Key takeaways
- We surveyed our prospects and realized that 75% of them use self-directed investing elsewhere, however many need it alongside their automated investing—so we constructed it the Betterment method.
- With Betterment, you may make investments your method, shopping for and promoting hundreds of shares and ETFs with no commissions.
- Handle your automated portfolios, money accounts, and self-directed trades collectively on one platform for a fuller view of your funds.
- Not like different investing apps, Betterment’s tax influence preview enables you to see the influence of a sale earlier than you commerce, so there are not any tax surprises.
- Make investments smarter with these three ideas: set clear objectives, plan for taxes, and preserve feelings out of your investing.
Not too long ago, we surveyed our prospects and realized that 75% of them use some type of self-directed investing.
That was eye-opening. Whereas our automated investing instruments are designed to take the work out of wealth constructing, many individuals nonetheless need the choice to choose and handle sure investments on their very own.
So we requested ourselves: how can we convey self-directed investing to life—the Betterment method?
Our reply: mix our award-winning platform with a customer-first expertise to allow you to purchase and promote hundreds of shares and ETFs with no commissions.
With Betterment’s self-directed investing, you’ll get extra investing selections, the flexibility to see your whole investments in a consolidated place, and tax insights you gained’t discover wherever else.
Investing your method, multi functional place
Not everybody invests for a similar cause. We all know this as a result of we regularly solicit suggestions from our prospects. Some prospects informed us they wish to put money into corporations they consider in. Others discover it intellectually rewarding to comply with markets and make trades. And plenty of merely like having extra management over their portfolio.
With Betterment’s self-directed investing, you may get that flexibility whereas conserving all the things on one platform. Handle your automated portfolios, money accounts, and self-directed trades facet by facet, with know-how designed to present you a transparent view of your monetary life.
Tax insights you gained’t get wherever else
Right here’s the place we’re actually completely different than the everyday “inventory buying and selling” platforms. Self-directed buying and selling typically means extra frequent shopping for and promoting, which may convey a hefty and surprising tax invoice on the finish of the 12 months that catches folks off guard.
The truth is, after we requested our prospects about their greatest problem with self-directed investing on different apps, the highest reply was “managing tax implications.”
We solved that problem.
At Betterment, you’ll see a tax influence preview earlier than you promote a inventory or ETF.
That preview contains how the sale may have an effect on your taxes, and even potential wash gross sales. A wash sale happens while you promote a safety at a loss after which repurchase the identical or a considerably equivalent safety inside 30 days earlier than or after the sale, disallowing the tax deduction for that loss.
With our tax influence preview, there are not any surprises or guesswork. Simply clear tax insights that will help you make smarter choices. (See how tax influence preview works.)
Three tricks to get began with self-directed investing
Self-directed investing supplies you with the selection to take a position your method. However you get to resolve what “your method” means. To assist, listed here are three steps to get began:
- Have a transparent aim earlier than you commerce: Don’t simply purchase as a result of one thing seems to be sizzling or is within the information. Ask your self: Am I investing for long-term progress, short-term revenue, diversification, or another cause? Having a transparent objective may also help you keep away from making impulsive trades.
- Take into consideration taxes earlier than you promote: Promoting a inventory or ETF can set off capital features taxes. Brief-term features (for investments held lower than a 12 months) are often taxed at a better charge than long-term features. Utilizing instruments that preview your tax influence earlier than you commerce—like Betterment’s—may also help you keep away from surprises.
- Keep away from emotional buying and selling: Markets transfer quick. It’s simple to panic-sell when costs dip or chase a inventory that’s hovering. As a substitute, set guidelines for your self—like solely initiating a commerce at pre-set worth targets or sticking to a dollar-cost averaging plan—so feelings don’t dictate your choices. Plus, at Betterment, your trades are queued for execution and never made instantly, however they’re made in a well timed method, limiting your potential to attempt to “time the market.”
