Betterment

Betterment is your all-in-one solution for building wealth, managing cash, and planning for the future. As a trusted leader in automated portfolio management and digital investing, we combine expert guidance, smart tax strategies, and easy-to-use tools to help you make the most of every dollar. From high-yield savings accounts and FDIC-insured checking to globally diversified investing portfolios and personalized retirement planning, Betterment gives you the technology, advice, and flexibility to grow your money with confidence, at every stage of your wealth-building path.

Full name: Betterment LLC

Founded: 2008

Founders: Jon Stein, Eli Broverman

Headquarters: New York City, New York, USA

Peak Era: Still growing rapidly, especially since 2010s with increasing assets under management (over $60 billion as of 2025)

Industry: Financial technology (FinTech), Digital wealth management, Robo-advisory

Service: Automated investing, robo-advisor services, retirement accounts (IRAs), high-yield cash management, financial planning, tax-loss harvesting, personalized portfolio management, and human advisor access (Premium Plan)

Betterment: a technology-driven approach to investing and financial planning

Betterment LLC, founded in 2008, is a leading digital wealth management platform that leverages sophisticated automation and expert strategies to provide comprehensive financial services. With over $60 billion in assets under management and more than 900,000 customers, Betterment offers a seamless blend of technology and personalized advice to optimize investment performance, tax efficiency, and retirement planning.

Advanced Automated Investing and Portfolio Management

At its core, Betterment utilizes automated portfolio management driven by algorithmic processes and backed by expert-designed asset allocations. The platform deploys globally diversified portfolios composed primarily of low-cost exchange-traded funds (ETFs), minimizing expense ratios and maximizing diversification benefits.

Cash Management and Lending Solutions

Beyond investments, Betterment provides a versatile cash account with FDIC-insured protection and a competitive CD rate, helping customers safely grow their savings. The platform also monitors refinance rates and loan rates, giving users insights into lending opportunities. While Betterment itself is not a direct insurance company, it does connect customers with insurance resources and tools like a loans calculator to help manage credit, bad credit recovery, and financial decision-making.

Human Expertise Meets Digital Efficiency

In addition to technology-driven portfolios, Betterment offers access to a financial advisor through its Premium service. For institutions and professionals, Advisor Solutions provides white-labeled wealth management technology to support management accounts. Strategic partnerships, such as with Goldman Sachs, bring added expertise to specialized investment products and a broader range of asset classes.

Comprehensive Financial Planning

Betterment supports long-term planning with IRA accounts, retirement-focused portfolios, and goal-based financial planning tools. The investment app makes it simple to check your credit score, adjust your Betterment account, and review investment portfolios on the go. By offering both everyday cash management and long-term growth opportunities, Betterment delivers a holistic approach to personal finance.

Betterment Invest: The Future of Wealth Building

Since its Betterment launch in 2008, the platform has continued to innovate, expanding services to include Betterment Invest, automated retirement solutions, and a wide variety of portfolios tailored to different goals. Whether you’re looking to build an emergency fund, plan for retirement, or grow your wealth with a bonds portfolio, Betterment combines the best of automation, human advice, and cutting-edge tools.

Betterment Accounts and Investing Options

Opening an investing account with Betterment is straightforward, with no strict account minimum, making it easy for anyone to start investing. The platform offers multiple portfolio options, from core portfolios to customized portfolios, as well as socially responsible investments, climate impact strategies, Smart Beta portfolios, and a TaxSmart bonds portfolio for efficient tax management. Investors can also choose direct indexing for greater tax-loss harvesting opportunities.

Betterment provides different types of retirement-focused accounts, including Roth IRA, SEP IRAs, and traditional IRA accounts, along with regular brokerage accounts for flexible saving and investing. Through Betterment Securities, all accounts are safeguarded and regulated, while FDIC-insured cash management products keep everyday savings secure.

Cash Management and Lending Resources

Betterment’s suite of cash services includes a cash account, checking account, savings account, and cash reserve products with high-yield cash options. These are supported by program banks that extend insurance coverage, while users can take advantage of a competitive CD rate.

For borrowing, Betterment helps customers compare loan rates, track refinance rates, and explore options from refinance lenders. The platform also provides loan resources for student loans, personal loans, auto loans, business loans, and even lines of credit. A built-in loans calculator makes it easy to evaluate repayment terms. While not a direct insurance company, Betterment gives customers access to insurance resources, insurance quotes, and even specialized tools like a pet insurance guide or insurance calculator for better financial protection.

Financial Planning and Advisory Services

Betterment combines advanced automation with access to certified financial experts. Through the Premium Plan, investors get unlimited access to human advisors and financial planner guidance. For businesses and institutions, Advisor Solutions and management accounts extend white-labeled wealth technology to help clients build their own investment offerings.

Betterment also integrates outside accounts to give customers a full picture of their net worth, from real estate to business credit cards. Its financial advisor tools support charitable giving, estate planning, and retirement strategies, ensuring well-rounded personal finance solutions.

Investment Costs and Fee Transparency

Betterment makes pricing clear and accessible. Investors pay a transparent management fee with no hidden annual fees, while fund fees and expense ratios remain low thanks to ETF-based strategies. Features like automated tax-loss harvesting, personalized tax strategies, and smart rebalancing are included. For those who want more tailored planning, Betterment Premium offers direct contact with advisors for a slightly higher fee.

Technology and Accessibility

Betterment’s investment app, available on Google Play and iOS, makes it easy to track account balances, monitor your credit score, set up recurring deposits, or initiate a balance transfer. Customers can also view their Betterment portfolio, manage multiple Betterment accounts, and compare financial insights directly from their phone.

Betterment vs Wealthfront

When comparing Betterment vs Wealthfront, Betterment stands out with its combination of human advisors and digital services, while Wealthfront leans more heavily on pure automation. Betterment also offers more diverse portfolio options, stronger emphasis on socially responsible investing, and advanced tax tools like TaxSmart bonds portfolios and direct indexing. Wealthfront, however, may appeal to investors prioritizing lower costs without advisor access.

Broader Reach and Recognition

Since its Betterment launch in 2008, the company has grown into one of the most trusted names in digital investing. Its services have been widely covered by outlets like Business Insider, highlighting its innovation in cash management, robo-advisory services, and flexible Betterment Invest offerings.

Pros and Cons

Like any platform, Betterment has its pros and cons.

Pros:

Wide range of investing options and portfolio choices

Low-cost ETFs with competitive expense ratios

FDIC-insured cash accounts and savings solutions

Advanced tax tools including tax-loss harvesting and tax-smart strategies

Access to human advisors through Betterment Premium

Strong focus on socially responsible and climate impact investing

Cons:

The management fee may be higher than some DIY brokers

Limited exposure to alternative asset classes like real estate

Some advanced features (like Premium advisory) require higher balances

Direct stock-picking is not available, only managed ETFs

Conclusions

Betterment makes it simple to start investing with no high account minimum, offering everything from a basic investing account or brokerage account to retirement-focused options like Roth IRA and SEP IRAs. Through Betterment Securities, investors gain access to core portfolios, Smart Beta strategies, and a customized portfolio designed by certified financial experts, all with transparent fund fees and no hidden annual fees.

Its cash reserve, checking account, and FDIC-insured savings tools, backed by program banks, help users with saving money while managing account balances and cash flow. Borrowing is also supported with a full suite of loan resources, including student loans, business loans, personal loans, auto loans, lines of credit, and even loans refinance options through trusted refinance lenders. Customers can compare mortgage rates, get insurance quotes, and even use an insurance calculator to plan for needs like pet insurance or health coverage.

For personal finance goals, Betterment integrates outside accounts to give a complete view of your net worth, supports charitable giving, and provides planning tools through access to a financial planner. Premium tiers even include unlimited access to human advisors. Users can set up recurring deposits, manage a balance transfer, and track everything in the mobile Google Play investment app.

Betterment’s features have been highlighted in outlets like Business Insider, particularly its partnerships with Goldman Sachs, its forward-thinking betterment portfolio options, and its expansion into everyday finance with business credit cards. Whether you’re building wealth, tackling bad credit, or comparing the pros cons of different investing options, Betterment offers a streamlined platform for smarter money management.