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Behavioral Finance

How do humans make decisions? Research from behavioral finance shows that investor success is often shaped more by their behavior—their savings, expenses, and response to markets—than by market prices themselves. Understanding behavioral finance can shape the way you invest.

Featured Articles

Q&A: What’s The Future Of Investing?

Betterment’s VP of Behavioral Finance & Investing discusses entertainment investing, its impact to long-term investors, and how to know if day-trading is right for you.

How Investor Sentiment Has Evolved During Covid-19

In the second part of a three-part series, Betterment examines how investors used their income and stimulus checks throughout the COVID-19 crisis.

How Betterment’s investment approach helps 401(k) investors

Dan Egan, Betterment’s VP of Behavioral Finance and Investing, answers the most common investment questions asked from 401(k) plan sponsors.

Recent Articles

Two-Way Sweep Methodology

Two-Way Sweep helps make everyday cash management easier to handle by seamlessly moving your extra cash from your linked checking account—and back when you need it.

Manage Your Cash the Modern Way With Two-Way Sweep

Manage your cash the modern way—effortlessly. Try out Two-Way Sweep, our latest in cash management technology.

Why Stock Market News Might Be Misleading You

Learn to separate the meaningful information from the noise. Knowing the right way to interpret market news can help us to make smarter decisions about how to manage our investments.

What is Dollar-Cost Averaging?

Although it’s not always the most optimal investment strategy, choosing to dollar-cost average into the market has behavioral and psychological benefits that may help you over the long run.

What Are The Most Effective Deposit Settings?

Choosing the right deposit strategy is an important step towards helping you reach your goals. We recommend setting up your auto-deposits so that they occur right after each paycheck.

How Checking Performance Might Hurt Your Performance

As your investment manager, we strive to maximize your returns and reduce your investment costs. But did you know that we also try to help you reduce your stress?

Women and Money: Bridge The Gap

It’s no secret that women fight more of an uphill battle than male peers in their efforts to reach personal financial goals.

How You Can Reach Your Investment Goal—Even When You Veer Off-Track

We highlight all of the intelligent strategies we use to help protect you from market downturns as you approach the target dates for your goals—and discuss the actions you can take if your goals become off-track.

Lifestyle Creep: The Biggest Threat to Financial Planning

Lifestyle creep can severely impact financial planning by spending more income over time than we plan on saving.

Experiencing Short-Term Losses Is a Part of Long-Term Gains

Far from unusual, downturns are an integral part of even the highest returning investments.