June 07, 2013
This startup captured $200 million of peopleâs savings by turning financial advice into an algorithm
Posted by: Admin : Category: Finance
Almost all online brokerages, from E-Trade to Vanguard, now offer advice and even financial tools to make managing your finances simpler. But too often, those tools merely reflect the complexity of the financial services industry rather than boiling it down, which can be intimidating and fatiguing. Betterment tries to cut through the complexity to make financial decisions as easy as, say, working an iPhone. âForÃÂ that younger customer whoâs reaching that inflection point where they have enough savings that they need some guidance, but does not have a large enough stake that advisors are calling them every week, I think there is an opportunity for Betterment,â saysÃÂ Craig Martin,ÃÂ director of the wealth management practice at market research firm J.D. Power.ÃÂ Even people who worry about saving regularly and setting specific financial goals often donât do it. And for many, employing someone else to do it is too expensive.
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