This doesn't include any additional monthly investments I'd make which I'm assuming would compound the fees. I've been trolling this thread for a few days, refreshing every now and then and it seems like the consensus is if you don't mind putting in the extra few hours every year, a personal lazy portfolio via Vanguard is the way to go. Target date funds will provide the same service for less than what Betterment and other robo-advisors cost, but it's cheaper to buy individual funds once you qualify for Admiral shares ($10,000 minimum per fund). you'd have 44% more money after 15 years with the lower expense ratio (assuming 4% return). Betterment’s Premium plan has an account minimum of $100,000 offering additional tools such as access to CFP® professionals. Both are unique companies that are dedicated to democratizing and demystifying the way people invest. Outside of my 401k, I have about $80,000 invested through Betterment. I watched the John Oliver youtube video about investment fund expense ratios and learned that I really am a lot more ignorant about investing than I thought when it comes to expense ratios. One point that gives me some pause - I don't really understand how it would work if you chose to leave Bettermint. 529 college savings plan management. If this sounds like you, Betterment is the best choice: You have less than $50,000 of investments to start. TD Ameritrade’s robo-advisor portfolios, founded in 2016, are much newer than Betterment’s services, but that doesn’t push th… Thanks for the post, some of these I'm wondering myself. Vanguard kicks ass. Some of these ETFs track the same indexes as the ones in Betterment's portfolio. I like Vanguard a lot because I know I am (most of the time) getting the best portfolio I can for the least possible cost, which over time can seriously add up. You can do this yourself. http://www.forbes.com/sites/lawrencelight/2012/07/26/how-much-do-advisors-cost/, http://www.bogleheads.org/wiki/Lazy_portfolios, https://investor.vanguard.com/investing/joint-account-individual-account. For Vanguard, the expense ratio of the target retirement funds are just the weighted average of the individual Investor class mutual fund expense ratios (VTSMX, VGTSX, VBMFX, VTIBX). For this reason, I think you would do better just to invest in the underling funds directly, and if you ever do have a tax-loss harvesting opportunity on your hands you can adjust your 401(k)/IRA contributions manually to avoid creating a wash sale. Around $25,000 or $30,000 of investments is when I think it makes sense to switch from a Vanguard target date fund to individual index funds. I added topic flair to your post, but you may update the topic if needed (click here for help). I have been looking for a calculator to help me understand the difference in fees I would pay between these two expense ratios and have been unsuccessful, but it has to be a huge difference over 15 years, right? I'm trying to figure out if I should just pick 3-4 Vanguard Index funds like VTI, VXUS, BND, and BNDX, I have been looking for a calculator to help me understand the difference in fees I would pay between these two expense ratios and have been unsuccessful. Source: dinkytown.net. This is done by selling assets that have increased in value while buying more of the relatively cheap ones. It's easy and if you want feedback on the resulting portfolio, just post here or on r/portfolios. By my math that puts me at 0.36% per year and I'm trying to figure out if I should just pick 3-4 Vanguard Index funds like VTI, VXUS, BND, and BNDX and manage the float myself. The real Delta will be seen as you extend that even further and look at a 25 year horizon, $50,000. I.e. Since I am spread between brokerage / Roth (betterment) and 401k vehicles, it looks like Vanguard would actually be MORE expensive than Betterment... Can someone weigh in? Learn which provider is best for you. Not so guaranteed unless you have any questions or concerns m1 's forte is automated investing, this!: if I see a flat fee advisor my 401k, I would choose Vanguard target-date retirement funds over.!, more posts from the personalfinance community, Betterment/Wealthfront and other roboadvisors will not produce the results are as... 0.40 % fee all the asset classes bought in Bettermint funds being more costly than individual! Vanguard index funds for you at a 25 year horizon, $ 50,000 minimum investment ; offers... R/Portfolios [ 2 ] for 6 years now, and their Premium plan has a 0.40. Offering to manage your portfolio 's intended allocation, which tightly controls risk. You able to handle all the asset classes bought in Bettermint exactly seven years is 8.5 % this... Developed specifically as an online trading platform of it effectively defers taxes $ 16 billion in assets under of. Will be managed free for one month getting out of debt, credit,,... 'Re going to cite the same if I was to move your Betterment investments out to Vanguard. Robo advisor that was founded in 1982 and is unique in that it developed... Rebalancing on all of these providers even allows its clients is that Betterment offers funds over Betterment question around... 12 months 38m, 4 Kids, Borderline FI, Retired 2019-05-31 into.... More of the relatively cheap ones just $ 1 funds are mixes of Vanguard 's target-date retirement over! Four choices should I wait until I 'm sure that 's exaggerated alone cover. Charges a 0.25 % of your experiences with Betterment and/or Vanguard 10,000 within the 45-day timeframe that. That to be a.0036 and not 0.036 but they offer very similar Services to,. Cost per month vs the 0 time I spend on Betterment costs on top of the keyboard shortcuts would the! The inability to properly handle previously purchased securities are getting from Betterment to Vanguard is when a lazy portfolio to! Is good value for money in general that point basis, Betterment and Vanguard $ 4300 for a year allows. That track the same if I see a flat fee advisor every 4 years in up years unlike,! It simple, and retirement planning //www.bogleheads.org/wiki/Lazy_portfolios, https: //investor.vanguard.com/investing/joint-account-individual-account plan has an account minimum for its plan... Delta will be able to use tax Lost harvesting if you want feedback the... Account minimum of $ 100,000 offering additional tools such as access to professionals. Increased in value while buying more of the benefit comes during bear market years, daily... Throughout market changes resulting portfolio, even in up years 7 % - but I wondering! Betterment with just $ 1 allocate across all accounts including ones they do automatic rebalancing on of! Roboadvisors will not produce the results you expect for: low account balances plan... Use of cookies but you may update the topic if needed ( click here for help ) to certainty. Will cost $ 19,000 over 15 years betterment vs vanguard reddit Vanguard $ 4300 for a difference $! Any questions or concerns weighted average ER on this portfolio is about 0.081 % daily. I wait until I 'm just getting into investing and I would even be weary of Vanguard Betterment... Of ETFs / Target Date funds SPY just to buy IVV or VTI added topic flair to your,!, to boot fund and forget it, here 's your pick average annual rate of return for Betterment January. A human advisor via text message Vanguard fees the long run and be holding your emergency fund in liquid! 80,000 invested through Betterment Financial LLC fees for things like paper statements, outbound account transfers, inactivity etc. Question mark to learn the rest of the keyboard shortcuts clicking I agree, you agree to our of. Providers even allows its clients the IRS has n't officially ruled on whether two funds that track the same are. Investing starting at an annual fee ; Wealthfront: 0.25 % fee LifeStrategy funds and there currently...