Betterment

Betterment is an AI-powered robo-advisor and digital investment platform that provides automated portfolio management, financial planning, and wealth management services. Founded in 2008 by Jon Stein and Eli Broverman and headquartered in New York City, Betterment is widely recognized as one of the first and largest independent robo-advisors in the United States, managing tens of billions of dollars in assets for hundreds of thousands of customers. The platform uses algorithms and modern portfolio theory to construct and manage diversified investment portfolios composed of low-cost exchange-traded funds (ETFs) tailored to each user's financial goals, risk tolerance, and time horizon. Betterment's automated investment management includes continuous portfolio rebalancing, tax-loss harvesting, and asset location optimization across taxable and tax-advantaged accounts. The platform's tax-loss harvesting algorithm monitors portfolios daily and automatically sells positions at a loss to offset capital gains, potentially improving after-tax returns. Betterment offers multiple account types including individual and joint taxable investment accounts, traditional and Roth IRAs, SEP IRAs, 401(k) plans through Betterment at Work, and high-yield cash management accounts. The platform provides goal-based investing tools that help users set financial targets for retirement, emergency funds, major purchases, and general wealth building, with projections and recommendations based on individual financial circumstances. Betterment also offers access to certified financial planners through its Premium tier for users who want human advisory support alongside automated management. Betterment Digital charges an annual management fee of 0.25 percent of assets under management with no minimum balance requirement. Betterment Premium, which includes unlimited access to certified financial planners, charges 0.65 percent annually and requires a minimum balance of $100,000.