Today we’re going to take a look at how the various accounts show up on Personal Capital. New readers, please click here to start from the beginning.
The reason we wanted to use Personal Capital in the first place is that because
- It’s free so why not
- It has some nifty visualization tools we can use to see how our portfolio is doing.
We are going to dive into some of these tools right now.
We start by logging into your Personal Capital account. If you haven’t created one already, use this link.
Note that unfortunately, Personal Capital only supports American brokerage accounts, so if you’re Canadian this doesn’t apply to you 🙁
FORTUNATELY, Canadians now have their own tool called Passiv. Click here to read the guide on that.
Linking Your Trading Account to Personal Capital
We will be using Vanguard. You can use any supported brokerage but for the purposes of this workshop we’ll be sticking with these 2.
1. Click the little + symbol in the top-left corner to add a new account…
2. Find your bank by typing in it’s name…
3. Once that’s done and it’s finished syncing your transactions over, we can see that our initial buy transactions have been recorded in Personal Capital.
4. Click over to Investing -> Holdings to see can see how our portfolio has been behaving.
5. For another view, we can click on Investing -> Performance.
There’s a slight difference when you’re just starting off between these two views. The “Holdings” tab shows what your portfolio would have been doing over the past 90 days had you been holding it during that time, while the “Performance” tab shows what your ACTUAL portfolio has been doing. It’s a subtle distinction which will become a moot point as time passes and the two charts will eventually become identical.
Viewing our Allocations
1. Now the interesting part. Go to Investing -> Allocation. You should see the following:
Play around with this screen. You can, for example click the boxes and drill down to see how each category is divided. For example, if you click “International Stocks,” you should see something like this.
2. And if we were to drill-down further, we would see our actual ETFs and their weightings.
When I was investing ourselves, I had to do all this crap manually with an ugly spreadsheet, so Personal Capital acts as a nice double check that everything’s going the way it should be. Right now, all the holdings are skewed by 50% since I’m holding the next $500 I’m planning to invest in the trading account as cash, but once that gets deployed these percentages should look close to our target allocations we decided previously. If they drift off target, it should be pretty easy to spot using this interface.
And that’s it! Feel free to play around with the rest of the features of Personal Capital as we will be using this to track our performance going forward.
So that’s it for this week. Questions? Comments? Problems? Let’s hear it in the comments and we will do our best to help.
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Disclaimer: The views expressed is provided as a general source of information only and should not be considered to be personal investment advice or solicitation to buy or sell securities. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decisions. The information contained in this blog was obtained from sources believe to be reliable, however, we cannot represent that it is accurate or complete.