John Henry might have a chance. Robo-advice heavyweight Betterment announced that CFP professionals and licensed financial experts will be accessible in its latest service offering.
Structured as a three-tied platform, the plans are now Betterment Digital, Betterment Plus and Betterment Premium.
“Betterment can now meet the needs of its customers however customers want to invest and receive advice, whether it’s through the existing digital offering or also working in conjunction with a team of licensed experts,” according to the company.
The team will help customers monitor their accounts, answer their financial questions, and give them advice. The new plans give customers “the best of both worlds—smarter technology and access to financial experts.”
- Betterment Digital: Customers gain access to technology, with tax-efficient algorithms and digital advice, at a low cost.
- Betterment Plus: Customers receive an annual planning call from a team of CFP professionals and licensed financial experts who also monitor their accounts throughout the year.
- Betterment Premium: Customers get unlimited access to a team of CFP professionals and licensed financial experts who monitor their accounts and give them advice and financial planning throughout the year.
Customers who would like a full-time, dedicated independent financial advisor can be referred to an RIA who uses the Betterment for Advisors platform to manage its clients’ investments through the company’s its recently announced Advisor Network.
Betterment will now charge a flat 0.25 percent for its Digital plan, 0.40 percent for the Plus offering, and 0.50 percent for the Premium offering. The Plus plan requires a $100k minimum balance, and the Premium plan requires a $250k minimum balance.
For all three plans, Betterment’s fees are only charged on the first $2 million of a balance. Betterment will waive its management fee on any assets over $2 million.
“We’re committed to empowering customers to do what’s best for their money, so they can live better,” Jon Stein, founder and CEO of Betterment, said in a statement. “At Betterment, we promise to always act in the best interests of our customers. From the beginning, we’ve built what our customers have asked us to prioritize, and what would have the biggest impact for them. Now, with our Plus and Premium plans, we can give customers the best of both worlds: our smarter technology and access to licensed financial experts.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
