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$0 ($100,000 premium plan)
0.25% digital plan; 0.40% premium
$0 ($100,000 premium plan)
0.25% digital plan; 0.40% premium
- There is no minimum standard investment account
- Goal-based planning, tax harvesting, charitable giving, and socially responsible investing are available
- Access to certified financial planners
- Mobile app with external account sync options
- You will have to pay to consult a human advisor, unless you have an installment plan
- Limited Investment Choice
- Promotion: None at this time.
- App Store Rating: 4.7 iOS / 4.5 Android
- Consider if: You want to access automated advice with multiple service levels.
Is optimization right for you?
to improve It is an automated investment platform that provides automated advisory and self-managed personal investment portfolios. It is best suited for uninvolved investors who want to take advantage of single or joint accounts, IRAsTrust accounts, cash reserves or current accounts.
Betterment vs. Wealthfront
to improve And Wealthfront are two of the oldest robo-advisor platforms. Both offer automated portfolio management, with access to perks such as cash accounts, tax harvesting, Socially Responsible Investmentand more.
Betterment offers guidance for a financial advisor, but Wealthfront does not (although it does allow its users to contact professionals with questions). Optimization also has a lower minimum account requirement than Wealthfront. You don’t need anything to start using the Betterment Digital Plan. However, Wealthfront has a $500 minimum.
Wealthfront is a better option for users who want access to a wide range of investment options. In addition, it is great for those who want to automate Custody accounts Like 529 plan.
Best vs Vanguard
to improve Both Vanguard and Vanguard have automated investing, but Vanguard is the most powerful option for all types of investors. With Vanguard, you can access both self-directed and automated accounts. But you will be limited to automated investing in Betterment, so it is not a great option for those who want to trade through them.
When it comes to bot tips, you will pay less with Vanguard’s basic bot account, The avant-garde digital guide, than if you were in Betterment. The Betterment Digital Plan charges 0.25%, but Vanguard Digital Advisor only charges 0.20%.
Ways to invest with Betterment
Automated portfolio management
to improve It uses computer algorithms to build and manage custom wallets. The platform also offers an FDIC-insured current account, cash reserve account (has an APY of 1.60%), IRAs, and 401(k). Plus, their pricing plans are easy to follow. It offers two options:
- digital enhancement: This plan does not have any minimum account requirements, but it does carry an annual fee of 0.25%. It includes features such as tax loss harvesting, asset location, portfolio rebalancing, and reinvestment of profits. Additionally, to maintain a healthy level of risk, Betterment automatically adjusts your portfolio allocation as you get closer to meeting your goals. This tier also offers a range of portfolio options, but does not include free advisor access.
- optimization premium: You’ll need a minimum of $100,000 for the premium account, but you’ll be able to access all the features the digital plan offers as well as individual unlimited CFP guidelines. CFPs also advise on other investments you hold outside of Betterment.
You can also invest towards specific goals in Betterment. It currently offers six: Retirement (Savings), Retirement (Income), Safety Net, Prime Purchase, General Investing, and Cash Objectives.
types of wallets
to improve Offers many wallet options. The first, its core portfolio, focuses on long-term investing by allocating your money across a global portfolio of stock and bond ETFs. Its innovative technology portfolio targets companies with a lot of growth potential. These include semiconductors, blockchain companies, clean energy companies, and more.
Its three socially responsible portfolios – Broad Impact, Climate Impact, and Social Impact – are ideal for those who want to create positive change through their investments. Finally, the Goldman Sachs Smart Beta Portfolio is aimed at companies that will outperform the market, and the BlackRock Target Income Portfolio protects your assets from loss by investing primarily in bond ETFs.
As for the investment types at Betterment, they mainly offer ETFs and Bond ETFs. Many automated platforms offer ETFs, so their investment selection is in line with most competitors. However, some automated platforms offer alternatives. For example, Wealthfront owns ETFs, index funds, and crypto trust funds. devotion Automated accounts – go fidelity and Fidelity Personal Planning & Advice – both offer Fidelity Flex mutual funds (these funds have no expense ratios),
Optimization: is it trustworthy?
The The best office work Betterment gives a B rating. Ratings range from A+ to F and reflect the firm’s opinion of how well the company interacts with its customers. The BBB says Betterment’s rating also stems from the fact that it received 98 complaints against it.
In addition, office evaluations do not guarantee that the company is reliable or doing well. But they take into account a number of other factors, including the type of business, time in business, customer complaint history, licensing and government procedures, and advertising issues.
The company has closed 41 complaints in the last 12 months, and has no unresolved complaints at this time, according to its BBB profile.
Improvement – Frequently Asked Questions (FAQ)
How much do you need to open a better account?
to improve The basic account, the Digital plan, has an account minimum of $0, but you’ll need at least $100,000 to start using the premium account. One of the things the premium account offers is that the digital plan isn’t unlimited routing for a single CFP.
Is the improvement worth the fee?
Many bot advisors – such as Wealthfront and SigFig – also have a 0.25% fee option, but you can also find other bot platforms that do not have an advisory fee (for example, SoFi Automated Investing And the Managed Investment Portfolios).
The answer to this question largely depends on what you are looking for in an investment platform. If you are looking for access to low fees, human advisors, goal-focused strategies, and features like tax harvesting, Betterment may be a good option for you.
How confident is the improvement?
to improve It is a legitimate platform that has been in business since 2011. In addition to being rated B with the Better Business Bureau, the robo advisor is also registered with the US Securities and Exchange Commission (SEC), and is a member of the Financial Industry Regulatory Authority (FINRA) and Protection Corporation Investors in Securities (SIPC).