Betterment Investing

Investing with Betterment

Overview

Betterment is a robo-advisor that is geared toward long term investment gain. It simplifies the hard-to-understand details regarding investing and makes it easy for anyone to get started in securing their financial future.

Features

Betterment has several features such as Tax Loss Harvesting, Tax Coordinated Portfolios, and the RetireGuide available to help your money grow with little to no interaction from you besides depositing money.

Tax Loss Harvesting is the act of selling a falling investment and purchasing one of equal value to “harvest” the loss. These losses add up over time and you are able to deduct them on your taxes as a “Capital Loss”. Potentially saving you hundreds, if not thousands on your tax returns every year.

Here’s a link to Betterments Tax Loss Harvesting page.

Tax Coordinated Portfolios are when you link multiple investment “goals” at Betterment together. Betterment will manage them as a single portfolio instead of many different portfolios and will put investments that can have a lot of tax implications into the tax-deferred or tax-exempt goals you have to minimize or negate their impact on your taxes.

Here’s a link to Betterments Tax Coordinated Portfolios page.

RetireGuide is a feature on Betterment that helps you plan for your retirement. You can select a date you want to retire on and Betterment will assist you in determining how much you need to save to retire based on your age, current income, planned social security income and other factors.

Here’s a great article written on Betterments RetireGuide.

Fees

Betterment has very low fees and on average you’ll be making more in dividends than you’ll be paying out in fees every year.

There are 4 fee brackets at Betterment.

  1. $1-$9,999 without $100/month deposit – The fee is $3/month
  2. $1-$9,999 with $100/month deposit – The fee is 0.35% annually
  3. $10,000-$99,999 – The fee is 0.25% annually
  4. $100,000+ – The fee is 0.15% annually

Closing remarks

Betterment is a lovely tool for users of any education level, they support planning for retirement with IRAs and make it simple to get started.

Their investment goal setup page will ask you questions and help you pick what investment goals are right for you. Do you want to plan for retirement, do you just want an extra safety net of cash, or maybe you want to purchase a new house. Betterment has goals for everything.

If you know someone who uses Betterment get in touch with them for a referral link and get 6 months free on top of the 30 day free trail everyone gets.

If you can’t find anyone, feel free to use my referral link.

Posted in Saving Money and tagged , , , , , , .

Shawn

Leave a Reply

Be the First to Comment!

wpDiscuz