Some people avoid investing because they feel unsure about how the system works and are afraid to make costly mistakes. However, thanks to the increasing number of services and applications offered today, the field is becoming more accessible to everybody. Enter the review of Betterment Investing app. Most apps provide complete investment management. Services range from the creation of a balanced portfolio to the reinvestment of dividends. The bottom line is that you don’t need to be an expert in investing to make an account! If you are new to this world and are looking for a way to invest without having to select stocks or mutual funds yourself, you should consider Betterment Investing. Because we want to help you make an informed choice, we put together this review of Betterment Investing. Here, you’ll find out what’s in for you and what drawbacks you might have to face.
What Is Betterment Investing?
Betterment Investing was the first automated online investment platform and still is one of the best applications out there. The system uses Modern Portfolio Theory to allocate your money to the right stocks based on your risk levels.
The application provides the same level of service you would get from human investing advisors. It will automatically invest your money in diversified stocks and bonds without the high expenses that advisors require.
It’s important to not in this review of Betterment investing, that they offer three different plans to fulfill the diverse requirements users might have. The basic plan is free and provides users with a debit card and the possibility to withdraw money with no limits. The “digital investing” option is for account balances under $100,000. This includes socially responsible investing options, automatic features of rebalancing, and advanced tax-saving strategies. The “premium” plan charges a 0.40% flat fee on the account. It is really only suitable for profiles with a $100,000 minimum balance.
Why Is Betterment Investing Good?
My review of Betterment investing should note that they offer a simplified investing model and do not require any financial knowledge from the investor. The application has a user-friendly interface with the possibility to create financial goals and checking your investments live. Also, Betterment investing has no requirements in terms of initial investment, making it more accessible to anyone willing to start investing, no matter the budget. You can open an account for free and fund it as you please with regular contributions. Plus, the annual advisor fee charged is lower than the one offered by the competition: you can manage your account for 0.25% per year!
The app allows for flexibility and makes it possible to adjust your portfolio to your risk profile.
Also, Betterment offers tax-loss harvesting strategies on all taxable accounts, which minimizes tax liability when it comes to your investments. Furthermore, you’ll get unlimited access to financial planners and advisors. Plus, the application offers the possibility of opening a checking account, which would allow you to earn cashback from various retailers.
This review of Betterment Investing would not be complete if we didn’t consider what doesn’t work well with the application. Let’s have a look at the drawbacks in the next section.
Disclaimer: I receive affiliate compensation for some of the links in this post at NO cost to you. However, these are the best tools I have used and tested that I believe are most effective for launching and running an online business. You can read our full affiliate disclosure in our privacy policy.
What Are the Drawbacks of Betterment?
To start with, the variety of investments is rather limited since users can only consider stocks and bonds. Amateurs may like this feature, but it might limit experienced investors. Also, the app presents itself as an “affordable” service, but pricing raises on higher balances, making it suitable only for smaller accounts. If you are concerned about fees, you can find alternatives that charge no fees at all, no matter your balance.
The app does not allow synchronization with different accounts unless you have a premium profile. If you have more than one account, you might want to look for another service.
The Bottom Line: Review of Betterment Investing
Betterment is a valuable service, but it does not work for everyone. New investors will probably get the most out of Betterment because there is no minimum investment to start. Plus, there is a simple interface. The service is generally suitable for people without time to manage their investments. Including those who feel overwhelmed about finance. Overall, Betterment is one of the best online and automated financial advisors for inexperienced investors. If you are looking for an efficient platform to handle your passive investments at affordable prices, you should consider this application.
I enjoy looking into many of these investing apps that can make our lives easier. I did review of the Acorns App, and it is very similar to this review of Betterment investing. If you are looking to compare, I would suggest take a look at that review as well. At the end of the day, if I can make investing decisions easier, that would give more people the financial education to invest more and achieve the ultimate goal of financial freedom.
That is what we are all looking for, right? The opportunity to be independent of a clock or a boss. We would still have priorities and deadlines, but they would be our priorities and deadlines, not someone else’s. I hope that is your goal as well. Keep in mind though, as I say often, investing in the stock market is only one piece of the puzzle. There are four asset classes and we need at least five streams of income. Make sure to check out how to build you own business below. Having a personal business as a side hustle can only get you to your dreams faster. Cheers to your success and Happy Trading!
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