what is up everyone I'm Rose and welcome back to my channel in this video
I'm gonna compare Elvis versus betterment which are to investing apps
or Robo advisors but take a goals based approach to investing before we get
started I'd love for you to subscribe my channel is all about stock investing for
beginners and it's my mission to empower everyday people just like you especially
women to win at investing so make sure to subscribe and hit the notification
bellow for new videos like this every week so let's get right into it I'm
gonna compare Elvis versus betterment in terms of mission investment portfolios
offered investment strategy account types offered and lastly fees finally
I'll end with some closing remarks and a recommendation on which one you should
go with first let's talk about mission as a potential customer of any company I
always want to know what that company is all about what's their mission and what
difference are they trying to make in the world what intrigued me about Elvis
is that the company is 100% women run and women-owned and I think this gift
right here perfectly captures how I feel about women-owned businesses the
company's tagline is invest like a woman and they're on a mission to close the
gender investing gap with an investing approach designed by and for women on
the other hand Federman doesn't have as clear of a woman focused mission
something else that's really cool about Elvis is that you get the opportunity to
invest in companies that value gender diversity and women's leadership which
brings me to my second point of comparison investments offered let's
first talk about Elvis the two portfolios they offer are the core and
the impact portfolio the core portfolio includes up to 26 different
exchange-traded funds or ETFs that give you exposure to a wide range of asset
classes the impact portfolio is very similar except that they've switched out
some of the funds in the core portfolio for funds that focus on socially
responsible investing for example the impact portfolio incorporates the packs
elevate global Women's Leadership Fund as well as the iShares MSCI AFE fund
these are both ETFs that contain pennies that advance gender equality and
also have a positive impact on the environment so it's pretty simple at
Elvis you have two portfolios to choose from the core or the impact portfolio on
the other hand betterment offers four portfolios their default option is the
betterment portfolio which is comparable to the Elvis core portfolio they also
offer the betterment socially responsible investing portfolio and that
one is comparable to the Elvis impact portfolio however betterment offers two
additional portfolios the goldman sachs smart beta portfolio which is a riskier
but potentially more profitable option and the Blackrock target income
portfolio which is specifically for older people who want to generate income
off of their nest egg as you can see betterment does have a few more options
than Elvis if you're passionate about socially
responsible investing I will say though that the Elvis impact portfolio has a
larger percentage in socially responsible investments than betterments
version so from our retirement goal Elvis has 51% in socially responsible
funds versus betterments 39% also betterment doesn't target social impact
specific to women whereas Elvis chooses funds that specifically help advance
women's leadership and economic opportunities for women moving right
along to investment strategy elvis and betterment are very similar in the sense
that their investing strategies are based on maximizing your chances of
achieving your goals for an in-depth explanation on goals based investing
make sure to check out this video right here I show you how Elvis invest your
money based on your goals and I don't want to repeat myself in this video so
definitely make sure to find out more in this video so how our betterment and
Elvis different again Elvis investment style is geared more towards women first
of all the typical financial situation for women does not look like the typical
financial situation for men women live longer and due to things like taking
time off to raise children their career and salary trajectory looks very
different from that of men's so given that women's money situation looks
different obviously their investing should also be customized for that so
with Elvis all of their forecasting and advice
takes this into account for example since women tend to have longer
lifespans than men when you have a retirement investing goal a tell vest
they're gonna recommend that you aim for a larger nest egg than other platforms
would normally recommend I think this is smart especially given that women are 80
percent more likely than men to be living in poverty at age 65 or older and
I have a feeling that's because most financial advice is tailored towards men
and men's lifespans not fun to think about but hey it's reality so women
should invest accordingly now let's talk about the different account types
offered on each platform both betterment and mal vests offer your traditional
IRAs Roth IRAs SEP IRAs no retirement individual accounts and 401k or 403b
rollovers so they both offer all the basics however betterment goes even
further and they offer joint accounts which are accounts with two owners such
as you and your spouse and they also offer trust accounts which are accounts
that you manage but belong to someone else such as your children another thing
to consider when choosing an investing platform is what kind of banking
features they provide savings and checking accounts are all nice amenities
that make it easier to manage your money and investments all in one place as of
now betterment offers a savings account called the everyday savings account it
pays a generous interest rate of 2.4% as of today and any withdrawals take about
one to two business days to process they're also rolling out checking
accounts soon but as of today it's not ready yet l vest is a little bit behind
the ball in this regard I haven't heard of any plans to have a checking account
or even a high-yield savings account they do offer an emergency fund and it
pays practically a non-existent interest rate of point zero one percent but Elvis
hasn't been around as long as betterment and they're continually adding new
features so my guess is that they are gonna offer a good savings account at
some point in the future last but not least I want to quickly touch on fees
betterment and Elvis both charge an annual fee of 0.25 percent that means
that if you have $1,000 invested with them you'll pay 2 dollars and 50 cents
per year in fees most Robo advisors charge this
percentage of 0.25% so that's not really a distinguishing factor but I did want
to touch on it my final thought the biggest difference between Elle vests
versus betterment is that everything about Alves is women centric whereas
betterment is built for the general investing public
so from mission everything from the Elvis mission to close the gender
investing gap to the way they design their portfolios is created to help
women invest the way they want to invest when it comes to investment portfolios
offered Elvis gives you a superior option for socially responsible
investing because their impact portfolio allocates a much higher percentage 51
percent to socially responsible funds compared to betterment 39 percent
however betterment does offer a wider range of peripheral of portfolios for
the more advanced investor such as their smart beta and their target income
portfolio so only you understand your financial needs well enough to know
which platform has the right portfolio for you and when it comes to account
types as a newer platform Elvis doesn't offer as many as betterment does and the
biggest one is Elvis lack of a good savings account personally I keep my
emergency savings at betterment so that I could collect that 2.4 percent
interest but I have my investments at Elvis or some of them because I want to
support their mesh mission and as their tagline says I want to invest like a
woman the advice you get at Elvis is going to be more tailored to the typical
financial profile of a woman which is that they live longer and earn less than
men over their lifetime as you can see there are some nuances in the features
but at the end of the day all of these apps are investing in the same stock and
bond markets so it's not gonna make a huge difference in how much money you
can make so the point is to just choose a platform and get invested did you like
this video if so then please give it a thumbs up and if you have any questions
at all about what I talked about feel free to ask me in the comments below or
DM me on instagram at investing with Rose to learn more about money and
investing make sure you also check out these two videos right here and if
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