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Empower Claims Former Staff Leaked Secrets to Compound Planning

As a financial analyst and writer, I understand that for many investors, making sense of the financial realm can be as difficult as finding your way in complete darkness. But that’s where I come in—shedding light on the maze of information. In this piece, I’m unpacking the recent, startling claims involving Empower and Compound Planning.

The Turn of Events: Empower’s Allegations

So, what’s the big deal? Empower, a heavyweight in the financial services domain, accuses 13 financial advisors, once part of Personal Capital, of a sneaky move to Compound Planning. This switch happened soon after Empower bought Personal Capital in 2020.

The accused advisors knew the inside scoop—Empower’s private client information. They were trusted with guiding people and managing employer-sponsored retirement funds. They had promised to keep secrets, not pinch clients, and respect intellectual property rights. In a word, they knew the rules.

Empower’s Charge: A Violation of Trust

The story gets more heated. Empower suggests these advisors played dirty—taking Empower’s secret sauces and using Personal Capital’s good name to lure clients over to Compound Planning. According to Empower, these ‘breakaway advisors’ chucked their promises and trade secret vows out the window.

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Decoding ‘Breakaway Advisors’

‘Breakaway advisors’—not your average financial advisors. These are the folks who leave their jobs and take their clients—and their cash—with them. This risky play is all the more troubling when they have access to hush-hush info from their ex-employers.

Considering Empower’s allegations, one wonders: were these advisors going after a ‘better experience’ for their clients, or was this a tactical strike using privileged information?

What Should Investors Do?

  • Choosing the right advisor is more than just looking at their performance. Take into account their work ethic and honesty. If your advisor’s changed workplaces, it’s smart to double-check that your investments are safe.
  • Talk about bad timing—if you’ve moved from Empower to Compound Planning recently, tread carefully. It’s smart to look up your advisor’s FINRA CRM number to double-check if they’re clean.
  • Last but not least, managing your wealth isn’t just about numbers; it’s about trust. Look for this in your financial advisor’s attitude towards you and your money.

In the world of investment, change is the only constant, and occasionally, messy situations can lead to unexpected decisions. It’s important for you, the investor, to know your rights, understand the rules, and navigate the market realities with eyes wide open.

As Warren Buffet famously said, “It takes 20 years to build a reputation and five minutes to ruin it.” This rings true for both financial advisors and their clients. Speaking of advisors, did you know that a staggering 7.3% of financial advisors have been reported for misconduct? That’s a fact worth considering before entrusting someone with your hard-earned money.

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