What are the assumptions for external portfolio analysis?

These assumptions apply to the analysis of external portfolios only.

Our projections for external portfolio analysis purposes are based on an assumed 7% annual return on all non-cash investments over a 30-year period. We assume a 0% return on cash or cash equivalents like Money Market funds.

Your external portfolio projection of non-cash investments is net of fund-level fees (provided by Xignite per fund) and advisory fees (or plan management expenses, if applicable) at the account level. You can add or update advisory fees or plan management expenses within Settings. For employer plans, such as 401(k)s, the plan management expense defaults to 0.6%, which includes record-keeping and other plan-level management expenses. Other account types default to 0.0% advisory fees, so you should add these if you pay them for the most accurate advice.

Betterment portfolio projection comparisons are based on the Digital Plan fee of 0.25% and fund-level fees of 0.12%. Your actual performance, which depends on your stock/bond allocation, your own Betterment fee tier, Betterment ETF expenses, and investment horizon, will likely be different.

Our analysis assumes that your advisory fees and fund fees will remain constant through time. This analysis is limited to the impact of your fees and idle cash and does not incorporate other aspects of your investment choices, including your asset allocation or tax efficiency.

Analysis of external accounts is provided outside the scope of Betterment LLC's role as a fiduciary to your 401(k) plan.