This new service is in line with Betterment's fee democratization values.
Betterment's management fees typically range from 0.15 - 0.35% annually, depending on the investor's account balance.
In addition to the percentage of assets fee, Betterment will charge a $1,500 annual administrative fee to plans with less than $1 million in assets.
There's no upfront fee for employers with more than $1 million in assets and Betterment charges a fee ranging from 10 to 60 basis points, which Stein says make them the lowest cost plans in the industry.
Several relatively affordable online financial firms have cropped up in recent years — including Betterment, Wealthfront, Flat Fee Portfolios and FutureAdvisor — but their focus is much narrower.
Someone will make a lot of money by coming up with a streamlined way to serve these investors, and two services called Betterment and Flat Fee Portfolios are among the latest to try.
If you prefer an all-inclusive fee, Betterment offers unlimited planning and portfolio management for 0.40percentt on a $100,000 minimum account.
Betterment charges a percentage fee on the amount of money that you have under management on the platform.
A typical mutual fund will charge roughly 1.4% and a managed exchange traded fund will charge 1.78% in fees, according to Betterment.
Then there are new-breed robo-advisors Wealthfront and Betterment, which charge annual advisory fees starting at 0.25% and feature minimums of $500 and $0, respectively; both introduced socially focused options of their own over the summer.
For a 0.5% of assets annual fee (twice what Betterment typically charges), clients get personalized portfolios of ETFs, with automatic contributions, rebalancing and asset allocation based on goals.
