Betterment Review

Betterment Review

Company Overview: Betterment

Betterment is the largest independent online financial advisor and robo-advisor with more than $10 billion in assets under management. The service is designed to help increase customers’ long-term returns and lower taxes for retirement planning, building wealth and other financial goals. Betterment takes advanced investment strategies and uses technology to deliver them to more than 270,000 customers across its business lines. Betterment is focused on generating low taxes across a diversified investments portfolio. Importantly, Betterment also offers unlimited human financial advisor advice.

Betterment Overview

Betterment offers attractive rates and terms compared with other top online stock brokers:

Account Minimum: $0

Commission: 0.25% – 0.40% annually

Portfolio Mix: Portfolio of low-cost, diversified ETFs from 16 asset classes

Account Types: Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts

Portfolio Rebalancing: Yes

Tax Loss Harvesting: Yes

Account Fees: $0 maintenance fees; $0 transfer fees

How Betterment Compares: Key Benefits Of Betterment

Here are some of the reasons that investors love Betterment:

  • Automated: Betterment is a robo-advisor and therefore does all the investment work for you. You don’t have to manage your investments. Betterment does all the heavy lifting using technology.
  • Portfolio: Betterment of a portfolio of 12 ETFs that are low cost and diversified.
  • No Commissions: Betterment only charges one annual fee based on the size of your investment portfolio. Therefore, there are no commissions.
  • Access To Financial Advisors: Betterment offers unlimited access to licensed financial advisors.
  • Customer Support: Betterment offers live phone support Monday-Friday. Betterment offers email and chat support on Saturday and Sunday.

Bottom Line: Is Betterment right for you?

Betterment has a top reputation as a robo-advisor and is the largest independent robo-advisor. The best feature of Betterment’s platform is its $0 account minimum and no fees for automatic rebalancing or tax loss harvesting. There are also no commission on trading or transfers, which can save money relative to traditional online stock brokers if you are an active trader.

Betterment also offers low fees for a robo-advisor. Betterment offers two options:

  • Betterment Digital: With Betterment Digital, there is no account minimum and the fee is 0.25% of your assets. You also have unlimited access via chat to licensed financial advisors.
  • Betterment Premium:With Betterment Premium, you pay 0.40% annually, but you have unlimited phone access to licensed financial advisors. You have to maintain a $100,000 account minimum to qualify for Betterment Premium.

If your account balance is greater than $2 million, the fees above that threshold are waived.
Betterment also offers socially-conscious and Shariah-compliant options for investors. You can even purchase fractional ETF shares, which is not permitted at other online stock brokers.

You will also gain access to Betterment’s team of human financial advisors. Betterment believes that the best financial advice comes from both technology and human advisors. As such, you have access to Betterment’s team of financial advisors for a 15-minute phone call to review your financial plan, including your retirement plan.

Next Steps: How To Apply To Betterment

You can open a Betterment account online within a few minutes, and the process is simple.


The Best Robo-Advisors 2018

Robo-Advisor
Annual Fee

Overview

Account Minimum:$0

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs from 16 asset classes
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting
  • Customer support: M-F 8 a.m. – 8 p.m. EST; email 24/7

Overview

Account Minimum:$0

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs from 12 asset classes
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting
  • Customer support: 7 days a week
  • Unlimited access to licensed financial advisors

Overview

Account Minimum:$500

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs from 11 asset classes
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting
  • Unlimited access to licensed financial advisors

Overview

Account Minimum:$0

Details

  • Supports personal brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs from 9 asset classes
  • Free automatic portfolio rebalancing
  • Customer service: M-F 11 a.m. – 7 p.m. eastern

Overview

Account Minimum:$5,000

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs from 20 asset classes
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting for accounts with a minimum $50,000 balance
  • Free access to licensed financial advisors
  • 24/7 customer support

Overview

Account Minimum:$50,000

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolios are individualized and incorporate Vanguard index funds and ETFs, if needed
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting on client-by-client basis
  • Access to licensed financial advisors
  • 24/7 customer support

Overview

Account Minimum:$100,000

Details

  • Supports personal brokerage accounts, joint brokerage accounts, traditional IRAs, Roth IRAs, SEP IRAs and trusts
  • Portfolio of low-cost, diversified ETFs
  • Free automatic portfolio rebalancing
  • Free tax loss harvesting
  • Access to financial advisors

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Betterment Review
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