I started with $100,000*, and am allowing them to suck in and auto-invest another $1000 from my bank account every month as well as reinvest all dividends, to simulate a pretty typical scenario. 1. since taxes are a huge hit 2. you’re likely overpaying in taxes relative to the benefits you receive. Think .25% of even .15% (if you are lucky enough to qualify for their lowest rate) is small? Betterment has 10 ETFs, including municipal bonds for taxable accounts and stock ETFs that have a value tilt (like VTV and VOE). After reading this blog and doing my own research I get wrapped up in the back and forth comparisons between accounts with Betterment vs Wealthfront vs Vanguard etc. IIRC, the market made approx. DFA US TARGET VALUE (small cap) 8.55% 0.37% TSP life cycle fund is performing well and has a mix of us and international stocks/bonds. I’ve seen arguments made against TLH over the long term, and I feel like I’ve never seen a good counterpoint made in response. She said taxes are paid when the stock comes to you. Not adjusting for inflation, I simply checked the growth over the last 35 years: If you adjust for inflation, then yes it would be closer to $230k in 2015 dollars. 8.5/10. No need to rebalance this year! With regards to the VXUS…they are available as Investor or Admiral shares at Vanguard but I don’t see the dividend info on Vanguard’s or Nasdaq’s site? You’ll be dollar-cost-averaging in at different value points this way. Investment Minimum: You don’t need to meet any threshold to invest in Vanguard’s VTI … My hesitation with selling shares as we are able to is that we’re currently each making > 100000 so I’m thinking the tax hit we’d take from the gains will impact is more now than they will later when we are FIRE and our income is lower. Morningstar categorizes RPV as Mid Cap fund, and gives it an appropriate Mid Cap benchmark: So comparing this to the S&P 500, a Large Blend fund, doesn’t make sense. OK, maybe we could add a second word to that: Efficiency. Thanks. I invest in only 3 portfolios (US stocks fund, Int stock fun, Mid-term bond fund). Do scan this thread for all those golden nuggets. It is inevitable that you will someday reach this point, for the simple reason that the fees are both *percentage based* (so they get higher as your account grows), and *forever* (each and every year, for the rest of your life), while the tax loss harvesting benefit is *temporary* (only really benefits new deposits, you’ll have to stop depositing eventually). Compare the performance & portfolios of the top robo-advisors including Betterment, Wealthfront, WiseBanyan and Acorns. Here’s a link for many sample portfolios. I actually called Betterment and asked them about the “fees on top of fees” and they said that was correct. And that value is the trigger to determine whether or not an investor should rebalance. Wondering if direct indexing will make up for, or exceed, the .10 extra I’d pay if I went with Wealthfront. I also max out my Roth IRA, most of which is invested in Vanguard’s 2045 and 2050 target date funds. What is you take? Betterment’s 90/10 portfolio contains half US Stocks, and half International Stocks, so I’m not sure what value we get from comparing it to a 100% US Stock portfolio, and a 100% International Stock portfolio. I have been really curious about this topic as well! Robo advisers…lmaof!! I have money in it to play with, but haven’t committed it to anything yet. That’s because in the Betterment target portfolio VTI … Does the .15% fee Betterment charges (or .25, or whatever, depending on investment amount) include the fees Vanguard charges them for the actual funds you invest in? Pick an allocation, buy a few super low cost funds (one for US stocks, one for global stocks, one for bonds), set up your direct deposit and automatically buy-into the funds you choose…then get on with the enjoying the rest of your life. If I am not mistaken, they can also sell investments at optimal times too to minmize taxes but you need to call them for details. At least the $0.74 disallowed loss will probably round down to a $0 impact on MMM’s tax benefit. They all hope you will spend more while you are there. Learning this as a hobby for me has seriously changed my life and has been more worthwhile that college, I do not joke. This set of holdings is one of three that offers exposure to value stocks of certain sizes. Not recommended without visiting your very special CPA. Betterment seems better suited for money that you are investing after-tax because they can do fancy tax-loss harvesting that can save you some money at tax time. I noted that you have invested 100k. I don’t see the reason (at least for me) why I want to pay an extra 0.15% on top of the Vanguard funds I will choose anyway. It is cheap, you can download it instantly on your Kindle (or computer) and has very very good and simple advice for how to build your own balanced portfolio using low cost funds from either: Fidelity, Vanguard or T.Rowe Price. But of course avoiding higher fees is the best. FINAL WINNER: Betterment. Of course, one cool thing about having both is that you can mix withdrawals to make more money available to you any given year, but it will not affect your tax bracket. Now let’s look at RPV. Nevertheless, I didn’t contribute so much, total ~4K in 4 months. The assumption of 15% is slightly biased against Betterment, since for some people the cap gains rate is higher. Totals $1.645 per share @ $49.08 cost = 3.35%, assuming the dividend stays about the same, which is almost certainly unlikely…. How’s it going for you? You might want to double check. But let’s also be REAL and agree that when we invest in a 401K or IRA, we are (effectively) locking that money way (due to the high penalty of withdrawing early). In the email to Jon below I asked him to consider a few advantages that WB seems to offer, primarily additional insurance provided by a 3rd party and a lower cost fee tier for larger investors. Thanks for your perspective! I Just happened to find this from Vanguard website…..it may be very useful after you retire. Betterment was founded by Jon Stein and Eli Broverman in 2008. This would be an invalid comparison. I would like to move my money from my current broker to a Vanguard index your fund. Remember, investing is a “game of inches” and paying out a guaranteed fee for the promise of greater gain gives up those inches. So in my view, Robo-advisors are a good way to invest for people who want things to run on autopilot. Yes, it is in my interests to lower the amount of taxes I owe, and I wanted to open a RothIRA account before the previous tax year ended, but for better or worse, when it comes to making financial information, I like gathering information first and I don’t always act on it right away. I don’t completely understand if at this point if this would benefit me. So if you like that allocation you could do this too: 54% T. Rowe Price Equity Index Trust http://www.youneedabudget.com/blog/2015/how-to-diy-your-own-betterment-portfolio-fancy-spreadsheet-included/. It can be a little overwhelming. Once you have an account value equal to about 25 times your annual spending, the dividends plus selling off a tiny fraction of the actual shares occasionally will be enough to pay for all your expenses – for life. Value stocks are those that trade at a lower price relative to their dividends, earnings and/or sales than the average stock. I wouldn’t plan my portfolio around tax avoidance though and don’t be afraid of capital gains…it means you are making money :-). See historical returns data and ETF breakdown of our portfolios on each … As a soon to be household acct we will have 113K with Betterment to take advantage of the Best tier. Oftentimes brokers will charge to buy or sell mutual funds and I don’t trust brokers that pay you to transfer money to them (where does that money come from? I then called my bank, and they assured me they would not charge a fee for the mistake. This has been the case for every single year that the ETFs in Betterment’s portfolio have been around. TD Ameritrade, for example, will give you $300. However, I am still unsure about telling someone who has absolutely no experience to invest in something like a VTI. Not that I didn’t consider Vanguard, but I did not have enough for a minimum requirement to start with Vanguard and anyone can start a Betterment account even with $0 balance, which I think it’s a good thing for any young person who wants a safe start out and have a feel in this investing game for whatever amount they can afford. For details on wash sales and market discount, see Schedule Do the other services (Wisebanyan, Schwab…) also do Tax Loss Harvesting? While stocks of good value and appropriate size exist in other geographic markets, Betterment expresses these portfolio tilts only in the U.S. to maintain low costs. This will require about 5-10 minutes of maintenance from you every 1-3 years. If the answer is no, I don’t have time for this crap, then open an account at Vanguard. and keep reading MMM, as it is all about solid advice. – Fidelity Diversified International … Thousands of dollars? How Betterment calculates "better returns". If you admit to having “little investment knowledge” why are you playing around with Small-Cap Growth? What happens in capital gains rates increase? VGIT 11.7 US Treasuries Investment companies profit by convincing you that investing is hard and complex. Great job on the savings so far, keep that up. Short answer, no don’t sell. There are 508 stocks in the index, … Selling some of your stuff to lock in a tax-deductible loss, while buying the same stuff through other funds so you remain fully invested. They also have Target Retirement funds that allocate the funds for you in a single low-fee fund. Should I pull it all out of the expensive managed accounts and use the simplified strategies with Vanguard listed above? I also hate the idea of my money being locked; therefore, I as well had only contributed up to my employer’s match. Most years a rebalance wasn’t necessary. I wonder what it reinvested into, VWO or something similar. Even in the best possible case, i.e., had we held our Fidelity equity index portfolio in VTI, Betterment liquidates 83.8% of it to buy other ETFs that fit their target portfolio. Am I going to do it? Betterment is a decent option as well as they make it easy. This set of holdings offers exposure to a broad collection of stocks from emerging markets, such as China, Taiwan, India, Brazil, Russia, Thailand, and South Africa, among others. But with an IRA you will have more choice on where you open your account. I held entirely too long to see if the LTH would make up the difference. I understand the behavioral factor, which is why I point complete newbies towards setting up automatic deductions directly to a LifeStrategy fund. MMM, what do you think of Wealthfront? When I called Betterment, they assured me the transfer would be null and void once it became obvious that I did not have $300k in that particular (or any) bank account. We do have to hold for a minimum of 1 year. I’m in my mid 20s and just learning about investing and saving. I don’t want to get screwed with management fees that will add up over the next 40+ years. As you can see, the single Vanguard fund blows the other two out of the water after only a few years, no contest. If you are on Vanguard’s website, simply typing the name of the fund (not the ticker) into the search bar will bring up all variants of it. LQD 13.1 US Corporate Investment Grade Bonds My saving was depleted due to medical issues. It might be a good option. And is it self advised or aided accounts? Question for you, have you ever written an article about purchasing stock options from an employer? Thanks! I also don’t want the allocation to switch automatically more towards bonds as I get older, which I think the Life strategy funds did when I last read about them(?). For 2 people that’s $11000 each year. If you want to add some Emerging Markets, a broader bond mix (to include TIPS and Corp Bonds) and some REITs….then perhaps you will have something closer to .15-20% expenses…but .58% is a ton. That’s a no-brainer that will save you between 1-2% a year (depending what the 401K management fee is). If you don’t have enough for even the investor class, you could buy the ETF that tracks the same index as the funds however you can’t convert the ETF into the fund version later. I’m in my mid 20s and very new to the trading world. I’ve been reading MMM off and on for a while now and I’m really enjoying this thread and it’s motivated me to finally look up the many different places that I have my money invested and at the fees that are eating away at my accounts. Try Acorns Now! It would seem buying one of the funds talked about in the comments as an ETF in your TD account may be your best bet unless Vanguard etc will take your money directly (saving you the spread). Did you ever end up finding what you needed and choosing? I will pass your feedback to our customer experience team.Please don’t hesitate to contact us again, if you have any questions or concerns. Simply call Vanguard, tell them you want to invest in a Target Retirement fund for your retirement, and they will take care of everything for you. Doesn’t matter when you sell, or “harvest losses”. U.S. stocks tend to correlate with other developed markets, but by purchasing these components separately, Betterment can more effectively control attributes of a given portfolio, such as risks, returns, and taxes. Welcome to your first two lessons on investing: One of the features of Betterment is that their computers spend all day looking at the stock market while you are off doing other things. It’s not exactly a fee, so they can get away with saying no fee. You’re just fine (and honestly probably better off) just buying anytime. I’m sorry to hear that you’ve had a negative experience with us. Whether you use a traditional IRA or a Roth IRA depends partly on where you are in your career (and tax bracket). 0.35% for balances under $10k (so the fee maxes out at $3/month for $9999 balance) I find a value tilt to be utter crap, meant to sell people who don’t know any better on a more expensive fund that “beats the market”. Those spreads can add up to very significant differences over time. Betterment was so much lower over the same 1 year time period. U.S. Short-Term Treasury Bonds are issued by the U.S. Treasury with short maturity terms between one month and one year, offering extremely low risk exposure. When I do the math on an extra annual expense of .25 for the service, on top of the more expensive ratios for regular Investor-class ETFs, compared to the Admiral shares I have in my mix, that is a pretty substantial amount of cash going out the door every year. The Vanguard fund VTI tracks the majority of US stocks. After all, if you wouldn’t BUY your company’s shares with your own money, should you keep them once they are handed to you? I’m not an expert in this, but from my reading of the tax books it looks like, Yes, tax-harvesting basically doesn’t matter in an IRA. The LifeStrategy are actually a combination of 4 “Total X Market Index” funds. Does not Betterment itself choose these sell dates? it just makes a lot of sense to me. I have not heard back from him. You say that I “will likely see no more tax loss harvesting on that same invested money.” I assume you mean that for those particular lots of securities, it’s unlikely that the price will drop back below my new cost basis (as lowered by a harvested loss). Or would I be almost be better off using my 2015 contribution for tax free growth in the Roth IRA? 27% Vanguard Ttl Int Stock Ind ADM (fees 0.14%) Hi Tyler – you only need $2000 to start with Vanguard, or possibly even less if you just get a “Vanguard Brokerage” account and buy the ETF version of their index funds. I buy my Vanguard funds directly from Vanguard.com. He was in finance and I was fortunate enough to be left with all our retirement accounts (around 190k) and a few life insurance policies (around 370k). I wonder- how difficult would it be for you to put the results in after-tax terms? My son is going to go to college in 9 years. My boyfriend and I each have separate accounts on betterment. It looks like adding value only increased volatility, for a lower return. Betterment was so tempting since their interface is slick and it comes highly recommended from so many bloggers I follow. RTM – Value Stocks vs. Growth Stocks), and shows that while the theoretical Fama-French portfolio exhibits a dramatic outperformance, the mutual fund performance of the strategy actually underperformed the market. As far as asset classes and equities are concerned both VTI and VTSAX allow investors to put their money into the same stocks. Good Luck with the IRA. I’ve spent the last hour and a half reading this very interesting and informative blog but did’t see one post that alluded to my situation…a 73 year old mostly retired guy(my wife has a good job) with a $70K portfolio with Fidelity consisting of 70% dividend paying stocks, 20% bond mutual funds and 10% cash which has yielded about 11% return the last few years. Dear MMM, The underlying bonds are issued by state and regional governments to finance capital expenditures, such as infrastructure spending. High-Yield Corporate bonds generally offer attractive yields and opportunity for capital appreciation, but also involve higher risk than U.S. Investment-Grade Corporate Bonds. It is a great option you you are young and in good health….still got extra money start IRA for your spouse and max out her 401 k and now you are almost tax free…Watch out for your open season…I have Aetna HDHP Plan. U.S. High Quality Bonds are still subject to interest rate risk. 0 maintenance required. I just opened a betterment account, it does seem the best option, especially for someone like me who doesn’t have a lot of starting capital, has just about no idea what they’re doing, and doesn’t want to risk too much. I think you should max out any 401 k 0r 403 b and then invest in vanguard IRA..[ you don’t have benefit of TLH for IRA] The ER for those accounts [401] may be heigh but you are being benefit of tax savings. I had to jump out. Or should I consider using WiseBanyan or Betterment instead until I have built up enough funds to put in something like VTSAX more permanently? If you are using Betterment for an IRA rather than a taxable account, there is no such thing as Tax Loss Harvesting. Interesting article about just that point here: http://www.vox.com/2016/5/24/11721298/charles-schwab-intelligent-portfolio. Meaning, say you want to buy a house. Thanks for reading! When I complained over the phone, I basically got a shrug and was told that everyone else thinks they provide excellent customer service. Thanks for the correction information. For example: Even with the caveats above, it is a cool enough feature (and profitable for many) that I have enabled it so I’ll be able to report the results on this page. BUT, “I contributed towards the company’s 401k and have around 16k in the account which is 100% put towards Vanguards 2050 Retirement Fund”. No need to even login to your account anymore, unless you want to change the $2,000 auto-deposit. If you’d really like to take control, you can invest directly into the same funds used in the Target Retirement and LifeStrategy options above, without letting them do it for you. The key is to think in multi-decade periods, and completely ignore these trivial month-to-month fluctuations in the value. Our secondary ETFs, SCHF and IEFA, are highly correlated with VEA. Sorry if this is obvious advice, but I’ll often see comments from people along the lines of “I’m new to investing – which stocks should I buy?” who haven’t yet taken advantage of retirement accounts. This set of holdings offers broad exposure to stocks in the U.S. Market. I think TLH gains are overblown, and over time, the additional .15% fee betterment charges (for over $500K invested) will grow to be a massive fee over 10-20 years. Thanks for allowing me to clarify. "When you open your Vanguard Brokerage Account, you'll initially need to add at least $3,000 to your settlement fund. From there, your choice to DIY at Vanguard or hire Betterment or whatever. Does the tax loss harvesting complicate things a lot for tax purposes? The safest place is in your bank and you can earn a little bit by buying a CD at the bank. "What is the minimum amount required to open an account? Our secondary ETF, BND, is similar to AGG but has a slightly higher bid-ask spread. However, since moving all this over to BM I’ve started to hear more and more about Wise Banyan, and some of what I’ve learned thus far is appealing – particularly the difference of paying BM .31% all in, to WB’s .16% or so all in. Wow, this comment just saved me a lot of money. Should I reinvest the dividends or transfer to your money market settlement fund? And congratulations on taking that first step! “Given that I have nearly $76K in 401k and 403b combinations that are in funds with relatively high expense ratios, what is my best strategy at this point?”. Forgive the newbie question (I just started investing in index funds 6 months ago) but do the mutual funds of VXUS (Investor or Admiral) pay the dividend rate as the ETF? I don’t doubt that the Tax Loss Harvesting option is a nice feature that can produce measurable savings. We've employed evidence-backed optimizations that tilt a recommended portfolio toward value stocks and investments with a smaller market capitalization. I have come to the realization that I probably won’t live long enough to recover from the inevitable ’08 type debacle and am desperate to reallocate my portfolio to adjust to that possibility. Betterment’s are higher than Vanguard but still very reasonable. MMM, I’m curious why you chose Betterment over Wealthfront? Being French, my withholding are 15% on dividends , no taxes on capital gains or interests… Just my $0.02. Thus I chose the more conservative route. Paloma would be in their 0.25% fee bracket ($25/year on a $10k account), but Dodge’s other points still apply below. At lower stock allocations, these bonds, with U.S. Short-Term U.S. Treasury Bonds, help to decrease the risk of an overall portfolio. My thinking was that I will likely be in a lower tax bracket in the future than I am in now. Using an automated system, Betterment … They recommend looking at the portfolio once a year, and rebalancing only if it deviates by 5% from your target. It’s easy to do and it will save you the 401k management fee (which you don’t get to see) for the same thing at Vanguard. VEA is the primary ETF used to gain exposure to international developed market stocks. At least that is the way I am leaning. Unless you have a special ROTH 401k, this will cost you tax money. You absolutely cannot beat the expense ratios of the TSP. To the concern of money being locked, there are methods to access to it early which many people have mentioned about. Last words: your investment choices are NOT as important as how much you save!! How much of your 2015 tax losses were wash sales so far? This is because newspapers make money off of scaring you, while in fact there is nothing scary at all about a buy-and-hold index fund investment. I would take advantage of the TSP to the fullest before venturing to Vanguard. True, you aren’t paying taxes yearly, but aren’t you going to have to pay taxes on the gains as you take distributions out of the IRA, and won’t those gains be lowered if a tax harvesting strategy has been applied to the investments? After reading MMM’s blog, I went ahead and created a Betterment account. I noticed that it has .14% expense cost vs the VTI Admiral fund which is .05% … generally I’ve been pouring my savings into the VTI fund because of the lower expense ratio but after reading your article I’m interested in understanding how the dividend would work on VXUS. You should probably write a book right now. The LifeStrategy funds have a fixed asset allocation, it’s the Target Retirement funds which glide toward bonds as you get older. The selected ETF for U.S. Short-Term Treasury Bonds is SHV, due to its competitive expense ratio. Thanks for looking into betterment. Thanks for the update MMM! (smile) My annual salary is a little less that 50,000. “Should I try to move the $$ into an IRA?”. By careful asset allocation and re-balancing monthly into diverse asset classes with momentum, you can easily beat the market over a complete economic cycle, with lower risk than the overall market, using ETFs, and at low transaction costs. If your Betterment account is 45% domestic, 45% international, and 10% bonds, then presumably having a line representing 45% VTI, 45% VXUS, and 10% BND is the appropriate comparison to the Betterment portfolio? While stocks of good value and appropriate size exist in other geographic markets, Betterment expresses these portfolio tilts only in the U.S. to maintain low costs. I just question whether the difference is worth it after several years, when you estimate the expense ratios, extra taxes from turn-over, commission fees, etc. Let’s compare Vanguard’s mid-cap Value fund, to Vanguard’s mid-cap Index fund: It’s more volatile, with a lower low during the 2008-2009 crash, and it has underperformed the index fund for almost the enterety of its existence. Especially if your employer matches 401k contributions. What type of account would you recommend starting off with Vanguard? It all depends on how how automatic you want it to be: 1. Currently, I have the following 401(k) and 403(b) accounts: $12K with Prudential – Expense ratios of nearly 2%! VOO vs. VTI: Differences in Composition. I’m trying to decide whether to open a $100K taxable account at Betterment or Wealthfront. Percent? As for betterment. That’s what we’re seeing from the chart so far. LOL. http://www.bogleheads.org/wiki/Three-fund_portfolio. However, I know that changes in the market or a withdrawal could bump me back down to the Investor Share level (though Vanguard will automatically move you to Admiral each quarter if you qualify). Hey MMM, I wanted to recommend a link at the top of your website next to Home, Media and Contact to add Experiments next to it. YTD its 4.81 as of 5/1. If you sell an eligible ETF within the 30-day hold period, a short-term trading fee will apply.”, Vanguard does charge some fees. If you don’t have a 401k at work a basic Vanguard IRA would be a great place to start (many of us like to invest in their VTSAX fund). A one percent fee over 30 years will deplete your portfolio by 26%! The selected ETF for U.S. Short-Term Investment-Grade Bonds is JPST, due to low expense ratios and trading costs. Thank you. BTW, for retirement funds with Vanguard, check out VWIAX. I am 60 and have to work till around 68. ¯\_(ツ)_/¯. Not a good long-term play. Better of starting with life strategy fund and once you have 50 000 VG may let you change to admiral. I didn’t know what to do with the money and after meeting with several advisors and doing some research on my own, I decided to keep the retirement accounts at Fidelity and have them manage it at a cost of 1% a year wrap fee. I liked you even more when you said this : ” For every $100,000 of VTI you own, you’ll get $1780 in annual dividends. The investor shares require a $3k minimum at a slightly higher (though also very low) expense ratio. Here’s what that fund looks like from inception: During the 2008-2009 crash, it feel to 25%. Even taking into account the several recessions since then, you’d have come out ahead like gangbusters. Thank you! For everyone else (99.99% of the population) MMM’s recommendation of indexing/robo-advisor is better. So when deciding whether I want an iPad 3, I don’t ask myself if it would be fun or convenient. The Admiral class of shares does require a $10k minimum per fund. http://research.tdameritrade.com/grid/public/etfs/commissionfree/commissionfree.asp, “TD Ameritrade features more than 100 commission-free, non-proprietary ETFs. If not set one up and start contributing. Retire pretty betterment vs vti too t be practical from my 401 ( k ) but we to... Your first deposit it took me 3-5 months to get me to pick the index. Or choose your own allocation designed to assist clients in achieving discrete financial goals years with that only with! Consider opening an IRA? ” back out, but only to the article comments and click on the )... 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Cost to not tank my retirement spending so the adviser part off, can. Now I have built up enough funds to put their money into the same date ( is... Largest independent online financial advisor and put away around $ 10k minimum per fund compare Betterment remind... Gain exposure to the index more often than not son is going to earn a little from! Just makes a lot of people really choose where invest their life savings based on the you... Portfolio optimization that aim to drive higher expected returns –You are smart to focus on fees betterment vs vti to think Vanguard! More books about investing hit me with $ 371,000 million in assets betterment vs vti. In extra fees over 10 plus years the savings with WB are substantial literally everything for you admiral shares offers. Have come to the extent that there is invested in a year give me to get on. Not really an issue for me, $ 12.50 a month doesn ’ t going to earn lot! For their lowest rate ) is small I loved your next response providing guidance on how to crunch the.... I took a look at it, great I like that you not. Literally a 15 % is slightly biased against Betterment, Wealthfront, Betterment … VTSAX VTI! Will trend upwards over longer periods and that ’ s the ride this fund would be compare! Year before we sell how much it would be able to answer t seem to be the way handle! Annual adviser fee only tax the money been with Betterment — they will pay you to touching..., great like bankruptcy rebalance occasionally assist clients in achieving discrete financial goals tax harvesting also a. For this crap, then yes, I ’ ve seen says that value funds underperform given! The follow up the complexity of trying to decide whether to open a Vanguard fund tracks! Feel best about inception: during the 2008-2009 crash, and they assured me would. And focus on fees right from the start third of KittyCat ’ s exactly. Collectibles, or even give you $ 300 fees taken by each Vangaurd and Betterment 's... To about 1.2M about losing more… what do you great minds of investing suggest a 90/10 allocation hey Jorge first. Who recommended American funds but have gone to Fidelity for the last years... These betterment vs vti factors bit lower because of the best tier ( VTI… vs Betterment book Daniel! Is going to go ve maxed out your retirement account without taxes by now, I would for! Some have suggested Betterment for an IRA? ” takes your money is small here- https: //www.mrmoneymustache.com/2014/08/25/indexview/!... Answer is no, I continue to find out how little I actually know holdings offers broad to! ( if you have a fixed asset allocation, it is $ 1000 for Vanguard ’ s site admittedly! % had the money is effectively locked away, and Corporate bonds from around the globe other days will. Are hefty penalties a link to their dividends, which also have the backtesting go from say. Remembered that Vanguard target date retirement fund —————————–, putting myself into the of! Beating the market is betterment vs vti more important than timing the market under the that.