Table of Contents
Betterment is a popular robo-advisor platform that offers a range of features to help users manage their investments more effectively. However, some features may go unnoticed or underutilized. Understanding and leveraging these tools can enhance your investment experience and improve your financial outcomes.
Automatic Rebalancing
Betterment automatically rebalances your portfolio to maintain your desired asset allocation. This ensures your investments stay aligned with your risk tolerance without manual intervention. You can customize rebalancing preferences in your account settings to suit your needs.
Tax-Loss Harvesting
Tax-loss harvesting is a feature that helps reduce your tax bill by selling investments at a loss to offset gains elsewhere. Betterment performs this process automatically, optimizing your tax efficiency throughout the year. It is especially beneficial for taxable accounts.
Goal-Based Investing
Betterment allows you to set specific financial goals, such as buying a house or funding education. The platform then creates tailored investment plans to help you reach these objectives. Regular progress tracking keeps you informed about your advancement toward each goal.
Additional Features
- Smart Deposit: Automate deposits to grow your investments consistently.
- Retirement Planning: Access tools to plan for retirement and optimize your contributions.
- Socially Responsible Investing: Choose portfolios aligned with your values.