TABLE OF CONTENTS
- What does Betterment cost?
- What am I getting for Betterment’s fee?
- What is included in the Betterment Digital plan?
- Where do I find the total fees paid to Betterment?
- Am I still charged the whole fee even if I don’t see the product for the whole year?
- Can you household accounts for families?
- How do you proactively monitor my account on the Premium plan?
- What can I expect during my financial consultation?
What does Betterment cost?
Our Digital plan costs just 0.25% per year and offers unlimited access to automated portfolio management, tax efficient investing features, personalized financial dashboards and award-winning customer support. This plan has no minimum balance requirement.
If you need more than one consultation per year, you can elect into our Premium plan for just 0.40% per year, which makes you eligible for unlimited calls with our team of CFP® professionals and licensed financial experts. This plan requires a minimum balance of $100,000.
Betterment’s single management fee covers everything you need, including transactions, trades, transfers, rebalancing, advice, and account administration, among other things. Unlike other companies, Betterment does not charge you transaction fees to buy and sell securities.
401(k) accounts through Betterment For Business are subject to a separate fee schedule and those balances aren’t included when determining your eligibility for Betterment Plus and Betterment Premium.
What am I getting for Betterment’s fee?
Betterment’s straightforward fee is a great value. Beyond being the simplest way to invest intelligently, we offer a number of unique features under the hood which simplify your life as an investor and helps you get better returns:
- Dollar-based transactions/fractional shares. When you transfer money to Betterment, every penny is invested into your portfolio as fractional shares, so all your money is always working for you.
- Better diversification. Any single fund has its shortcomings. By balancing your portfolio among multiple funds, Betterment gives you appropriate exposure to small cap and value stocks while still maintaining a balance of large cap and growth stocks. Purchasing these ETFs directly and maintaining the proper balance over time would be a very demanding task.
- Rebalancing. The composition of your portfolio will naturally drift over time as the market fluctuates, but Betterment rebalances you back to your desired allocation using cash flows, or whenever your portfolio composition drifts by 3%. Because we use your existing cash flows, we rarely have to make a sale to rebalance. Experts agree that regularly rebalancing your portfolio can increase returns and reduce risks, but even the most disciplined investors don’t do it because of all the work involved.
- Tax Efficiency. When we do make a sale, we sell your losses (short term, then long term) first, then your gains (long term, then short term) to minimize your tax bill. Additionally we offer services to make your portfolio more tax efficient by enabling Tax Loss Harvesting and our Tax Coordinated Portfolio.
- Better access to your own money. Your money is always available without a transaction fee, and without a minimum balance requirement. If you have an unexpected event and need your money, it can be back in your checking account in 4 to 5 business days.
- Integrated and actionable advice. Our advice and retirement planning tools give you actionable guidance, which we help you execute immediately.
What is included in the Betterment Digital plan?
Our Betterment Digital plan includes:
- Fractional shares and free trades
- Our low-cost, globally diversified investment portfolio, tailored for tax-advantaged or taxable accounts
- Automatic rebalancing
- Tax Loss Harvesting+, which can boost your after-tax returns by an estimated 0.77% per year
- Tax-Coordinated Portfolio, the most sophisticated form of asset location on the market (it can increase after-tax growth by an estimated 15% over 30 years)
- A personalized retirement plan
- The ability to sync external financial accounts which allows customers to get advice on assets held outside of Betterment
- Award-winning customer service, available 7 days a week
Betterment Digital is our lowest-cost plan at 0.25%, making our services among the lowest-cost in the industry. We’re continuing to deliver a greater value than any other service available. All of our features are designed to grow† your money more efficiently and effectively than any other service out there. We will never stop delivering services that improve how much more you take home, and there’s so much more to come.
Where do I find the total fees paid to Betterment?
Your total fees can be found on “Activity“, filtered by “Fees”, for a customizable time frame. You can then download a CSV statement to quickly total your fees.
Am I still charged the whole fee even if I don’t see the product for the whole year?
No, you are not. Betterment’s fee is prorated across the year based on the average daily balance in your account, and a portion of this is charged quarterly (every 3 months). So if you withdraw money from your account, your average daily balance will decrease and your fee for the quarter will reduce accordingly. If you withdraw your entire balance before the end of the quarter we will simply charge the prorated fee at that time.
We do not have fees for accounts with a $0 balance, so you can still keep your account open without penalty.
Can you household accounts for families?
Betterment offers automatic householding for customers who open joint accounts or establish taxpayer relationships with one another when turning on TLH+. We also offer manual householding for any two customers who reside at the same address. If you’d like to be householded, or removed from an existing household, please contact us at email@example.com.
You can household your accounts to combine your balances for the purposes of meeting minimum balance requirements for our various plans.
How do you proactively monitor my account on the Premium plan?
For our Premium plans, we offer proactive account monitoring for those customers who want additional reassurance everything is going as planned and peace of mind knowing there’s a financial expert who is looking out for them. Our financial experts will review your account periodically throughout the year and send you a personalized email with action items and guidelines on a variety of topics to boost the health of your accounts, including investment guidance, retirement planning, estate planning, tax tips, and more.
What can I expect during my financial consultation?
We assist our customers with a broad range of financial topics, including investment advice, retirement planning, spotting hidden fees, lowering your taxes, transfers and more. Our team of licensed experts help you apply our automated strategies to your personal situation and can supplement our advice in areas our website does not yet cover.
To make the most out of your consultation, we recommend syncing all of your external accounts beforehand. If you are married, we recommend completing your initial consultation with your spouse.
If you are in the “Premium” plan, you can schedule a consult by clicking “Schedule a call” from the bottom of any goal’s “Plan”, or by clicking here.
What is your Satisfaction Guarantee?
We’re confident in the value we’re offering you today—even with the adjustment to our pricing. If for any reason you are not completely satisfied with your Betterment account, we will do everything we can to make it right, up to and including waiving Betterment’s management fees for the next 90 days.
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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.
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