This article by Kathy Kristof is a few month old, but we love it. We wanted to highlight several parts of the article.
“The only way you’re going to earn [a lot] is if you do nothing, year-after-year, even when you read about the Ten Top Stocks You Should Buy Now! I had so much trouble deciding which story to link to that I actually linked each word to a different one. (Please don’t buy any of these stocks.)…”
“How do you do that? You buy a portfolio of index funds that match your age and goals.”
“The hard part is leaving that portfolio alone. When times are good and you’re tempted to make them better by buying the “hot” stock du jour, you need to leave your index funds alone. When times are bad, and you’re convinced that they’re only going to get worse, so you should sell your stocks — like many people did when stocks dropped into the 6,000 range — you need to leave your portfolio alone. Once a year, when people will tell you to “rebalance,” you need to rebalance by adding money to the sectors of the market that did the worst the year before. Yes. You buy what did badly. That’s called buying low. Some day when you want to live on your riches a long time from now, you will sell high. But not today.”
“Today, you’re going to build up a portfolio and sit on it. If you do nothing for a really, really long time, you’ll have a portfolio that earns more than you do. That’s the power of compounding, which only works when you are disciplined enough to do nothing. Relentlessly.”
Check out the full article here and keep exercising that self-restraint!
Jon Stein on “How I Built This:” Reflecting on Our Story
Jon Stein joins NPR’s Guy Raz for an episode of “How I Built This” to look back at how Betterment started, what mistakes were made, and how they turned into learnings for the robo-advisor we are today.
How to Prioritize Your Financial Goals
If you identify all your financial goals for investing, you’ll likely find you can’t fund them all at once. Get our expert view on how to start prioritizing them.
Redesigning How You Manage Your Finances at Betterment
Our new design represents a synthesis of a large body of customer feedback. We hope it meets your expectations.
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.
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.