a few times and a year and it’s infinitely more reasonable

[William]

Vtsax has small and mid cap. Go back to sleep, you don’t need an advisor.

[Jeff]

I fell for it. They completely unnecessarily complicated my portfolio and underperformed the market.

Stay away! They’re terrible!!

[张扬]

I have the option to use Empower professional management in my 401k and I don’t because I think it’s too expensive plus I prefer to DIY.

You can go with all VTSAX/VTI if you want.

You can also add a small value tilt by adding something like VBR/AVUV if you like that approach.

The Bogleheads wiki has tons of recommended portfolios so you can get as simple or complex as you want.

[Roy]

The answer is no…and now you have to get really good at ghosting because they are relentless when they get a bite on their line.

[Rashad]

I used them for a $200 sign-up bonus a few years back. I told them NO and my money was deposited about a month later.

[Tom]

Until this past week or so, small caps, particularly the Russell 2000, have severely lagged other indexes.

I see nothing wrong with VTSAX.

[Katherine]

Tried it for their 6 mo trial; said no at the end and was annoyed I had to deal with all the paperwork.

Just skip it.

[Jinu]

Do it for the signup bonus, that’s the only FI move here.

[Author]

Posts