Betterment, the largest independent Robo-investment advisor, has announced the release of new services expanding the company’s platform beyond a single digital product to a multi-plan advice offering. Betterment’s three plans are now Betterment Digital, Betterment Plus, and Betterment Premium.
Betterment believes it can now meet the needs of its customers better. Whether it’s through the existing digital offering or also working in conjunction with a team of licensed experts. This team will help customers monitor their accounts, answer their financial questions, and give them advice. These new plans are said to give customers the best of both worlds— smarter technology and access to financial experts.
“We’re committed to empowering customers to do what’s best for their money, so they can live better,” said Jon Stein, founder and CEO of Betterment. “At Betterment, we promise to always act in the best interests of our customers. From the beginning, we’ve built what our customers have asked us to prioritize, and what would have the biggest impact for them. Now, with our Plus and Premium plans, we can give customers the best of both worlds: our smarter technology and access to licensed financial experts.”
Customers who would like a full-time, dedicated independent financial advisor can be referred to an RIA who uses the Betterment for Advisors platform to manage client investments through its recently announced Advisor Network.
How does Betterment make its money?
Betterment will now charge a flat 0.25% for its Digital plan, 0.40% for the Plus offering, and 0.50% for the Premium offering. The Plus plan requires a $100,000 minimum balance, and the Premium plan requires a $250,000 minimum balance. For all three plans, Betterment’s fees are only charged on the first $2 million of your balance. Betterment will waive its management fee on any assets over $2 million.
Today, Betterment manages more than $7 billion in assets for 210,000 customers, so they must be doing something right. Customers may open and customize regular investment accounts, traditional/SEP/Roth IRAs, trust accounts, and accounts for retirement income. Betterment also has expanded its platform to serve advisors and 401(k) markets.