Author Topic: Betterment - Smart Saver  (Read 4568 times)

jc4

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Betterment - Smart Saver
« on: August 16, 2018, 01:52:02 PM »
Apparently Betterment not has an easy to withdraw account designed for holding cash short-term. They invest in bonds to avoid volatility, but still give better returns than a bank account.

Thoughts?


https://www.betterment.com/resources/short-term-investing-savings-account-alternative/?utm_medium=email&utm_source=ExactTarget&utm_campaign=20180816_SmartSaverLaunch_retail_couch_fun&utm_content=https%3a%2f%2fwww.betterment.com%2fresources%2fshort-term-investing-savings-account-alternative%2f

DS

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Re: Betterment - Smart Saver
« Reply #1 on: August 16, 2018, 02:00:34 PM »
They are referencing 1.78% yield and using .08% as the comparison for savings accounts. Ally has 1.8% on any deposit balance currently.

https://www.betterment.com/legal/smart-saver/

jc4

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Re: Betterment - Smart Saver
« Reply #2 on: August 16, 2018, 02:09:15 PM »
I realize it's not really great returns (1.8%). I'm mostly wondering if the savvy people here think it's worth using. Or if theres any big downsides?

bjuser

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Re: Betterment - Smart Saver
« Reply #3 on: August 16, 2018, 10:41:53 PM »
They are referencing 1.78% yield and using .08% as the comparison for savings accounts. Ally has 1.8% on any deposit balance currently.

https://www.betterment.com/legal/smart-saver/

I was just reading about this too... bonds aren't state taxed but I'm assuming their yield projection of 1.78% is including that.

I use Ally as well. The 1.8% is also FDIC insured. So it appears Ally is going to beat Smart Saver for right now unless I'm missing something.

DS

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Re: Betterment - Smart Saver
« Reply #4 on: August 17, 2018, 07:31:37 AM »
I realize it's not really great returns (1.8%). I'm mostly wondering if the savvy people here think it's worth using. Or if theres any big downsides?

That is what I was getting at. If savings accounts with no minimums are giving guaranteed higher returns, there's no reason to invest in these bonds.

Also Betterment charges for advisory fees .25% forever, subject to change. You can make your own bond portfolio without paying advisory fees.

jc4

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Re: Betterment - Smart Saver
« Reply #5 on: August 17, 2018, 08:08:03 AM »
Yea. I guess the advantage to me is I already have a betterment account, and I'd ahve to open in Ally account.

I also didn't realize Ally had an account that high.

wirednuke83

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Re: Betterment - Smart Saver
« Reply #6 on: August 17, 2018, 12:53:56 PM »
I also saw another post where the author mentioned it was a nightmare to get funds out of betterment.

https://forum.mrmoneymustache.com/investor-alley/in-kind-asset-transfer-out-of-betterment-nightmare/

channant

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Re: Betterment - Smart Saver
« Reply #7 on: August 17, 2018, 01:27:30 PM »
CIT has a 1.85% money market account! https://www.bankoncit.com/

shinn497

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Re: Betterment - Smart Saver
« Reply #8 on: August 17, 2018, 07:46:38 PM »
I am mostly in betterment. I don't see the point. They have a goal for a safety net that is 40/60 stocks bonds and i am in that. Or you can do 100% bonds or one of their savings goals. REally its just a marketing thing? Dunno.


zazpowered

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Re: Betterment - Smart Saver
« Reply #9 on: August 19, 2018, 06:18:29 PM »
While it doesn't have the highest rates, I think it's a decent option for those wanting to keep their money in Betterment for convenience or during a downturn. I currently use Purepoint (http://purepoint.com/) which offers 1.9%