Key takeaways
- We surveyed our clients and discovered that 75% of them use self-directed investing elsewhere, however many need it alongside their automated investing—so we constructed it the Betterment means.
- With Betterment, you possibly can make investments your means, shopping for and promoting 1000’s 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.
- In contrast to different investing apps, Betterment’s tax impression preview allows you to see the impression of a sale earlier than you commerce, so there aren’t any tax surprises.
- Make investments smarter with these three suggestions: set clear targets, plan for taxes, and maintain feelings out of your investing.
Not too long ago, we surveyed our clients and discovered 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 carry self-directed investing to life—the Betterment means?
Our reply: mix our award-winning platform with a customer-first expertise to allow you to purchase and promote 1000’s of shares and ETFs with no commissions.
With Betterment’s self-directed investing, you’ll get extra investing decisions, the flexibility to see all your investments in a consolidated place, and tax insights you gained’t discover anyplace else.
Investing your means, multi functional place
Not everybody invests for a similar cause. We all know this as a result of we regularly solicit suggestions from our clients. Some clients informed us they wish to spend money on corporations they consider in. Others discover it intellectually rewarding to observe markets and make trades. And plenty of merely like having extra management over their portfolio.
With Betterment’s self-directed investing, you will get that flexibility whereas holding all the pieces on one platform. Handle your automated portfolios, money accounts, and self-directed trades facet by facet, with expertise designed to provide you a transparent view of your monetary life.
Tax insights you gained’t get anyplace 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 carry a hefty and surprising tax invoice on the finish of the 12 months that catches individuals off guard.
In reality, once we requested our clients about their largest 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 impression preview earlier than you promote a inventory or ETF.
That preview consists of how the sale might have an effect on your taxes, and even potential wash gross sales. A wash sale happens once you promote a safety at a loss after which repurchase the identical or a considerably similar safety inside 30 days earlier than or after the sale, disallowing the tax deduction for that loss.
With our tax impression preview, there aren’t any surprises or guesswork. Simply clear tax insights that can assist you make smarter choices. (See how tax impression preview works.)
Three tricks to get began with self-directed investing
Self-directed investing supplies you with the selection to take a position your means. However you get to resolve what “your means” means. To assist, listed below 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 development, short-term revenue, diversification, or another cause? Having a transparent goal will 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 positive factors taxes. Quick-term positive factors (for investments held lower than a 12 months) are normally taxed at a better charge than long-term positive factors. Utilizing instruments that preview your tax impression earlier than you commerce—like Betterment’s—will 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 value 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 capability to attempt to “time the market.”
