How I got stuck using Betterment.com for 8 months
TLDR; If you use a 60 day rollover to fund an IRA at Betterment, your funds are stuck there for a year and you will have to continue to make deposits to avoid higher fees.
I really liked Betterment.com. The site is well done and the concept is sound. A year ago I created a Roth IRA account at Betterment only to find out that they only accept inbound IRA transfers using a 60-day rollover through your personal checking account. After a few months, I decided that I would prefer to just stick with Vanguard since the fees are lower and I don’t need Betterment to “actively” manage my funds for a fee. The problem I encountered was that, due to the method Betterment uses for IRA funds transfer, my money was stuck. And worse still, I had to continue contributing to the account to prevent the fees from going up to a much higher amount.
For those unfamiliar, there are a couple of ways to move IRA
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