Your after-tax return is what matters
Other investment managers may estimate your long-term returns, but they might not be factoring in a key element that could lower what you take home: taxes.
Increase your portfolio value by an estimated 15% over 30 years.
We're the only investment company that offers automated asset location, a strategy that could increase your portfolio value by an estimated 0.48% each year, or 15% over 30 years.
Every moment with Betterment is a chance to lower taxes.
When we build your portfolio...
We use ETFs.
Exchange-traded funds are generally more tax-efficient and lower-cost than mutual funds, which is why we have an all-ETF portfolio.
We organize assets based on taxes.
Municipal bonds (which provide tax-exempt income) go into your taxable accounts, and core bonds (which do not) go into your tax-advantaged IRAs.
High-tax assets belong in IRAs and low-tax assets belong in taxable accounts. For customers who use our Tax-Coordinated Portfolio™ feature, we automate this strategy, which can increase your portfolio value by an estimated 15% over 30 years.
When you make a deposit or receive dividends...
Rebalancing can help protect your portfolio from market volatility, but doing it by selling securities can cost you in taxes. To help avoid this, we rebalance using deposits and dividends.
When you make a withdrawal or change your allocation...
When a fund gains value...
We help you maximize the benefits of charitable giving.
To help you make the most of your charitable gifts, we enable you to donate your most appreciated shares directly through our platform. This helps reduce your portfolio’s tax liability.
When a fund loses value...
We tax loss harvest.
When investments lose value, you can sell them to help offset the taxes that come with income and capital gains. For customers who use our Tax Loss Harvesting+ feature, we look for these opportunities daily, which may add an estimated 0.77% per year to your after-tax returns.
Member of Securities Investor Protection Corporation
Betterment Securities is a member of SIPC. Securities in your account protected up to $500,000. For details, please see www.sipc.org.
Looking out for investors' accounts is a legal duty.
Regulated by the SEC and a member of FINRA, our Broker-Dealer, Betterment Securities, follows a strict set of rules, designed to protect our investors' accounts.