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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.

Our Evidence-Based Approach to Improving Investor Behavior

Our Evidence-Based Approach to Improving Investor Behavior

Betterment’s rigorous testing helps to ensure that we know what works (and what doesn’t) when it comes to improving design and investor outcomes.

Long-Term Returns Have a Cost, and It’s Well Worth the Price

Long-Term Returns Have a Cost, and It’s Well Worth the Price

We’re investors in the stock market because it has a long, time-tested history of generating big returns for those patient enough to let compound interest work its magic.

This Year, Don’t Make Resolutions—Create Habits

This Year, Don’t Make Resolutions—Create Habits

Make it easier to accomplish your goals by making the execution as effortless as possible.

Recent Articles

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.

Quiz: Do You Understand Diversification?

We’ve created a quiz for you to see how much you know about investment diversification.

Why Comparing Returns Is a Bad Way to Choose an Investment Manager

Short-term or recent returns give little information about future returns, and they increase the odds you’ll make a bad decision.

What to Do After a Market Drop

Seeing a market dip is scary. We feel it, too. But it’s important to remind yourself that market drops are an expected, unavoidable part of investing. You may want to take action, but remember: There are productive actions, but they don’t include changing course.

Betterment Customers Stay the Course, Steer Clear of Behavior Gap

Research from Betterment’s behavioral team shows that most investors with Betterment achieve full investment returns and do not attempt to time the market.

Data Suggests Women Are Better (Behaved) Investors

Betterment, the first automated investing service to examine the gender gap in investing, found that women are the smartest customers when it comes to staying on track to meet financial goals.

Good Design Beats Investor Education

Instead of trying to teach investors why or why not, focus on providing only the best choices through smart design.

Quiz: How Easy Is It to Beat a Buy-and-Hold Portfolio?

One of the illusions that many investors have is that it’s worth trying to beat the market. It’s time to put your knowledge to the test and take our quiz.

Good Habits: How to Achieve Your New Year’s Resolutions

Make it easier to accomplish your goals by making the execution as effortless as possible.

High-Frequency Monitoring: A Short-Sighted Behavior

If you are checking your portfolio more than once per quarter, you’re doing it too much.

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