This investment analysis tool lets you explore a model portfolio's performance and projected returns, based on the user's inputs. Inputs represent choices Betterment users see in their accounts, but outcomes presented in this tool are hypothetical and do not represent individual outcomes. All individual performance is dependent on the specific timing of individual trades into and out of the portfolio's funds. Actual results will vary.

The tool allows users to select one of several portfolio strategies offered by Betterment, and to customize their allocation based on a user's desired risk tolerance for their goal.

The tool's default state shows a $50,000 deposit, which represents a realistic scenario of an individual investor accumulating assets for a long or medium-term purpose, such as retirement. You may adjust your initial deposit amount based on the amount you anticipate contributing to your goal. The initial deposit amount balance is used to display the charts' default visualization net of Betterment's management fee, which is 0.25% for a $50,000 balance. Betterment's standard management fee for balances below a $24,000 balance may be as much as $5 per month as displayed in this tool. When “Premium management fees” is selected, 0.40% is added to 0.25% for a total fee of 0.65% annually. Users should use an amount closest to their realistic deposit size to get as realistic a net-of-fees projection as possible. See pricing details. The option to exclude management fees from the performance tool is meant to allow clients to understand the impact of fees on hypothetical performance, and clients should understand that their actual performance will be net of fees.

The model's historical performance and projections assume:

• The portfolio is assumed to always be at its target weights. In reality, Betterment executes rebalances only when the portfolio's drift surpasses a certain level. Actual results will vary based on exact market conditions.
• The selected allocation is the same for the entire period; the tool does not account for allocation adjustments, neither automated nor ad hoc.
• All dividends are reinvested as soon as they're received, which is in line with Betterment's practices (though actual time of reinvestment may vary and is dependent on timing of trades).
• Prices are based on market close, and rounded to the nearest penny.
• The portfolio uses the primary funds for the portfolio; no secondary funds (used for tax-loss harvesting) are incorporated into the models for the tool's performance display.
• For net-of-fees views, all fees are calculated daily, except for when Betterment's $5 monthly fee applies (when balances are below $24,000), which is calculated monthly.

Projections utilize Betterment's standard goal projection methodology. This methodology relies on a forward-looking calculation of expected returns, which we use to forecast a range of probable outcomes.

The default state for the Betterment Core portfolio Strategy is an allocation of 90% stocks / 10% bonds in a tax-deferred portfolio, representing a moderate state for a long-term investment in an IRA or 401(k) plan. 11 other allocations can be selected in the tool, representing a sample of the full range of allocations available. The taxable version of the portfolio has different bond asset classes. The portfolio performance display includes historical performance from the portfolio inception date of Sept. 7, 2011 and historical performance includes all portfolio model changes and fund selection decisions since that date.

In December 2013, Betterment updated its Core portfolio methodology, resulting in the removal of TIPs from the 0%-stock portfolio. For periods prior to Dec. 13, 2013, the Core Portfolio Strategy performance may differ from performance subsequent to December 2013, particularly in the 0% stock portfolio.

In January 2024, Betterment updated its Core portfolio methodology, resulting in the removal of the value tilt (an asset allocation weighting towards U.S. value equities), reduced exposure to emerging markets, increased exposure to U.S. asset classes, and reduced exposure to international developed bond markets. For periods up to and including December 29, 2023, the Core Portfolio Strategy performance may differ from performance subsequent to December 29, 2023.

No default state in the tool should be taken as a recommendation; Betterment’s investment advice is made available to clients through its application.