Betterment review quick take: An easy way to build wealth with automated investing and earn more with a high-yield cash account.
What is Betterment?
Betterment is an online financial advisor and investment platform designed to help users manage their investments and reach their financial goals. It offers:
- Automated investing and portfolio management
- High APY to grow your savings
- Tax-advantaged IRAs for retirement
- A range of investment options tailored to your risk profiles and objectives.
The company was founded in 2010 as an alternative to expensive financial planners with large minimum balance requirements. Betterment Securities is an SEC-registered broker-dealer and a member of FINRA and SIPC. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).
Get the help the help of robo-advisors to reach your investment goals.
How Betterment Automated Investing Works
Betterment uses algorithms and technology to create and manage a diversified investment portfolio for its users.
- When you sign up, you answer questions about your financial goals and risk tolerance. Based on your answers, it constructs a customized portfolio of low-cost ETFs.
- You’ll be given a portfolio strategy and asked to pick one or more financial goals. These goals can be short-term, like building an emergency fund, or long-term.
- The platform continuously monitors and rebalances the portfolio, offers tax-loss harvesting, and provides insights to help optimize your investments.
Why wait? Let the robots do the work for you right now.
Key Features
- Expert-built portfolios: Curated portfolios, including socially responsible investments, sustainability, tech, and crypto.
- Goal setting: Pay for a wedding, save for education, buy a home, build wealth, and retire.
- Optimization: Automated rebalancing and dividend reinvestment.
- Tax-efficient tools: Tax Loss Harvesting and asset allocation help minimize your taxes and maximize your returns.
- Auto-deposits: Recurring deposits can help keep your money on track.
Fees
- Commissions: $0
- Management fee: $4 a month or 0.25% annually
You automatically switch to an annual price of 0.25% on your investing account balance by setting up recurring monthly deposits or transfers totaling $250 or more or reaching a balance of $20,000 or more across your investing accounts.
Pros and Cons
Pros
- Investing in globally-diversified low cost ETFs
- Low management fees
- Tax-efficient strategies
Cons
- Cannot invest in individual stocks or funds
- Additional cost for financial advisors
Who is it best for?
Betterment is best for the hands-off investor who wants access to advanced investing tools and financial advice.
Betterment Review
Betterment is a legitimate company and not a scam. The Automated Investing service shines with its simplicity, features, and transparent management fee. The simplified account setup lets you start investing to reach your financial goal sooner.
In researching Betterment reviews, we learned that the app has over 49,000 reviews with a 4.7 out of 5-star rating in the App Store. However, it has a bad rating of 1.7 out of 5 on Trustpilot, with about 27 reviews, mostly from users sharing negative customer service experiences.
Betterment Automated Investing is best suited for those who want their investments managed without the hefty fees associated with traditional investment management. If you’re looking to actively invest, this brokerage is not for you.
You can get started with Automated Investing here.
How to Start with Betterment
Minimum Requirements
- Be 18 years or older
- Valid Social Security Number or ITIN
- U.S. Citizen or legal resident of the United States
Step-by-Step to Open an Automated Investing Account
The time needed: 3 minutes.
- Get started
- Create an account by clicking on the link here.
- Enter your information
- Provide your first and last name, social security number, and address.
- Share your financial goals and why you’re investing and your time horizon.
- Account verification
- Identity is verified electronically. Otherwise, additional documents may be requested.
Betterment Alternatives
Alternatives to Betterment include Acorns, Stash Invest, SoFi Automated Investing, and M1 Finance. If you want to choose your investments, you can look into Webull and Robinhood.
For more robo-advisor alternatives, visit the financial marketplace.
Betterment FAQs
Additional Products
Betterment offers a comprehensive suite of products and tools.
- Cash Reserve: No fee cash management account is a high-yield cash account held in partner banks with FDIC insurance.
- Checking: No monthly account fees, maintenance fees, overdraft fees, or withdrawal fees, and all ATM fees worldwide will be reimbursed, including the Visa 1% foreign transaction fees.
- Retirement: Access retirement planning tools by linking external accounts and choose to transfer your tax-advantaged retirement accounts like IRAs and old 401(k)s. Learn more about Betterment IRA.
- Crypto: Be guided with expert-built portfolios, in-depth resources, and a simple investing experience.
- Premium: A premium plan or financial advice package to get CFP® professional advice on the phone.
How can I reach customer service?
Betterment customer service telephone number is 1-718-400-6898. Support is available Monday through Friday, 9:00 AM-8:00 PM (ET).
How can I speak with a financial advisor?
If you need help with educational planning, retirement planning, or marriage planning, you can schedule a call with CFP® professionals. No fee but must have $20,000 minimum amount eligible for transfer. Or if you’re a current customer, you must be a Premium subscriber (0.65% annual fee).
What is the Betterment Premium Plan?
Upgrade to Premium to get on-demand support from a Certified Financial Planner (CFP®), which offers one-on-one advice.
To qualify, you must have a minimum $100,000 investing balance. Premium is assessed at a 0.65% annual fee on assets under management.
Does Betterment offer crypto?
With Betterment Crypto, you’ll get diversification, strong security, and in-depth resources. Invest in curated selections of cryptocurrencies, including Bitcoin, Ethereum, and other established coins. The features include:
- Automation: Your portfolio is adjusted based on your account balance and market movements to help manage risk.
- Guidance: Manages your portfolio to help you decide how much to invest and help you make smart decisions.
- Transparent price: Keep more money in your portfolio with a 1% annual advisory fee and associated trading expenses.
Reviews
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