Empower financial advisors: what are the pros and cons?

1 min read by Unbiased team Last updated August 30, 2024

Learn more about Empower financial advisor services and how they can help you make the most of your money.

Summary 

  • Empower provides comprehensive financial services, including investment, wealth management, and retirement solutions. 

  • The firm utilizes technology to provide efficient services such as automated investment management and data aggregation for a comprehensive financial view. 

  • You can match with the right financial advisor for your needs with Unbiased. 

Empower financial advisors: who are they? 

Established in 1891 in the Canadian prairies, Empower has grown to become a hybrid financial firm that offers comprehensive financial services by combining technology with human advisors' expertise.  

Empower financial services’ platform provides clients with digital tools for budgeting, investing, and tracking their net worth while giving them access to licensed financial advisors for personalized guidance.  

Recognized as the second-largest retirement services provider in the US, Empower now administers approximately $1.4 trillion in assets for more than 18 million investors. 

What does Empower do? 

Using their free Empower Personal Dashboard™, Empower automates investment portfolios tailored to individual risks and goals. This dashboard gives clients a real-time overview of their finances and goals.  

Empower advisors offer financial planning guidance on everything from retirement to taxes.  

Additionally, their high-yield cash account allows clients to grow their savings with competitive interest rates. 

What are the pros and cons of Empower? 

The following Empower pros and cons should be taken into consideration before signing up for the service. 

Pros of Empower: 

  • Hybrid approach: Empower combines technology and human advisor access for a well-rounded financial solution 

  • Comprehensive services: The financial service provider offers investment management, financial planning, and cash management in one platform 

  • User-friendly technology: Empower technology consists of easy-to-use digital tools for budgeting, tracking net worth, and investment analysis 

Cons of Empower:

  • High account minimum: Requires a $100,000 minimum investment, potentially excluding some investors 

  • Management fees: Charges a 0.89% management fee, which might be higher than some competitors 

What financial services do Empower offer? 

Empower financial services encompasses several offerings.  

They provide a holistic financial experience, offering investment solutions like personalized advice and portfolio management, wealth management services including financial and estate planning, and retirement solutions such as retirement planning and 401(k) management.  

In addition to the Empower Personal Dashboard™, they offer financial wellness programs to enhance financial literacy and debt management skills. 

What fees do Empower offer? 

The Empower fees structure primarily consists of an asset-under-management (AUM) system, where clients are charged a fee based on a percentage of their total investment value.  

The specific fee percentage depends on the service type and the investment portfolio size.  

Generally, fees range from 0.89% for accounts with balances between $100,000 and $200,000 to as low as 0.49% for accounts exceeding $10 million.  

Additional Empower fees may apply for specific investment products or services, such as expense ratios for mutual funds or ETFs held within managed portfolios. 

What technology do Empower use? 

Empower financial services leverages a robust technology platform to provide comprehensive financial services.  

This includes automated investment management powered by proprietary algorithms to build and manage personalized portfolios, data aggregation and analysis to provide a holistic view of clients' finances, and user-friendly web and mobile applications for easy access and control.  

Financial planning and modeling tools assist Empower financial advisors in tailoring solutions for clients while stringent security measures ensure data protection. 

Empower security: is it secure? 

Empower security is extremely robust, employing multiple layers of protection to safeguard client data and assets. This includes robust encryption protocols, secure data transmission, and multi-factor authentication.  

A dedicated security team actively monitors for threats and regularly tests for vulnerabilities to ensure the platform remains resilient.  

Empower adheres to stringent industry best practices and regulatory standards, providing clients with confidence in their financial security. 

Do Empower have good customer service? 

Empower customer service demonstrates a strong commitment to providing helpful assistance. Their knowledgeable representatives are readily available through both phone and email support channels, ensuring accessibility for clients.  

Users frequently commend their proactive approach to resolving issues and their ability to provide clear and concise explanations.  

While occasional delays in response times might occur, the overall customer service experience reflects Empower's advisor's dedication to addressing client needs and fostering positive interactions. 

Get expert financial advice 

Empower advisors are well-regarded financial services professionals who offer a comprehensive suite of tools and solutions to help individuals achieve their financial goals. By merging technology with personalized service,  

To learn more about financial planning and what you need to do to meet your goals, let Unbiased match you with an SEC-regulated financial advisor who can offer expert financial advice.  

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.