Betterment

Betterment is a consumer-focused automated investing platform targeting retail investors and independent RIAs, not family offices or private wealth principals directly. Its core offering centers on tax-optimized, automated portfolio management using low-cost ETFs, with additional products covering high-yield cash accounts, IRAs, and 401(k) plan administration for small businesses.

The platform's tax-loss harvesting function is its most technically differentiated feature. Trading algorithms continuously scan portfolios for harvesting opportunities, and Betterment reports that nearly 70% of customers using tax-loss harvesting covered their taxable advisory fees through estimated tax savings. The Core portfolio has delivered approximately 10.1% composite annual time-weighted returns over 10 years as of December 31, 2025, net of fees.

For registered investment advisors, Betterment operates a separate business unit called Betterment Advisor Solutions, launched in 2014 and renamed in 2024, which positions itself as a custodial and technology platform for independent RIAs. Key capabilities include:

• Automated portfolio management across cash, investing, and 401(k) plans
• Tax-loss harvesting with algorithm-driven optimization
• IRA and retirement account management (Traditional, Roth, SEP)
• High-yield cash reserve accounts with up to $4 million in FDIC insurance for joint accounts
• Self-directed investing with fractional shares and no commissions

Betterment manages over $65 billion for more than one million customers. For a family office evaluating this vendor, the platform is most relevant as a potential tool for principals seeking low-cost automated exposure for liquid assets, or for advisory firms serving mass-affluent clients. It is not designed for the complex multi-entity structures, alternative asset tracking, consolidated reporting, or bespoke operational requirements typical of single or multi-family offices. Pricing for the Premium plan is 0.40% annually on invested balances, requiring a minimum of $100,000.

• Automated portfolio management using expert-built ETF portfolios
• Tax-loss harvesting across taxable accounts
• IRA and retirement account management
• High-yield cash account management
• 401(k) plan administration and design for small businesses
• Self-directed stock and ETF investing with fractional shares

• Automated rebalancing and dividend reinvestment
• Tax-loss harvesting with continuous algorithmic monitoring
• High-yield Cash Reserve account with 3.25% variable APY
• FDIC insurance up to $4 million for joint cash reserve accounts
• Traditional, Roth, and SEP IRA accounts
• Self-directed investing with fractional shares and no commissions
• Retirement planning tools with personalized savings recommendations
• Profit sharing and 401(k) plan design consulting
• Nondiscrimination testing for employer retirement plans
• 3(38) fiduciary investment management for 401(k) plans

Built for Private Wealth Owners / Principals, Advisors / Wealth Advisors (RIA).

Customer support team available five days per week; licensed advisor phone access available on Premium plan for an additional fee