Betterment Help Center (2024)

FAQs

What are the cons of using Betterment? ›

One of the biggest downsides to using Betterment is that you can't pick your own investments, as the only option is to use the automated investing services. And while Betterment's fees are quite reasonable, there are other platforms with lower fees.

The Securities Investor Protection Corporation (SIPC) provides insurance that protects your investments, including those held by our broker, Betterment Securities. It covers up to $500,000 of missing assets, including a maximum of $250,000 for cash claims.

Are there any limits on transactions? Daily ATM Withdrawal Limit: $510 This limit includes any ATM surcharge fees charged by the ATM operator. Remember that we'll reimburse ATM fees at any ATM worldwide, wherever Visa is accepted.

Additionally, both companies are among the winners in our list of the best robo-advisors of 2023, with Wealthfront winning best overall, best for goal planning, best for portfolio construction, and best for portfolio management, while Betterment is best for beginners and cash management.

Betterment's alleged failures were related to “tax-loss harvesting,” a technique common among financial planners whereby taxes on investment profits are reduced or eliminated by offsetting them with losses from other investments.

Is Betterment Worth It? Betterment can be worth it if you want to help build and manage your investment portfolio without paying the full cost of a human financial advisor. A human advisor could charge 1% or more per year, roughly four times Betterment's robo-advisor fee.

The Securities and Exchange Commission today charged investment advisory firm Betterment LLC for material misstatements and omissions related to its automated tax loss harvesting service (TLH), failing to provide clients with notice of changes to contracts, and failing to maintain certain required books and records.

Betterment misstated or omitted facts when communicating with clients about its automated tax loss harvesting service from 2016 to 2019, the SEC found , opens new tab after its investigation. It also failed to give clients notice of contract changes and failed to maintain certain records, the regulator said.

Further, the Securities Investor Protection Corporation (SIPC) protects all Betterment accounts, up to $500,000 per account. This protects you against any losses that may arise as a result of broker error. So if you're thinking about investing with Betterment, you should have both a safe and successful experience.

Is Betterment FDIC-insured? Yes, funds deposited into Betterment Cash Reserve accounts are FDIC insured up to $1 million maximum (up to $250,000 per partner bank, including any existing deposits at those banks) through a deposit sweep program. Joint Cash Reserve accounts are eligible for up to $2 million FDIC coverage.

How many people use Betterment? ›

The reported customer count of 850,000+ is as of Feb. 29, 2024, and is inclusive of checking and investing clients. Betterment's reported assets under management (AUM) of $45+ Billion is as of Feb. 29, 2024. Before investing, consider your investment objectives and Betterment LLC's fees and expenses.

From a web browser, after logging in to your account, go to "Transfer or Rollover" > "Withdraw." Withdrawals generally take about 4-5 business days to process; funds will automatically be sold and sent to your linked bank account.

Betterment offers tax-loss harvesting for users with taxable accounts. Fidelity Go doesn't offer tax-loss harvesting but does provide tax-advantaged funds (i.e. municipal bonds) to reduce your tax burden over time. Betterment is not a licensed tax advisor.

Betterment's top competitors include Folio, BrightPlan, and Magnus. FOLIO provides an algorithm-based service, which acts as an automated money manager for lower fees and less initial capital than traditional services but also provides … Betterment's Analyst Briefing includes information on: Pricing.

In the last 30 Years, the Betterment Robo Advisor 100 Portfolio obtained a 8.52% compound annual return, with a 15.76% standard deviation.

Deposits to Betterment's Cash Reserve are FDIC insured up to $1 million. Joint accounts are eligible for coverage up to $2 million. Like most cash management accounts, Betterment partners with several banks to sweep deposits into multiple bank accounts to provide this extra protection.

From a web browser, after logging in to your account, go to "Transfer or Rollover" > "Withdraw." Withdrawals generally take about 4-5 business days to process; funds will automatically be ...

Withdrawals generally take about 4-5 business days to process; funds will automatically be sold and sent to your linked bank account. When you request a withdrawal, shares in your account are sold and this may have tax consequences. Betterment will always sell your shares in a way that minimizes taxes for you.

Betterment's digital investing tier charges a 0.25% annual fee on balances over $20,000 or if you set up recurring monthly deposits totaling $250 or more. If you don't meet those criteria, you'll be charged $4 per month. Most robo-advisors charge a fee of around 0.25% across all account balances.