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Betterment

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In the fast-paced world we live in today, I am always looking for ways to save time and be more efficient. Online services and automations have played a large part in being more efficient with time. There is a plethora of things that have been automated in the twentieth century, and investing is one of those. Have you ever wanted to have a tailored investment account, but don’t want to pay the large fees major brokers charge? With Betterment, that is possible.


What is Betterment?

Betterment is an online financial advisor that uses software and algorithms to find the perfect investment strategy for your individual needs. Most brokers charge high fees to analyze value-added tasks, but Betterment’s algorithm enables them to automate this process and charge much lower fees. The main difference between investing your money with a traditional financial advisor, like myself, and Betterment is that there will be little to no human interaction with Betterment. You have the option to email or call in, but if you choose not to, you could potentially have zero human interaction.

Who is Betterment Best For?

  • Hands-off investors
  • Retirement investors
  • Users with low balances
  • Those who want automatic rebalancing
  • Users who like goal-based tools

Betterment is a great option for two segments of investors, in my opinion. I tend to fall into the first category.

  1. Long-term passive investors with some financial knowledge. I call this group the “Planners and Forgetters.” These types of investors understand how to be patient with their money. They understand the concepts behind portfolio diversification and how fees impact long-term returns.
  2. Financial novices looking for an easy investing approach, the best bang for their buck, and time savings. This group may be intimidated by starting an investment program, and may not want to invest all their time to figure it out. This group may be young millennials skeptical of high-priced financial advice, or busy older professionals who need to get started on their retirement savings.

 

What are Betterment’s Features?

Betterment lowers fees by using ETFs (exchange-traded funds) that diversify like mutual funds, but are tradable like stocks. ETFs carry very low expense ratios. Betterment also uses software to create a low-cost, diversified plan for you, and then constantly manages your account through:

  • Portfolio rebalancing
  • Tax loss harvesting
  • Goal setting
  • Automated deposits

Betterment allocates your investment portfolio based on your needs, goals, and market conditions.


I love making things automatic.  Whether it is bill-paying, direct deposit, prescription renewals, or investing, making things automatic makes life easier and that is where our Betterment investing review comes in.

When it comes to retirement planning, an overwhelming number of online tools and websites promise to help you create a dynamic and profitable portfolio while minimizing fees.

This growing list of services includes robo-advisors, a class of financial websites that offer to manage your portfolio with minimal in-person interaction and a heavy reliance on the latest investing tools and software.

One of the most popular robo-advisors by far is Betterment. Conceptualized by its founders in 2010, Betterment has since grown to help its customers invest billions of dollars of their hard-earned dollars.

It hasn’t been easy. With other competitors like Wealthfront and Personal Capital always a few steps behind them, Betterment has struggled to find a way to stand out.  Even with the competition, Betterment has emerged as one of the top online brokerage accounts and continues to grow its market share.


Betterment is an online financial advisor that uses advanced algorithms and software to find the perfect investment strategy for your portfolio and individual needs. The main difference between investing your money with a traditional financial advisor and Betterment is that there is minimal human interaction. Unless you email or call in, your communication with an individual advisor will be very minimal. (gfc)

Betterment is a financial advisor that uses software to automate value-added tasks that most brokers charge big fees to do. Betterment is just like many of the biggest banks that pedal long-term wealth management and retirement solutions, except that Betterment does this with drastically lower costs and better execution.

Betterment is an online brokerage just like many others, but it takes the view that fees eat into long-term investing account returns. So Betterment lowers fees by using ETFs (exchange-traded funds) that diversify like mutual funds, but are tradable like stocks. ETFs carry very low expense ratios. Betterment also uses software to create a low-cost, diversified plan for you, and then constantly manages your account through:

  • Portfolio rebalancing
  • Tax loss harvesting
  • Goal setting
  • Automated deposits

Betterment allocates your investment portfolio based on your needs, goals, and market conditions. (simple dollar)

Betterment has stepped out as a clear leader among robo-advisors, with about 300,000 clients and $11 billion in assets under management today.

Betterment has two service options: Betterment Digital, its legacy offering, has no account minimum and charges 0.25% of assets under management annually. Customers in this offering can consult financial advisors via in-app messaging. Betterment Premium provides unlimited phone access to financial advisors in exchange for a 0.40% fee and $100,000 account minimum. (nerdwallet)

Kovar Capital is a boutique wealth management firm nestled in the heart of beautiful downtown Lufkin, Texas. As fee-based, fiduciary professionals we most often serve in the role of financial life managers for successful business owners, healthcare specialists, c-suite executives, and other public figures such as politicians and professional athletes. In this capacity our team monitors, manages, and implements strategic plans for our client’s vast array of assets, regardless of their type or location. With a strong focus on providing truly holistic advice, our team is committed to serving your family and business with an exclusive wealth management experience.

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