Like us, Mint launched at a TechCrunch conference. And like us, they aim to provide an easy-to-use and genuinely helpful tool for people looking to more intelligently manage their money. They’ve gained a lot of traction over the past few years, and we were grateful that they took the time to learn about Betterment and share our product with their customers.
So Fresh and So Clean
Though the post generally praised our smart way to invest, the author, Matthew Amster-Burton, did raise a couple of questions about Betterment, and we’re glad he did. That said, we feel strongly about making sure our customers completely understand our methods and philosophy, so we’d like to take this opportunity to provide a point of clarification.
Amster-Burton highlights a concern that some have raised—and that we’ve responded to—about comparing Betterment to a savings account. Let’s be clear: Betterment is not a traditional bank savings account, nor do we want to be. We were inspired to create this product precisely because we felt traditional savings accounts weren’t providing enough benefits for investors, and consumers needed a simple yet effective alternative to be more active in their savings.
No matter how you slice it, there are some risks associated with investing in stocks and bonds as opposed to savings accounts. However, we keep our investments conservative, and we believe that the risks we do take are counterbalanced by the reward. Judging from our experience to date, our customers understand and believe this too, but if there are questions about investing with Betterment, as an SEC Registered Investment Advisor, we are happy to answer them openly and straightforwardly.
ETF Selection for Portfolio Construction: A Methodology
Betterment seeks to maximize investor take-home returns, which drives our investment selection criteria and process.
Cash Analysis Methodology
Betterment's cash analysis aims to provide smart feedback when we think you have extra cash that could be earning you more value if it were in a higher yield account.
Understanding Our Socially Responsible Investing (SRI) Portfolio
Socially responsible investing (SRI) is an approach to investing that reduces exposure to companies that are deemed to have a negative social impact while increasing exposure to companies that are deemed to have a positive social impact.
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.