Free financial advice, for the busiest season of your life Apr 23, 2026 12:06:34 PM For households with $100k+ at Betterment, our advisory fee includes complimentary live chat with a licensed financial specialist. Key takeaways Mid-career comes with competing financial priorities, but you don't have to figure out the order alone. Households with $100k or more at Betterment unlock free access to live chat with a licensed financial specialist. Not AI, not a bot—a real person. Higher earners often leave money behind by staying in "default mode.” Use live chat to size up advanced strategies like asset location, backdoor Roth IRAs, and tax-loss harvesting. Transferring investments from outside Betterment can be a simple way to reach $100k and unlock live chat, while also bringing more of your financial life under one roof. If life is one long series of challenges, those in their 30s or 40s are somewhere in the messy middle of it all. Maybe you just bought a house, or you're trying to. Maybe there's a kid on the way, an expensive wedding behind you, and a college fund somewhere on the horizon. Your income is real now, your finances are getting complicated fast, and the old advice ("just max out your IRA") stopped covering it a while ago. The good news? You don't have to untangle everything by yourself. Households with $100k or more at Betterment now have free access to live chat with a licensed financial specialist—someone who can look at your specific situation and help you figure out what to do next. So let's set the table for your first conversation. Too many goals, not enough dollars? You’ve got a lot going on, so much that your cash flow can’t cover everything. Free live chat can help you quickly prioritize and start knocking out money goals. Because the sooner you start, the sooner you can start enjoying the financial freedom that comes with stacking milestones. Here’s a sampling of the life goals we can help you sort through: Buying a home. Whether you're ready to make an offer or still saving for a down payment, a home purchase reshapes your whole financial picture. A $100k Betterment balance not only lets you size up your strategy with the help of a specialist, it can score you a discounted rate on a mortgage. Building (or rebuilding) an emergency fund. Life has a way of getting expensive at the worst moments. Three to six months of accessible cash is the foundation everything else sits on. At the same time, it’s also possible to overdo it. So size up exactly how much cash you need to sleep better at night, and what to do with the rest. Saving for your kid's college. This one isn’t a pass-fail proposition. Saving even a little, especially while your kids are little, can lighten their financial load when college or trade school come knocking. The question is where to save, and how this goal fits against everything else you're juggling. Charitable giving. The great thing about building the foundation for long-term wealth is it empowers you to give with an abundance mindset. And by donating and replacing appreciated shares instead of dollars, you can effectively reset the tax bill on a slice of your taxable investing as an added bonus. Move beyond the basics of investing Once your finances mature a little, you hit a different category of question. Not "Am I saving?" but "Am I set up the right way?" This is where a lot of investors quietly wonder if they're missing something. And often, they are—not because they've done anything wrong, but because default settings don't always age well. A few advanced settings worth exploring include: Asset location (aka Tax Coordination). It's not just what you invest in, it's where you hold it. You may now have a mix of account types (tax-deferred, tax-exempt, and/or taxable), and strategically dividing up your portfolio between them can meaningfully reduce the potential tax drag on your returns over time. Backdoor Roth contributions. Make more money, and the tax benefits of a traditional IRA will quickly phase out. Make a little more, and the same goes for Roth IRAs. But there’s a perfectly legit workaround that high earners use to get money into a Roth anyway. It takes a couple of steps, so live chatting with our team (and a tax advisor) is highly recommended. Tax-loss harvesting. When your taxable investments dip below their initial purchase price, you can jump on the opportunity to “harvest” the theoretical loss and potentially snag similar benefits as tax-deferred accounts. None of these are hacks. They're just what a well-kept portfolio and automated investing can look like once you've moved past the basics. Help has entered the chat If your household has more than $100k at Betterment, you've reached the point where some money questions are worth asking out loud—and you can do exactly that, for free, with a licensed financial specialist via live chat. Not a chatbot. Not an FAQ page. A real human who can act as a sounding board, take a look at how you're set up, and tell you honestly whether anything deserves a second look. Think of it as a gut-check from someone who's seen a lot of portfolios. The kind of conversation where you can ask: Is a backdoor Roth right for me? How can I grow my charitable giving right along with my wealth? Does my particular mix of assets and accounts make sense? If you're already at $100k, you're already in—simply open a new support chat and select “Talk to a financial specialist.” And if you're not quite there, transferring existing investments from external accounts can be a straightforward way to get there. It can mean bringing more of your financial life under one roof, with the fuller picture in view. So consider transferring your investments to Betterment, and get a second set of eyes for your nest egg.

Backdoor Roths and beyond: The four camps who can benefit from a Roth IRA conversion Apr 22, 2026 12:00:00 AM A Roth conversion isn't for everyone, but it can unlock tax savings if you're a high earner, facing RMDs, retiring early, or in a low-income year. Key takeaways A Roth conversion means moving money from a traditional retirement account into a Roth IRA, where you pay taxes now in exchange for tax-free qualified withdrawals. It can be a smart move in several scenarios: your income exceeds the eligibility limits for IRAs, you want lower required minimum distributions in retirement, you're planning an early retirement, or you're temporarily in a low tax bracket. Done right, a conversion can lead to savings over time, but timing and tax planning matter enormously. We recommend working with a financial and/or tax specialist before converting. Households with over $100k at Betterment can kick the tires on a Roth conversion with the help of a professional. Roth IRAs and their tax-exempt perks are pretty great—so great that in some scenarios, it can make sense to convert pre-tax dollars from traditional IRAs and 401(k)s into post-tax dollars in a Roth IRA. This is what’s known as a Roth IRA conversion. You’re taking those pre-tax funds and telling Uncle Sam you’d rather pay taxes on them now in exchange for the benefit of tax-free qualified withdrawals down the road. So what scenarios are Roth conversions ideal for? Four in particular: High earners and the “backdoor” Roth conversion – The IRS blocks direct Roth IRA contributions above certain income limits, but there's a workaround. Recent retirees and unwelcome RMDs – Converting traditional retirement account funds now shrinks the mandatory withdrawals that can inflate your tax bill in retirement. Early retirees and the Roth conversion “ladder” – A little advance planning can unlock your retirement savings years before the IRS’s minimum age of 59 ½ for penalty-free withdrawals after a 5-year holding period for each conversion. People experiencing temporary income dips – Take advantage of low (or no) income tax years. High earners and the “backdoor” Roth conversion Did you know the IRS restricts access to Roth IRAs based on income? Shut the front door! Yes, if your income exceeds these limits, you can’t contribute directly to a Roth IRA. But as the saying goes, when one door closes, another door opens. A “backdoor,” more specifically. A “backdoor” Roth entails contributing after-tax dollars first to a traditional IRA, then converting those funds to a Roth IRA. It’s fairly straightforward in two scenarios: You’ve never contributed to a traditional IRA before. Betterment makes it easy to not only open both a traditional and Roth IRA, but to convert those traditional funds with only a few clicks. You’ve made only pre-tax contributions to a traditional, SEP, and/or SIMPLE IRA(s). Thanks to the IRS’s pro rata rule, you’ll need to first move those pre-tax dollars out of their respective accounts and into a traditional 401(k) or 403(b) before you can use the IRA for a backdoor. Now, things can get tricky if you have a mix of both pre- and post-tax funds in any traditional IRAs (Side note: the IRS treats any and all traditional IRAs you have as essentially the same bucket). So before going down the road of a backdoor Roth, or any Roth conversion really, we highly recommend seeking out both financial and tax guidance. In the case of the former, households with $100k at Betterment can get free guidance on a backdoor Roth via live chat. Already a customer and clear that mark? You're already in—just open a chat. Considering making the move? Our Licensed Concierge team is here to help. Recent retirees and unwelcome RMDs The IRS doesn’t let you keep pre-tax funds in your traditional IRAs and 401(k)s indefinitely. Those dollars are meant to be spent, after all. And Uncle Sam wants (or needs) that tax revenue at some point. So starting in your 70s (75 for those born after 1960, 73 for those born 1951-1959), annual required minimum distributions (RMDs) from these accounts kick in, and the withdrawals are taxed accordingly. RMDs aren’t inherently a bad thing, but if your expenses can already be covered from other sources, RMDs can needlessly raise your tax bill. You can get ahead of this and lower your future amount of RMDs by converting traditional funds to a Roth IRA, which is exempt from RMDs, before you reach RMD age. This can be especially beneficial when your income is low and you have extra space in a low tax bracket you can take advantage of. Another benefit is you’ll minimize taxes on Social Security benefits and Medicare premiums later on in retirement. Early retirees and the Roth conversion “ladder” If you want to retire early, even by just a few years, you might encounter a problem: Most of your retirement savings are tied up in tax-advantaged 401(k)s and IRAs, which slap you with a 10% penalty if you withdraw the funds before the age of 59 ½. A few key exceptions to this early withdrawal rule exist, however: Regular contributions to a Roth IRA (not the growth from those contributions) can be withdrawn any time without taxes or penalties. Once regular contributions are exhausted, Roth IRA conversions can be withdrawn penalty-free as well provided you let each conversion sit for at least five years. So with a little advance planning, early retirees can create a “ladder” of penalty-free Roth IRA funds. They convert funds each year, pay income taxes on them at that time (or not, if they play their cards right), wait five years, then withdraw each conversion scot-free. People experiencing temporary income dips Say you find yourself staring at a significantly smaller income for the year. Maybe you’re taking some time away from work, or you work on commission and had a down year. Whatever the reason, that dip in income means you’re currently in a lower tax bracket, and it may be wise to pay taxes on some of your pre-tax investments now at that lower rate compared to the higher rate when your income bounces back. Roth conversions can be powerful, but plan carefully If you find yourself in one of these scenarios, a Roth conversion could be a real opportunity for you. But the difference between a smart conversion and a costly one often comes down to timing, tax planning, and knowing the rules. Before you pull the trigger, it's worth reading up on the most common Roth conversion mistakes—and even better, talking it through with an advisor who can look at your full picture. Betterment Premium gives you access to a team of CERTIFIED FINANCIAL PLANNER® professionals who can help you figure out the right amount to convert, in the right year, for your situation.

The hidden cost of holding too much cash Apr 21, 2026 12:11:13 PM How to size up your actual cash needs, and find a high-potential home for the rest Key takeaways Cash is great for short-term needs, but inflation steadily eats away at its value over time. Size up those short-term needs like paying the bills and providing a safety net. Then consider investing your excess cash for the long run to make your money work harder. Cash feels safe, but that sense of safety comes at a cost: inflation steadily eats away at the value of your money over time. Take recent history as a harsh example. Since 2021, cash has lost roughly 20% of its purchasing power due to inflation. Parking your money in a high-yield cash account can help ease the blow, but interest rates ebb and flow. Savers may very well find themselves with lower yields in the near future and more cash than suits their needs. So let’s start there: exactly which needs is cash best suited for, and how much do you really need on hand? Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. FDIC insurance provided by Program Banks, subject to certain conditions. Learn more. The average American’s calls for cash Inflation risks aside, cash has the advantage of being highly “liquid,” meaning it’s easy to access at a moment’s notice. This makes it ideal for short-term needs like paying the bills, providing a safety net, and purchasing big-ticket items. Let’s put some hypothetical numbers to these to help quantify the average American’s cash needs. Paying the bills — The average American household, based on the latest available numbers from 2024, spends roughly $6,500 a month. Providing a safety net — Most advisors (including us) recommend an emergency fund with at least three months' worth of expenses ($19,500 using the average monthly spend above). Your spending levels may differ, but for the average American, that calls for about $26,000 in cash, plus any more needed for major purchases. Saving for a home and/or car purchase, for example, will change your calculus. If you're more risk averse, then consider adding a little more buffer. Try a six-month emergency fund. If you’re a freelancer and your income fluctuates a lot, consider nine months. Beyond that, however, you're paying a premium for cash not earmarked for a specific purpose, and the cost is two-fold. Your money, as mentioned earlier, is very likely losing value each day. Not the big swings of the stock market, but a slow yet steady leak. You're missing out on the potential gains of the market. And the historical difference in yields between cash and stocks is stark, to say the least. Global stocks, as represented by the MSCI World Index, have generated nearly a 9% annual return since 1988. Even the highest-yield cash accounts come nowhere near that. So once you've identified your excess cash, where do you go from there? Take a big leap forward on your long-term goals And say hello to investing by way of a lump sum deposit. It can feel like a leap of faith. Like diving into the deep end instead of slowly wading in. And it feels that way for a good reason—all investing comes with risk. But when you have extra cash lying around, historical and simulated market data suggests that investing it all at once outperforms spreading it out, even when accounting for market volatility. Spreading out your deposits over time is called dollar cost averaging, and it’s generally a good fit for investing your regular cash flow, not lump sums you already have on hand. But savvy savers can employ both strategies—they dollar cost average their income as it comes in, and they invest excess dollars or cash windfalls in lump sums. Because in the end, both serve the same goal of building long-term wealth.

The powerful potential of the tax swap Apr 16, 2026 12:18:31 PM Your top tax rate will likely ebb and flow over your lifetime. Tax-savvy investing can help you pay when the tide is low. Key takeaways Your tax rate often ebbs and flows over your lifetime, and the gap between your highest- and lowest-earning years represents an opportunity. Tax-deferred investing lets you swap taxes today for a potentially smaller bill in retirement, while keeping more capital compounding in the market. In low-income years, you can do the opposite: pay a lower rate up front, then enjoy tax-free qualified withdrawals down the road. Betterment automates much of the heavy lifting on both strategies. And for more personalized planning, our advisors can help you find the right moves at the right time. Most investors fixate on their returns. But there's a second stat that can quietly work against them: their tax bracket. And unlike market returns, your tax bracket is something you can actually influence. Investors accomplish this by way of tax arbitrage—a tax “swap” of sorts. The core insight is simple: your tax bracket isn't fixed. It changes over your lifetime, and in response to the choices you make. Sometimes the opportunity arises to swap a tax for a lower (and/or later) one, and these moves can make a meaningful difference in how much of your investing returns you actually keep in the long run. First, a quick tour of how taxes work The U.S. tax system is progressive, meaning income is taxed in layers. Each slice is taxed at a higher rate than the one below it, so while it’s common to hear about your tax bracket (as in, singular), your income often falls into multiple brackets (as in, plural). Tax swaps are all about maneuvering around your top tax bracket and its associated tax rate. As your income grows over time, your last few dollars earned will sometimes break into a higher bracket. And vice versa, when you earn less in a given year—say in retirement or in between jobs—you may slide down a bracket or two. These movements present an opportunity. Two common types of tax swaps Tax deferral: Reducing taxable income today, and buying time for compound interest to do its thing The first example is also the most straightforward: swap a tax today for one down the road. For many people in their peak earning years, that future point is retirement. Let’s say you're hypothetically in the 22% income tax bracket today, but expect to be in the 12% bracket in retirement. In this scenario, every dollar you defer is a dollar that gets taxed nearly half as much, although individual results will vary. Just as importantly, however, this frees up more capital that can potentially benefit from decades of compound growth. Traditional IRAs and 401(k)s are the workhorses here, letting you invest more than $30,000 of income before it gets taxed. In the case of traditional IRAs, it should be noted, those tax benefits phase out at certain income levels. Beyond capped retirement accounts, two strategies can help you maximize the benefits of deferring taxes: Tax-loss harvesting can sprinkle the same advantages on a portion of your taxable investing, with theoretically no limits—and as a side benefit, any leftover harvested losses can offset a higher tax on up to $3,000 of ordinary income each year. Asset location, also known as Tax Coordination at Betterment, can help shield more of your tax-heavy assets in tax-deferred accounts. Both features are fully-automated at Betterment and just a few of the ways it can pay to automate your investing. Filling up low brackets: Take advantage of low or no(!) tax rate years If deferring taxes is about pushing taxes into the future, the second type of tax swap is its polar opposite: pulling them forward into the present when your cash flow dips below its normal cruising altitude. Think early in your career, a gap year between jobs, or early retirement. Filling up low brackets strategically requires advance planning, which is why we recommend talking things through with both a financial and tax advisor. Broadly-speaking, you have a few strategies at your disposal: Roth IRA/401(k) contributions | Paying taxes on your investing now so future growth can be tapped tax-free via qualified withdrawals. Roth IRA conversions | Converting pre-tax traditional IRA/401(k) contributions to a Roth IRA and paying taxes now. Tax-gain harvesting | Strategically selling appreciated investments in a taxable account to realize gains without owing federal income tax, then reinvesting the proceeds. If you play your cards right here, you could pull off the most impressive tax swap of all: a 0% tax rate. That's thanks to the favorable treatment of long-term capital gains, the profits from selling investments held longer than a year. Unlike short-term gains, which are taxed as ordinary income, long-term gains have their own brackets, which are both lower and fewer in number: Tax year 2026 long-term capital gains tax rates Tax rate Single filers Married filing jointly 0% $0-$49,450 $0-$98,900 15% $49,451-$545,500 $98,901-$613,700 20% $545,501 or more $613,701 or more Source: IRS This means investors, assuming they have no other sources of income, can enjoy tens of thousands of dollars in qualified tax-free profits from their taxable investing accounts each year, and even more when factoring in the standard deduction. How Betterment makes it easy You could map all of this out yourself—figuring out your current bracket/s, projecting where you'll land in retirement, deciding which accounts to prioritize, and revisiting it all every time your life changes. It's doable. It's also a lot. Or you can let us do the lion’s share of the work. Tell us your household pre-tax income and tax filing status, and we’ll recommend whether it makes sense to lean into tax-deferred accounts. And for even more personalized guidance, there’s Betterment Premium. Our team of advisors can help you think through the timing of Roth conversions and other strategies that benefit from a human eye. We also recommend looping in a tax advisor, who can pressure-test the plan from a tax filing perspective. A savvy trade hiding in plain sight Tax swaps aren’t about gaming the system. They’re about using the tax code the way it was designed to be used—strategically, patiently, and with an eye on the long game. Most investors leave this opportunity on the table not because it's out of reach, but because it feels complicated. It doesn't have to be. Whether you're just starting to think about tax-smart investing or looking to get more intentional about your retirement strategy, Betterment can help you find and act on the opportunities that make sense for you.

How Betterment’s tech helps you manage your money Apr 15, 2026 12:00:00 AM Our human experts harness the power of technology to help you reach your financial goals. Here’s how. When you’re trying to make the most of your money and plan for the future, there are some things humans simply can’t do as well as algorithms. The big idea: Here at Betterment, we’re all about automated investing—using technology with human experts at the helm—to manage your money smarter and help you meet your financial goals. How does it work? Robo-advisors use algorithms and automation to quickly and efficiently optimize your investments. They do the heavy lifting behind the scenes, managing all the data analysis and adapting investment expertise to fit your circumstances. All you need to do is fill in the gaps with details about your financial goals. The result: you spend less time managing your finances and more time enjoying your life, while Betterment focuses on your specific reasons for saving, adjusting your risk based on your timeline and target amount. Plus, robo-advisors cost less to operate. While the specific fees vary from one robo-advisor to the next, they all tend to be a fraction of what it costs to work with a traditional investment manager, meaning more of your money stays invested. Learn more about how much it costs to save, spend and invest with Betterment. A winning combination of human expertise and technology: Automation is what Betterment is known for. But our team of financial experts is our secret sauce. They research, prototype, and implement all the advice and activity that you see in your account. Our algorithms and tools are built on the expertise of traders, quantitative researchers, tax experts, CFP® professionals, behavioral scientists, and more. Four big benefits (just for starters): We put your dividends back to work: We automatically reinvest available dividends, even purchasing fractions of shares on your behalf, so you don’t miss out on potential market returns. A focus on the future: Nobody knows the future. And that makes financial planning tough. Your situation can change at any time but our tools and advice can help you see how various changes could affect your goals. We show you a range of potential outcomes so you can make more informed decisions. Anticipating taxes: We may not be able to predict future tax rates, but we can be pretty sure that certain incomes and account types will be subject to some taxes. This becomes especially relevant in retirement planning, where taxes affect which account types are most valuable to you. Factoring in inflation: We don’t know how inflation will change, but we can reference known historical ranges, as well as targets set by fiscal policy. The most important thing is to factor in some inflation because we know it won’t be zero. We currently assume a 2% inflation rate in our retirement planning advice and in our safe withdrawal advice, which is what the Fed currently targets. Additional advice is always available: At Betterment, we automate what we can and complement our automated advice with access to our financial planning experts through our Premium plan, which offers unlimited calls and emails with our team of CFP® professionals. You can also schedule a call with an advisor to assist with a rollover or help with your initial account setup. Whether you need a one-time consultation or ongoing support, you can always discuss your unique financial situations with one of our licensed financial professionals Managing your money with Betterment: Our mission is to empower you to make the most of your money, so you can live better. Sometimes the best way to do that is with human creativity and critical thought. Sometimes it’s with machine automation and precision. Usually, it takes a healthy dose of both.

How to hedge your bond bets in the face of oil-induced inflation Mar 30, 2026 11:18:00 AM Conflict in the Middle East is causing oil prices to spike—underscoring the value of diversifying not just with bonds, but within them. Key takeaways Oil price shocks from the war with Iran could drive inflation, keep borrowing costs elevated, and pressure stock valuations. Diversifying within asset classes, not just across them, can offer a crucial second layer of potential protection. Inflation-protected bonds, for example, are designed to hold up when other bonds don't, making them a powerful potential hedge in volatile markets. Despite the rise of renewable energy and natural gas, oil still makes the world—and markets—go round. Roughly a third of global energy comes from the fossil fuel, much of it from the Middle East. So while the conflict in the Middle East is less than a month old, and the Trump administration could try to unwind it sooner than later, even a temporary squeeze on the global oil supply can still impact the broader economy. The pain is first felt at the pump. But higher oil prices also increase costs downstream and can delay or reduce interest rate cuts by the Federal Reserve, which has the potential to weigh on stock valuations over time. All of this serves as a good reminder of why diversification matters, not just across asset classes like stocks and bonds, but within them. Take bonds, the loans investors make to companies, governments, and other entities. We offer more than five varieties in our portfolios, and it's one sub-asset class in particular—inflation-protected bonds (aka TIPS)—that has performed well since fears of persistent inflation took hold in 2022. TIPS are U.S. government bonds whose face value and twice-yearly interest payments rise with inflation. Crucially, they tend to perform well when other bond types don't, adding an extra layer of protection during market downturns. This double-layered diversification is central to our investing philosophy, and how we seek to deliver not only financial benefits to investors but psychological ones too. It’s why most of our stock and bond portfolios include some allocation to TIPS, as high as 20% in the most conservative of cases. We also make it easy to adjust your bond allocation over time and to view your portfolio's exact holdings—so you always know where you stand. Because when the world's most essential commodity becomes unpredictable, knowing your portfolio is built for more than one kind of storm can make all the difference.