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

Limited time offer: Sign up today and get up to 1 year managed free. See details

Get your next rollover managed free in 2018. Learn how to enroll

Inside Betterment

Something Different

Smart Money says that the New Investor Has Different Priorities. According to their data, investors continue to trade stocks for bonds and cash:

Jon

By Jon Stein
CEO & Founder, Betterment  |  Published: October 1, 2009

Mutual-fund investors put an estimated $43 billion into bonds and withdrew $1.7 billion in stocks in August, even as the Dow was charging from its March low of 6,547 on its way to last week’s 9,820. Cash now stands at $3.5 trillion, above where it stood at the height of the financial crisis.

Big numbers, and indicates that people are still afraid of stocks. But it’s the wrong time to be afraid of stocks – after the fall is when we see the best growth opportunities. What do these investors want?

So if he or she isn’t jumping into equities, what does this new investor want and how will these altered desires change the market and the economy? In brief, they want more safety, preservation of capital, lower fees and more transparent products. These desires will push them toward fixed-income investments and other offerings that provide consistent returns and those that are easy to understand like indexes and exchange-traded funds.

Their needs will push them to products like Betterment. A product that offers an inflation protected, government-backed fixed-income portfolio. A product that offers a transparent, well-diversified stock market portfolio (composed of indexed exchange-traded funds). A simple product that is easy to understand and so puts them in control of their own risk and return. Seems like Betterment is the natural answer to every investor’s question right now.

Recommended Content

View All Resources
What Charity Navigator’s CEO Thinks about Betterment Charitable Giving

What Charity Navigator’s CEO Thinks about Betterment Charitable Giving

We wanted to learn how Betterment’s charitable giving service could affect the world of nonprofit development at large. So, we went to an expert: Michael Thatcher of Charity Navigator, the nation’s leading platform for helping donors make smart choices for their charitable donations.

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 to Roll Over Your 401(k) to Betterment

How to Roll Over Your 401(k) to Betterment

Betterment makes rolling over your 401(k) simple and efficient. Get started online, or with a rollover concierge.

Start your investment plan

I am

years old and

  • Not Retired
  • Retired

.

My annual income is

.

Experience the new way of investing. Sign up today.

Start investing smarter

Get started

Refer a friend or family member and get up to 1 year managed free

Refer a friend

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.

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