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Paladin Research Report for: Betterment

Betterment

Paladin Transparency Index (PTI)

5.0

Data compiled from company, regulatory agency (SEC, FINRA), and third party websites. Did Not Disclose (DND) means Paladin could not find this information on the Internet. Advisory firms can submit updated information to Paladin Research. Paladin will update the OFA report if it can validate the information.

  • Type of Financial Firm: Online Financial Advisor (OFA)
  • URL: www.betterment.com
  • Year Established: 2007
  • Headquarters Location: New York, NY
  • Most Recent Update: 8/11/15

Types of Financial Services

  • Investment advice and services, planning advice and services

Registration & Licensing

  • SEC: 801-70171
  • CRD: 149117
  • IARD: 149117
  • Disclosures (SEC.gov): No disclosures

Contact Information

  • Email: support@betterment.com
  • Telephone: 888-428-9482
  • Human Contact: Yes
  • Type of Contact: Email, phone, live chat

Minimums

  • Minimum Asset Requirement: None
  • Minimum Fee: None
  • Free Offer(s): None

Combined Fees

  • Service Initiation Fees: None
  • Annual Fee: 0.15% to 0.35%
  • Annual Third Party Fee(s): Fees are described in fund prospectuses
  • Examples of Third Parties: ETF's, Index Funds, Mutual Funds, Broker/Dealers

Scope of Business

  • Number of Users: 75,000 (ADV; as of 8/11/15)
  • Assets (Paid): $ 2,603,268,353 (ADV; as of 8/11/15)
  • Assets (Free): None

Investment Services

  • Number of Portfolios: 1 portfolio, 12 different asset classes
  • Types of Investments: ETF's
  • Investment Managers: iShares, Vanguard

Additional Investment Services

  • Data Aggregation Services: No
  • Tax Loss Harvesting: Yes
  • Rebalancing: Yes
  • Account Liquidity: 4-5 days
  • Investor Discretion: DND

Additional Information

  • Clearing & Custody: Betterment Securities
  • Mobile Application: Yes

Paladin Transparency Rating (PTI)

  • 5.0

Interview

  • None

Comments

  • For accounts under $10,000 we provide 2 pricing options. For those who have automated deposits turned on for at least $100/month, the rate is just 0.35%. If you choose not to automate your savings, the fee is still a low flat rate of just $3/month. RetireGuide, which Betterment calls an “advice engine,” builds on top of the retirement income-planning tool it launched last year. Using a person’s Betterment portfolio, income, accounts at other financial institutions and spouse’s holdings, RetireGuide determines how much the investor should expect to spend annually during retirement, how they need to save to reach that goal, and whether or not they are on track. Customers with an account balance of $500k or greater can schedule a one-time personal consultation with one of our financial planning experts.

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