Wow a lot of hate for Betterment here. I’ve been using betterment for several years now and have been very happy. Betterment has been very helpful with doing a 401k rollover for me, and I love how easy it is to deposit/withdrawal money.
I looked into Vanguard a few years ago for setting up an IRA, and was not impressed from an ease of use perspective. I’m sure they have updated since due to competition from the Betterment, but I cannot confirm.
I have used Fidelity for a 401k, and was not impressed at all. Poor website design, poor organization. Can’t speak to the customer service as I haven’t worked with them (yet). Getting ready to roll my Fidelity 401k into my Betterment account.
Betterment offers two services (included with every account) that Vanguard and Fidelity don’t.
Tax Loss Harvesting - reducing your tax bill by selling when your assets are low, and buying a similar asset at the same time. This allows you to declare a loss on the investment while still being exposed to the market at the same allocation. I’ve harvested over $1700 in losses in about 2 years.
Tax Coordinated Portfolio - Do you plan to max out your IRA and start a taxable account? If yes, their tax coordinated portfolio is a great option. The allocate highly taxed investments to your IRAs and low taxed investments to your taxable accounts to reduce your overall tax burden.
The tax savings you can gain beat out the (slightly) higher fee you will pay for the service.