Betterment is a robo investor that asks you a few questions and makes recommendations for an allocation of portfolio that you should have. It mainly invests in low cost ETFs and charges a 0.25% fee. It does tax-loss harvesting and re-balancing for you. But is it worth it? Their research says it is because it optimizes your investing effort. Things do look good on paper but let me give my opinion on this in the video.
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Should You use Betterment Robot Investor
In the digital age, there are a plethora of investment options available at our fingertips. One popular choice for those looking to invest their money is through a robo-advisor, such as Betterment. Betterment is a highly regarded robo-advisor that offers automated investment management services to help individuals grow their wealth over time. But, is using a Betterment robot investor the right choice for you?
Robo-advisors like Betterment use algorithms and technology to create and manage investment portfolios for their clients. These platforms typically offer low fees, automated portfolio management, and personalized advice based on your financial goals and risk tolerance. Betterment, in particular, offers a user-friendly interface and a range of investment options, making it an attractive choice for investors.
One of the main benefits of using a Betterment robot investor is the convenience and ease of use it offers. With just a few clicks, you can set up an account, determine your financial goals, and start investing in a diversified portfolio tailored to your risk tolerance. Betterment’s algorithms continually monitor and adjust your portfolio to keep it in line with your goals and market conditions, saving you time and effort in managing your investments.
Additionally, Betterment offers tax-efficient strategies, automated rebalancing, and goal-based investing options to help you reach your financial objectives. Whether you’re saving for retirement, a new home, or simply looking to grow your wealth, Betterment can customize a portfolio that aligns with your specific needs and preferences.
However, there are some drawbacks to using a Betterment robot investor. While robo-advisors offer convenience and low fees, they may lack the personalized touch and human expertise that comes with working with a traditional financial advisor. If you have complex financial situations or require specialized advice, a robo-advisor may not be the best option for you.
Furthermore, if you prefer to have more control over your investments or enjoy actively managing your portfolio, a robo-advisor may not be the right fit. Robo-advisors are designed for passive investors who prefer a hands-off approach to their investments.
In conclusion, whether or not you should use a Betterment robot investor ultimately depends on your individual financial goals, risk tolerance, and preferences. If you value convenience, low fees, and automated portfolio management, Betterment may be a great option for you. However, if you prefer more hands-on involvement in your investments or have complex financial needs, you may want to consider alternative investment options.
Overall, Betterment can be a valuable tool for those looking to start investing or diversify their portfolios. It’s essential to carefully consider your financial objectives and investment style before deciding to use a robo-advisor like Betterment. And as with any investment decision, it’s always advisable to do your research and consult with a financial advisor to ensure you’re making the best choice for your financial future.
I have never invested and I don't want to do my own investing. I am 55 so would it be ok to sign up for betterment since I only have 12 years before retirement. I don't work now. Can i still sign up?
Giving your opinion on a subject you haven't directly experienced is like giving a book or film review you haven't read or seen.
Your advice to "just copy their portfolio allocation" misses the point by losing dynamic reallocation, tax loss harvesting, and automatic rebalancing according to daily needs. It is a service that does all these things for you so you don't have to analyze every move of the market.
I loved your explanation of tax loss harvesting over the long run. It really helped me make up my mind. I’m already set up with a diverse portfolio of ETFs, but tax loss harvesting had me uncertain if doing it myself would be better.
BETTERMENT SUCKS! Do NOT trust
with your money. Absolutely awful institution. Been a complete nightmare, 6 figures of money in limbo. Called in and was on hold for 55+ minutes, and they don't respond to emails. AVOID AT ALL COSTS!
I transferred my 401k to Wealthfront and it's made $40k in 2 years. I kinda assume that'll be washed away soon as we correct, but damn.
What??? You actually have T-Rex climbing the wall!!!
But what about the the taxes you'll save in betterment vs other brokerages?
Over the course of ones investment lifetime, these robovisors will end up costing you $100K by the time you reach retirement. Really the only funds that one need to worry about are from Vanguard's 4-Fund Portfolio:
VTSAX
VTIAX/VXUS
VEMAX/VWO
VBTLX
And one could make the argument you don't even need VEMAX/VWO since VTIAX/VXUS has emerging markets in it, but some want more potential for growth. Rebalance once a year manually tax loss harvesting. takes 15 mins. Live life to its fullest watching your nest egg grow with little effort
After he said that he didn't have an account with them I stopped listening
Algorithmic trading?
I started with betterment a month ago and losing now $1600 , waiting for better to come!!
How about Wealthfront?
5:48 does your SSN start with a 6 or are you just fooling us? 🙂
‘I don’t have an account with Betterment sooo….here’s a review’
I have a Roth opened with Betterment. I'm thinking about also opening a separate Vanguard account to buy individual ETF's like the VTI and VOO with my left over savings but will that trigger a wash sale when Betterment's auto rebalancing kicks in?
What do you think about fundrise?
I liked that you showed the process of starting an account on the Betterment app so we could 'experience' it with you and really get a feel for waht you were talking to us about. Thanks.
Actually you are incorrect, if you look at Betterment’s website they charge what’s called a “wrap fee” of 25 basis points and encompasses the total amount you are charged. So no that 25 basis points is not ON TOP of the fees of the individual ETF funds.
Please stop spreading misinformation!
Can you please talk about this app call « Wealth simple » is about investment
Nice review. I think this is a great alternative for many people with lower amounts of savings, and for people that don't have a lot of time to invest in creating their own portfolio. But don't forget that a financial advisor can add extra value through other services that Betterment can't cover, such as behavioral coaching (investing more in bear markets) and tax planning.
Also, as the patriot I am, I have to name drop SigmaStocks, which is the Swedish version of Betterment. Cheers everyone!
dude I am surprised.. What ever I am looking in related to financial stuff your videos are already there nice.
Check your math. Fees on $1,000 at 0.25% is $25 not the $200 you quoted in your video.
Why would I trust what you're not even willing to try.
One thing you're forgetting about tax harvesting is that short term capital gains tax rates are higher than long term. So if you're in the 25% tax bracket and you harvest short term losses, you're effectively saving yourself today say 25% of the loss in taxes, but then if you sell one year later at a gain, you only pay the corresponding 15% long term capital gains taxes on that same amount, saving you when all is said and done 10% in taxes. Still not worth the 0.25% fee though, since you could do all of this yourself.
Hi What's the website