Betterment Premium is a fraction of what traditional financial advisors cost.
Traditional financial advisor fees vary, but cost an average of about 1.00%/year.
The annual advisory fee for Betterment Premium is 0.65% on the first $1M, which consists of a 0.25% Digital base fee and an additional 0.40% Premium fee. Eligible investing dollars greater than $1M are charged at a discounted rate of:
- $1–$2M: 0.15%
- $2M+: 0.10%
Premium benefits still apply, without the added cost, for dollars over $1M. Fees are calculated daily based on your balance and assessed monthly. They are automatically deducted from your investing account. Only Betterment investing accounts are included in the fee calculation; balances in Checking, Cash Reserve, 401(k), HSA, and Self-Directed Investing accounts are excluded.
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