Betterment Roth IRA
- Categories
- Finance
Robo-advisor with automated rebalancing, tax-loss harvesting, and goal-based investing. 0.25%/yr AUM fee.
B+Best Robo-Advisor
Betterment charges 0.25% annually and handles portfolio construction, rebalancing, and tax-loss harvesting automatically using a diversified ETF portfolio. No investment minimum means you can start with any dollar amount. The onboarding asks your goal, timeline, and risk tolerance, then builds and maintains a globally diversified portfolio without any further decisions required. On a $50,000 portfolio, the 0.25% fee equals $125/year — worth it if automation keeps you from behavioral mistakes that typically cost far more.
Pros
- Full portfolio automation — contributions, rebalancing, and tax-loss harvesting handled automatically
- No account minimum and intuitive goal-based interface
- Socially responsible investing (SRI) portfolio option available
Cons
- 0.25%/year fee is $250/year on $100,000 — significant vs. $0 at self-directed brokers
- No individual stock or bond selection — ETF-only portfolio
Related articles
This article contains affiliate links.