Betterment: Affordable investment plus financial advice
Betterment serves more than 400,000 clients and is recognized by American investors as one of the most popular robo advisors at all. Betterment was founded by former banking consultant Jon Stein in Brooklyn in 2008 as the first robo-advisor in the USA. Things really got going for the US wealth manager in 2010.
Betterment initially focused primarily on young saverswho are often active online anyway and for whom a time-saving and inexpensive investment is attractive. For this target group, traditional (and expensive) asset managers have so far been of little or no relevance.
Ten years after its founding, Betterment’s customer base has changed significantly. According to the company, a significant proportion of Betterment investors are aged 50 and over. Particularly wealthy customers in the USA have now discovered the advantages of robo advisors for themselves.
Despite this change, Betterment has not forgotten its origins and is committed to being close to the customer. According to its own statements, Betterment wants to turn its customers into self-confident investors who can take their financial future into their own hands with the help of the offer. Betterment customers can use an investment app to specify the goal of their investment and thus choose, for example, between retirement financing, investing for children and real estate financing. Overall, Betterment offers up to twelve investment scenarios.
The low barriers to entry have also paved the way for the success of the US robot: for investing with Betterment no minimum deposit required. Investors looking to deposit $100,000 or more can take advantage of Betterment Premium, which includes additional investment options.
The pioneer among robo advisors is always working on innovations. For example, the US company now offers a financial planning service in addition to online wealth management. The reason: the majority of investors prefer personal advice, especially when the stock market is bumpy. The solution: investors can now at Betterment flexible consultations book like a kind of flat rate. The costs for these financial advice packages depend on the effort involved.