Allocation management

To confirm whether auto-adjust is on or off within an investing goal: Web browser: Log into Betterment. Select the investing goal from the left-hand menu. Click the “Settings” tab. Scroll to the “Portfolio” section. Here, you can confirm if auto-adjust is on or off. Mobile app: Log into the Betterment app. Tap the investing goal from the home page. Tap “Settings” in the upper right-hand corner. Here, you will find an “Auto-adjust” section with either “On” or “Off” displayed. To enable or ...

When you open an investing goal, you'll review your allocation settings. If you follow Betterment’s advice, your allocation will adjust automatically as you near your goal date. To opt out of this, you can disable the "auto-adjust" feature and choose your own allocation. To enable or disable auto-adjust: Web browser: Log into Betterment. Select the investing goal from the left-hand menu. Click the “Settings” tab. Scroll to the “Portfolio” section. Next to “Allocation”, select “Edit”. In the ...

Any accounts opened before Dec. 14, 2017 that use the Betterment Portfolio Strategy, the Betterment SRI portfolio strategy, and the Goldman Sachs Smart Beta portfolio strategy were enrolled to auto-adjust, as long as the account met the following criteria: The account is funded. Your target allocation exactly follows Betterment’s allocation advice. The account is not an Emergency Fund goal (as Emergency Fund allocation advice does not change over time). After Dec. 14, 2017, any newly opened ...

Any automatic adjustments to your target allocation will be recorded and stored within "Activity" under “Transactions." These adjustments will be noted as an “Automatic Allocation Change.” Automatically adjusting the target allocation, will not necessarily cause a rebalance. Once an account balance is at or past the minimum threshold, rebalances will occur if the portfolio drift exceeds our 3% threshold. Additionally, we use any cash flows, including dividends, to rebalance your portfolio ...

What’s the difference between having Betterment adjust my allocation vs. following Betterment’s allocation advice myself? When you enable Betterment to adjust your allocation automatically, we aim to reduce your account’s risk as tax-efficiently as possible. This approach may result in lower taxes compared to manual allocation adjustments.

The 'Auto-adjust allocation' checkbox in any Betterment account enables automatic adjustments over time to help maintain the recommended risk level for your goal. We do this by systematically gliding your portfolio(s) to a lower overall risk level as you get closer to the end date of your goal. Learn more about how we automated our allocation advice.

If you enable the “auto-adjust” feature on an account, Betterment will check to ensure that your target allocation is in line with our recommended moderate allocation each month. If the account’s target allocation needs to be adjusted to match our recommendation, Betterment will make that adjustment automatically. Learn more about how we notify you of allocation changes. In certain cases, your target allocation may not change from month to month. This is normal. Recommended allocations on ...

Rebalancing is a Betterment feature that seeks to reduce drift in client portfolios. Betterment performs two types of rebalancing on your behalf. First, in response to cash flows such as deposits, withdrawals, and dividend reinvestments, we buy underweight holdings and sell overweight holdings. Second, if cash flows are not sufficient to keep your portfolio drift within its applicable drift tolerance, automated rebalancing sells overweight holdings in order to buy underweight ones, aligning the ...

Why Rebalancing Is Necessary Over time, the value of individual ETFs in a diversified portfolio moves up and down, drifting away from their target weights. For example, over the long term, stocks generally rise faster than bonds. The stock portion of your portfolio may go up in value faster relative to the bond portion–if you don’t rebalance. The difference between the target weights for your portfolio and the actual weights in your current portfolio is called drift. Rebalancing is what ...

To view your current holdings: Log in to Betterment on a web browser. Select a specific investing envelope from your home page. Click on the account in the Account section. Scroll down to the Holdings section and click on any asset class to learn more. Select the hyperlink to access the fund’s prospectus page listing all companies the fund tracks.

Tax Coordination is designed to help avoid rebalancing that would realize taxable gains as a function of its regular tax-efficient rebalancing formula. Regular rebalancing as a result of tax-coordination will occur in your taxable account without realizing taxable gains when possible (for example, when securities are trading at a loss). However, in certain circumstances, rebalancing may occur in the taxable account portion of a TCP that realizes taxable gains. For example, withdrawals or ...

Our allocation advice is designed to work alongside Betterment’s tax optimization tools, including Tax Loss Harvesting and Tax Coordination. Learn more about how Betterment automatically optimizes your risk.

Given that your recommended allocation is expected to change gradually over time, our system uses our rebalancing algorithm to help minimize the tax implications for your account. Learn more about how we adjust your allocation tax-efficiently.