NEW YORK, July 28, 2016 /PRNewswire/ -- Betterment for Business, the only turnkey 401(k) service that includes personalized investment advice for all participants, announced today that it has successfully added 200 plan sponsors to the platform in the last six months.
"The 401(k) space has been long overdue for an overhaul," said Cynthia Loh, General Manager of Betterment for Business. "There is broad agreement throughout the industry that the current solutions are not meeting the needs of most participants. Our clients needed a solution to improve not only the retirement readiness but the overall financial well-being of their employees. We are proud to be that solution by providing low-cost, transparent, and holistic financial advice to participants. Having more than 200 plans in just six months is a great indicator of the clear demand for what we're building."
Greenhouse Software -- a company that designs the tools that help companies source, interview, hire and onboard the right talent -- has signed up as a plan sponsor. Headquartered in New York City and with offices in San Francisco, Greenhouse has rolled out the Betterment for Business 401(k) offering to all of its employees.
"Our ongoing goal at Greenhouse is to provide our employees with the best benefits so that they don't have to worry about things like saving for retirement," said Jessica Pfisterer, Director of People Operations at Greenhouse Software. "As a technology-driven company, our employees expect the same level of great technology in an easy-to-use managed portfolio solution. Betterment for Business was an obvious choice."
MVP Anesthesia Associates, a physician group, has also signed up as a plan sponsor. "At MVP, we were looking for a 401(k) that was easy to use, low cost, and includes investment advice," said Bruce Novis, President of MVP. "After reviewing a number of providers to whom we could convert our plan, Betterment for Business was the clear winner due to the proven investment methodology strategy and advice tools for participants."
Participants enrolled on the Betterment for Business platform are invested in a globally diversified portfolio of index-tracking exchange-traded funds (ETFs) and benefit from personalized advice in a goal-based investing framework. The Betterment platform currently serves more than 175,000 retail customers. Participants will also be able to easily open and customize taxable investment accounts, traditional and Roth IRAs, and trust accounts—and view all of them alongside their 401(k) accounts. The accounts will be intelligently managed, together—a service that few other providers in the market offer.
Consistent with Betterment's retail service, Betterment for Business aims to lower costs and offers a simple, easy-to-understand fee structure, with no upfront fee for plan sponsors with more than $1 million in assets, and an assets under management-based fee ranging from 0.10% to 0.60%.
Launched in 2010, Betterment manages more than $5 billion in assets for more than 175,000 customers. Betterment's platform includes a variety of features designed to provide personalized advice and a seamless experience, including RetireGuide™, a retirement planning tool that helps to inform customers as to whether or not they are invested correctly for a comfortable retirement, and SmartDeposit, a feature that makes it easy for customers to automatically invest their excess cash without having to think about it.
Betterment is the largest independent robo-advisor, helping people to intelligently manage and grow their wealth through smarter technology. With more than 175,000 customers and over $5 billion in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the higher expected returns for retirement planning, building wealth, and other savings goals. Betterment also helps customers get on track for a comfortable retirement with RetireGuide™, a retirement planning tool that lets people know how much they should save and if they are investing correctly. Betterment was a CNBC Disruptor 50, FT 300 and Webby award winner, and it has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people work to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Determination of largest independent robo-advisor reflects Betterment LLC's distinction of having highest number of assets under management, based on Betterment's review of assets self-reported in the SEC's Form ADV, across Betterment's survey of independent robo-advisor investing services as of July 11, 2016. As used here, "independent" means that a robo-advisor has no affiliation with the financial products it recommends to its clients.