What Small Business Owners Learn From Betterment Success

What Small Business Owners Learn From Betterment Success

Life is filled with so many surprises, and if you’re not prepared financially, it can bring yourself to nowhere. Because of this, financial planning is something that you should take seriously. When you plan your finances, you can handle your money properly, thereby giving direction to your life goals.

Luckily, there are several ways to get started with financial planning, and one of them is investing. But, given the variety of investment assets and firms to choose from, it’s a must to determine the best fit you. This is where Betterment, as an investment platform, enters the picture. With Betterment, many small business owners have been able to understand the fundamentals of investing that could pave their way to financial freedom.

Betterment: An Overview

Unlike traditional investment firms, Betterment refers to an online platform that offers investors the opportunity to invest in different account types, such as individual retirement accounts, trusts, business accounts like 401(k), and many more, with robo-advisors as leaders. For instance, Betterment is now at $16.4 billion assets under management; given that figure, more investors are looking forward to working with them.

Created by Jon Stein in 2008, Betterment is a robo investing channel that utilizes computer algorithms to handle investment portfolio and automate the entire investment process. Because of technology, this goal-based investment platform doesn’t require researching as it does it for you automatically. This is one of the reasons why Betterment can be ideal for beginners, whether individuals or business owners.

This is how Betterment works:

  • You need to provide information such as age, income, goals, and projected income until you retire. From there, they’ll use the data to know how aggressive your portfolio should be.
  • With the info you’ve provided, Betterment will look at your level of tolerance and financial goals to get a better picture of the right investment portfolio for you.
  • Since Betterment is a robo-advisor, they utilize technology to identify the level of risk and the type of investment that should form part of your portfolio. Also, they’ll make sure that your portfolio will remain optimized within the best asset allocation based on your goals and risk tolerance.

Betterment: Things Small Business Owners Learn From It

Now that you’re already familiar with how Betterment works, the next step is to know and understand what small business owners can learn from it. If you want to become successful in the investment industry, you should master the following with the help of Betterment:

  1. Manage Money Better Through Cash Management

    If you’re a small business owner, you need sufficient cash to finance your business expenditures and other expenses. That way, you’ll have more control over your day-to-day operations. But, even if your company is earning a profit, you still have to manage your cash flow properly to ensure liquidity and financial independence.

    That’s why it’s a good idea to invest your money with a robo-advisor like Betterment. And, with your investments’ success with Betterment, you can continue to run routine activities, including buying materials, paying suppliers, funding payroll, and even making other investments.

  2. Take Advantage Of Guided Investing

    As mentioned, business owners can also have an investment in different assets to improve their financial situation. Unfortunately, the whole process of investing can be complicated and challenging. Without proper research and planning, you may not be able to maximize your return on investment. So, this is where the use of Betterment comes into play.

    Since Betterment is a robo-investing channel, you can rest knowing that all your investment efforts are well taken care of. The technology running the platform can help you get a clearer picture of how your portfolio works for you. As long as you provide the system with your financial goals and risk tolerance, Betterment can handle everything for you. They can monitor your portfolio and rebalance it for better asset allocation.

    Because of this, your success in Betterment investment can give birth to a new world of guided investing, which reduces your chances of losing money in the long run.

  3. Boost Retirement Planning

    As a small business owner, retirement planning is also crucial to your financial independence until your retirement age arrives. And, one of the best ways to increase your retirement funds is through investing. When you invest your money into multiple assets, like stocks, bonds, and many more, you can ensure a good ROI and prepare for your retirement better.

    Always keep in mind that investing through the help of platforms like Betterment can boost your retirement planning. And, with the success of your Betterment investments, you can guarantee a high level of financial security once you reach your retirement age.


If you’re a first-time investor, you may give Betterment a try. With its topnotch services and features, you’ll surely achieve the right balance between making informed decisions and having full control of your finances.

Remember, the more you become successful with Betterment, the more you learn how to manage money, invest with minimal risks, and plan your retirement efficiently.