How Betterment’s expanded model marketplace helps advisors scale
How Betterment’s expanded model marketplace helps advisors scale Betterment’s expanded model marketplace pairs expert-built strategies with tax-smart automation to help advisors customize portfolios and scale efficiently. As advisory firms evolve from launch to scale, portfolio implementation can become a source of friction. Research, trading, rebalancing, and tax work all take time, pulling focus away from planning and client relationships. As a result, more advisors are turning to model portfolios to standardize execution and operate more efficiently—without giving up control or quality. That shift is what fuels Betterment Advisor Solutions’ continued expansion of its model marketplace. By adding more model options from industry-leading asset managers, the marketplace unlocks deeper investment solutions based on advisor and client preferences. Paired with Betterment’s native tax-smart automation, these curated models help advisors save time, compress costs, and access top-tier strategies across exposures—resulting in less busywork, greater consistency, and more freedom to deliver the outcomes you envision for every client. Where tax-smart automation enables personalization at scale Model portfolios streamline portfolio construction, but they don’t address tax complexity on their own. Rebalancing, transitions, and capital gains management still require care—especially in taxable accounts. Betterment’s tax-smart automation bridges that gap by integrating our tax tools directly into model portfolios. Advisors can take advantage of tax-loss harvesting on eligible models while keeping portfolios aligned to their target allocation, rebalance with sophisticated drift controls, simulate trades before execution, and get real-time insights into factors that could impact capital gains. The result is a more intuitive approach to tax management—one that makes it easier to personalize portfolios through model selection and risk alignment, while keeping implementation efficient and focused on outcomes—not upkeep. Power your portfolios with third-party model options We partner with top providers across the industry so you can spend less time managing investments and more time with clients. Designed to enable greater diversification and personalization, strategies from industry-leading asset managers help unlock a new level of portfolio management. Together with Betterment’s tax-smart automation, these models help you scale intelligently and bring expert-built models to every client. Learn more What this means for the future of advisory work As technology takes on more of the operational burden, the role of the advisor continues to evolve. You define strategy, risk, and outcomes, while technology handles the mechanics. Platforms that combine models with automation allow firms to grow without compromising quality, consistency, or personalization—making it easier to scale thoughtfully while staying focused on what matters most to clients. Visit our model marketplace. And don’t miss our upcoming webinar series featuring three of our top model providers. Betterment thought leaders and industry partners will share new strategies and practical ways to optimize portfolios for your firm. Save your spot here.
The financial advisor’s guide to offering retirement plans [with planning checklist]
The financial advisor’s guide to offering retirement plans [with planning checklist] Offering 401(k)s is no longer a niche service for financial advisors—it’s a powerful strategy for practice growth and retention. See how to get started. In this guide, we introduce topics such as: How large is the retirement plan market opportunity for advisors? What are the benefits for financial advisors who offer retirement plans? What are common roadblocks for financial advisors looking to offer retirement plans? How can advisors get started offering and managing 401(k) plans (with planning checklist)? What are the 5 key attributes to look for in a 401(k) platform partner? How large is the retirement plan market opportunity for advisors? Retirement plans have become a critical, expected part of modern financial planning. As business owners face state mandates and look for competitive benefits, clients increasingly expect their advisor to have a comprehensive solution for workplace retirement. If you don't currently offer 401(k) plans, you may be missing a significant opportunity: wealth clients could look elsewhere, and potential business-owner clients may go to competitors who can provide integrated retirement solutions. The market growth for this service is undeniable. Cerulli Associates expects there will be more than one million 401(k) plans by the end of the decade—an increase of 36% from 2025 to 2029. And advisors are giving business away if they don’t offer a retirement plan. 57% of defined contribution recordkeepers report that the majority of their plans are sold through advisors, according to the Cerulli report. Now is the time to ensure you have a retirement solution and a partner that can help you capture this growth. What are the benefits for financial advisors who offer retirement plans? Offering 401(k)s is no longer a niche service—it’s a powerful strategy for practice growth and retention. New revenue and retention: Retirement plans create a stable, recurring revenue stream. They also help retain wealth clients by ensuring they don’t look to competitors who offer a complete suite of services. Cross-selling opportunities: Plan participants are a natural source of future wealth clients. By managing both the plan and individuals’ portfolios, you create deeper, stickier, and more valuable relationships. Meeting client demand and state mandates: The adoption of 401(k)s, especially by small businesses, is rising (driven partly by the SECURE Act and state mandates). Offering these solutions solidifies your position as a holistic financial partner. Better client service: High-net-worth business owners often prefer consolidating all their finances under one trusted advisor. Referring these plans out to other providers limits your growth and can erode the overall trust in your relationship. Down-market growth: Small and mid-sized businesses are often underserved. Advisors who enter this space with an efficient 401(k) plan partner are poised for scalable growth. What are common roadblocks for financial advisors looking to offer retirement plans? Many advisors hesitate to enter the retirement space due to past challenges or intimidation. The good news? Modern, technology-forward platforms like Betterment have solved most significant pain points. What are the steps to set up a retirement plan for your firm? Starting can be intimidating, but we’re here to help. Use the checklists below for each of the three steps to launch a 401(k) offering at your firm. Step 1: Get familiar with plan basics Before you offer a retirement plan, take the time to learn about plan types, how they work, and your role. Checklist: Plan components: Learn the key components of a 401(k) plan, including plan design (eligibility, match, vesting), investment options, recordkeeping, administration, and compliance. Types of plans: Know the differences between plan types like safe harbor plans, Simple 401(k)s, and traditional and Roth 401(k)s. The role of TPAs: Explore your options for third-party administrators (TPAs) and understand the pros and cons of bundled vs. unbundled when it comes to handling plan administration and investments. (Note: At Betterment, we’re flexible and can work bundled or unbundled.) Your role: Understand your role as an advisor vs. a plan fiduciary. In many cases, you can offload fiduciary and administrative responsibilities to your platform partner (such as Betterment), reducing your liability and workload. Step 2: Choose the right partner Choosing your plan provider and tech platform might be the most important decision you make. Take the time to reflect on the following areas. Checklist: Turnkey platform: Select a provider and tech platform that simplifies the process by handling recordkeeping, compliance testing, and Form 5500 filings. Digital onboarding: Onboarding should be paperless, fast, and intuitive. You want your clients to have a seamless experience that differentiates you from legacy providers. Trustworthy business partner: Ensure the partner won’t compete for your client relationships, which is important for trust and long-term growth of your offering. Employee engagement: By incorporating built-in participant education and a modern digital experience, you can increase adoption and directly reduce the education burden on your team. Scalable and competitive: The technology and process that your partner brings to the table should be designed for efficiency and automation, making it profitable even for smaller firms. Step 3: Prospect and position Once you select your partner, it’s time to grow your business. Checklist: Prospecting process: Start with your own book. Ask existing wealth clients if their businesses offer retirement plans, or if they are considering one. Sales language: Make it easy for prospects to see the value you offer. Use simple positioning language like: “We offer a turnkey 401(k) solution designed for small businesses that takes the administrative burden off your plate.” Marketing materials: Leverage marketing resources or one-pagers from your platform partner to help explain the value to business owners. Bonus tips: How to market to clients who own businesses With a sea of legacy retirement plan providers in the market, you have an opportunity to differentiate on ease and support. Use these three tips to clearly communicate your value and help clients understand the pain point you solve for them. Highlight turnkey administration: Emphasize that providers like Betterment handle compliance, testing, and filings—removing traditional headaches. Showcase digital onboarding: Make it clear that plans can be launched quickly without stacks of paperwork. Address prior pain points directly: Acknowledge that legacy TPAs and recordkeepers have caused frustration, and explain how your model solves those issues. Retirement is no longer an optional add-on for advisors who want to future-proof and scale their practice. Choosing the right partner can make offering a 401(k) plan a profitable and client-centric way to drive growth. Ready to start or reconsider your retirement offering? Contact a Betterment Advisor Solutions representative today to see a quick demo of our turnkey platform.
Switching custodians: Why Sound Financial transitioned their book to Betterment Advisor Solutions
Switching custodians: Why Sound Financial transitioned their book to Betterment Advisor Solutions A conversation with Cory Shepherd, ChFC®, CFP®, President and Partner Moving to a new custodian is not an easy decision. For this interview, we sat down with Cory Shepherd, President and Partner at Sound Financial Group, to learn how he navigated a decision to switch providers in 2020. Sound Financial was searching for a custodian that could offer something different than the legacy options. They needed a partner that not only met their basic pricing and operational needs, but also complemented their planning philosophy and could set their practice up to scale long term. The team ultimately landed with Betterment Advisor Solutions, a decision that has helped the firm cut overhead costs, streamline onboarding, and invest more time in giving quality, human advice. Moreover, we discover how Sound Financial’s decision to switch to Betterment Advisor Solutions was, in the end, a way to maintain “elegant simplicity” in their lives as independent advisors—giving their team, their clients, and their families more flexibility to pursue their goals. Read the full story below. The path to independence Cory Shepherd, ChFC®, CFP®, is the President and Partner at Sound Financial Group. The fee-based planning firm has three advisors and serves about 300 clients representing $125MM in AUM. Sound Financial’s path to independence was, in some ways, an accident. For years, co-Presidents Paul Adams and Cory Shepherd focused on expanding their team within the broker-dealer model. But a series of contract negotiations with their broker-dealer in 2016 prompted a decision to go independent. “Breaking that relationship was one of the best, ‘bad’ things that could have happened to us. After that, we stopped trying to grow horizontally with as many advisors as possible, and started prioritizing growing vertically.” The move not only changed their business strategy, it changed their perspective on independence and the beauty of deciding for yourself what work looks like. “We have this amazing life with a lot of freedom. We work closely with clients we love and avoid the multilayered requirements of larger corporations.” An action-forward planning philosophy Sound Financial is passionate about creating financial plans that won’t end up collecting dust—both figuratively and literally. “During my early days at MetLife, I was so proud of our financial planning work. We’d create these 80-page, leather-bound, beautiful plans. And then, one day, I found out that a client had wedged one under the leg of their pool table to level it out.” That epiphany underpins Sound Financial’s Wealth Design process: The biggest challenge clients face isn’t creating a financial plan, but implementing it. “If an advisor just hands over a plan document, 9 times out of 10 there will be major breakdowns in implementation.” With an average annual household income range of $250,000 to $1.5MM, the firm’s clients are largely working professionals—physicians, tech executives, and business owners—in the wealth accumulation phase. To emphasize the importance of action for these clients, Cory compares the planning process to an architect designing a house: “An architect’s job is to provide a blueprint that ensures you’re getting the best house for you, the house that will allow you to live your best life. But the design is only worthwhile if you can act on it and actually build the house.” Repapering hurdles prompt a switch Prior to transitioning to Betterment Advisor Solutions, Sound Financial had a positive relationship with their core TAMP. However, an acquisition by another firm in late 2019 prompted a switch. About 8 months into the transition, Sound Financial was surprised to learn they were going to need to repaper the majority of their client accounts. “We honestly weren’t looking to make a move, but, because they were going to make our clients go through the trouble of repapering accounts anyway, we felt it was our responsibility to do some due diligence and see if there was a better fit for them somewhere else.” Searching for a future-forward custodial partner In their search for a new custodian, Sound Financial prioritized price, innovation, and transparency for clients. As a smaller firm, they found it challenging to find a partner that was aligned to their pricing requirements. “Our firm was being charged 42 bps at the time,” Cory noted. “We couldn’t justify the fee, and [our TAMP] wasn’t able to customize it. They didn't want to make that custom, cut-out niche for us and, at the end of the day, we just couldn't make the pricing fit.” Sound Financial also evaluated how various platforms could help improve their back-office and client onboarding experience. At the time, tech stack fragmentation was a challenge. They were layering one-off tools on top of their core systems (TD, Fidelity, and AssetMark) to support account management and opening, which created a disruptive and paper-heavy process. “Back then, it took us an hour just to open a new household’s first account. On top of that, we then needed 20 minutes for each additional account opened, just to manage all the paperwork.” Considering Betterment Advisor Solutions Cory admits he was apprehensive when his business partner first brought up Betterment. “I thought of it as a millennial product for DIYers.” But the custodial platform’s integrated onboarding technology alone piqued his interest. “I’d been embedded in the world I’d grown up in, so it was a little like magic the first time we had a Betterment Advisor Solutions demo. The technology made everything so simple. Even for clients to do it themselves. Click, click, click, and you open an account, even live with a client, in about five minutes. That was huge.” The team also appreciated that the platform adds transparency to the client experience. The planning and projection tools in particular felt like something they could really give to a client. Still, Sound Financial had some reservations and risks to weigh before making the leap. Chief among them: the Betterment brand. “We wondered, Are we going to have to compete against ourselves? Will folks want to leave us and just go to Betterment solo? But that hasn’t happened. In fact, clients who had Betterment accounts already, before they met us, have brought them into our practice.” Making the switch: 90% of assets in 90 days An all-in-one, vertically-integrated custodian, Betterment Advisor Solutions offered Sound Financial something new in their search for a custodian. “As an independent practice, we really liked the fact that Betterment Advisor Solutions was focused on a different kind of value proposition: good technology, ease of communication and workflow, and efficient pricing.” The process of transitioning their client assets was a contrast to the demanding, piecemeal transition they’d made just a few years prior when going independent. “We moved 90% of our client assets within 90 days. It was super fast.” The Sound Financial team expertly navigated client conversations around the transition, emphasizing the improved client experience and technology. “It was an easy conversation to have because there is a lot of value for the client. We discussed the expected time savings, and how we planned to use this time to improve servicing for them. We also focused on the ease of use, the transparency, and being able to do things yourself.” Results Cutting overhead costs and client fees To Betterment Advisor Solutions, Sound Financial noted they have been able to cut their custodial fees by more than 50%, and recapture these savings in the firm’s profitability. They’ve steadily increased growth rates year over year without increasing client fees—even during the turbulent COVID-19 market. Outsourcing investment management increased their team’s capacity, giving the firm greater operational leverage. “The efficiency of the technology is so much higher that we have not had to keep up the hiring pace that we were previously maintaining. With Betterment Advisor Solutions, we could just about double the total number of clients we have and not have to hire another person.” Moreover, efficiencies unlocked in investment management allowed Sound Financial to improve pricing at the top end of their fee grid. “This gives us a clear advantage over competitors in attracting these higher-net-worth clients to work with us.” A boost to employee morale and retention Reducing hiring needs gave Sound Financial an additional, unexpected competitive edge: a happier workforce. “We’re unlocking time and capacity as we grow, and, with fewer hires, we can reward our team members more than our competitors can. Suddenly, employee retention becomes a big bonus—and one that was not as obvious.” Fostering strong employee retention is now a vital part of the firm’s business strategy. “We’re focused on doing what’s right for our team. Too much turnover, and having to frequently introduce clients to a new name on the phone, can start to erode clients’ confidence in your practice.” Future-proofing a practice in an AI-dominated culture Moving to Betterment Advisor Solutions as their core custodian has changed how Cory thinks about growing and sustaining the practice. At first, they believed they could use automation to simply increase the number of clients served—taking on significantly more client accounts, and spreading the team thin across the base. Instead, the team now sees investing more time in each client relationship as their primary path to growth. “What we’ve realized over time is that the technology can give us more time to have a more customer-centric and intimate relationship with a client, and that’s how we want to grow.” Sound Financial believes creating a personal planning experience will help them stay ahead of the curve. “AI is at the forefront of almost every cultural conversation right now, and deepening the human experience for clients is a more valuable and ‘AI-insulated’ model than providing generic advice to the masses. “We don’t want to compete with a mass market, digital approach. We want to use automation to free up our time to grow organically — give clients such an amazing experience that they’re compelled to refer us to people they know. That’s harder for AI to disrupt.” What’s next for Sound Financial The Sound Financial team remains focused on scaling intentionally. They have a successful podcast that they use to reach new clients, and have tested paid mediums for lead generation. But they’re less interested in ramping up an online acquisition model. “I love meeting with someone who cares about someone that I already know and work with, and working with that new connection. A lot of our clients become just like friends and family to us.” Looking forward, Cory sees technology as a means for making daily operations more efficient. “We really value balance. And we want to continue using technology that helps give all of us back time. Time to work with clients and time with our families.” “Our goal is to quietly and intentionally grow the community of people we’re helping, and to use technology to streamline our work as much as possible. All so we can retain this elegant simplicity that we’ve found in our lives.”
