Robo-Advisor
Betterment — Automated Investing Built Around Your Goals
Set a goal (retirement, house down payment, emergency fund), Betterment builds a portfolio for it. 0.25%/year. Auto-rebalancing and tax-loss harvesting included.
The Speedrun Take
Betterment's differentiation is goal-based investing: you create separate accounts for different goals (retire at 60, buy a house in 5 years, emergency fund) and Betterment optimizes each one with an appropriate timeline and risk level. This is a genuinely useful feature if you're managing multiple financial goals. Cost is the same as Wealthfront at 0.25%.
What You Get
Goal-Based Portfolios
Create separate portfolios for each financial goal. Betterment shows you progress toward each one independently.
Tax-Loss Harvesting
Daily automated loss harvesting to offset capital gains. Most impactful on larger taxable accounts.
Auto-Rebalancing
Portfolio drifts back to target allocation automatically after market moves.
0.25% Annual Fee
Same as Wealthfront. On $50,000 = $125/year. No trading fees on top of this.
Socially Responsible Investing (SRI)
Optional: replace standard portfolio with ESG-screened funds at no extra cost.
Betterment Premium
0.40%/year for unlimited calls with CFP advisors. Available if you want human guidance.
The Goal-Based Difference
Most robo-advisors give you one portfolio. Betterment gives each goal its own.
Standard robo-advisors: one portfolio, one risk level
Most platforms ask your risk tolerance once and build a single portfolio. Every dollar you invest goes into the same allocation regardless of what you're saving for.
Betterment: each goal gets its own account with its own timeline and risk level
A 30-year retirement goal warrants a high stock allocation. A house down payment in 5 years needs something more conservative. An emergency fund should be very conservative. Betterment manages each separately.
Practical example
Retirement in 30 years (high stock allocation) + house down payment in 5 years (more conservative) + emergency fund (very conservative) — all separate, all auto-managed. This is useful for people with distinct short and long-term goals running in parallel.
Betterment vs Wealthfront
| Feature | Betterment | Wealthfront |
|---|---|---|
| Annual fee | 0.25% | 0.25% |
| Tax-loss harvesting | Yes | Yes (daily, more automated) |
| Goal-based accounts | Yes (core feature) | Basic |
| Cash account | 5.10% APY | 5.00% APY |
| 529 college savings | No | Yes |
| Direct indexing | No | Yes ($100k+) |
| Financial advisors | Yes (Premium tier) | No |
| Best for | Multi-goal investors, people who want advisor access | Set-and-forget, tax optimization, larger accounts |
When to Choose Betterment
Good fit
- Managing multiple goals simultaneously
- Want CFP advisor access (Premium tier)
- Value ESG / socially responsible portfolio options
Not ideal
- —Need a 529 college savings account (Wealthfront has this)
- —Large taxable accounts where Wealthfront's direct indexing at $100k+ is valuable
How to Set It Up
Open Betterment Account
Takes 5-10 minutes. Link your bank to fund the account.
Create Your First Goal
Select goal type (retirement, safety net, general investing, etc.) and set your target.
Answer Risk Questionnaire
Betterment sets the allocation based on your timeline and risk tolerance.
Fund the Account
Minimum $10 to start. Set recurring deposits to automate.
Pair It With
Fidelity
Roth IRA and zero-cost index funds — use Betterment for taxable goal-based investing
SoFi Bank
Checking and savings foundation — fund Betterment from here
Ready to invest toward each of your goals?
$10 minimum. 5-10 minutes to set up. Betterment manages each goal portfolio automatically.
Start Investing with Betterment