Betterment

Overview

Betterment is an American financial advisory company that offers digital investment, retirement, and cash management services. Founded in 2008, the company is headquartered in New York City and is registered with the Securities and Exchange Commission as a registered investment advisor and broker-dealer. As of September 2024, Betterment managed over $56 billion in assets across more than 900,000 customer accounts. The company's business model includes three main areas: retail investment, a platform for advisors, and a 401(k) product for businesses. Betterment's personalized financial advice utilizes robo-advisor technologies, providing automated investment solutions primarily composed of diversified, low-cost exchange-traded funds. Licensed financial advisors are available for over-the-phone consultations for customers seeking additional support. In October 2014, Betterment launched Betterment Institutional, later renamed Betterment for Advisors, a digital platform for managing client assets using Betterment's built-in financial advice. In January 2016, the company introduced Betterment for Business, a 401(k) platform aimed at small- to medium-sized businesses. In February 2022, the business rebranded to Betterment at Work and announced the acquisition of Gradvisor, a platform providing personalized college savings plans. In December 2020, founder Jon Stein stepped down as CEO, succeeded by Sarah Levy, former COO of Viacom Media Networks. In February 2022, Betterment acquired Makara, a cryptocurrency portfolio manager, and launched 'Crypto Investing by Betterment' in October 2022, allowing customers to invest in crypto assets. In December 2022, the company adjusted its pricing structure, and in December 2023, Betterment at Work conducted a survey on the retirement preparedness of the U.S. workforce. In January 2024, Betterment at Work introduced a commercial product enabling small business employers to match employee student loan payments with a 401(k) contribution. In April 2024, Betterment acquired Marcus Invest from Goldman Sachs, and in July 2024, launched the Goldman Sachs Tax-Smart Bonds portfolio. In September 2024, Betterment's RIA custody division was renamed Betterment Advisor Solutions, reflecting the addition of new portfolio management and retirement plan features. In February 2025, Betterment acquired the automated investing business of Ellevest, and in February 2025, launched Solo 401(k)s for its Betterment Advisor Solutions client base. In December 2025, Betterment announced an increase in the monthly fee for smaller accounts from $4 to $5, with the threshold for the standard 0.25% annual fee rising from $20,000 to $24,000. In January 2026, Betterment confirmed a data breach in which hackers gained access to customer data and used it to send fraudulent notifications attempting to solicit $10,000 in a crypto scam. Betterment's mission is to empower people to build wealth with confidence and ease by combining innovative investing technology with expert service and support across investing and savings, a 401(k) for growing businesses, and a tech-enabled custodian built for independent registered investment advisors (RIAs). The company offers managed investing portfolios primarily composed of diversified, low-cost exchange-traded funds, and has received numerous awards for its investing and savings products. Betterment employs over 425 people, with headquarters located in New York City and satellite offices in Washington D.C. and Philadelphia. In January 2026, Betterment experienced a data breach where a threat actor tricked an employee into divulging credentials for a third-party software platform. This allowed unauthorized access, which was used to send out crypto-related phishing emails to a subset of Betterment customers. While customer accounts remained uncompromised due to multiple security layers, the intruder obtained sensitive personal data including names, email addresses, postal addresses, phone numbers,