SOURCE: Betterment

Betterment

May 23, 2011 08:00 ET

Betterment.com Announces Growth to Over $10 Million Under Management in Its First Year

Betterment Presents Challenge to TechCrunch Attendees to Highlight Human Investing Behavior

NEW YORK, NY--(Marketwire - May 23, 2011) - TechCrunch Disrupt -- Betterment.com, the revolutionary online investing solution that makes investing easy and accessible, today announced that it has grown to more than $10 million under management and over 4,000 customers in the last year. Building upon its successful launch at TechCrunch Disrupt last May -- where it took home the award for "New York's Most Disruptive Startup" -- Betterment continues to develop its offering with new site features and enhanced operations. The company is also challenging TechCrunch Disrupt attendees to evaluate their investment strategies with a simple choice: Take home $10 cash today or receive $25 from Betterment in 50 days.

"The growth Betterment has seen in the last year is a testament to the fact that today's investors are looking for smart and simple ways to increase their wealth without spending hours learning how to 'play' the market," said Jon Stein, CEO and founder of Betterment. "We expect to surpass the growth we've seen in our first year as we roll out new products aimed at further improving site functionality and user experience. We are currently growing by more than 30 percent each month."

Behavioral studies show that people consistently over-discount the future. The choice Betterment is presenting to attendees of TechCrunch -- $10 cash today or receive $25 from Betterment in 50 days -- is intended to showcase how hard it can be for consumers to make the right long term choices for their personal finances. Investing $10 in a Betterment account today could be worth $25 in 10 years, assuming the average annual return of the market of 9%.

To help consumers save and invest for the future, Betterment has just launched a Flexible Auto Deposit tool. This new tool will allow users to pick the auto savings plan that works best for them -- whether it's a small amount deposited on a specific day, or a lump sum once a month -- and automatically transfer funds into Betterment from a checking account. More than 25 percent of Betterment users are already taking advantage of the monthly Auto Deposit feature. In the coming months, Betterment also plans to introduce additional features that address the financial needs of its clients, including Joint Accounts, Custodial Accounts and IRAs.

Betterment integrates the simplicity of an online bank account with the higher long-term returns associated with investing in a diverse portfolio of stocks and bonds. Signing up at www.betterment.com takes just minutes. There's no minimum balance, and transfers and trades are always free.

About Betterment
Betterment is a groundbreaking online investment advisor and brokerage dedicated to helping everyone save for their long-term goals with ease. Betterment achieves this through low-cost, well-grounded, and automatically implemented financial advice designed for smart, busy people. Set-and-forget accounts are optimized for each user, broadly diversified, regularly rebalanced -- and still provide the liquidity and simplicity of an online bank account. This suite of services is unavailable anywhere else, including the large investment firms. Voted "Best of Show" at Finovate and honored as "New York's Best Startup" by TechCrunch, Betterment is smart investing without hassles. For more information, please visit www.betterment.com. Follow Betterment on Facebook: facebook.com/betterment and Twitter: @betterment.

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