In the current financial landscape, the trend towards self-directed investing is gaining momentum. A recent survey indicated that 75% of customers are actively engaging in various forms of self-investment. This statistic underscores the shifting dynamics of wealth management, as individuals seek to take control of their financial futures.
While automated tools make wealth-building easier, many investors desire the autonomy to select and manage specific assets. This insight raises an important question: how can we enhance the self-directed investing experience to align with Betterment’s core values? The solution lies in integrating our award-winning platform with an exceptional customer experience, empowering users to trade thousands of stocks and ETFs without incurring commission fees.
Experience the Betterment difference
By opting for Betterment’s self-directed investing feature, you gain access to a wider array of investment options and a consolidated view of all your financial assets. This integration allows you to manage automated portfolios alongside cash accounts and self-directed trades, all within a single platform designed for clarity and ease of use.
Understanding the investor’s motivation
Investors have unique goals and motivations that drive their decisions. We continuously gather feedback to better understand these motivations. For some, investing represents an opportunity to support companies that reflect their values, while others enjoy actively engaging with the financial markets. Additionally, many prefer the sense of control that comes from managing their own portfolios. With Betterment’s self-directed investing, you can enjoy this flexibility without sacrificing the advantages of a comprehensive platform.
Mitigating tax challenges in self-directed investing
It is important to recognize that self-directed investing can lead to unexpected tax consequences, particularly with frequent trading. Many users on other platforms struggle with the complexities of tax implications related to their trading activities. Our survey revealed that a primary concern for investors using other apps is navigating these tax responsibilities.
Introducing the tax impact preview
At Betterment, we have addressed this issue directly. Our platform features a tax impact preview that provides insights before selling a stock or ETF. This preview outlines how the transaction may affect your overall tax situation and highlights potential wash sales—a situation where selling a security at a loss and repurchasing the same or similar asset within 30 days can disallow the loss deduction. With our tax impact preview, there are no hidden surprises; you can make informed decisions about your trades.
This feature enables you to navigate the often-complex investing landscape with confidence. By understanding the tax consequences of your actions, you can optimize your investment strategy while minimizing unexpected financial liabilities.
Getting started with self-directed investing
The appeal of self-directed investing with Betterment lies in the level of choice it offers. The first step is to define what investing means to you and how you wish to approach it. With our platform, you can explore your options, set your goals, and tailor your investment strategy accordingly.
Are you ready to embark on your self-directed investing journey? With Betterment, you can seamlessly integrate this approach into your financial life, while enjoying the tools and support necessary for success. Discover a new avenue for wealth management today!