SuperMoney 

Betterment

in Investment Advisors

Claimed Visit Site

Betterment

Claimed

in Investment Advisors

SuperMoney Net Recommendation Score +40% Recommendation score measures the loyalty between a provider and a consumer. It's at +100% if everybody recommends the provider and at -100% when no one recommends.

Mostly recommended

3 users recommend
1 user is unsure
1 user doesn't recommend
Cast your vote
Cast your vote

Would you recommend Betterment to your friends?

Thanks for your vote!

Thanks for your vote!

You voted: May or may not recommend

Overview

Betterment is a robo-advisor investment service that helps people plan for their financial future. Betterment manages $3.2 billion in assets, which makes it the largest robo-advisor in the business, and is a Securities and Exchange Commission (SEC) registered investment advisor. Betterment is based in New York City and was founded in 2008. Robo-advisors provide investors with a fast and easy way to create a diversified portfolio by automatically allocating assets based on a personalized risk profile.

The high points of Betterment over other online investment services are:

  • Low fees: 0.15% to 0.35% 
  • $0 account minimum
  • Automatic diversification of funds
  • Auto deposits 
  • Automatic rebalancing of portfolio every time you make a deposit

 Who Is Betterment Designed For?

Betterment is a great service for all types of investors, but it is particularly suited for hands-off investors with clear goals and over $100,000 in savings who like exchange-traded funds. There is no minimum amount to open an account so anybody can become a member, but Betterment's value for money really shines when you hit the $100k mark. 

Exchange-traded funds are extremely popular among many investors because they make it easy to diversify funds and minimize management costs. 

What Services Does Betterment Offer?

Betterment provides a personalized investment strategy for every customer by determining his or her risk tolerance. Risk tolerance is determined by asking borrowers questions about their goals and reactions to hypothetical scenarios. 

Betterment helps people create and prioritize their financial goals. It can set up retirement funds, arrange traditional IRAs, and open trusts. It even helps investors save money through tax loss harvesting. Tax loss harvesting is the practice of selling securities that have experienced a loss to offset the taxes on profits and income.

Betterment also allows investors to talk to a customer support team seven days a week. Investors with over $500k can also schedule a personal consultation with a financial planning expert. 

How Much Does Betterment Cost?

Betterment charges customers an investment fee ranging from 0.15% to 0.35% depending on how much you deposit in your account. There are three tiers:

Investors with balances of: 

- $0 to $10,000 must pay an annual fee of 0.35% if they have a minimum deposit of $100 a month. Otherwise, there is a $3 a month fee.

- $10,000 to $100k a pay 25% fee.

- Over $100k get a 0.15% fee

There are no trade fees, transaction fees, or rebalancing fees, just the flat fee described above. 

How Is Betterment Better Than Other Wealth Management Services?

  • Having a flat annual fee instead of generating income from trade and transaction fees aligns Betterment's interests with those of its customers. 
  • Customers do not have to start or maintain a minimum balance, and they are never charged withdrawal fees. Betterment provides high-quality and low-cost investment services, a rare combination. 
  • Investors no longer have to be millionaires to benefit from sophisticated investment techniques, such as tax loss harvesting and personalized financial plans prepared by a professional investment advisor.

Betterment provides high-quality and low-cost investment services, a rare combination. 

New Customer Offer: Betterment is now offering a special deal to new customers.

The more you deposit in your first 45 days, the longer Betterment will waive your management fee. This Betterment promotion is only available to new customers who open a Betterment account with at least $10,000.

 
It's easy—sign up today, make a deposit, and we'll automatically waive your management fee. The amount of time you get managed free is based on the cumulative amount you deposit within 45 days of opening an account.
 
Deposits Within 45 Days
Managed Free
$10,000-$24,999
1 month
$25,000-$49,999
2 months
$50,000-$99,999
3 months
$100,000-$249-999
6 months
$250,000-$499,999
9 months
$500,000+
1 year

 

BETTERMENT Disclosure: Brokerage services provided to clients of Betterment LLC by Betterment Securities, an SEC registered broker-dealer and member FINRA/SIPC. Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Betterment's charges and expenses. Betterment's internet-based services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment is not registered.
SUPERMONEY Disclosure: SuperMoney.com is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more...

Contact

  • Headquarters
  •   61 W. 23rd Street Fifth Floor
    New York, NY 10010 USA
  •   Visit Site

Message from Betterment

Our technology helps you get the returns you deserve, and our licensed experts are here to talk if you need them. We don't get paid to sell certain funds, and we don't have funds of our own. That means we'll do what we believe is right for you.

Feature Breakdown

Fee Based
 
No Fees
Management Fee
0.25% - 0.4%
Account Transfer Fee
Starting at $0
Account Termination Fee
Starting at $0
Investment Expense Ratios
Starting at 0.13%
Software Managed
 
Independent/Registered Investment Advisor
 
Accounts Supported
  • Individual Non-retirement Accounts.
  • Joint Non-retirement Accounts.
  • Rollover IRA
  • Roth IRA
  • SEP IRA
  • Traditional IRA
  • Trusts
Tax Strategies
  • Daily Tax-loss Harvesting

Reviews

 
 

Would you recommend Betterment to your friends?

Before we publish your vote:

Please explain your vote by sharing your experience.

Writing a review increases the credibility of your vote and helps your fellow users make a better-informed decision.

Please write a review to submit your vote
Cancel my vote
(will require moderator approval)

Other Investment Advisors