Betterment Update and Lower Fees!
Remember that review of Betterment I wrote a while back? Well guess what? Betterment has outdone themselves once again and lowered their fees. Couple that with their no nonsense investing structure, you have yourself a winning retirement savings strategy.
One of the biggest complaints I originally had about Betterment were their high fees. It’s hard to justify investing with a company that has high fees compared to other big names like Vanguard. Well, those fees I used to talk about are no longer uncomfortably high. Betterment has listened to the customer base and lowered their fees. I’m sure this took a hit to their bottom line but it goes to show how “customer driven” Betterment really is. Betterment is a company I trust and recommend.
So, what got affected with this new fee reduction announcement? Well, Roth-IRAs, Traditional Roth-IRAs and all other accounts were affected. Before I go on, did you know that anyone can join Betterment? If you;re considering opening an IRA account, just go with Betterment. They have a broad base of funds and now offer new lower fees.What the fees used to be
Back when I first wrote my Betterment review, the fees were ginormous! They ranged between .3% and .9%! Those are high when compared to the rest of the companies out there. For the average investor, that’s ahuge chunk of change that is just unnecessary to lose to a stupid thing like fees.The good news, lower fees!
Betterment has listened and now their fees are substantially lower! Their new fee strucrure puts them on par with their competitors across the industry. I’m very impressed with this decision. Here is an infographic of their new fee structure:
Notice the drastic change is fee structure? No more .9% fees, those days are long gone. Betterment has revamped their structure to now include just three options:
Builder Plan: For this account you will need a starting balance of $0. You’ll also need to setup monthly deposits of $100. The fee for this account is .35%.
Better Plan: For the Better Plan, you will need a starting balance of $10,000. With this account comes a fee of .25%.
Best Plan: For the big money investors, this account requires that you initially invest $100,000. Because of the high dollar amount, Betterment offers a super low fee of .15%.Other changes to Betterment
Besides fee restructuring, Betterment is now offering the ability to roll-over a 401k into a Roth-IRA. Betterment also offers the switch from a 401k or IRA into a Betterment IRA. This is a great option for people changing companies or wishing to consolidate their investments. With a broad/simplistic investing platform, using Betterment for this will make sense for most investors.Start now and get $25 FREE
Are you scared about investing or don’t know where to place your money? Take the burden off your shoulders and let Betterment do all the work. If you’re on the fence, Betterment is now offering a $25 signup bonus! It’s a great time to dive in and get some free cash to start investing. Betterment is an awesome company, so start growing your dollars and stop stressing out!Read the Original Article
This article originally published February 27th, 2012 on Free Money Wisdom