Just had my sales call with Personal Capital this afternoon, interesting, here are some details. the basic gist is they recommend a proactive rebalancing strategy along with a specific asset allocation, ~80% stocks with a mix of emerging, developing and US, ~10% alternatives, and ~9% bonds. (in a follow up i will post the sector breakouts) Large Cap is weighted 2-3x over mid and small cap in that breakdown for stocks, which is one area of concern for me, i would prefer more SCV. They also recommend specific sector allocations so balancing your portfolio to the preferred amounts, not just be all SP500 which would overweight you in technology, healthcare and financial. The way I interpreted the info was as presented, the alternatives and bonds are only there to support the rebalancing which would happen as they determine necessary and not on a specified schedule. this could be quite often. As stated somewhere above, they can manage your 401k for 0.49% and taxable assets under $1 million for 0.89% which drops by 0.1% per million to 5 million.
They assume 1% tax optimization savings, .2% rebalancing, 0.39% smart weighting and a subjective 1.54% on behavioral coaching. So a 1.6-3.1% increase in return vs a cost of 0.57-.97%. i need to go to portfolio charts and play with this asset allocation vs a SCV/LTT option to see if the PC AA worth it. Its interesting that they "give" you the above info on their AA, so if you like that approach you can try and implement it yourself or have them do it for you.
