Product Guides

Introducing the RIA Tech Suite The RIA Tech Suite brings together complementary technology platforms to help automate critical back-office tasks for advisors. The RIA Tech Suite brings together complementary technology platforms to help automate critical back-office tasks for advisors. Along with RIA in a Box®, RightCapital, and Wealthbox, Betterment for Advisors is excited to introduce the RIA Tech Suite: a set of services and tools that advisors can use to help automate and streamline back-office tasks.  Why should firms utilize the RIA Tech Suite? Together, these intuitive and complementary tech tools can streamline everyday practice management, giving you more time to acquire new business and to provide a better experience for your current clients. Additionally, the RIA Tech Suite includes discounted pricing for firms that adopt two or more of the services—a discount that could save the average RIA firm up to $3,200 in their first year.1 Here are the tools available on the RIA Tech Suite: Betterment for Advisors - A leading digital-first wealth management platform that leverages smart-tax technology. RIA in a Box® - Compliance, cybersecurity, and operational software for investment advisors. RightCapital - Wealth planning software that makes planning easier and more powerful for advisors and their clients. Wealthbox - A leading CRM software application that helps advisors manage their clients and collaborate with their team. The RIA Tech Suite can foster growth for tech-centric firms that are focused on efficient client service and expanding their books of business.  “Our goal at Betterment for Advisors is to empower advisors to grow their businesses and build deeper client relationships,” writes Jon Mauney, General Manager of Betterment for Advisors. “The four companies that are part of the RIA Tech Suite all share this objective with a common approach to their services: providing beautifully designed, easy-to-use, and powerful tools for advisors and their clients.” The RIA Tech Suite is now available to all registered investment advisors. You can learn more and sign up for this offering by visiting https://riatechsuite.com.     Betterment for Advisors is a member of the coalition known as RIA Tech Suite alongside three other platforms: RIA in a Box, RightCapital, and Wealthbox. The four companies are offering advisors who become new clients of two or more members of RIA Tech Suite, discounts on services provided by such participating companies. Betterment and aforementioned firms are not under common ownership or otherwise related entities, and no compensation has been exchanged between the members of RIA Tech Suite for the purposes of entering into this coalition. Terms subject to change. This offering is for investment professionals only and is not intended for use by private investors.  ¹ 3200 USD is an estimate of the maximum amount saved on the annual cost for combined subscription fees across all four services noted in this article. Calculation assumes the average of weighted monthly rates offered across all four services plus their onboarding fees, which are subject to change at each service providers’ discretion, and then applies a 15% discount from each. The discount rate of 15% per company is activated upon engagement of a minimum of two companies. Actual dollar amount saved may vary; Betterment makes no guarantee of the specific dollar amount your firm could save.

FAQ: Agreement Automation Process The Betterment for Advisors Client Agreement Automation function will make onboarding your new clients fast, easy, and completely paperless. Will my firm need to update our ADV and/or Customer Agreement to reflect the incorporation of Betterment for Advisors into my practice? Yes, you will need to update your Form ADV Part 2A and most likely your Customer Agreement to reflect the incorporation of Betterment for Advisors into your practice, including (among other things) how your firm uses Betterment’s sub-advisory and brokerage services, and Betterment’s fees. Since each situation is unique, please consult with your attorney or compliance officer. Can Betterment for Advisors automate the signing of my agreement with my client? Yes, you can provide PDF versions of your client agreement, Form ADV Part 2, and privacy policy to include as part of the electronic signup process a client undergoes with Betterment. We also provide reporting in your dashboard about which versions your clients have agreed to, and when. You can read more about our agreement automation feature, including legal disclosures, here. What relationship does the client have with Betterment? Betterment acts as the sub-advisor to your client. You still remain the primary advisor to your client. When your client goes through the new account opening process, they will sign an agreement with Betterment directly as the sub-advisor, and, if you wish, an agreement with your firm directly as the primary advisor. Describe the process your product uses to convert information provided by the client into a risk profile in the interview process. The platform automatically recommends investment goals and associated recommended allocations for each such goal for new accounts established on the platform using the client’s age, information provided by the client during account creation regarding a particular financial goal, and the type of legal account. Am I able to see an archive of electronically executed client agreements? If so, what does this look like? If you enable the agreement automation feature to deliver a paperless account opening process for your clients, an archive of the date/time stamp and the version of the agreement that each client electronically signed is housed on the “Agreements” tab of the advisor dashboard. To learn more about our agreement automation feature, please see here.

Questions about Using Dimensional Funds through Betterment for Advisors Advisors using Dimensional Funds through Betterment can create their own models from scratch or select from a range of pre-built models What is the process for becoming approved for access to Dimensional Funds on the Betterment for Advisors platform? Generally, you will go through an introductory and educational meeting with Dimensional Fund Advisors, after which you should be approved to access Dimensional Funds on our platform. This process can be accomplished in as few as 2 to 3 days. Please email connect@bettermentforadvisors.com to kick-off the approval process. If I am an advisor with access to Dimensional Funds, can I also access them on Betterment for Advisors? Yes, if you are already an advisor with access to Dimensional Funds, you will also be able to access them on the Betterment for Advisors platform. Please contact us at support@bettermentforadvisors.com and we will enable access upon verification from Dimensional Funds. If I already use Betterment for Advisors and have been approved by Dimensional, how long will it take me to get access to create and use Dimensional portfolios once I've made the request? Once you’ve notified us via a message to support, we’ll update your Dimensional Funds status in the Betterment for Advisors platform within 2-3 business days. You’ll receive a confirmation email from us at that time. If I'm new to Betterment for Advisors, how long will it take me to get access to Dimensional Funds once I've completed the process? We typically review new firms on the platform within 5 business days. Please notify us during this time that you are approved to sell Dimensional Funds by sending a message to support@bettermentforadvisors.com. This will allow us to provide access to the Betterment for Advisors platform + Dimensional Funds as soon as your firm’s application is approved. Will there be model portfolio templates available for me to use? We have several templates available for administrators to use as a starting point. Each Dimensional Funds template portfolio corresponds to a specific allocation between equities and bonds and is intended to be broadly diversified. You can use these templates as a starting point. The colleague(s) who have administrator access to Betterment for Advisors will be able to create custom model portfolios using Dimensional Funds. This allows for adjustment of the funds included in the portfolio and their weights. How do I create my own portfolio once approved? Once your firm is approved for access to Dimensional Funds via Betterment for Advisors, your firm's admin person will be able to create model portfolios with Dimensional Funds. It’s easy to create and brand your own custom portfolios from scratch. Firm admins can create client portfolios directly from their Advisor Dashboard through 3 easy steps: Select the “Portfolios” tab on the left Choose the tab labeled “Dimensional Portfolios” Select “Create Portfolio” If additional members of your team need administrative access to the platform, simply have your firm’s primary contact notify us at support@bettermentforadvisors.com. Contact us if you want to become approved with Dimensional Fund Advisors or learn more about Dimensional Funds on the Betterment platform. If you click the link above, Betterment may share your firm name with Dimensional in order to determine firm eligibility to use Dimensional Funds.

FAQ: Integration Partners Betterment has integrations set up with several third-party platforms across financial planning, CRM, and performance reporting tools. Do you integrate with portfolio management systems? Yes, we currently integrate with Orion, BlackDiamond, Advyzon, and Addepar. Our integrations with portfolio management systems are at the firm level and include detailed account information for all clients across the firm, such as tax lots and cost basis. Do you integrate with any CRMs? Yes, firms using Redtail or Wealthbox CRM software can see Betterment client account information within the CRM interface once you enable the integration. To enable Redtail integration, please email support@bettermentforadvisors.com with your Redtail username. Once you receive confirmation that the integration is enabled via email, you will be able to see client account information and balances in Redtail. This can take several days. To enable Wealthbox, first login to Wealthbox. Visit the Applications area, select Betterment for Advisors, choose Enable and click “Request Betterment integration”. Once you receive confirmation that the integration is enabled via email, you will be able to see client account information, balances, recent transactions and tax lots in Wealthbox’s Betterment tab. This can take several days. Do you integrate with any financial planning tools? Yes, we currently integrate with RightCapital, eMoney Advisor, and MoneyGuidePro. Our integration with RightCapital is at the firm level and at the client-level for eMoney and MoneyGuidePro. Client-level integrations require your clients to link their Betterment accounts using their username and password. Our planning integrations do not include tax lots and cost basis data. Can my firm access our raw data feed? Yes, in addition to publishing your firm’s data to our integration partners, we can also provide your firm with the raw files via SFTP. If you would like to receive the raw files please contact us at support@bettermentforadvisors.com. How long does it take to enable my data feed? It can take up to 4-5 business days. How do I get my data into my portfolio management system? If your firm uses a system we integrate with, please email support@bettermentforadvisors.com and let us know if you’d like integration enabled. Once the integration is enabled we will email you to confirm. Please note it can take several days for the integration to be completed after your request. How do clients automatically import their tax information into tax preparation software? Betterment has connected with TurboTax, H&R Block, and TaxACT tax preparation software to allow automatic import of your tax information. You or your clients will need to search for “Betterment” in order to import their tax information, and can refer to this FAQ for client-facing guidance. Please refer to each provider’s documentation about the steps necessary to import data. Important: If clients have multiple accounts, e.g. personal account and a trust, they will not be able to use TaxACT’s automatic import tool. However, clients can download and import their tax statement CSV, found on the Activity page of their accounts, directly into TaxACT. Please note that while Betterment has provided the tax information in the format specified by the tax preparation software providers, we do not manage the software itself. If you or your clients are experiencing issues with the tax import software of one of these providers, we encourage you or your clients to contact the providers directly. My clients’ tax preparation software has a limit on the number of transactions it supports. How can I use it to report all transactions? Certain versions of tax preparation software have a limit on the number of transaction lines they support for automatic upload. If clients encounter this scenario and are unable to automatically import tax forms, the IRS allows clients to report the summary information on their electronic tax return and send a paper copy of their statement with Form 8453 to the IRS after the tax return has been accepted. For more information, see www.irs.gov/uac/About-Form-8453. Please note that Betterment is not a tax advisor and the information provided should not be construed as tax advice but should be used for informational purposes only. Please consult a qualified tax professional or the IRS to determine the rules that apply to your individual tax situation.

FAQ: Advisor Dashboard & Reporting Frequently asked questions about the Advisor Dashboard and Reporting Does each advisor have their own dashboard? Yes, each advisor within your firm has their own account and dashboard that provides access to manage their clients’ accounts. Each client that signs up for an account is linked to one advisor within your firm. Can advisors share a household or client with other advisors? Yes, an advisor can assign secondary advisors to any of their households that contain one or many accounts. Secondary advisors have full access to those households, and can be removed at any time from a household’s sharing settings. Here are the steps you'll need to follow when adding a fellow advisor to one of your households: Log onto the Advisor Dashboard On the left, click "Clients" Select the client or household name from the list Select the "Settings" tab On the right, choose "+ Add Secondary Advisor" and enter the first or last name of the advisor you'd like to add. Click the name in the dropdown to complete. The page will load and if successful you'll see a banner with this description "Successfully added (name of advisor) as a secondary advisor to (name of client/household)". What actions can I take on behalf of my client? Advisors can securely co-browse into the client experience to manage individual client accounts. As the advisor, you can take the following actions on behalf of your clients: Add taxable goals Add joint taxable goals Access information on account balances and returns Create ad hoc deposits or withdrawals Schedule or turn off automatic deposits or withdrawals View portfolio details View portfolio performance Adjust allocations Adjust portfolio strategy Access account activity, statements, and tax forms Complete a Traditional IRA to Roth IRA conversion Currently, advisors are able to invite their existing clients to open new legal accounts from within the advisor dashboard by selecting the client's name and clicking "Add account". These accounts include new IRAs, trusts, and joint accounts. Can I add a new IRA or taxable goal for a joint account on behalf of my clients?   Yes, we have instructions for opening joint accounts. Follow the same steps for new IRA accounts except on #4. Here you'll need to select the IRA type desired for this client.   Can I add a trust account on behalf of my client? Advisors are able to add a trust account for any existing client with just a few clicks. If you’d like to open a trust account for a prospect you’ll first need to invite them to open an Individual Taxable or any of the three available IRA accounts. Once the client opens the account they’ll appear in the Clients tab of your Advisor Dashboard. Follow the steps below to invite them to open a trust account. Select the client's name from Clients Click Add Account Select the radio dial next to “ Trust” for the Account type screen and continue Confirm that this is a US domestic trust and continue The site will give you a chance to provide the trust name, information and documents. This is optional. If you do not provide either the client will have a chance to do so. Enter the account details, define the account purpose, choose the Portfolio Strategy and continue Set the portfolio allocation and continue Confirm the new account details and click send agreements when ready Be sure to review the Trust document requirements and advise the client to submit the correct items. The account will not be approved until these are provided and successfully reviewed. Note: The trust will not be visible in your advisor dashboard until your client consents to the agreements. Once required information and documents have been submitted, trust approval can take up to five business days to complete. You and the client will be notified of the review's outcome via email. Please let us know if you'd like any named trustees added to the account. How do I set a portfolio strategy for my client? For a new client: To define the initial account type and portfolio strategy please choose Invite Client > Complete on client's behalf Select the account type and purpose and continue Select your preferred portfolio strategy from the dropdown then set the target allocation Confirm your client’s details and send. For an existing, funded client on the platform: On the Client page of the advisor dashboard, click into the household (or client) in which you would like to make a portfolio strategy change. Scroll down to the goal on which you'd like to change the portfolio strategy and click the Edit button that corresponds to the portfolio as shown in the image below Select the portfolio strategy and the asset allocation. You can also view a tax impact preview of the change before implementing here. Confirm the portfolio strategy change. The system will automatically execute trades in a tax minimizing manner to reach the new target allocation. Am I able to access information related to my clients’ accounts on the platform? Yes, you are able to access information related to your clients’ accounts— including holdings, balances, and performance information—via the advisor dashboard. How do I remove a client's accounts from my firm? Please follow the steps below to remove the client from your firm's client list: Log onto the advisor dashboard Select the client from the Clients list Click Settings and scroll down to "Household Actions" Click "Remove this household" and complete the confirmation modal by checking the box and clicking "Remove Household" Reporting How do you calculate returns? We use a standard time-weighted return to calculate percentage returns for each goal on the Summary page, and to display returns over time on the Performance page. This return can be thought of as the amount one dollar would have changed if it was invested at the same time as a first deposit. The time-weighted return is unaffected by deposits to and withdrawals from an account, and allows for easy assessment of clients’ investments, and a fair comparison with other investments. Is performance data generated on the platform? Yes, performance reporting is embedded on the client interface. Performance reporting for all client portfolios on the platform is available and the user can select the period of time in question. Additionally, daily performance is also included. Advisors are able to view performance data for all client accounts through the impersonation feature on the advisor dashboard. How are statements sent to my clients? Can I access these statements as well? If so, how? Statements are automatically loaded to your clients’ portals. We also send your clients an email once their statements are ready. You can access your clients’ statements via the impersonation feature on the advisor dashboard. On the “Summary” page, select the “Log in” button next to the client that you want to view statements for. Once logged in as the client, select the “Documents” tab. A full archive of your client’s statements is available on the “Statements” sub-tab. Does Betterment for Advisors generate the tax forms for my clients’ accounts? Yes, tax forms for your clients are automatically imported to their client portals. We will also notify your clients via email when these are ready. Where do clients find tax forms if they have multiple accounts, e.g. a personal account and a trust account? Tax forms are available on the Documents page for each account a client holds on the “Taxes” sub-tab. If clients have multiple accounts, they will need to visit the Documents page for each separate account in order to download their respective tax forms. Where can I find my clients’ 5498 tax forms? When will they be available? Your clients will receive a 5498 form if they had an IRA with a non-zero balance in the tax year that just concluded. This form reports all of the IRA contributions for the previous tax year, including rollovers. The information on the 5498 form will also be reported to the IRS. The 5498 tax form can be found on the Taxes page within the Advisor Dashboard. Select your client's name then click "Taxes". You may also access it via the Documents page in the client portal. Generally this form will be made available each May for the prior year, after the April 15 tax filing deadline. When will clients' tax forms be available? Your clients’ 1099 tax forms are automatically imported to their client portals in mid-February, in both CSV and PDF formats. We will notify them via email when these are ready. The forms are not available prior to February due to the 30-day window related to certain TLH+ requirements, which carry through the end of January. Additionally, we need final confirmations on distributions from fund providers regarding their dividend payout classifications. Betterment strives to provide tax forms well in advance of the deadline when possible. Are the monthly statements co-branded with my firm’s brand? Yes, monthly statements are co-branded with your firm’s brand. What information appears on my clients’ statements? Holdings, balances, and transactions related to your clients’ accounts appear on your clients’ statements. Does Betterment for Advisors generate the statements for my client’s accounts? Yes, statements are automatically loaded to your clients’ portals. We also send your clients an email once their statements are ready.

Common Questions about Billing Your Clients Get answers to your key questions about billing clients. What billing options are available to my firm? The Betterment for Advisors platform includes a “Billing” page visible to the admin(s) of your firm. This page offers three billing options: Asset-Based Billing, Fixed Fee Billing, Tiered Billing. Learn more about each in our article. How often are my clients billed? Firm admins can select whether to bill clients on a monthly or a quarterly basis.  Any changes made will take effect at the start of the next quarter, though a pending change can be cancelled or modified up until that date.  All advisors of the firm will be sent a reminder that their firm’s billing frequency is about to change about one week before it goes into effect. How often does Betterment pay me the fees collected on my behalf? Betterment will remit payment to your firm on the same frequency that we collect from your clients, per your discretion.  If your firm has elected to bill clients monthly, Betterment will send payment in the first two weeks of each month.  If your firm has elected to bill clients quarterly, Betterment will send payment in the first two weeks of each quarter.  Firm admins must supply bank account information in Firm settings to receive payments. How are billing plans created? Any admin(s) of your firm will be able to create a new billing plan by following the steps below: Log onto the advisor dashboard Click Client Billing, located in the menu on the left In the top right, select “Create a billing plan” Enter a unique name for the new billing plan and select the billing plan type. (See below for specific billing plan types) How are billing plans applied? The advisor of a household will be able to do this by following the steps below: Log onto the advisor dashboard  Click Clients, located in the menu on the left Search for and click the name of the household whose pricing should be updated Select Settings and click the “Edit” button corresponding to “Household Billing Plan” Choose one plan from the list displayed and click Update Plan If a different pricing plan is needed, contact an admin of the firm so they may create it How is the default billing plan of the firm updated? Any admin(s) of your firm will be able to update the default billing plan of the firm by following the steps below: Log onto the advisor dashboard  Click Billing, located in the menu on the left The current default billing plan will be at the top of the list, click Edit to make changes If needed, modify the name for the plan and select the billing plan type. (See below for specific billing plan types) How to create or edit Tiered Billing Plans: Once on the “Tiered billing plan” page, use the “Firm fee” column and click on “Asset based” or “Fixed” to switch between the two. Enter the number of basis points (bps) or dollars that should be charged for the first tier of invested assets. If more than one tier is needed, click “+ Add tier” then enter the high range value for the previous tier. Repeat these steps for each tier needed. If this is not a new billing plan, the next page will display the households that will be impacted. Scroll to the bottom to click “Update billing plan.” How to create or edit Fixed Billing Plans: Once on the “Fixed Billing Plan” page, use the “Firm fee” field to type in the dollar value you’d like this plan to assess on client accounts annually. No need to type in a dollar sign, only enter the digits and a decimal if you will be charging in cents as well. If this is not a new billing plan, the next page will display the households that will be impacted. Scroll to the bottom to click “Update billing plan.” How to create or edit Asset Based Billing Plans: Once on the “Edit Asset Based Billing Plan” page, use the “Spread bps” field to type in the number of basis points you’d like charged by this billing plan. For example, for a fee of %0.50 type in 50. When satisfied with the new spread, click Save changes. If this is not a new billing plan, the next page will display the households that will be impacted. Scroll to the bottom to click “Update billing plan.” How to change the Billing Plan for groups of clients: The Client Billing page, accessible  to admins of your firm, will display one row per existing billing plan. The row includes an “Assigned to” column. This displays the numbers of clients on this billing plan. To adjust the billing plan applicable to this group of clients the admin of your firm will be able to follow the steps below: Click Edit to make changes If needed, modify the name for the plan and select the billing plan type then click continue. How do I update a client's fees? To edit the fee for any existing clients advisors will need to follow the steps below: Log onto the Advisor Dashboard Select "Clients", on the left side of the window Locate the client and click their name Select "Settings" Locate and click the "Edit" button corresponding to the Fee column Select the billing plan you'd like to apply then click "Update plan" The new billing plan will appear under "Household Billing Plan" Please keep in mind, if a new billing plan needs to be created, the admin(s) of the firm will need to create the plan before you are able to apply it to any clients' household. How do I get paid for the client accounts that I manage on the platform? Betterment for Advisors operates a fee-only platform. Firm admins may create multiple billing plans using Asset Based Billing, Fixed Billing, or Tiered Billing. The billing plan applied to a client's household will, by default, include Betterment's platform fee. Aggregate fees are billed automatically by Betterment from the client’s account quarterly or monthly in arrears, and Betterment subsequently remits the advisor’s fee to the Firm bank account on file. Can I set custom level fees for individual households? Yes, you may utilize Billing Plans to set custom fees for a client's household. If any of the available Billing Plans do not fit your needs, an admin of your firm may create a new customized billing plan that is either Asset Based, Fixed, or Tiered. How are the fees calculated? We accrue fees beginning one day before the end of the prior quarter or month and the accrual of fees ends two days prior to the end of the current quarter or month. The fee is calculated pursuant to the formula [sum of the following for each day in the preceding billing period: (the balance in a client’s account at the end of the day) * (advisory fee applicable on that day)] and will be deducted from the account three days after the transaction date, following the settlement of the trade(s) made to fund the fee. Fees are billed in arrears and the advisor’s portion of the fee is sent to the advisory firm shortly after the end of the quarter or month via ACH. Are fee tiers supported? Yes, we do support fee tiers. Anyone with admin level access to the advisor dashboard may create new billing plan types, including Tiered Billing. Once the plan is created you may apply it at the household level. How are fees reported to my clients? Your clients see the total fee (platform fee + billing plan applied to the household) in their client portal on the “Activity” page and on their monthly statements. You are responsible for providing the fee breakdown between the Betterment platform fee and your advisory firm fee to your clients, though we do make this information viewable within the client’s portal under their “Settings” tab. Are there any trading or transacting costs associated with the Betterment for Advisors platform? No, there are no trading or transaction costs associated with the Betterment for Advisors platform.