(Continued from Part 1)
‘Going with a place like Betterment/Wealthfront, who will just put your money into Vanguard anyway, will cost hundreds of thousands of dollars over your lifetime. There’s no need for it.”
Another commenter stated.
“Betterment does charge an additional fee that Sharebuilder doesn’t. In exchange, you get slick sliders and pretty graphics. I really have nothing against Betterment as long as the user understands that they’re not getting anything they couldn’t get elsewhere; the packaging’s just prettier. And it comes at a price.”
Most of those contributing were those who’d personally invested in Betterment before and now wished that they’d been able to “hit the ground running” – that is, they would have avoided the stepping stone Betterment provides and gone straight to a different Robo Advisor if they’d had more information.Having said that, nobody had been “stung” by Betterment – the service is well reviewed as being user-friendly and several users pointed out the benefits to the investor of not having to look at one’s money at all.Something that has been taken well by the industry.
One user commented.
“”I do believe that it is quite possible Betterment’s set it and forget it approach will allow many investors not make behavioural mistakes with their portfolio because they don’t have to “do” anything at all to maintain a consistent approach to the market.””
This is certainly a big advantage of Betterment’s service. Recent reports have actually indicated that those who have too much control over their money, and who interfere a lot with their stocks, have actually performed worse in recent years than those who did nothing – so “laziness” may actually be a wise business move.Moreover, you also save on the brokerage.
Also, Investors need to understand, the entire industry is still relatively new.We haven’t seen the performance of Robo-advisors during market turmoils. The real tests will come when we witness such events again. The chances that Robo-advisors might outperform in such an event remains anybody’s guess.But if you do have significant amounts of money to invest, little things should and do make a difference. It’s worth being aware of exactly what’s out there. Specifically the customer opinion that what Betterment charges for simplicity doesn’t match up fairly with what it’s actually providing. This is something that users need to decide for themselves.If what you are looking for is an easy solution to money handling, which will take care of your investments in ETF funds and has an intuitive website, then Betterment might be the solution for you. But there are always other options out there.Take an informed call.
We will continue our series of Robo Advisor web insights.We hope it helps you make an informed judgement.Meanwhile please do check our reviews on Wise Banyan and Wealthfront.
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