Betterment increases fees for premium investors
Higher costs for certain accounts
Betterment, a leading online investment advisor, is increasing its fees for some of its premium investors. The changes, which will take effect on February 1, 2023, will impact accounts with a balance of $2 million or more.
The new fee structure is as follows:
* For accounts with a balance of $2 million to $5 million, the annual fee will increase from 0.40% to 0.50%.
* For accounts with a balance of $5 million or more, the annual fee will increase from 0.30% to 0.40%.
Betterment says the fee increases are necessary to cover the rising costs of providing its premium services. These services include access to dedicated financial advisors, personalized investment plans, and advanced portfolio management tools.
Other fee changes
In addition to the fee increases for premium investors, Betterment is also making some other changes to its fee structure. These changes include:
* The minimum balance required to open a Betterment account will increase from $10 to $25.
* The annual fee for Betterment’s Essential plan will increase from $36 to $48.
* The annual fee for Betterment’s Plus plan will increase from $156 to $192.
Impact on investors
The fee increases will have a modest impact on most Betterment investors. For example, an investor with a balance of $2 million will see their annual fee increase by $1,000. This represents an increase of 0.05%.
However, the fee increases will have a more significant impact on investors with large balances. For example, an investor with a balance of $10 million will see their annual fee increase by $10,000. This represents an increase of 0.10%.
Consider your options
If you are a Betterment investor, you should carefully consider the impact of the fee increases on your account. You may want to compare Betterment’s fees to those of other online investment advisors. You may also want to consider withdrawing some of your money from Betterment and investing it elsewhere.
Speak to a financial advisor
If you are unsure of what to do, you should speak to a financial advisor. A financial advisor can help you assess your investment needs and goals and recommend the best course of action.
Kind regards
M. Davis