In the evolving landscape of investment, self-directed investing is transforming how individuals pursue their financial objectives. Betterment now provides a broad range of individual stocks and ETFs, empowering investors to manage their portfolios independently. However, this development prompts an important consideration: what added value does Betterment offer if these low-cost investment options are accessible without assistance?
The answer is found not only in the initial asset selection but also in the ongoing management and optimization of investment portfolios.
Betterment merges expert insights with advanced technology to ensure that investments remain aligned with financial aspirations.
Table of Contents:
The power of ongoing management
At Betterment, the investment journey extends beyond mere portfolio construction. It is a continuous process that adapts to shifting market conditions and personal financial goals. A dedicated team of experts consistently monitors and adjusts investment strategies to maximize potential returns while minimizing risks.
Tax optimization strategies
A standout feature of Betterment is its focus on tax optimization. The platform employs sophisticated algorithms to manage tax liabilities effectively. For instance, the Tax Coordination feature strategically allocates assets across different account types, including traditional and Roth IRAs, to enhance growth in a tax-efficient manner.
Moreover, the automated tax-loss harvesting feature identifies opportunities to realize losses that can offset taxable gains, freeing up additional capital for investment. During significant market volatility, such as the tariff-related fluctuations of Spring 2025, Betterment successfully harvested nearly $60 million in losses for clients, illustrating the effectiveness of this approach.
The importance of automated investing
Investing can often seem daunting amidst the distractions of everyday life. Managing a portfolio demands vigilance and commitment. By opting for automated investing with Betterment, investors gain access to tools designed to keep their investments on track.
Maintaining balance and discipline
The platform’s technology automatically rebalances portfolios, ensuring that the desired risk level is consistently maintained as market conditions change. Additionally, the glide path feature gradually reduces risk as financial goals are approached, allowing investors to focus on what matters most without the stress of continual monitoring or manual adjustments.
Research from Morningstar indicates that investors practicing dollar-cost averaging—investing fixed amounts regularly—tend to achieve notably better returns compared to those attempting to time the market. Betterment clients utilizing recurring deposits experienced nearly a 3% increase in annual returns, underscoring the benefits of a disciplined long-term investment strategy.
Maximizing your time and reducing stress
Time is a valuable asset, and automating investment strategies can save hours of manual effort. For example, rebalancing typically consumes around two hours of an investor’s time. However, the true value of Betterment’s services goes beyond time savings; it fosters confident investing. By alleviating the mental burden of portfolio management, Betterment enables clients to concentrate on other vital aspects of life.
In a financial landscape marked by uncertainties and complex market dynamics, having a partner that simplifies the investment experience is essential. Research indicates that many Betterment clients prefer to retain most of their assets in managed accounts while using self-directed options for exploration and personal interests. This dual approach allows for greater engagement with investments.
The answer is found not only in the initial asset selection but also in the ongoing management and optimization of investment portfolios. Betterment merges expert insights with advanced technology to ensure that investments remain aligned with financial aspirations.0
The answer is found not only in the initial asset selection but also in the ongoing management and optimization of investment portfolios. Betterment merges expert insights with advanced technology to ensure that investments remain aligned with financial aspirations.1
