Whether it’s saving for retirement or paying off your home, you need to have a long-term financial strategy for the future. A big part of this strategy is to make your money work for you.
Betterment is the original robo-advisor, having been an innovation from the last financial crisis. Other platforms have also launched to compete with it, which you can learn more about in this M1 Finance review.
For investors large and small, Betterment is one of the best platforms to execute your financial strategy.
Let’s see how you can use Betterment to help you on the road to financial freedom.
Where does the improvement shine?
Betterment is ultimately a robo-advisor providing targeted recommendations based on prevailing market conditions. Comparing M1 Finance vs Improvement, there are a lot of similarities.
Where Betterment excels is in the number of ways you can distribute your money to achieve your goals. During the account creation process, you will be asked what your goals are and you will receive personalized recommendations for the portfolio that is best for you.
It is also relevant to where you are in life and who you are as a person. Some investors are passionate about specific markets. Other investors have a low appetite for tolerance and want their portfolios to reflect this.
To learn more about the features of this platform, read this Review of improvement.
Smart portfolio for big returns
Every investor secretly dreams of nailing this special stock before it hits the moon. For young investors, you have plenty of time to recover if your investments don’t go as planned. If they are successful, however, it could be life changing.
That’s why Betterment offers a special portfolio option that focuses on baskets of companies with above-average returns. However, there is a level of systematic risk, which is a natural part of investing.
All young investor course will tell you that this is part of the game. High rewards must come with high risk. Betterment is extremely transparent about the level of risk involved and you are advised to do your research to see if this type of portfolio is right for you.
Regular Income Portfolio
Another type of wallet option is to claim a passive income thanks to your investments. This standardized portfolio focuses exclusively on government bonds. These are virtually risk free but offer extremely low returns.
Only take a wallet like this if you are prepared to keep your money where it is for decades to come. A portfolio invested primarily in bonds is recommended for older or already retired investors.
There are alternatives. Betterment allows you to create your own portfolio. If you prefer stocks with regular dividends, consider choosing mega-cap stocks. Big and mega-capitalization stocks are the guarantees of stable companies which will still be profitable in ten years.
Socially responsible portfolios
Socially responsible investment is attracting growing interest. Although most investment guide focus exclusively on profit potential, many millennials in particular are more concerned with the businesses they support.
Betterment responds to this with a selection of socially responsible portfolios. These are designed to align with different values.
For example, many of the companies included in these portfolios operate in the green energy sector or donate to green action groups.
Yes choose actions that match your values is important to you, Betterment lets you do it with one click.
Maximize your investments with fractional shares
Shares of large corporations tend to be expensive. Amazon, for example, recently crossed the $ 3,000 mark. If you only have $ 2,000 in your account, does it make sense to leave that money there until you can deposit more funds?
No, and Betterment understands that. If you are still trying to inquire about the investment and you do not wish to make any additional deposits at the moment, the platform allows you to invest via fractional shares.
The notion of fractions of shares are they owned by the platform, split, and then sold to individual investors. This means that you can still own a piece of Amazon through a third party.
Most importantly, it ensures that your entire portfolio is working for you. Dollars are not just waiting to be allocated.
You can even configure Betterment to do it automatically for you.
Is this the best robot advisor for you?
There are so many choices available, and Betterment is one of the best options you can choose. You can also read this SoFi Invest Reviews for a similar alternative.
The only downside, compared to other platforms, is that Betterment charges an annual management fee of 0.25% on your account. When M1, SoFi, and Stash don’t charge you anything for investing, it may turn some investors away.
However, what is clear is that Betterment offers a solid option for building diverse portfolios that can be fully automated with the click of a button.
Have you ever tried a robo-advisor as your investment platform of choice?