Founded in 2008, Betterment has grown to manage over $63 billion in assets and serve more than 1 million users. It stands out as one of the largest independent robo-advisors in the U.S., known for combining smart automation with goal-based financial planning.
Betterment provides a range of investment services including diversified ETF portfolios, tax-loss harvesting, and access to human financial advisors through its Premium plan. It also offers integrated cash management accounts for holistic financial oversight.
Betterment is a digital investment platform that automates portfolio management using algorithms. It builds and maintains globally diversified portfolios based on user goals and risk tolerance, using low-cost ETFs. This is ideal for users seeking a passive, data-driven investment experience.
Users can invest toward specific financial goals—retirement, buying a home, or college tuition—with portfolios automatically tailored to time horizon and risk appetite. Betterment also includes features like auto-rebalancing, dividend reinvestment, and tax-loss harvesting for eligible accounts.
Beyond investing, Betterment offers a checking and high-yield savings account, creating an ecosystem that bridges cash management and investing. ESG-conscious investors can choose socially responsible portfolios or use flexible portfolio tools to adjust holdings manually.
Betterment is best suited for:
It’s less ideal for:
Feature | Description |
| Portfolio Types | Core, ESG, Flexible, Smart Beta |
| Account Minimum | $0 for Digital; $100,000 for Premium |
| Fees | 0.25% (Digital); 0.40%-0.65% (Premium) |
| Tax-loss Harvesting | Included for taxable accounts |
| Human Advisor Access | Included in Premium plan |
| Cash Reserve & Checking | Integrated into platform |
| App Availability | iOS and Android |
Betterment offers:
Optional services include financial planning packages with one-time access to certified planners for specific goals like retirement or marriage planning.
Users start by creating a free Betterment account online. They complete a questionnaire that assesses risk tolerance, time horizon, and investment goals. Based on the results, Betterment recommends a suitable portfolio allocation.
Steps:
Betterment automatically rebalances portfolios and reinvests dividends. Users can adjust goals, switch portfolios, or schedule deposits anytime.
Yes. The Betterment app is available for iOS and Android. Users can:
User reviews often highlight the app's intuitive interface and real-time notifications for transactions and balance changes.
Betterment is a registered investment adviser with the SEC and a member of FINRA via its broker-dealer. It uses bank-grade 256-bit SSL encryption, two-factor authentication, and fraud protection protocols.
Cash Reserve and checking accounts are FDIC-insured (up to $1 million and $250,000 respectively) through partner banks. Portfolios are SIPC-protected for securities up to $500,000, including $250,000 for cash claims.
Betterment offers multiple support channels including:
Customer service is generally available during business hours, with live chat options for account holders. Premium users may also receive scheduled advisor calls.
Betterment LLC 8 W 24th St, 6th Floor
New York, NY 10010 USA
Is Betterment good for beginners? Yes. With no account minimum and automated portfolios, it’s beginner-friendly.
Can I talk to a human advisor at Betterment? Yes, if you’re in the Premium plan ($100,000+), you get unlimited access to CFPs.
Does Betterment support international users? Currently, Betterment is only available to U.S.-based users.
Betterment offers a compelling suite of tools for passive, goal-based investors in the U.S. Its low fees, no account minimums, and smart automation make it ideal for users seeking hassle-free investing. Premium users also benefit from personal advisor access, rounding out a well-balanced hybrid advisory model.
This review was created using data from Betterment’s official website, independent third-party reviews, industry analysis, and user feedback from platforms like Trustpilot and Nerdwallet.
Having explored the features and benefits of this product, you might be curious about how it stacks up against its competitors. We encourage you to visit our comprehensive comparison chart for a broader perspective. This chart offers a detailed juxtaposition of this product with other leading brands, highlighting differences in features, pricing, and customer ratings. It’s an invaluable resource for contrasting your options and making an informed decision that best suits your needs. Don’t miss out – take a moment now to view our comparison chart and see how your chosen product compares in the wider market.
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