Author Topic: Investing with Betterment  (Read 2583 times)

tophdna

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Investing with Betterment
« on: April 16, 2015, 09:44:08 PM »
I have a question for those that use Betterment.

I want to start investing with Betterment but I would be starting the account with nothing to put in initially. If I begin the account at $0 and deposit 100 dollars a month the management fee is 0.35%. I've been researching if it would be smart to start an account from scratch and just begin dumping 100 dollars in a month at that rate but I have not been able to find anything. So I was hoping to maybe get some insight here. Thanks!

tj

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Re: Investing with Betterment
« Reply #1 on: April 16, 2015, 11:13:17 PM »
yes you can open the accoutn before funding it.

tophdna

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Re: Investing with Betterment
« Reply #2 on: April 16, 2015, 11:17:46 PM »
Sorry, let me rephrase. What I meant to ask, is it smart to start at nothing with the feeds associated or should i wait until i have a sizable amount to put in from the start?

Dodge

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Re: Investing with Betterment
« Reply #3 on: April 16, 2015, 11:35:35 PM »
If you've decided to give Betterment your money, despite the 0.35% fee, you must expect a return greater than that, right?  If so, giving them $100 at a time, makes just as much sense as waiting 6 months and giving them $600 at a time.  If it were a transaction fee (say $10 a deposit) that would be different, but with a percentage fee you don't have to worry about this.

If you're concerned about the fee, however, why not go with WiseBanyan? Pretty much the same as Betterment, but no fee.  I'm sure someone on here can give you an invite.

JasonS

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Re: Investing with Betterment
« Reply #4 on: April 17, 2015, 06:20:19 AM »
put the money in. Get in the habit of putting money in every month, before long you'll have a bunch in the account and the fees will go down.  After one year ($1200) invested, they will get $4 and change from you...we're not talking about a lot of money. Don't over think it. If you like their model of investing, dive in.

GGNoob

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Re: Investing with Betterment
« Reply #5 on: April 17, 2015, 08:20:46 AM »
Whether you do $100 a month or save up and deposit $1,200 after a year, it is still 0.35% of assets under management (as long as you deposit at least $100 a month). Just create the account now and start making your monthly contributions. Just make sure you continue adding $100 a month or that $3 fee will eat into your returns.

One thing I've mentioned to friends and family when referring them to Betterment...it doesn't have to be $100 all at once. If you get paid twice a month, you could do $50 each payday. If you get paid every 2 weeks, then you can do $50 every 2 weeks which is an average of $108.33 a month. For some people who aren't used to investing and have a tight budget, splitting it up helps them out.

tophdna

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Re: Investing with Betterment
« Reply #6 on: April 17, 2015, 11:21:28 AM »
thanks guys. ya'll are awesome