Betterment

What It Does

Betterment is a comprehensive robo-advisor and financial management platform that automates investing, retirement planning, and cash management for individuals. As a registered investment adviser and fiduciary, Betterment builds globally diversified portfolios, handles trading and rebalancing, and optimizes for tax efficiency—all designed to help users build long-term wealth with minimal hands-on effort.

Who It's For

Betterment serves over 1 million customers ranging from investing beginners to experienced savers seeking automated portfolio management. It's ideal for anyone who wants to grow wealth without the complexity of active trading, including self-employed individuals who need Solo 401(k) or SEP IRA accounts, professionals planning for retirement, and savers looking for high-yield cash accounts that outperform traditional banks.

Key Features and Capabilities

• Automated Investing: Globally diversified ETF portfolios built and managed automatically with continuous rebalancing and dividend reinvestment • Self-Directed Investing: Pick your own stocks and ETFs while Betterment automates tax management, rebalancing, and reinvestment • Custom Portfolios: Design personalized portfolios from selected stocks and ETFs with automated management • Tax-Smart Technology: Advanced tax-loss harvesting and tax-coordinated portfolio strategies to boost after-tax returns • Retirement Accounts: Traditional IRAs, Roth IRAs, SEP IRAs, and Solo 401(k)s with personalized retirement trackers and rollover support • High-Yield Cash Reserve: FDIC-insured savings with up to 4.25% variable APY (for new customers with qualifying deposits), no fees or minimums, and coverage up to $8M for joint accounts • Checking Account: Everyday spending account with no foreign transaction fees, unlimited ATM fee reimbursements worldwide, and FDIC insurance through nbkc bank • Securities Lending: Earn additional passive income by lending stocks and ETFs from your portfolio • Premium Advisory Service: Unlimited access to licensed financial advisors by phone for comprehensive financial planning

What Differentiates It

Betterment stands out through its fiduciary commitment, managing over $70 billion in assets with a 4.8-star rating from 78,000+ reviews. The platform combines sophisticated portfolio management typically reserved for high-net-worth investors with accessibility—accounts start at just $10. Its tax optimization technology, transparent fee structure (0.25% annual fee for automated investing, waived for self-directed accounts), and integrated cash management make it a complete financial solution rather than just an investment platform.