Betterment, an automated investing platform, has now over 50,000 customers, making it the largest automatic investing company in the industry today. The company has been helping traders and investors manage their wealth more efficiently and with state of the art technology. Financial advisors too can avail Betterment’s automatic investing services to manage their client’s investments at considerably reduced prices. Betterment was established in 2010 for the sole purpose of democratizing investments tailored for both professional and amateur investors and traders alike.
Today, Betterment’s technology is used worldwide and can be accessed by millions via Betterment Institutional, a smart trading platform that equips investors and financial analysts and advisors with all the tools they need to be able to make more productive and accurate decisions on behalf of their valuable clients, presenting all the right ideas for them.
Recently, Betterment also introduced its first ‘advisor-oriented’ solution which is aimed to further expand the operations of the company. Betterment’s sole objective is to provide as many investors and traders automated investment management as they can and the software they introduced is just the thing they needed. A majority of financial and investment advisors wanted a more simplistic usage of Betterment’s powerful technology and now they have one.
By launching Betterment Institutional, there is no need for financial advisors to waste time in creating custom financial reports, engage in manually balancing and rebalance investor portfolios and efficiently supervise their business spreadsheet at the same time and instead of doing all this, through Betterment Institutional they can now spend more time with their clients.
What’s in it for the Customers?
The inclusion of Betterment Institutional doesn’t really change the way new and current customers use Betterment’s investment management technology. They will continue to use their enhanced portfolio management system to carefully and efficiently reach their savings’ goal by taking smarter investment decisions and investing in a range of diversified stocks, bonds and ETFs, all that is expected to provide you with lucrative opportunities to make a profit. Betterment is adamant on introducing a range of new and improved resources for which they plan on optimizing and develop even more efficient services.
The only effective way you can consider analyzing your savings or investments options is through two important factors: risk and reward. According to Betterment, because of the fact that all bank savings accounts are supported by FDIC insurance, they basically have 0% principle risk. For example, US Treasury Bonds carry zero risk because the option is supported by the US government. However, it is also important to consider the returns on these options are relatively low, especially if you consider inflation as well. It is in these regards that Betterment provides customers:
Better Returns
Betterment’s investment portfolio is developed to provide you the most favourable returns at each point of risk. That is because their portfolio is highly diversified as well as automated and through automated rebalancing, reduced fees and better performance you can easily expect a 4.30% increase in your return as opposed to a traditional investor.
Tax Loss Harvesting
Betterment’s tax-loss harvesting is designed to be highly systematic and embed all capital losses to reduce lower investment taxation and increase your after-tax returns.
Diversified and Customized Allocation of Customer Portfolios
It is important to understand that with Betterment, each given investment portfolio is tailor-made for customers to get favourable returns on investment. And the company’s automated framework for investment, not to mention their advice algorithm enables customers to decide whether or not they are moving on a path to reaching their investment objectives, for example their retirement fund or a safety net fund.
End-to-End Investing
Because of the fact that Betterment takes care of the entire investment process they also make sure to give you an enhanced experience. This means lightning quick cash transfers, the availability of tax forms as soon as they come out and tight security because there is no third-party exposure to risks.
Optimal Execution
Betterment works to reinvest every single cent of your money in fractional shares, ensuring zero loss of performance just because holding money. And the best part is no other automated or traditional investment platform provides this service.
All in all, it is true that Betterment indeed is a smarter automated investing service currently out there.
Chris Turner is a versatile content writer with a passion for technology, finance, Investing and trading. He writes extensively on the subjects of Trading, Investing, Bitcoin, Forex trading, investing and general finance. He is writing and providing advice, education and encouragement to budding investors and traders, on Hedge Fund and alternative investments and other emerging financial trends. He is a contributor writer for HedgeThink.com and TradersDNA.com.