Robo firm Betterment offering referrals to human advisors

Source: Betterment

Betterment, the largest independent online investment advisor, today announced the next evolution of the company with the release of a new service offering, expanding the company's platform beyond a single digital product to a multi-plan advice offering that includes access to CFP professionals and licensed financial experts.

Betterment's three 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. This 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 our current award-winning technology, with tax-efficient algorithms and digital advice, at an incredibly 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 its recently announced Advisor Network.

Betterment will now charge a flat 0.25% for its Digital plan, 0.40% for the Plus offering, and 0.50% 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 your balance. Betterment will waive its management fee on any assets over $2 million.

"I joined Betterment because it was a chance to help get financial advice in the hands of more Americans- millions of Americans," said Alex Benke, CFP®, VP of Financial Advice and Investing at Betterment. "As a traditional financial planner, you can only serve a few hundred clients at most. Through the last five years at Betterment, I've learned that while most Americans really need financial advice, not everyone wants it in the same way. Some never want to talk to a person, some need help from time to time, and others need careful, ongoing guidance. About a year ago, we set out to broaden and deepen our human-delivered advice offering, while making it more accessible. Our vision is to be your one-stop-shop for financial advice, available in whatever form or frequency you require, and always in your best interest, as a fiduciary."

"We're committed to empowering customers to do what's best for their money, so they can live better," said Jon Stein, Founder and CEO of Betterment. "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."

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