If you have outside accounts that you want to roll over to have me manage, I offer investment management through Betterment. This is an optional service that can be added to your financial plan. Learn more about Betterment here.
Here’s what you can expect:
- Risk tolerance assessment
- Customized asset allocation
- Low-cost index fund portfolios
- Socially Responsible portfolios available (learn more here)
- Tax efficiency
- 24/7 access to top-rated Betterment mobile app
0.85% of your account value (discounted to 0.65% for accounts over $250k).
- A $100,000 account would be charged a total of $850/year
- A $250,000 account would be charged a total $1,625/year
Would you prefer to keep your investment accounts where they are? No problem, your financial plan will still include strategies and recommendations for your outside accounts. However, I can’t service those outside accounts on your behalf, so you would need to be on the phone with me to process any transactions.
This service may be a good fit if:
- You have investment accounts outside of your employer plan that you are able to transfer.
- You prefer a low-cost, passive management investment strategy.
This service may not be a good fit if:
- Your only investments are held in your current employer’s retirement plan and you can’t transfer them.
- You prefer to pick stocks or use an active-management investing approach.
Frequently Asked Questions
Why did you choose Betterment?
I compared several account custodians, but chose Betterment because their low-cost, passive investment strategy resonated with me the most. They have a modern but user-friendly client-facing website. I also liked that they had a focus on Socially Responsible funds and are working to expand their product offerings.
Can I keep my old stocks/mutual funds/other investments?
Not in a Betterment account. Betterment runs it’s own proprietary portfolios of index funds. If you wish to transfer in your accounts, you’d have to liquidate your investments at your old firm, transfer the cash proceeds, and then invest the cash in the Betterment portfolios. You can’t transfer your old investments in-kind, so if you have any investments you’d like to keep, you’ll need to maintain an account at another custodian that can hold them for you.
Can we invest in Gamestop/Bitcoin/<Insert other fad investment here>?
If you are comfortable subjecting a portion of your portfolio to extreme risk, I fully support you, but you can’t invest in these within a Betterment account. You’ll need to maintain an account at another custodian who can hold them.
Are there Socially Responsible investment options?
Yes! That’s part of the reason I chose to partner with Betterment. They offer portfolios focused on climate and social impact. Read more about it here.
Can I move over my 401k or other employer plan?
If you are no longer working for the company, you are able to roll your old 401k into a new IRA with Betterment. Sometimes your retirement plan will allow you to do an “in-service withdrawal”, where you can roll out a portion of your retirement plan even while you are still working. Otherwise, you aren’t able to move money out of your employer plan while you’re still working.
Couldn’t I just open an account with Betterment directly?
Yes, you could. And it’s cheaper that way, in full disclosure. I just wouldn’t be servicing them for you. That means you’d have to contact Betterment’s customer support if you needed help with your account. The fees are 0.25% if you go directly with Betterment.
However, if you want me to service the accounts, update your portfolios on your behalf, review risk tolerance, etc., you’d pay a total fee of 0.85% (or 0.65% if you have over $250k invested). For example, if you had a $100,000 account, you would pay an extra $600 a year to have me servicing the account for you ($850 a year to have me service them, vs. $250 a year to hold them directly with Betterment).
Can you help me with my investments where they currently are?
Yes! As part of your Comprehensive plan, we will review your investments and make recommendations. If you hold your accounts elsewhere, it will be up to you to implement the changes with that custodian. The custodian won’t allow me to do any transactions on your behalf, without you on the phone with me.
Is the investment management fee in addition to the financial planning fee?
Yes. Investment management and financial planning are 2 separate things, so my fees reflect that. You can choose to have one and not the other.
What’s your investment strategy?
I use a low-cost, passive investment approach. Learn more about it here.
I have another question that wasn’t answered here.
You can shoot me an email at firstname.lastname@example.org. I’d love to help!
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