About Betterment:
In the robo-advisory industry, Betterment is considered to the pioneers. Among the financial companies, who first used the technology to recommend a portfolio. In 2008, after its Betterment was founded, they have added additional asset classes. In July 2019, they have launched the savings product and in April 2020, then launched the checking account features.
There are several methods to use the Betterment account. You can simply add all your financial account to get the overall picture to your assets, or with some of your own specification, you can create a Flexible Portfolio or, if you want then, you can invest in one of their portfolios. Betterment is basically a goal-based platform, where you can access plenty of advice with many panning tools.
Table of Contents
Pros and Cons of Betterment:
Pros:
- Easy and quick account set up.
- You can sync your external account with Betterment account.
- You can easily switch to a different type of portfolio.
- Before funding, the portfolio is usually transparent.
- You can even add a new goal at any time and you can easily track your progress.
Cons:
- They does not provide margin lending, secured loans.
- you can not borrow options against the portfolio.
Account Setup:
Using a mobile device, you can easily complete the Betterment account set up. Users will require their age, and goal, annual income. They does not offers the risk related questionaries.
Here you will also get the option to connect your external accounts, such as the bank and brokerage holdings, to your Betterment account. Here, you will get a clear picture of your total assets and it will also make the cash trasnsfer very easy. Based on the customer requirements, in April 2020, Betterment has added the features to make the automatic deposits from the multiple external accounts.
Users can choose to opne joint and individual acount, both Roth and traditional IRA accounts, and trust accounts. The customers can now contribute to the traditional IRA for the rest of their lives, If they are interested in opening a traditional IRA, under the SECURE act of 2019.
You cannot get the UGMA (Uniform Gift to Minors Act) account, college savings 529 plans, or any solo 401(k) accounts.
Also Read : Login To Your First Bank Online Account
Goal Setting:
With Betterment, you just need to follow some basic stpes to set up a goals. They even give you the change monitor all your goals separately. To meet the goal, then Betterment will tell you to put more aside to keep you on the track. For the people, who do not yet feel the urgency to save for some of the long terms’ goals, Betterment is a perfect tool for them.
Account Service:
Once your accounts are linked during the account opening process, you should set up for the automatic deposits. Betterement does not offer any margin and only can access the assets those you have on your Betterment account.
They also have started the cash management offerings, Cash Reserve and Checking account in the April 2020. If you have the Betterment checking account, you will receive debit card along with the reimburses foreign transaction fees and ATM fees. Recently, in their checking account, they have added the mobile deposit capacity to its. Here two ways to sweep enabled with your account, the cash in swept from the checking to reserve account, which comes with higher interest rates.
To get a full picture of your assets, you can simply consolidate your external account, which is one of the strengths of this platform. Every outside account content the portion of your goals. Even if it comes at the price, but it will be quite valuable for the investors.
User Experience:
Mobile Experience:
With the native apps, you can access all the features, but in some cases, you have to scroll a lot to get the key features. You can access the Betterment account, via mobile or desktop. Using the mobile, you can set up all your goals and investment. But when you first opening your account, you have to go through quite a bit of data entry. As there is typing involved, so that might be better done on a desktop.
Desktop Experience:
You can access Betterment on your desktop through the website. The website is designed in very simple manner, so you can set up your goals and track them easily. The process is quite simple and can be completed very easily.
Customer Service:
You can access the customer service through phone or email. The available service hours are from 9 am to 6 pm. Eastern Time, from Mon to Fri. The email service hours are from 11 a.m. to 6 p.m. ET on Sat and Sun. For the prospective clients, they have eliminated the online chat capability, but the existing clients will get this feature after login. With the premium account, you will get help from financial planners at any time. But if you have a basic account, then you have to pay $199 to $299 to consult a planner.
Education & Security:
With the Betterment Resource Center, you will get several informative articles about how to minimize tax burden and about your retirement planning, etc. There, you will get many informational video to figure out how to use the Betterment platform in more better way.
Betterment provides sufficient security to its users. The Betterment website is encrypted and with two-factor authentication mobile app, your data is secure. Betterment itself does not carry SIPC (Securities Investor Protection Corporation) insurance. Every Betterment trades are cleared via the Apex Clearing and there you will get the risk management tools.
Commissions & Fees:
For digital-only customers, the management fees will be 0.25% per year. For the premium plan, your management fees will be 0.40% per year. If your assets are over $2 million then you will get a discount and your digital fees will be 0.15% per year. In a premium plan, if your balance is above ZZ$2 million, then your maintenance fees will be 0.30%. For the management fees of underlying ETFs, fees will be 0.07% to 0.15% per year.
With Betterment, you will get the account consolidation tools and financial tools without any charges.
- To manage a $5,000 portfolio, monthly fees: $1.04%.
- To manage a $25,000 portfolio, monthly fees: $5.21.
- To manage a $100,000 portfolio, monthly fees: $20.83.
Conclusion:
For the people who are looking for the manage their retirement portfolio, Betterment is an excellent platform. But its work starts when the investors consolidate their financial goals in this platform. It can easily track your progress and it is a great motivator for the young investors. With Betterment, you will get several portfolio choices and customizations.
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