Wisebanyan vs Betterment

Investing your money is a good way to make a preparation for the future plan you have and thanks to all the technology found by human kind, today you don’t have to deal with it yourself or spend much on a human advisor anymore. In our Wisebanyan vs Betterment article, we are going to give you information about these two similar yet different investment platforms to give you information about what you can expect from them and if there is any, how they differ from each other.

In this article, we are going to give you information about:
– What are Wisebanyan and Betterment
– How Wisebanyan and Betterment Work
– Wisebanyan vs Betterment

About Wisebanyan
You probably know Wisebanyan because of the tag they put on themselves, which is “the world’s first free financial advisor” and it is true. If you are currently looking for a platform to invest, this one is a good option since it will help you build your portfolio that matched with your goals and of course without charging a management fee. To start an account with them, you can start at any amount and they won’t charge for the basic service annual fee but you will still get charged for ETFs they recommend.

Wisebanyan Ease of Use
When starting, you will be prompted to answer several investing-related questions to determine your goals and risk tolerance but you can always adjust them later on. Based on your answer, the platform will automatically invest our money into a diversified portfolio. They use a bunch of Charles Schwab ETFs in their portfolio makeup and unfortunately they is more into corporate bonds that is of course sensitive to inflation and rate hikes from the Federal Reserve.

But, they also have REIT ETF for investing in real estate, which does not correlate to stocks or bonds. You also will be suggested with monthly funding because it is one of the key to your success to reach your goal; it is always recommended to start moderately and if you can slowly increase it.

About Betterment
Another popular platform of “hands-off” investing is Betterment and probably one of the most popular now. What they can offer to you is a technology drive investment platform that can give you a diversified portfolio of exchange traded funds, which of course will be compiled to works in your favor and give your expected return whether you want it for retirement planning, building wealth or other saving goals. To use their service, you can start at any point because they don’t require minimum account but you will be charged 0.25% a year a service fee. Read also: Betterment vs Personal Capital here.

Betterment Ease of Use
Since it is an automated investment service, you can’t select individual funds, add individual stocks into your portfolio or invest outside 13 ETFs chosen by Betterment. They will build your portfolio containing 13 ETFs combining both stocks and bonds and these 13 funds are comprised of thousands of individual securities, so you will be given an adequate exposure to the major markets. Seven of those are for bond portion that cover various sectors of each asset class for both US and foreign securities while the rest are stock funds, which provide capital preservation.

Now, let’s compare Wisebanyan with Betterment. Their basic different is in the fee because Betterment still charged you at $0.25 per year while the other is completely free. You will need to pay them if you have taxable account and need tax loss harvesting, so it is not completely free and depend on your account.

Wisebanyan vs Betterment

- No service fee- Requires annual fee
- Offer less account types- Offer more account types
- Special account for tax-loss harvesting- No additional fee for tax-loss harvesting

All in all, the decision is all yours to make. In our opinion, both of them are good option depend on your needs. If what you are looking for is low cost management and goal-based guidance, Wisebanyan is a better option but for tax loss harvesting Betterment offer it at no additional cost.

Leave a Reply

Your email address will not be published. Required fields are marked *