Betterment
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| Community Rating | Mostly recommended |
| Minimum Initial Investment | $0 |
| Management Fee | 0.25% - 0.4% |
| Number of Reviews | 11 |
Betterment Review
Betterment investing was founded in 2008 and is based in New York, NY. It is a Registered Investment Adviser or RIA. RIAs have a fiduciary duty to work in your best interest. Betterment investing is not tied to a particular company or product and can therefore offer unbiased investment advice.
Betterment investing Pros & Cons
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Betterment investing FAQ
What fees does Betterment investing charge?
Betterment investing uses a fee-only model.
This means Betterment investing gets paid a flat fee regardless of what financial products or services you use. It also means they have a fiduciary responsibility to their clients. Instead of making money on trades commissions or selling products, they recommend an asset allocation and get paid a flat-fee or a percentage of the assets under administration. That requires that they act in their client’s financial best interest at all times.
| Description | |
|---|---|
| Monthly Fee | $0 |
| Annual Fee | $0 |
| Account Termination Fee | $0 |
| Account Transfer Fee | $0 |
| Fee Based? | |
| Investment Expense Ratios | 0.07% - 0.15% |
| Management Fee | 0.25% - 0.4% |
What management fees does Betterment investing charge?
Betterment investing charges an annual management fee that starts at 0.25% and ranges up to 0.4%.
Many financial advisors charge based on how much money they oversee by using a fee-structure called “assets under management,” or AUM. For instance, a 0.40% fee translates to $4 per year for every $1,000 an investment advisor manages. Management fees, also known as maintenance fees, cover the operating costs of investment advisors and are typically deducted from your account every month or quarter. The management fee does not cover the underlying expense ratios of the investment vehicles purchased by investment advisors.
What are the investment expense ratios of Betterment investing?
Hiring an investment advisor with competitive investment fees is one of the most important steps to maximizing your portfolio's performance. Investment expense ratios can vary drastically depending on the types of accounts and assets involved. A survey by the ICI puts the average expense ratio for actively managed funds at 0.76% and indexed funds at 0.08%. The investment expense ratios of an investment advisor will vary depending on the type of assets they invest in and whether they attach additional charges to fund fees.
Betterment investing charges an investment expense ratio that starts at 0.07% and ranges up to 0.15%.What features does Betterment investing offer?
Access to human advisors: Robo-advisors are great at keeping costs down and helping investors with modest balances make good investment choices. However, it is also nice to have access to human financial advisors when you need them.
Automatic rebalancing: Having a good balance of investments is important. But a well-balanced portfolio is not something you can set up and forget. Markets are constantly changing and can easily throw your portfolio out of balance. Betterment investing allows you to rebalance your investments back to your target asset allocation at set intervals.
Full-service brokerage: Betterment investing provides access to a wide selection of financial advice and products, such as facilitating trades, managing portfolios, and wealth management services.
Betterment investing is registered with the Securities and Exchange Commission, or SEC. Registered investment advisors are required to provide detailed information on the financial and legal status of the company and its staff. This allows investors to examine closely any conflicts of interest and look into the background of the company and its advisory team.
Betterment investing offers the option of direct indexing. Direct indexing allows investors to buy individual stocks in all the companies included in an index without having to pay a trading fee for each one. Among other things, this allows investors to take advantage of tax-loss harvesting tools at a scale that is not possible with traditional index funds.
Betterment investing gives investors access to advanced indexing. This is an investment feature that uses multiple factors to determine the weighting of stocks in your portfolio when using indexed funds. While traditional indexed funds only consider market capitalization, advanced indexing also takes into account other factors, such as dividend yield and volatility.
What type of investment accounts and asset classes does Betterment investing support?
Betterment LLC offers the following types of assets and account types.
| Supported Options | Unsupported Options |
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These are the investment options Betterment LLC offers its clients.
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What is the minimum amount you have to invest to open an account with Betterment investing?
Betterment investing does not have a minimum amount to open an account.Message From Betterment investing
Contact
- Headquarters
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8 W. 24th Street
New York, NY 11010 USA - Visit Site
- Email Support
Other Services by Betterment LLC
Feature Breakdown
| Monthly Fee | $0 |
| Annual Fee | $0 |
| Account Termination Fee | $0 |
| Account Transfer Fee | $0 |
| Fee Based | |
| Investment Expense Ratios | 0.07% - 0.15% |
| Management Fee | 0.25% - 0.4% |
Betterment Community Reviews
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