Investing for Everyone: Betterment Review
Whenever most people think about investing, it seems hard. It seems complicated. It seems like someone else should be in charge of it.
However, these days, more and more companies have been devoted to simplifying finances. From high yield savings accounts that let you split your money into fun goals to engaging phone apps that help you pay off debt, the possibilities are truly endless when it comes to merging money and technology.
One new company in particular is gaining popularity for making investing easy, and dare I say, fun. The company is called Betterment, and financial bloggers and experts all over the web are singing their praises.Here are a few reasons why:
Essentially, the Betterment algorithm is the real genius of this operation. All you have to do is put in how much money you want to save by what time, and the Betterment algorithm tells you how much you should be saving each month. They also give you their suggestions on the combination of investments you should have. You can move a sliding scale to make your investments more aggressive or more conservative. It’s easy, and it’s fun to see the possibilities.
Above anything, the Betterment team deserves props for their very engaging interface. This is probably the main reason why the average person who doesn’t know much about finances will be able to invest with them. As a visual learner myself, I truly appreciate the charts, graphs, and sliding scales that they show their customers. Without these, it wouldn’t be as easy to understand where your money is going. The visuals will help their customers to feel as if they are their own financial advisors.
Since they started, Betterment has lowered their fees. Right now, they have a 0.35% annual fee if you start with nothing and agree to invest at least $100 a month, a 0.25% annually if you start with $10,000, and a 0.15% for those who have an initial investment of $100,000. These rates are either better than or close to most investment fees charged by companies like Betterment. Honestly, for the time and effort it would take to manage your own portfolio, the fees are worth it in my humble opinion.
I feel that most people think creating investment accounts involves a lot of time and energy. Not so. It will take you the same amount of time to set up a Betterment account that it will to open up a regular checking account. You have to provide the same amount of information that you would to any bank, and you’ll need to link your checking account to it. Other than that, you can have your savings goals started with just a few clicks. Check it out for yourself to see all of these great attributes in action.Read the Original Article
This article originally published January 29th, 2013 on Everything Finance