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This website is not an advisor in any way, shape, or form. Results can greatly vary and are not guaranteed. Financial advice that could be right for me or someone else may not work or be right for you. Consult your financial advisor before making any decisions. The smart money says do not invest any more than you can afford to lose. That being said… let us dive in!
Betterment
Betterment is currently the largest independent Robo-Advisor. Founded in 2008, Betterment was the first widely-available Robo-Advisor. Betterment tends to be more for the hands-off and retirement investors. Its features, fees, and tools are attractive to everybody at any experience level. Although, with its current setup, you cannot build your own portfolio. This is all done automatically for you based on your goals through professionally optimized portfolios.
External Accounts
By linking external accounts, you can get expert advice on how to keep your internal and external accounts balanced. Even though you cannot manage your external accounts the Betterment Advisors can make recommendations based on what you have invested elsewhere.
Socially Responsible Investing Portfolio
Socially Responsible Investing (SRI) is a feature unique to Betterment. This feature not only invests your money but does so in a responsible way through ETFs. The companies involved in this ETFs are hand-picked and are determined by the values it holds, in which it conducts business, and the ‘footprint’ it leaves on the world.
Fees
The fees for betterment are fairly straight forward. The standard service charges 0.25% on your total balance per month while the premium gives you more features at 0.40% per month. With the premium service, you give you access to a certified professional and in-depth advice on investments outside of Betterment. Well worth the price paid.
More of a Hands-On Investor? Use These Free Stock Trading Apps Instead!
Conclusion
Pros
- No minimum balance
- Fractional shares
- Management fees waived the first year for the qualifying deposit
- 0.25% management fees
- Free automatic rebalancing
- Can link external accounts
- Daily tax-loss harvesting on taxable accounts
Cons
- No direct indexing
- Can not manage external accounts
- Hefty snail-mail involved closing your account
- Premium requires $100,000 account minimum
- Restrictive in terms of control
Why I Use Betterment
Use my Betterment Link Here to Receive 90 Days Managed Free
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