Betterment is branching out again, this time connecting two institutional offerings. The robo-advisor now offers advisors using the Betterment for Advisors platform the ability to offer 401(k) plans to their business clients through its Betterment for Business platform.
For the service, Advised 401(k)s, Betterment acts as the plan’s 3(38) investment manager by selecting, managing and monitoring investments — which consist of low-cost ETFs covering about a dozen asset classes.
In addition, Betterment will forward advisors their associated fees for the retirement plan each quarter and tackle related compliance and fiduciary tasks.
Plus, advisors can use the platform to invite individual plan participants to become general clients of their firm outside the 401(k) plan offering using an email feature.