Wednesday, April 27, 2016

Net Worth (aka, I love Personal Capital)

Coming in a close second for the title of most boring post, everyone really should know their net worth.

I admit I was lazy up until 2ish years ago. We had plenty of money coming in and being invested, but I wasn't really paying attention to where it was and how it was being invested. I played around with Mint, but that was really focused on budgeting. Then I discovered Personal Capital. It pulled everything together and let me see in one picture where our money was and what it was doing (or not doing as was my case).

Their advisor tools, available for free, are great for you to peer into your investments. One thing that really hit me was the Investment Checkup tool, which shows the pretty impressive amount of fees (and also showed me how how over-invested we were in a variety things (man, was I overweight in the Tech arena)) from my Mutual Funds. This has motived me to do a serious rebalancing of investments (though my biggest one, the Thrift Savings Plan, doesn't offer a lot of options to rebalance. This is mitigated by the impressively low fees (0.02%)), pulling out of a lot of mutual funds (particularly important to me now is the fact that those big distributions at the end of every year? not the best thing from a tax perspective).  It also let us see the most effective way to remove some "bad" (aka, non-deductable. Realistically the only "good" debt is mortgage interest, but there are some exceptions depending on income level) debt (though then I set up a plan to replace that money that was allocated to immediately remove that debt).

BTW, we are also clients of Personal Capital's wealth management, so if you are interested in that check out this link:  That and I have been flirting with Robo-Investors (Betterment) Give this link a try

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