Wanted to get this board's thoughts on betterment.com. Anyone here ever used it? A coworker recommended it to me and a few months ago, I started putting several hundred dollars in each month. I plan to use this money in the next year or two, which is why I did not want to go the Roth IRA route with it right now. I decided to do this as opposed to putting this money into a savings account at a local bank. Side note- I am 26 years old and contribute 10% of my salary to a Roth 401k through work (employer matches 25% of my contributions up to 6% of my salary). Anyway, just wanted to get y'all's opinion on Betterment.com and if you think there is a better vehicle for me to invest this money into. Thanks in advance

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Posted by HYDRebs

Houston

Member since Sep 2014

1240 posts

Posted on 1/12/17 at 3:54 pm to Walter White

Recently made a Wealthfront account for this reason. I went this route instead of Betterment due to wealthfront having no fees for the first $15,000. If you are looking to deposit and hold less that amount it's a great alternative.

I put it on the riskiest portfolio setting and I am up 4% over the last month and a half.

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Posted by jclem11

Neoliberal Shill

Member since Nov 2011

7758 posts

Posted on 1/12/17 at 10:07 pm to Walter White

I have used Betterment for 2 years plus now and I have no complaints. I take a lazy approach to investing and I appreciate the set it and forget it approach of betterment. I have 2 portfolios, one 95/5 split and one 40/60 split. The returns were solid in 2016, approximatly 9.7% and 5.7% respectively. I plan to stay with betterment for the foreseeable future.

I keep my Roth IRA and rolled over 401(k) from my old job with Vanguard though.

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Posted by bayoubengals88

Member since Sep 2007

18862 posts

Posted on 1/13/17 at 8:06 am to Walter White

My biggest complaint with Betterment, UNLESS THEY CHANGED things, is that their portfolio is SHITTY and you can't do anything about it.

The percentage of foreign funds is ABSURD. It's at LEAST forty percent and most of it is composed of stagnant arse Europe.

I think Acorns funds might even be better for "lazy investing" if you're ok with a large chunk of your portfolio being in Reits.

This post was edited on 1/13/17 at 8:08 am

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