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.
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.
Are you on track for retirement?
Try our retirement calculator to see if you're retirement-ready.
Could your 401(k) be worth more?
Learn how rolling over an average 401(k) to a Betterment IRA could mean 60% lower fees.
Want more retirement guidance?
Read the latest on investing for retirement on our Resource Center.