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Evaluating performance and taxes

Investing isn't just what you earn—it's what you keep that matters. We can help you build wealth over the long term, while helping to protect your earnings from taxes.

  • Tax savings could pay your fee.

    Nearly 70% of customers had their advisory fee covered by tax-loss harvesting.
    Based on 2022-2023. Tax Loss Harvesting+ (TLH+) is not suitable for all investors. Consider your personal circumstances before deciding whether to utilize Betterment’s TLH+ feature. Fee coverage and estimated tax savings based on Betterment internal calculations. See more in disclosures. See more in disclosures.

  • Recurring deposits can help you earn even more.

    Customers using recurring deposits earned nearly 3% higher annual returns
    Based on Betterment’s internal calculations for the Core portfolio over 5 years. Users in the “auto-deposit on” groups earned nearly an additional 2.5% over the last year and 2% annualized over 10 years. See more in disclosures.

We help minimize your taxes to maximize your bottom line.

No matter how well your portfolio performs, you still have to pay taxes. See how our tax strategies can help you save more of your money—from that first deposit to retirement.

  • 1 / 6 When you invest with us

    We recommend the combination of accounts—which are all taxed differently—that may be best for you.

  • 2 / 6 When we build your portfolio

    We use exchange-traded funds (ETFs), which are generally more tax-efficient and lower-cost than mutual funds.

  • 3 / 6 When you make a deposit

    We organize assets across your accounts to get you the best overall tax treatment.

  • 4 / 6 When the market goes up

    We rebalance your portfolio using new deposits and dividends, instead of selling assets (which can cost you in taxes).

  • 5 / 6 When the market goes down

    We sell losing investments to offset taxes owed on future gains. Known as tax-loss harvesting, it’s a tool you can use to lower taxes at the end of the year.

  • 6 / 6 When you start withdrawing

    Once you reach your goal, we show the tax impact of taking withdrawals and try to sell assets in the most tax-efficient manner.

Be invested.

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