225: Jon Stein, CEO of Betterment

Published: Aug. 24, 2015, 7 a.m.

b'In my Ask Farnoosh episodes I received a number of questions from\\xa0 you about financial advisors. How do I know I\\u2019m ready to work with one? How much do they cost? Is it worth it?I also receive a number of questions about the growing market of \\u201crobo advisers\\u201d or online advisors that offer more affordable financial planning. You don\\u2019t get to meet with an advisor one-on-one but you receive a virtual plan that addresses your goals\\u2026And many people are participating. ..Still many are not sure if this is right for them.That\\u2019s why I\\u2019ve invited today\\u2019s guest\\u2026co-founder and CEO of Betterment, Jon Stein.\\xa0 Betterment launched in 2008 and is, as the company says, \\u201ca smarter automated investing service that provides optimized investment returns for individual, IRA, Roth IRA & rollover 401(k) accounts\\u2026 Through diversification, automated rebalancing, better behavior, and lower fees, Betterment customers can expect\\xa04.30% higher returns\\xa0than a typical DIY investor.\\u201d The company also practices automation and passive investing. It\\u2019s free to sign up and as your account\\xa0 balance grows, so does your monthly fee\\u2026But it is significantly cheaper than a traditional account fee.Back to Jon, he comes from a background in financial services\\u2026and is a graduate of Harvard University and the Columbia Business School.\\xa0 In addition to holding Series 7, 24 and 63, he is a CFA charterholder.


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