Betterment has unveiled Tax-Coordinated Portfolio, a feature that automates the frequently used strategy of asset allocation to boost cumulative after-tax returns. The new functionality manages multiple accounts as a single portfolio, placing less tax-efficient investments into more favourably taxed accounts. According to research conducted by Betterment, the use of multiple tax accounts can result in savings on retirement accounts of 0.48% annually after tax. Currently, Betterment is the only robo-adviser to offer this functionality.
Betterment has unveiled Tax-Coordinated Portfolio, a feature that automates the frequently used strategy of asset allocation to boost cumulative after-tax returns. The new functionality manages multiple accounts as a single portfolio, placing less tax-efficient investments into more favourably taxed accounts. According to research conducted by Betterment, the use of multiple tax accounts can result in savings on retirement accounts of around 0.48% annually after tax. Currently, Betterment is the only robo-adviser to offer this functionality.