The idea behind Betterment is simpler investing. As simple as twisting a knob in their case. (it’s not that simple, but close.) But when they create assumptions about the promised land of simplicity…. um, yeah. It can be simpler, but they way they talk about it, is as simple as twisting a knob. And it can be… but you’d better make sure the operator of said knob is knowledgable enough to know what to expect. As such, I think the assumptions Betterment is providing to their users are really inflated.
So below, (not that I’m into forecasting), interest rates are nowhere near 6%, which is what I think of when one touts a bond. And the forecasters generally say to lower expectations for the stock market (which is potentially wrong, I know). And in general, I get the long term perspective but jeez, seems a bit promissory and wishful to me to hang such expectations on these numbers.
The second thing that bugs me about their site…. the use of endorsements. While, it might make john six pack want to chug along. There’s a rule about specific endorsements– they are not allowed. I’m always learning about the maze of compliance, and don’t claim to have a firm grasp of everything in this world, but this seems like a rookie move.
#3 about what bugs me…. These guys raised $3million in their recent round. Holy shit. This last one is a bit of jealousy, in all truth.