Betterment Pricing & Features Overview- Subscribed.FYI
Investing

Betterment

Betterment, a top robo-advisor, offers automated investing and low fees. Tailored portfolios, tax optimization, and access to financial experts make it ideal for beginners, busy professionals, and long-term investors alike.

Overview

What is Betterment?

Betterment is a leading digital investment advisor (robo-advisor) offering a user-friendly and automated wealth management platform. Betterment utilizes automated investing strategies and a team of investment professionals to help individuals achieve their financial goals.

Why Use Betterment?

Betterment stands out from traditional investment advisors by offering several key features:

  • Automated Investing: Betterment utilizes a robo-advisor approach to create and manage a diversified investment portfolio tailored to your individual risk tolerance and financial goals. This allows for a hands-off approach to investing, freeing you from the burden of actively picking stocks or managing your portfolio.
  • Low Fees: Betterment charges a low annual management fee, significantly lower than traditional financial advisors.
  • Tax-Optimization: Betterment offers tax-optimized investment strategies to help you minimize your tax burden and maximize your returns.
  • Human Expertise: While automated, Betterment also provides access to a team of certified financial planners (CFPs) for personalized advice and guidance.
  • Easy-to-Use Platform: Betterment boasts a user-friendly web and mobile app that makes it simple to monitor your investments, adjust your portfolio allocation, and make additional deposits.

Who is Betterment For?

Betterment caters to a wide range of investors, including:

  • Beginners: With its automated investment approach, low minimum investment, and educational resources, Betterment is a perfect platform for those new to investing.
  • Busy Professionals: Betterment allows individuals to invest and manage their wealth effortlessly, making it ideal for those who don’t have the time or expertise to actively manage their portfolios.
  • Long-Term Investors: Betterment is a suitable option for long-term investors seeking a low-cost and automated approach to build wealth and reach their financial goals over time.

Betterment provides a user-friendly and automated wealth management platform that makes investing accessible and affordable for everyone. With its automated investment strategies, low fees, and access to financial expertise, Betterment empowers users to invest with confidence and grow their wealth over the long term.

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Pricing and Features

Product Tier
Pricing
Features

Investing

Monthly Fee

$4

Annual Fee

0.25%

  • Wealth Building Portfolios: Expert-curated stock and bond portfolios.
  • $0 Minimum Balance: No minimum balance requirement to start investing.
  • Multiple Options: Choose from various portfolio options tailored for you.
  • Tax-Saving Tools: Advanced tools to optimize tax efficiency.
  • Automated Rebalancing: Automatic portfolio rebalancing for optimal performance.
  • IRAs Available: Traditional and Roth IRA options for retirement planning.
  • Pricing Flexibility: Monthly fee waived with set conditions.

Crypto

Annual Fee

1%

Trading Fee

0.15% per trade

  • No Minimum Balance: Start investing with no minimum balance requirement.
  • Multiple Portfolio Options: Choose from a variety of portfolio options.
  • Bitcoin and Ethereum: Includes cryptocurrencies like Bitcoin and Ethereum.
  • Automated Rebalancing: Portfolio automatically rebalanced for optimal performance.

Cash Reserve

Pricing

No Fee

  • High-Yield Account: Grow savings with high APY.
  • 4.75% (Variable) APY: Earn a competitive APY on your balance.
  • $0 Minimum Balance: No minimum balance requirement to start.
  • Up to $2 Million: Deposits are FDIC insured up to $2 million with program banks.
  • Unlimited Transfers: Enjoy unlimited transfers with no restrictions.
  • Cash Reserve Eligibility: Available to Betterment LLC clients.

Checking

Pricing

No Fee

  • Everyday Spending: Convenient spending with rewards and benefits.
  • $0 Min Balance: No minimum balance requirement to maintain.
  • No ATM Fees: Access to fee-free ATMs nationwide.
  • FDIC-Insured up to $250K: Deposits insured up to $250,000 by FDIC.
  • Cash Back Rewards: Earn rewards on your spending.

Employers' Essential

Monthly Base Fee

$100

Monthly Record-keeping Fee

$5 per participant

  • Affordable 401(k) Plan: Cost-effective retirement solution for employees.
  • Payroll Integration: Seamlessly integrate with Gusto, Trinet, and other providers.
  • Fiduciary Services: Comprehensive 3(38) and 3(16) fiduciary support.
  • Ongoing Support: Email and chatbot assistance for plan administrators.
  • Employee Onboarding: Webinars and emails to help employees get started.

Employers' Pro

Monthly Base Fee

$150

Monthly Record-keeping Fee

$6 per participant

  • Essential Benefits: Enhanced features beyond Essential.
  • Flexible Plan Design: Customizable features like vesting, new comparability, etc.
  • Expanded Support: Convenient call scheduling with specialists.
  • Guided Plan Conversion: Assistance converting existing plans.
  • Employee Benefits: Student Loan Management, 529 Education Savings.
  • Financial Coaching: Optional add-on for personalized guidance.

Employers' Flagship

Monthly Base Fee

$292

Monthly Record-keeping Fee

$8 per participant

  • Pro Benefits: Includes all benefits from the Pro plan.
  • Compliance Support: Includes mid-year ADP testing and allocations.
  • Client Success Manager: Personalized assistance for your account.
  • Financial Coaching: 1:1 advice from Financial Coaches.

For Advisors

Fixed Fee

$150

Tiered Wrap Fee

Depends on Asset Range

  • RIA Custodian: Support growth with innovative technology.
  • Automated Management: Custom portfolios with automated features.
  • Client Experience: Easy onboarding and asset transfer.
  • Dedicated Support Team: Assistance for scaling your practice.
  • Automated Technology: Tools for investment management.
  • Portfolio Building: Build custom models or select options.
  • Client Portal: Clear view of wealth and performance.

Experience

Cancellation

Refining Your Investment Approach: Concluding Your Betterment Subscription

As your financial priorities and investment strategies evolve, or as you explore alternative robo-advisor options, Betterment offers a clear and efficient process to end your subscription. To facilitate a seamless transition and prevent any pending fees, we kindly suggest you to visit this webpage.

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Product FAQ

What investment options does Betterment offer, and is it suitable for beginners?

Betterment focuses on automated investing through diversified portfolios built with low-cost ETFs:

  • Automated Portfolio Management: Based on your risk tolerance, financial goals, and investment timeline, Betterment constructs a diversified portfolio of ETFs and automatically rebalances it as needed.
  • Tax-Optimization (potential): Betterment might consider tax implications when building your portfolio, potentially helping you minimize your tax burden (consult a tax advisor for specifics).
  • Investment Options: While Betterment excels in automated investing, it might offer fewer individual stock or bond picking options compared to some traditional brokerages.

Betterment’s user-friendly interface, automated approach, and educational resources can be a good fit for beginners who want to start investing without actively managing their portfolios.

How does Betterment compare to traditional brokerages, and what are the key advantages?

Betterment positions itself as an alternative to traditional, self-directed investing:

  • Automated Investing: Betterment automates the investment process, taking care of portfolio construction, rebalancing, and potentially tax-optimization, freeing you from actively managing your investments.
  • Lower Costs (potential): Betterment’s fees might be lower than the commissions associated with frequent trading in a traditional brokerage account.
  • Limited Investment Flexibility: Betterment tailors your portfolio based on your risk tolerance and goals, offering less control over individual investment choices compared to a traditional brokerage account.

If you prioritize convenience, automation, and potentially lower costs, Betterment could be a good fit. However, if you seek complete control over your investment decisions or require access to a wider range of investment options, a traditional brokerage might be a better choice.

Is Betterment a safe and secure platform for my investments, and how much control do I have over my account?

Betterment prioritizes security measures to protect your assets:

  • Account Protection: Securities are held in custody with a third-party custodian, offering a layer of protection in case of brokerage failure.
  • Encryption and Login Security: Betterment utilizes encryption and login security measures to safeguard your account information.
  • Regulation: Betterment is registered with regulatory bodies like the SEC and FINRA, adhering to industry regulations.

While Betterment automates the investment process, you retain control over your account:

  • Account Monitoring: You can monitor your portfolio performance, adjust your risk tolerance, and make investment goal changes at any time.
  • Human Advisors (potential): Betterment offers access to human financial advisors for a fee, allowing you to consult with professionals for personalized guidance if needed (availability might vary).

This balance between automation and some level of control can be appealing to investors who seek a hands-off approach but want to maintain some oversight of their investments.

Can I withdraw money from my Betterment account easily, and are there any penalties involved?

Betterment allows for relatively easy access to your invested funds:

  • Account Flexibility: There are typically no penalties for withdrawing funds from your Betterment account. You can usually withdraw all or a portion of your money at any time.

However, keep in mind that frequent withdrawals might not align well with Betterment’s long-term investment approach and could disrupt your investment strategy.

How does Betterment perform compared to other robo-advisor platforms, and what are the key considerations when choosing one?

Betterment is a well-established robo-advisor, but there are competitors to consider:

  • Fees and Features: Compare the annual management fees, account minimums, and features offered by different robo-advisor platforms before deciding.
  • Investment Philosophy: Some robo-advisors might prioritize socially responsible investing or offer more customization options compared to Betterment.

Researching different robo-advisor platforms and understanding their investment philosophies can help you choose the one that best aligns with your financial goals, risk tolerance, and budget.