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Dive into the details of our investing methodology, technical specs, and more.

How We Estimate the Added Value of Using Betterment

The estimated incremental value of Betterment’s offering is an estimated 1.61% compared to a typical investor.

Two-Way Sweep Methodology

Two-Way Sweep is an automated solution that takes advantage of our Smart Saver account to invest extra cash at a rate of return above that of an average savings account.

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.

Smart Saver and Other Savings Products: Our Recommendations

We know from talking to Betterment customers that holding cash isn’t always intentional; it’s a choice by default—not knowing how, when, or why to put your money to work. We developed Smart Saver to help with that.

Optimizing Performance in Lower Risk Betterment Portfolios

In this methodology, we provide insight into how we optimize the performance of the lower risk bonds in Betterment's portfolios, including Smart Saver.

Assessing a Portfolio’s Diversification

Higher levels of diversification allow you to take less risk to help achieve your desired level of return. At Betterment, we have carefully constructed…

Acceptable Reasons for Using Flexible Portfolios

Personalizing your overall investment strategy is critical to maximizing your money and achieving your financial goals. At Betterment, we aim to give you sound financial…

Goal Projection and Advice Methodology

Betterment helps you get on track to meet your goals by providing projections and advice on allocation, savings, and withdrawals. Our methodology for doing so involves some assumptions worth exploring.

Retirement Planning Advice Methodology

The complete methodology for Betterment's retirement planning process. Whether using Betterment’s digital services or working with our financial professional, you can review this set of assumptions to understand how we help customers achieve their retirement goals.

The Betterment Portfolio Strategy

Betterment’s core portfolio strategy is based on Nobel Prize-winning research. We continually improve the portfolio strategy over time in line with our research-focused investment philosophy.

Developing the Betterment SRI Portfolio Strategy

Betterment’s portfolio represents a diversified, low-cost SRI solution that will be improved as data, costs, and SRI funds improve.

Deriving an Assumption on Inflation

Expected annual inflation is a key assumption used by our retirement savings and withdrawal advice, which help you plan for the future. To make these…

Betterment’s Model for Financial Advice: An Overview

Achieving your financial goals is only possible if you plan effectively. Saving enough, choosing the right accounts, deciding when you can buy a house or when to retire—all of these are essential decisions even before you build an optimal portfolio.

White Paper: Tax-Coordinated Portfolio™

Asset location is widely regarded as the closest thing there is to a “free lunch” in the wealth management industry.1 When investments are held…

Using Investment Goals at Betterment

Goal-based investing. The idea is prized among financial advisors—and our team at Betterment—but to the everyday investor, it’s often difficult to put into practice.


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