Betterment is one of the best-known “robo-advisors”: an online investment service that builds and manages a diversified portfolio for you automatically.
How it works
You answer questions about your goals, timeline and comfort with risk. Betterment then recommends a portfolio, typically made up of low-cost exchange-traded funds (ETFs), and manages it for you. It automatically rebalances your mix of investments over time and offers features like tax-loss harvesting for taxable accounts. You can open regular investment accounts, IRAs and other account types, and make automatic deposits.
What it costs
According to NerdWallet’s 2026 review:
- Betterment Digital: 0.25% a year, or $5 a month for smaller balances that don’t meet the balance or recurring-deposit requirements. There’s no account minimum, but $10 is required to start investing.
- Betterment Premium: includes access to certified financial planners, with a higher fee and a $100,000 minimum.
At 0.25%, the management fee on a $10,000 balance is about $25 a year, in addition to the expense ratios of the underlying funds.
Who it may suit
- Hands-off investors who want a diversified, automated portfolio
- Beginners who want to start investing with small amounts
- People who prefer an app-based experience over meeting with an advisor
What to watch for
- Investments can lose value, and there are no guarantees.
- The basic plan offers limited personalized advice.
- Robo-advisors don’t address insurance, protection or estate planning.
The bottom line
Robo-advisors like Betterment have made diversified investing simple and affordable. They work best as one piece of a complete plan that also includes an emergency fund and proper protection.
Source: NerdWallet, Betterment Review 2026. Fees and features are subject to change; check Betterment’s website for current details. Workable Financial Solutions is not affiliated with Betterment, does not offer securities or investment advisory services, and is not recommending any investment. Investing involves risk, including possible loss of principal. For educational purposes only.