# Evaluating performance and taxes

Investing isn't just what you earn—it's what you keep that matters. We can help you build wealth over the long term, while helping to protect your earnings from taxes.

## Portfolio performance.

Returns are an important measure of how well a portfolio performs (or may perform). But there’s a factor that can seriously impact your investments: taxes. [Here’s what we do to help lower them.](https://www.betterment.com/performance#taxes-overview)

### Core

Globally diverse with broad market exposure. [Learn more](https://www.betterment.com/core-portfolio)

| Total returns      | +325.8% |
|--------------------|---------|
| Annualized returns  | +10.4%  |
| Starting balance    | $50,000 |
| Ending balance      | $212,882|

This investment analysis tool presents hypothetical outcomes. Modeled portfolio performance is based on the selected portfolio strategy, risk level, account type, initial investment, and Betterment's management fees. Projected performance assumes the portfolio maintains the target allocation for the entire period, is composed of its primary funds, includes fund fees, and reinvests dividends immediately. Individual performance results may vary over time.

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.

## We help minimize your taxes to maximize your bottom line.

No matter how well your portfolio performs, you still have to pay taxes. See how our tax strategies can help you save more of your money—from that first deposit to retirement.

#### When you invest with us

We recommend the combination of accounts—which are all taxed differently—that may be best for you.

#### When we build your portfolio

We use exchange-traded funds (ETFs), which are generally more tax-efficient and lower-cost than mutual funds.

#### When you make a deposit

We organize assets across your accounts to get you the best overall tax treatment.

#### When the market goes up

We rebalance your portfolio using new deposits and dividends, instead of selling assets (which can cost you in taxes).

#### When the market goes down

We sell losing investments to offset taxes owed on future gains. Known as tax-loss harvesting, it’s a tool you can use to lower taxes at the end of the year.

#### When you start withdrawing

Once you reach your goal, we show the tax impact of taking withdrawals and try to sell assets in the most tax-efficient manner.