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RIABiz

Betterment jumps headlong into the 401(k) business spurred by a conviction that even Vanguard Group is unfriendly to investors in this arena

By Lisa Shidler

When executives of robo-advisor Betterment Inc. began shopping around for a 401(k) plan for their employees, the fee-conscious startup zeroed in on The Vanguard Group as a provider.

But vetting the Malvern, Pa. indexing giant was a disillusioning experience with regard to its software’s user-unfriendliness and its pricing, says Betterment’s CEO Jon Stein, and planted the seed of intent to make 401(k) plans a cornerstone of Betterment’s long-term business plan — a plan that has now come to fruition with today’s announcement that the New York-based RIA is diving headfirst into the 401(k) business.

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This article originally published September 11th, 2015 on RIABiz

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