Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

Coming soon: our new one-on-one advice packages. Learn more

Now available: our new one-on-one advice packages. Learn more

Get your entire Smart Saver balance managed free for 3 months. Enroll today

Get your entire Smart Saver balance managed free for 6 months. Enroll today

Introducing Smart Saver: You could earn 1.83% with our low-risk investing account for your extra cash.* Learn more

What We Offer

Free To Choose

In response to our post on Cutting Out Middle-Men, one reader asks: How does Betterment adjust for the varying tiers of taste for risk among different investors without individual consultation offered by middle men?

Articles by Jon

By Jon Stein
CEO & Founder, Betterment  |  Published: March 30, 2010

A good question. How do Betterment customers choose the level of risk that’s right for them?

First, Betterment focuses its customers on the most important choice in investing: the allocation between Stocks and Bonds. Over a long horizon, the allocation accounts for upwards of

Two great choices, together.

90% of the variance in returns (here’s one of multiple sources), which is another way of saying it’s basically all that matters. By focusing on one choice, many customers are able to make better decisions than they might if they were distracted by other, less meaningful choices.

Second, Betterment gives customers tools to help make this choice.  We offer a forecast of future returns based on a customer’s investment allocation and we recommend an allocation based on a customer’s profile and preferences.

Third, we show customers the allocation decisions of others like them.  That’s not only reassuring, it’s also helpful information for deciding how to invest.

All this gives customers the better outcomes they want – without middle-men.

Recommended Content

View All Resources
Personal Investing Strategies Tailored For You

Personal Investing Strategies Tailored For You

We’ve long tailored customer portfolios based on factors like goal type, and risk tolerance. Now, we’re further personalizing our advice at the level of the portfolio strategy itself.

What’s Inside the Betterment Portfolio Strategy?

What’s Inside the Betterment Portfolio Strategy?

Explore the asset classes in Betterment's recommended set of portfolios. Then, take a look at the exchange-traded funds (ETFs) underlying each part of the portfolio strategy.

Here’s How Betterment Women Are Shaping the Future of Finance

Here’s How Betterment Women Are Shaping the Future of Finance

Twelve women across eleven different departments came together to talk about why they’ve chosen careers in fintech.

How would you like to get started?

Your first step toward a smarter investing future starts here.

Create a Betterment account

Go ahead and join the smart, modern way to invest.

See what we can do for you

Tell us a bit about yourself, and we'll show you the benefits of investing with us.

Get a free investing checkup

Help us get a sense of your investing approach and see how you could improve.

Transfer a 401(k) or an IRA

Move an existing retirement account into a Betterment IRA.

Download the mobile app

Enjoy the Betterment experience anywhere on the go.

Search our site

For more information and disclosures about the Betterment Resource Center, click here. | See our contributors.