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Betterment offers leading Robo Advisory services for investors seeking diversified portfolios with a low annual fee. Using an all-in-one dashboard, you can connect your accounts and manage your finances all from one place.
Summary: Betterment delivers value for investors looking to set goals and grow wealth over the long term. Fees start at 0.25%, and you can begin with no minimum account balance.
Deposits & Withdrawals
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|HQ||New York, United States|
|Fees||0.25% – 0.40%|
|Accounts||Traditional IRA, Roth IRA, SEP IRA, Roth Conversion, Taxable account|
|Access||Website, Mobile App (Android or iOS)|
|Tax Loss Harvesting||Available|
|Fractional Share||Not Available|
|Socially Responsible Investing||Available|
|State Restrictions||Available in all States|
Betterment aims to help investors grow wealth and reach their goals. Whether you’re looking to retire early or invest in a home, Betterment provides investors with the tools to set goals and manage finances.
Betterment Securities supports a range of accounts including:
To start investing with Betterment you can sign up on the website. It’s a good idea to have the following information to hand:
Betterment is available for US citizens over 18 years old. You’ll need to have a permanent residential address in the US and a social security number.
Betterment adopts a low-cost approach charging a 0.25% advisory fee for the digital investing plan. For the premium plan, investors must have a minimum balance of $100,000 and are charged a 0.40% fee.
Higher balances receive a reduction of 0.10% when balances exceed $2 million. This lowers the fee to 0.15% for the digital investing plan and 0.30% for the premium plan.
Fees are debited from accounts at the end of each month and are calculated using the average daily balance of your account.
To view the latest pricing plans, visit Betterment’s website.
The best way to deposit funds or withdraw from your investment account is to use ACH transfers. These are fast and easy to set up, and you can also set up reoccurring deposits.
There’s a daily electronic transfer limit of $300,000. Deposits above this amount will require a wire transfer. Betterment does not allow checks or debit cards as these are costly to process.
Betterment offers a digital investing plan or a premium investing plan to its customers. The plans include:
|Digital investing||Premium investing|
|0.25% annual fee||0.40% annual fee|
|$0 minimum balance||$100K minimum balance|
|Low-cost investing portfolios tailored to your risk tolerance and goals||All the features of Digital investing|
|Socially responsible investments||Unlimited calls and emails with a team of financial advisors|
|Multiple account choices, including trusts and IRAs||In-depth advice on investments held outside of Betterment|
|Automatic features like portfolio rebalancing, dividend reinvestment, and auto-adjust|
|Advanced tax-saving strategies, including tax-loss harvesting and asset location|
|Checking and Cash Reserve at no additional cost|
Betterment provides a range of expertly designed portfolios to help you meet your goals and grow your wealth over the long term.
Betterment rebalances your portfolio when your investments swing away from their target allocation. Rebalances correct the allocation and keeps you on track with your investment goals.
Buy and sell rebalancing is automatically triggered when your allocations drift by 3% or more. Alternatively, your portfolio may rebalance due to manual changes in your allocation.
Betterment provides a library of articles to help you build your investment knowledge as you grow your wealth. Topics can include:
In addition, there are various tools available to help you make better investment decisions. These include:
To get in touch with Betterment, you can call (718) 400-6898 Monday to Friday, 9:00 am-6:00 pm (ET). There is also a chatbot available on the website where you can talk to a virtual assistant.
In addition, there is a comprehensive FAQ and help center available on the website which could help answer some of the most common questions.
With Betterment your securities are SIPC insured for up to $500,000 (up to $250,000 for cash claims). In addition, cash reserve accounts are FDIC-insured up to $1 million, and cash funds in your checking account are FDIC-insured up to $250,000.
Betterment is a great option for investors looking to grow their long-term wealth at a low and affordable cost. There are no minimum balance requirements, and you can choose from a broad range of funds that best fit your investment profile.
Investors requiring financial advice can upgrade their account to the Premium Investing Plan, where you can benefit from unlimited calls and emails with professional advisors. However, this does require a minimum balance of $100,000, and fees increase to 0.40%.
Whether you’re just starting or you’re an experienced investor, Betterment delivers value, flexibility, and expertise at a low and affordable cost.