Banking online has become the norm, however many people are still confused about how to invest in stocks, bonds, and mutual funds without visiting an expensive broker. Betterment is an application that blends the best of online banking and big-time investing, making it possible for people to create high-yield investment accounts all on their own.
Unlike some big brokerage houses, Betterment has no minimum balance requirements on its investment accounts. Just sign up by entering a bit of basic information, then securely upload your contact information and bank account logins. Transfer money from your checking account to your Betterment account, and within just a few minutes you can be on your way to having a diversified investment portfolio. Betterment operates under the firm belief that asset allocation is the most important decision that investors must take. Because of this, the application has been created in a way that makes choosing an asset allocation – and deciding how much risk you’re willing to take on – the only real decision you need to make. Once you’ve selected a risk level, Betterment will choose the right balance of stocks and bonds to fit your needs.
To see how your funds are doing, log on and click on the “Summary” tab at any time. Betterment also gives you actual advice and recommendations based on your current investments. The application will give you a recommended allocation range and recommended monthly savings amounts, which you can then compare with peers in your same age or income demographic.
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