Betterment

New York City, United States All United States companies → — Founded 2008

Emergency Medicine Family Medicine Internal Medicine

Physician Finance & Tax

Series F, Debt — $435M (Note: Some sources indicate $335M over 10 rounds or over $100M in earlier stages)

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About Betterment

Betterment is a leading financial advisory company that provides digital investment, retirement, and cash management services. It utilizes principles-based robo-advisor technologies, including computer algorithms, to offer personalized financial advice. The company’s primary retail platform offers taxable and tax-advantaged investment accounts, such as traditional and Roth IRAs. Betterment also provides business-to-business offerings, including Betterment at Work (a 401(k) platform for small to medium-sized businesses) and Betterment Advisor Solutions (a digital platform for managing client assets).

Recently, Betterment has been integrating AI into its platform to enhance its offerings. In March 2026, the company launched its AI-enabled Account Recommender, which combines advisor logic with AI-generated explanations to suggest optimal account adjustments based on a user’s financial profile. This is part of a broader enterprise AI roadmap that includes streamlining workflows for plan sponsors and independent advisors. Betterment at Work also introduced an AI-powered benchmarking tool for its 401(k) plan sponsor dashboard, allowing employers to identify gaps in their retirement benefits and compare their plan’s performance to national averages. The company aims to use AI to deliver sophisticated personalization at scale for investors and improve operational excellence across all departments, including customer service and product development.

Focus Areas

digital investment retirement planning cash management automated investing financial advisory tax-loss harvesting 401(k) plans cryptocurrency investing

Business Intelligence

Key Investors	Bessemer Venture Partners, Menlo Ventures, Anthemis Group, Kinnevik, Francisco Partners, Globespan Capital Partners, Citi Ventures, The Private Shares Fund, Aflac Ventures, ID8 Investments, Treasury, ORIX Corporation USA's Growth Capital group, Runway Growth Capital
Partnerships	Bennie (employee benefits platform), Zenefits (employee benefits platform), Goldman Sachs Asset Management, State Street Investment Management, Vanguard
Acquisitions	Gradvisor (2022), Makara (February 2022), Wealthsimple's US advisory accounts (2021), Marcus Invest from Goldman Sachs (2024), Ellevest's automated investing business (February 2025), Rowboat Advisors (May 2025)
Technology	Robo-advisor technologies (computer algorithms), cloud-native (implied by digital platform and scale), AI operating system (AI-enabled Account Recommender tool launched in March 2026)

What Physicians Need to Know

Digital Investment

Betterment offers automated investing with diversified, expert-built portfolios of low-cost ETFs and cryptocurrency. They provide features like automated deposits, trading, rebalancing, and dividend reinvestment. Betterment also offers various portfolio strategies, including socially responsible investing (SRI) options and third-party strategies from Goldman Sachs and BlackRock.

Retirement Planning

Betterment provides guided retirement planning, including IRAs (Traditional, Roth, SEP) and 401(k) solutions. They offer personalized recommendations based on individual financial profiles, existing savings, and retirement goals. Their technology helps with asset allocation, tax-efficient investing (like tax-loss harvesting and asset location), and provides a bird's-eye view of all retirement accounts.

Cash Management

Betterment's cash management products include Cash Reserve, a high-yield cash account, and Checking. Cash Reserve offers competitive APY, no monthly or maintenance fees, unlimited withdrawals, and up to $4 million in FDIC insurance for individual accounts ($8 million for joint accounts) through a network of program banks. Checking accounts offer worldwide ATM fee reimbursements, no minimum balance, and no overdraft or maintenance fees.

AI-powered Financial Recommendations

Betterment has introduced an AI-enabled Account Recommender that combines advisor logic with AI-generated explanations to provide tailored financial recommendations. This tool analyzes a user's financial profile and existing holdings to suggest optimal account adjustments and offers plain-language reasoning behind each recommendation. Betterment plans further AI enhancements to streamline workflows for plan sponsors and advisors.

401(k) Solutions

Betterment at Work offers 401(k) plan administration services with features like automated administration, streamlined employee onboarding, and fiduciary support. They integrate with over 350 payroll providers to simplify tasks such as employee eligibility tracking and contribution management. The 401(k) plans include expert-built, curated portfolios and customizable investment options.

Financial Advisory for Individuals and Businesses

Betterment acts as a fiduciary, meaning they are legally bound to act in their clients' best interests. They offer personalized financial planning and ongoing guidance, with unlimited support from CERTIFIED FINANCIAL PLANNERu2122 professionals for Premium plan clients (minimum $100,000 balance). They also provide support for account setup and rollovers.

Physician Tip

For physicians, Betterment's automated investing and tax-loss harvesting can be particularly beneficial due to their often busy schedules and higher tax brackets. The platform's ability to run daily sweeps for tax-loss harvesting can be more efficient than manual reviews. The intuitive software allows for easy account opening and funding, even with limited time. Betterment's personalized retirement planning, including options for various retirement accounts (Roth, IRA, taxable, trust), and asset location strategies can help optimize tax efficiency across a physician's diverse financial holdings. The high FDIC insurance for cash management accounts can also be attractive for managing substantial savings.

Betterment integrates with over 350 payroll providers for its 401(k) solutions, simplifying plan administration and automating contributions. For financial advisors, Betterment for Advisors integrates with platforms like Kwanti for client proposals, eMoney for financial planning, and Panoramix for back-office operations, aiming to streamline workflows and enhance client service.

At a glance

Founded 2008

HQ New York City, United States · United States

Team size 645-897

CEO Sarah Levy

Funding Series F, Debt — $435M (Note: Some sources indicate $335M over 10 rounds or over $100M in earlier stages)

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Products by Betterment

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What the Web Says

Betterment is a robo-advisor platform praised for its user-friendly interface, automated investing features like tax-loss harvesting, and goal-based planning tools, making it particularly suitable for beginners and hands-off investors. However, some users express concerns about customer support responsiveness, limited investment options for advanced investors, and fee structures, especially for smaller accounts or business 401k plans.

Overall: Mixed

Strengths

User-friendly interface and mobile app.
Automated investing, rebalancing, and dividend reinvestment.
Tax-loss harvesting for taxable accounts.
Goal-based planning tools for various financial objectives.
Competitive fees for investment management (0.25% for Digital plan).
High-yield savings and checking accounts with competitive rates.

Limitations

Customer support can be slow and difficult to reach, especially for complex issues.
Limited investment options and customization for advanced investors.
Fees can add up, particularly for accounts under $20,000 or $24,000, and transfer out fees exist.
Issues with payroll integration and compliance for business 401k plans.
Some users report underperformance compared to benchmarks like the S&P 500 due to asset allocation.
Concerns about job security, advancement opportunities, and lower pay compared to other tech companies (employer reviews).

Based on reviews from: Capterra, G2, Reddit, The CFO Club, unbiased.com, The College Investor, Indeed.com

Last updated: 2026-09-10

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Press & Coverage

PR Newswire

Betterment Launches Custom Portfolios with AI Insights for Retail Investors

Betterment has launched Custom Portfolios, a new offering that allows retail investors to build personalized portfolios with individual stocks and ETFs, while leveraging AI insights and automated tax-loss harvesting. This aims to bridge the gap between DIY investing and full-service management.

2026-08

PR Newswire

Betterment Advisor Solutions' 2026 Survey Finds AI and Generational Shifts Are Reshaping the Advisor Relationship

A survey by Betterment Advisor Solutions indicates that AI is becoming an important investment tool, with 75% of investors using it for financial tasks, though it's not replacing advisors. The survey also highlights a generational divide in client expectations, with younger clients seeking more coaching and modern technology.

2026-09

PR Newswire

Betterment at Work Builds on Its 401(k) Offering With Expanded Benefits for Plan Sponsors and Participants

Betterment at Work has expanded its 401(k) offering to include enhanced benefits for both plan sponsors and participants. This builds upon their existing workplace benefits market presence.

2026-06

PR Newswire

Betterment's 2026 Retail Investor Survey Reveals a New Generation of Investors Is Blurring the Lines Between Information, Advice, and Entertainment

Betterment's 2026 Retail Investor Survey highlights that a new generation of investors is increasingly blending information, advice, and entertainment in their financial decision-making. This suggests evolving expectations for financial platforms.

2026-08

Wealth Management

Betterment Valuation Rises to $1.3 Billion on Funding Round

Betterment LLC raised an additional $160 million, comprising a $100 million credit facility and a $60 million Series F equity round, increasing its market value to nearly $1.3 billion. The funding is intended to expand its business-to-business units.

2021-09

SEC

SEC Charges Investment Adviser Betterment for Misstatements Concerning Tax Loss Harvesting Service

The SEC charged Betterment LLC for material misstatements and omissions related to its automated tax loss harvesting service, failing to notify clients of contract changes, and not maintaining required records. Betterment agreed to a $9 million penalty and to distribute funds to affected clients.

2023-04

TradeTech Eye

Betterment Bridges DIY and Automated Investing with New AI-Powered Custom Portfolios

Betterment has introduced Custom Portfolios, a hybrid investment tool that combines automated portfolio management with individual security selection, allowing retail investors to build personalized portfolios with AI insights and automated tax-loss harvesting.

2026-08

FinTech Futures

Betterment faces regulatory scrutiny after new accounts launch

Betterment faced questions from US regulators shortly after launching new checking and savings accounts offering high annual yields. Regulators sought clarity on the details of these new services.

2019-07

Frequently Asked Questions

How does Betterment's digital investment platform cater to the specific needs of physicians and healthcare administrators?

Betterment provides digital investment, retirement, and cash management services. For individuals, they offer automated investing with expert-built portfolios, including options for socially responsible investing and cryptocurrency exposure. For businesses, Betterment at Work offers 401(k) solutions designed to be easy to manage and compliant, which can be particularly beneficial for healthcare practices.

What retirement planning solutions does Betterment offer for healthcare professionals and their practices, and how do they address healthcare-specific concerns?

Betterment offers various retirement planning solutions, including Traditional and Roth IRAs, and 401(k)s for individuals and businesses. Their platform helps with estimating healthcare and everyday expenses in retirement, and they provide resources on planning for healthcare costs and Medicare. For self-employed physicians, they also offer Solo 401(k)s with digital setup and management.

Can Betterment assist healthcare organizations with cash management, and what are the key features of their cash management products?

Yes, Betterment offers cash management solutions, including a high-yield Cash Reserve account and checking accounts. The Cash Reserve account offers a competitive variable APY, FDIC insurance up to $4 million for individual accounts ($8 million for joint accounts) through program banks, no minimum balance, and unlimited withdrawals. Their checking accounts also feature no minimum balance, no overdraft fees, and worldwide ATM fee reimbursements.

How does Betterment utilize AI for financial recommendations, and what are the compliance considerations for healthcare professionals using these tools?

Betterment uses AI to provide personalized, easy-to-understand summaries of financial recommendations based on advisor-built logic and client financial profiles. While AI enhances personalization and efficiency, Betterment emphasizes that the recommendations are based on rules-based logic designed by financial advisors, and all customer data is anonymized before being accessed by AI models. It's important to note that Betterment's advisory services are designed for discrete financial goals and are not intended to provide comprehensive tax or legal advice.

What are the pricing structures for Betterment's services, especially for 401(k) solutions and financial advisory for businesses, and are there any hidden fees?

Betterment's pricing for individual investing accounts typically involves an annual fee of 0.25% or a $5 monthly fee, with a Premium plan at 0.65% for balances under $1 million that includes unlimited access to CFPu00ae professionals. For Betterment at Work 401(k) plans, there's a monthly base fee (e.g., $100/month or $150/month, billed annually), a monthly record-keeping fee per participant (e.g., $5 or $7/month), and an annual advisory fee of 0.25%. Betterment states they are transparent about their fees and aim to avoid hidden costs.

How does Betterment ensure compliance for its 401(k) solutions, and what support is provided for healthcare practices regarding regulatory requirements?

Betterment at Work assists with 401(k) compliance by handling annual testing, daily monitoring, and preparing necessary paperwork like the Form 5500. They offer expert support throughout the compliance process, including guidance on plan design, managing plan documents, and advising on government legislation. However, the ultimate responsibility for signing and filing the Form 5500 rests with the plan sponsor.

What is Betterment's company stability and history, and what partnerships do they have that might benefit healthcare professionals?

Betterment was founded in 2008 and launched in 2010, establishing itself as a leading independent digital financial advisor. They manage tens of billions in assets and serve nearly 1 million customers. Betterment has expanded its offerings through acquisitions and has partnerships with employee benefits platforms like Bennie and Zenefits, which can provide integrated retirement plans and financial wellness tools for healthcare employers. They also offer HSA services in partnership with Optum.

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