Betterment

Betterment

Most Popular

AI robo-advisor with goal-based investing and tax optimization

8.9/10
AI Financial Planning Tools
paid
Founded 2008

Performance Scores

8.9
Overall
9.1
Ease of Use
8.7
AI Power
8.6
Features
9.2
Value
8.4
Support

About This Tool

Betterment pioneered the robo-advisory revolution, making evidence-based investing available to anyone with $0 to start. Its AI builds globally diversified portfolios aligned to your specific goals — retirement, house purchase, emergency fund — adjusting risk automatically as goals approach. The tax coordination feature automatically locates assets across accounts to minimize tax drag, a strategy that typically saves 0.5-1% annually in after-tax returns. Betterment's socially responsible investing option builds ESG-screened portfolios with the same AI optimization. For the average investor paying 1% AUM to a human advisor, Betterment at 0.25% represents a saving that compounds to hundreds of thousands over a 30-year investment horizon.

Use Cases

  • ✓Invest for retirement with automatic risk reduction as you age
  • ✓Tax-loss harvest automatically to reduce your annual tax bill
  • ✓Build an ESG portfolio aligned with personal values
  • ✓Coordinate investments across taxable and IRA accounts to minimize taxes

Our Review

Betterment is a leading robo-advisor that uses AI to build and manage personalized investment portfolios, with automated tax-loss harvesting and goal-based planning.

Pricing

Free

Pros

  • No account minimum
  • Excellent tax optimization
  • Goal-based approach
  • Low fees

Cons

  • No individual stock selection
  • Limited to ETF portfolios

Key Features

Goal-based portfolio AI
Tax-loss harvesting
ESG options
Retirement planning
Automatic rebalancing

Replaces These Legacy Tools

Human financial advisors (1% AUM)Vanguard advisor servicesManual portfolio management

Best For

Long-term investors wanting automated, tax-efficient portfolio management

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This review is independently researched by our editorial team. If you visit Betterment through our link, we may earn a small commission at no cost to you. This helps keep our reviews free and unbiased.

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