Sunday, April 20, 2014

Why don't Wealthfront or Betterment offer index funds based 401k plans for small businesses?

We came across a discussion where someone asked, "Why don't Wealthfront or Betterment offer index funds based 401k plans for small businesses?"
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Katherine from Betterment here. Thanks for your question about 401(k) plans; it's 

something we’re looking into. Offering our services in a 401(k) plan is a sensible idea. 

We believe Betterment is the next generation of the target date fund, found in the 

vast majority of employer-sponsored retirement plans. Right now we’re focused on 

growing what we believe is the most efficient individual investment service. To create 

a Betterment 401(k) option requires extensive operational and regulatory manpower - 

our resources are currently dedicated to making Betterment the best product it can be.

Please check back with us for updates as we continue to expand our product offering.

Thanks,

Katherine

 Katherine Buck.
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Who is Betterment? 

With a decade of experience in finance and as a CFA charterholder, Betterment CEO Jon sought an investment service that would deliver the best possible results and save him time and money. A service to build wealth, yes, but more importantly give him the peace of mind and the time to pursue his career and enjoy other things in life.
But every product he found was time-consuming and thoughtless. Whatever technical innovation he found seemed to benefit traders, but left his professional peers and sophisticated investors no better off than they were two decades ago.
Jon saw an opportunity to make investment management better through the thoughtful application of technology, which could optimize any portfolio, whether $10,000 or $10 million. He assembled an expert team of engineers, quants, and designers, and together they re-imagined what an investing product should be: efficient, accessible, and delightful.
At Betterment, we are creating a world where investing better is accessible to everyone. We have built a financial utility that provides the obvious, smart answer to "What should I do with my money?"

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