Bye Bye Betterment

[Another Reader]

About seven years ago I started a small investment with Betterment. I thought it would be a way to invest in things I otherwise would ignore - bonds and international equities. I ignored it, and it did grow. However, today's announcement means it is time to move on.

From the e-mail...

For many people, crypto is an intriguing but confusing investment, which is why we’ve been looking for the right opportunity to bring clarity and guidance to this space for you. Today, I’m thrilled to let you know that crypto is coming to Betterment!

Crypto is coming? The shark has been jumped. Hello, Fidelity?

 

[Aerides]

*Mod Note*

We have one Crypto thread only. This is not it. If this thread focuses on Betterment, fine, but if it doesn't, we will merge it.

 

[njhowie]

If it's specifically the crypto that's turning you off, you could simply avoid the Betterment portfolio(s) which include crypto assets, no?


Fidelity is no better on this front - they have been pushing to similarly offer crypto investments...they recently began offering FBTC, a bitcoin ETF. However, again, I'm not understanding why this would be of concern to you? Just simply do not invest in the funds which include crypto assets if that's your issue.

 

[Montecfo]

I do not use betterment but I do not find investment offerings to be troubling.. unless restrictive.

That's just me.

 

[Sojourner]

Crypto is coming? The shark has been jumped. Hello, Fidelity?

Perhaps I'm missing something, but I'm wondering why this addition to the Betterment trading lineup would, in and of itself, cause you to close your account. Is this change having some sort of ripple effect that would impact your account or holdings in some material way?

 

[Another Reader]

*Mod Note*

We have one Crypto thread only. This is not it. If this thread focuses on Betterment, fine, but if it doesn't, we will merge it.

It's about my concern that a broker formerly offering strictly traditional investments would veer off into the loosely regulated world of crypto. Wherever it fits is fine by me.

 

[matjung]

Can someone give me a summary of what Betterment is.
Who is the market leader in its industry.

 

[FREE866]

Perhaps I'm missing something, but I'm wondering why this addition to the Betterment trading lineup would, in and of itself, cause you to close your account. Is this change having some sort of ripple effect that would impact your account or holdings in some material way?

I agree. They are just adding another asset class option.



I have my money with Schwab. They offer variable annuities which I would never buy, but that wouldn't prompt me to close down my Schwab account.

 

[Markola]

With stock and real estate at nosebleed prices, bonds facing a torrential path ahead for a while, and the world awash in newly-minted dollars, things are changing. For another example, a recent Bogleheads podcast discussed how Vanguard, in the attempt to diversify these risks, intends to add private equity, of all things, to its Personal Advisor Services and, they mention, eventually its target date and fixed allocation funds.

https://bogleheads.podbean.com/e/episode-038-ted-aronson-host-rick-ferri/

I’m not saying it’s a good idea but I think we’ll see more of this trend of diversification into alternative assets as a way to try to hedge the growing risks of traditional asset classes.

 

[RetiredAt49]

I moved off Betterment recently as my portfolio wasn’t performing near as well as WealthFront (similar platform and AA) and the wealth management company I use was outperforming them by double digits