Betterment is a relatively new company which allows you to invest with no minimums at all. There are no direct fees, but you are subject to their expense ratio. You aren't free to choose any investments, instead they have two "baskets", one is stocks one is treasury bonds. You choose your stock to bond ratio, in increments of 10. The stock basket is made of index etfs, foreign and domestic, mainly from Vanguard.
I opened it when InBox Dollars offered me $20 to open it.
The main advantage is you can invest $1 at a time if that is all you can do. The main disadvantage is you pay .3% - .9% annually on top of the etf expense ratios (which are rock bottom, thank you Vanguard). While this is not outrageous, I would rather not pay it at all.
I agree about the not outrageous/but rather not. I'd only do Betterment until I hit 3K or whatever the minimum is at Vanguard itself then move it there.
Baselle, I do think about not having a taxable investment account, and what I would like to hold in it. Perhaps I will move towards Betterment + a Vanguard Target Retirement Fund, which has a minimum of 1k now. Of course, you can only add to it in increments of $100.
uRabbit, I know that 90k is better than a stick in the eye. I had hoped to have a net worth of 1 million by the time I retire. At age 40 with a net worth of 250k, I felt very confident I would reach that goal. Now at age 44 with a net worth of 90k, I am not at all confident.
True. Just keep in mind that you're better off than most. You may not be able to never have to work again when you retire, but that doesn't mean you still can't have as much fun as if you could!
A native Californian transplanted in southern Illinois.
September 30th, 2011 at 09:57 pm 1317419871
September 30th, 2011 at 10:09 pm 1317420569
September 30th, 2011 at 10:19 pm 1317421145
I opened it when InBox Dollars offered me $20 to open it.
The main advantage is you can invest $1 at a time if that is all you can do. The main disadvantage is you pay .3% - .9% annually on top of the etf expense ratios (which are rock bottom, thank you Vanguard). While this is not outrageous, I would rather not pay it at all.
They only offer taxable accounts at this time.
@CJ, I will keep plugging along.
September 30th, 2011 at 10:48 pm 1317422889
September 30th, 2011 at 10:53 pm 1317423217
I'll have you know that our net work is around -$8,000. While we are young, that's really no excuse. And we don't even pay rent or mortgage...
So, don't complain. Btw, good job!
October 1st, 2011 at 02:20 am 1317435653
uRabbit, I know that 90k is better than a stick in the eye. I had hoped to have a net worth of 1 million by the time I retire. At age 40 with a net worth of 250k, I felt very confident I would reach that goal. Now at age 44 with a net worth of 90k, I am not at all confident.
October 1st, 2011 at 03:58 pm 1317484735