Betterment Announces Tax-Coordinated Portfolio
Today, Betterment announced that they are launching a tool called, “Tax-Coordinated Portfolio“. This aims to provide a better way to do tax-smart investing.
Essentially what this does is that it allows Betterment to look across all of your long term accounts (you choose which accounts are included) and reorganizes which accounts the assets live in based on how the assets are taxed. The way they do this is by placing highly taxed assets into IRA’s for tax breaks. They then place lower-taxed assets into taxable accounts. The aim of this is to lower your overall tax bill over the long haul.
Currently, no other automated investment service offers this type of product. To top it off, it is offered for free to all of Betterment’s customers. I’d highly recommend checking them out if you don’t already have an account. To find out more, follow this link to their official “Tax-Coordinated Portfolio” page.