Your Betterment investment can be easily divided into different segments or sub-accounts called “goals”. Goals can be designated for different purposes, each with its own portfolio, target balance, time horizon, and deposit/withdrawal schedule. An IRA is always its own special goal, due to the particular tax treatment towards IRAs.
Goals allow you to save and invest for multiple things at the same time while customizing the investment needs for each one. We will recommend an asset allocation and how much you need to contribute in order to increase your chances of achieving your goal. Over time, we provide updated advice for your goals designed to balance risk and returns. We recommend the optimum amount of funds to invest to keep on track to meet your goal targets.
Some popular goals are:
1. IRAs - to help save for retirement or rollover from other financial institutions
2. Safety Net - for emergencies and short term savings
3. Build Wealth - for those who want to invest aggressively over a much longer period of time.