I wish I could have continued the experiment but I had to pull out the money to buy another house, and my accountant was sick of having to itemize the hundreds of trades Betterment tends to generate over the year. If, on the other hand, you already know exactly which etfs you'd place your money in and what your ideal distribution is, I'd just create an account with Fidelity/Vanguard (what I'm familiar with) and buy the etfs directly to save the managing fee. I think the benefits are it's an easy interface and the returns follow the market. A unique Betterment feature is the opportunity for all clients to text questions to and receive answers from a human financial advisor. About Betterment. Here’s Mr. Money Mustache’s review of Betterment, which is what originally sold me: http://www.mrmoneymustache.com/2017/02/01/betterment-cranks-up-features-and-costs-is-it-still-worthwhile/. --Their portfolio is unnecessarily complicated IMO; I really would've preferred just a simple 3-fund portfolio. A $23,993.25 gain (+37.9%). (They do respond to emails though.). I should be getting around a $1k refund from overpaying something and I think I am going to throw that in there and see how it does for another 6 months. It's nice to use if you're hands-off about investments. There is little information that I can find. Gotta be patient. Betterment's average fees on their ETFs are 0.10% or 10 basis points for my asset allocation (90% stocks, 10% bonds) plus the 0.25% management fee (for accounts $10,000-$99,999). However, you do pay a 0.25% managing fee on top of all the expense ratios inherent to each etf. Click here to make the most of your money by signing up for a Betterment … That's the good. We make money from merchants when you use your Visa debit card. No complaints. I'd actually like to hear any comments or criticisms on this plan. Press question mark to learn the rest of the keyboard shortcuts, http://www.mrmoneymustache.com/2017/02/01/betterment-cranks-up-features-and-costs-is-it-still-worthwhile/, https://www.betterment.com/tax-loss-harvesting/. Betterment provides a historical performance tool that offers somewhat limited investment return data. Press J to jump to the feed. For a more detailed breakdown of Betterment's returns, check out our guide. modified length of experiment to 2 years and 18 days. I tried Betterment for two years also and my 90/10 taxable account had similar returns. Original review: Dec. 2, 2020. It was lower when I first started with Betterment. I've read you can restrict your portfolio to US equities and bonds. You're lagging the S&P because Betterment has a relatively large non-US stock allocation. Advertiser Disclosure This article/post contains references to products or services from one or more of our advertisers or partners. I decided to stop using Betterment and instead of having a tax implication by selling, I initiated a transfer of my betterment balance to my Vanguard account, in kind. I'm a little skeptical about their claims with TLH, but I plan to test out that feature this year with ~$100 of fun money. If you're looking to invest your money, but don't know the first thing about investments, try a robo-advisor. You're absolutely right about the lower fees. Emerging markets aren't doing great, hence the underperformance. Their mission is to make investing simple, easy, and accessible to everyone. Betterment is a clear leader among robo-advisors, offering two service options: Betterment Digital has no account minimum and charges 0.25% of assets under management annually. I think I hit a total of two buttons to sync my Betterment account with TurboTax and it took care of everything. I especially liked the charts that project how much you will have in a given timeline. Wealthfront Review Wealthfront also came onto the scene in 2008, but its current iteration didn’t exist until about 2011, giving Betterment a three-year head start in the robo-advising space. Has anyone used any or all of these investment platforms? I will miss the projection charts, but they are not worth the %0.5/year Betterment charges IMO. I was pretty upset at their recently announced fee increase. Nerdwallet does great reviews of similar services. Other than that, I think Betterment and WealthFront are virtually the same. Research has shown that even after factoring in Betterment's fee, switching to Betterment will increase returns by up to 1.48% for the average investor. You raise an excellent point about individual client returns. I might roll my 401k there if all is well. Could you share your thoughts and experience with them? I would do the retirement accounts with less risk obviously. Gotta be patient. Betterment Everyday Betterment has a savings vehicle named Betterment Everyday – their foray into the banking world. If we wanted a certain amount of money for vacation, it will suggest how much to contribute per month to reach the goal. Actually, M1 Finance is free.They’re also all highly ranked robo-advisors on Robo-Advisor Pros and show up frequently on lists like best robo-advisors for millennials. I don't want to have to research funds and make those type of decisions all the time. I assume you have to calculate your beta across all your stocks over the time of holding. wtf? Simply Put: Betterment is a low-cost automated investing service. I've noticed international funds have done better than US funds over the past couple months. Betterment is a New York based robo advisor that was founded in 2008. I also know that the US market has been very bullish so a chimp could probably have done just as well. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. Plus, you have the annual charges. And I know that Betterment diversifies internationally and the rest of the world has not recovered as quickly as the US. Charles Schwab Intelligent Portfolios Performance Review 2020: Fees, Returns, Robo Investing Services & Competitors Business Insider Intelligence 2020-01-14T15:51:00Z As others suggested, the UI is really nice. What are your returns tracked against a benchmark like the SP500? Maybe I'm giving the people who frequent here too much credit though ;). In addition, it's definitely the superior choice for accounts over $2,000,000 since their fee drops to 0% at that value. Betterment's 100% stock allocation would be at 6.2% for the same period. Overall, Betterment receives a lukewarm reception from investors. Betterment research suggests that this strategy can boost after-tax returns by an average of 0.48% each year, which amounts to approximately 15% over 30 years. When I compared the two, Betterment did not offer tax loss harvesting, but that may have changed. Betterment Cash Reserve, offering a higher yield, launched in April 2020 and replaced the previous savings product. Thanks for the tip on VTTSX too. The basic idea behind Betterment is to create a portfolio from your risk tolerance and then put you into an asset allocation of exchange-traded funds (ETFs) that matches that tolerance. --Keep in mind that Betterment is more or less still a startup, which means it may not yet have a long-term viable business model. I've noticed international funds have done better than US funds over the past couple months. They have done pretty good with TLH for me. 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