Betterment Roth IRA Review: Best Retirement Option?

In a word: The Betterment Roth IRA makes retirement easier. With no trading fees or commissions to pay, getting the most out of your Roth IRA allocation is easy. Our full review of Betterment loves this platform and their Roth IRA is performing very well as well.

Invest with Betterment and you will immediately notice their focus on retirement accounts. The Roth IRA is not the only option available, but it is one of the best.

You pay taxes on your income before you invest, but in return, there is no tax payable on the withdrawals you make from your Roth IRA.

Betterment offers a selection of great features, which we’ll discuss later in this Betterment Roth IRA review.

Ultimately, Betterment is one of the next generation of intelligent robo-advisers. They simplify investing for retirement. No previous experience is necessary to invest in a Betterment Roth IRA.

Betterment was originally launched in 2008. As one of the oldest robotics advisors, they have a huge market share, with $ 22 billion in assets under management.

The platform’s approach to automated investing means that this is a product for beginners. Let Betterment manage your retirement for you.

All Roth IRA accounts are based on ETFs holding various stocks and bonds.

Under the current annual contribution limits, you can only contribute $ 6,000 to your Betterment Roth IRA if you are under 50, or $ 7,000 if you are over 50.

Keep reading to learn more about the features of a Betterment Roth IRA.

Features of the Roth IRA enhancement

Betterment offers several important features to not only allow your retirement savings to grow, but also to protect your money against market fluctuations.

Here are the main features that make a Betterment retirement account so attractive.

Fully automated investment

As a renowned robo-advisor, Betterment specializes in automated investing. All you have to do is choose your favorite wallet design and Betterment will do the rest.

They have many different portfolios to align with your goals, including a dedicated socially responsible investment portfolio.

The downside is that you have limited portfolio customization and a limited choice of asset classes. For example, there is no access to REIT investments.

Automated portfolio rebalancing

Protecting your retirement funds is the key to the success of any Roth IRA. Betterment makes it easy for you with automated portfolio rebalancing.

Based on the various market machinations over time, Betterment will automatically rebalance your portfolio on your behalf to ensure that your target allocations are met.

You can have peace of mind knowing that your Roth IRA portfolio is not going to drift.

Roth IRA Dividend Reinvestment

Regular dividends paid based on your equity holdings are the foundation for growing your retirement savings.

With a Betterment Roth IRA, you can ensure that your dividends are automatically reinvested. This ensures that every dollar continues to work for you without your contribution.

Roth Improvement IRA Fee

As you would expect from any robo-advisor, there are no trading fees or commissions to pay when you open a Betterment Roth IRA.

On the other hand, the platform charges an asset management fee of 0.25%. While this is unfortunate, it is still lower than that of many other Roth IRA providers.

Finally, depending on your stock / bond mix, ETF expense ratios range from 0.07% to 0.15%.

As we said in our full Betterment review, its fees are always lower than traditional brokerage houses.

Betterment Roth IRA FAQ

Looking to create an account with Betterment? Here are the answers to some of the most common questions.

Can I personalize my portfolio?

Personalization is limited. Betterment Roth IRAs are fully automated and there is no option to actively invest. More experienced investors may want to look elsewhere.

Is my Betterment Roth IRA protected?

Yes, your Roth IRA is FDIC insured. This means that money up to $ 250,000 will be covered in the event of Betterment collapsing.

Does Betterment offer tax coordination?

Yes, Betterment will automatically transfer all assets from your standard investment account to your Roth IRA if they are likely to attract a higher tax rate.

This can increase your portfolio by up to 30% over time.

Roth IRA Improvement: Is It Right For You?

If you are starting to save for your retirement for the first time, a Betterment Roth IRA is an ideal choice.

Like in our full Betterment review, we love that it’s a really hands-on approach to retirement planning.

Automated portfolios, dividend reinvestment, and rebalancing are just a few of the great features that can give you peace of mind in planning your twilight years.

Follow the Modest Money link to open your Betterment Roth IRA and start enjoying your first year free of charge now.

About Troy McMiller

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