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Future-Proof Your Finances: How Betterment Helps Retail Investors Build Wealth

Investing for a better financial future can seem daunting at first, especially if you are not sure where to start. However, with the help of Betterment, a leading provider of financial services, retail investors can make their way to financial success with ease.

In this article, we will be breaking down the features of Betterment that help investors do just that. Betterment’s Financial Services for Retail Investors

Betterment offers a range of financial services that cater to different financial goals.

Whether you are looking to invest for your retirement, cash management, or general investment purposes, Betterment has got you covered.

Their investment plans come in two options Digital plan and Premium plan.

The Digital plan offers essential investment features, financial advice, and guidance, all at a low cost. On the other hand, the Premium plan offers a customized financial plan, financial guidance, and access to expert certified financial planners at a higher fee.

Betterment’s range of services does not stop there. They offer cash management services that allow you to optimize your banking experience, without compromising on returns.

Betterment also offers a Betterment for Business service. It provides retirement plans to employees of companies using Betterment.

It can work for contractors and freelancers too!

Betterment’s Digital Plan and Premium Plan Features

The Digital Plan offers investment features such as personalized advice and recommendations based on your investment goals and risk tolerance, as well as a globally diversified portfolio of low-cost ETFs. The best part is that there are no minimum investment requirements, and the fees are a low percentage of your assets under management. For clients who want a more personalized financial experience, Betterment’s Premium Plan offers both investment and financial planning features.

The financial planning features give users access to certified financial planners who take the time to understand their unique financial situations and provide customized financial advice. Betterment’s Premium Plan fees are a percentage of assets under management, and it comes with a minimum balance requirement of $100,000.

Betterment positions itself as an investor-friendly firm that does not hit its clients with hidden fees or surprise charges. They work with a network of partner banks that offer no-fee ATM access worldwide.

Moreover, there are no debit card transaction fees, no referral fees and no hidden fees on portfolio ETFs.

Betterment’s IRA and 401(k) ‘Invest, Spend, Save’ Products

Betterment’s Invest plan accounts come with a suite of value-added features. They include features such as automatic rebalancing, tax diversification features, tax-loss harvesting.

With Betterment’s savings feature, your cash savings get optimized. They offer a checking account with no minimum balance requirements, ATM fees, or overdraft fees.

The Invest plan accounts offer investment flexibility that also works with Retirement and Traditional IRAs. The 401(k) plans for employers work by providing automated and custom retirement plans with low-cost ETFs and tax-deferred investments. Invest plan accounts also come with a debit card and managed discretionary investment account, not to mention contactless VISA payments.

You also get unlimited support and daily money management tools. Betterment’s Custom Retirement Plans and Low-Cost ETF Portfolio Optimization

Betterment offers businesses and their employees custom retirement plans that are optimized with low-cost ETFs and tax-saving features.

Automatic investment contributions make the retirement planning process more efficient. The IRA and 401(k) plans portfolio optimization feature utilizes Betterment’s proprietary technology to customize the portfolio to your investment goals and risk tolerance.

The low costs on Betterment’s ETFs offer better returns than traditional mutual funds while keeping the expenses low. Betterment’s website and mobile applications also help to facilitate investment and portfolio management.

The mobile app allows users to access their accounts on the go, and they have a user-friendly web interface ensuring easy usability and an excellent customer experience.


In conclusion, Betterment is an excellent option for anyone looking to invest for their future without necessarily having to break the bank. Their various investment plans cater to different financial goals and budgets.

They provide a range of value-added services that cater to automatic and mobile financial management available for all clients. The combination of low fees, expert advice, and automated investment strategies make Betterment a go-to choice for individuals seeking to take charge of their financial future.

Betterment is a leader in the investment and financial management industry, providing stellar services to retail investors all over the world. This article will explore the history of Betterment, how it started, and how it has grown into the company it is today.

Additionally, it will discuss revenue sources and funding, showing how Betterment has maintained its position as a trailblazer in the industry.

The Founding of Betterment

Betterment was founded by Jon Stein in 2008. Stein had worked for various traditional investment firms and became frustrated with the poor user interfaces and high account maintenance fees.

His frustration with managing money led him to develop a platform that made the process more efficient and affordable. Stein wanted to create a solution that appealed to the younger, tech-savvy generation of investors who were often underserved by traditional financial institutions.

The Development of Betterment

Initially, Betterment’s working type was as a robo-advisor, which used algorithms to create robust investment portfolios. Stein consulted with his roommate Sean Owen, a data scientist, to build the proprietary software.

The duo saw a need for an experienced securities attorney to steer the company through the regulatory landscape. Finding the right securities attorney, Jon Stein, and Sean Owen went on to pitch Betterment to the Securities and Exchange Commission (SEC) and got registered as a Registered Investment Advisor.

During the registration process with the SEC, Stein met Ryan O’Sullivan, who had experience managing institutional investment portfolios. O’Sullivan joined the company as a co-founder, bringing the expertise that enabled the company to scale more quickly.

The Growth of Betterment into a Leading Financial Services Company

Betterment officially incorporated in 2010, with Stein, Owen, and O’Sullivan as the co-founders. Their product caught the attention of the industry and investors, launching at TechCrunch Disrupt in 2010.

The original investment was $300,000 from friends and family but quickly scaled to $3M in Series A funding in 2010 from Bessemer Venture Partners and Anthemis Group. Betterment’s user base grew substantially, with assets under management (AUM) crossing the $500M mark in 2013.

The company’s growth in users has led to product expansion, responding to the feedback provided by users. For instance, the Betterment Advisor Network product allows financial advisors to use the company’s technology to manage their clients’ accounts.

Betterment’s User Base and Account Size

Betterment’s user base has grown since its launch, reaching over half a million users by 2018. The average account size is around $27,000, and the assets under management are over $22.5 Billion.

Its AUM are in contrast with the greater than $17 billion Wealthfront holds, which also works as a robo-advisor. By 2021, the company has over 500 employees, serving retail investors in over 190 countries.

Revenue Sources

Betterment’s revenue sources come from several services that the company offers. The Digital and Premium plans are the core investment products that offer personalized investment portfolios based on users’ goals and risk tolerance.

The advisory package service offers more customized financial planning solutions. Betterment for Business is a platform that offers retirement plans for employers, while Betterment for Advisors provides back-end technology and investment management solutions to financial advisors.

Moreover, Betterment recently introduced Cash Reserve, an FDIC-insured high-yield cash savings account, aimed at giving clients a safe place for their liquid funds. The company’s checking account offers no ATM fees worldwide and even cell phone insurance.

Funding and Valuation

Betterment maintains its position as a pioneer in the industry, thanks to its strategic funding and valuation. The company has received funding from several venture capital firms, including Bessemer Venture Partners and Anthemis Group, which contributed $3M Series A funding the same year as the company launched.

In 2017, the company received $70M in Series E funding, which brought its valuation to over $800M. Betterment crossed the unicorn status at around $1 Billion in valuation.

The company continues to be in a strong financial position, contributing to its profitability and continued growth. Betterment’s revenue continues to grow, driven by a steady stream of net inflows from investors.


Betterment has taken a modern approach to investing that has shaken up traditional financial management paradigms. The company’s focus on user experience, low fees, and automation has helped make investing available to investors of all levels.

Its asset growth, user base, and revenue sources prove the business model’s market viability, leading to attractive funding valuations. Betterment continues to push industry boundaries by focusing on developing new features and services that help users meet their financial goals faster.

These factors have made Betterment a financial management industry trailblazer. In conclusion, Betterment revolutionized the investing space with its modern, efficient, low-fee, and user-friendly investment platform.

The company’s history, development, and growth were shaped by its focus on user experience, expert advisory, and strong financial fundamentals. Its revenue streams, funding, valuation, and profitability status have kept it on the forefront of the industry with a distinctive competitive edge.

With a large user base and a range of investment products and services to meet individuals’ financial needs, Betterment should be a top consideration for anyone looking to invest for the future.

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