Betterment's Performance | Explore Historical and Projected Returns (2024)

FAQs

Betterment's Performance | Explore Historical and Projected Returns? ›

Betterment Historical Performance. Investing in a Betterment 70% stock portfolio since the end of Jan 2004 through the end of Jun 2020 would have produced a cumulative return of +172.9%, which is the same as an average annual return of +6.3%.

The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 5.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of April 2, 2024.

Over the last decade, customers who automated their deposits earned 6% higher annual returns than those who did not. 10-year annualized return based on Betterment internal calculations for the Core portfolio. See more in disclosures.

If your goal is short-term, we'll recommend a more conservative portfolio with lower expected returns with less volatility, and if your goal is longer term, we'll likely recommend a more aggressive portfolio with higher expected long-term returns with higher volatility.

Yes, Betterment is legit. It is registered and regulated by the SEC and FINRA, like traditional investment advisors and brokers. Betterment also invests in considerable safety measures for its users. Betterment has over 850,000 users and $45 billion in assets under management.

To add another layer of protection, your Betterment securities are insured by the Securities Investor Protection Corporation (SIPC). This insurance covers up to $500,000 per customer, including a $250,000 limit for cash claims.

Retirement income doesn't have to be a guessing game

Betterment helps you manage risk in your portfolio with the goal of providing reliable income from your portfolio.

While U.S. investors know when their portfolio is underperforming the S&P 500, they don't know when they're underperforming international indices. The Betterment Portfolio is not designed to beat the market, which is difficult to do with any certainty and involves a lot of risk.

Betterment and Vanguard both have automated investing, but Vanguard is the stronger choice for more types of investments. With Vanguard, you get access to both self-directed accounts and automated accounts.

Is Robinhood or Betterment better? It depends on what you're looking for. Robinhood offers individual stock picking, options trading, and cheaper crypto trades. Betterment offers robo-advisory services that manage your investments.

What is the Betterment controversy? ›

Betterment's alleged failures were related to “tax-loss harvesting,” a technique common among financial planners whereby taxes on investment profits are reduced or eliminated by offsetting them with losses from other investments.

Our checking services are provided by nbkc bank. If you already have funds at nbkc bank or another nbkc bank partner separately from what you hold through Betterment Checking, you will be eligible for up to $250,000 per depositor, per FDIC-insured bank, per ownership category.

We prefer Betterment over Acorns if you want more portfolio options and are looking to consistently invest money with recurring deposits or through larger lump-sum deposits. It's also superior to Acorns if you want more ESG-friendly portfolios.

Up to 5.50% annual percentage yield** on Betterment Cash Reserve for new account owners for three months once they fund their account (with a qualifying deposit within 14 days of opening the account); 5.00% after promotion ends and for current customers. No monthly fees or minimum balance.

Many consider a conservative rate of return in retirement 10% or less because of historical returns. Here's what you need to know. Need help planning for retirement? A financial advisor can help you manage your portfolio, figure out how much income you'll need and assist in other important decisions.

A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.

A good return on investment is generally considered to be about 7% per year, which is also the average annual return of the S&P 500, adjusting for inflation.