Monday, February 10, 2014

Betterment - New Investment Account - Updated Monthly

One way that we are going to meet our financial goals is to reduce spending and save more.  I decided to try out a new Investment account through Betterment.com

You can check them out here, and receive $25 for opening through this link: Free $25 for Opening Account [Note: Betterment now requires a minimum deposit before depositing the $25; but still not a bad return on your investment with a guaranteed return!].

I was looking for a way to invest our Emergency fund, so it is easily accessible, but makes more than the 0.5% that my savings account currently makes.

I decided to start small with this account and see where it goes.  $250 initial deposit, and $100 a month auto deposit will fund this account.  

Why did I chose Betterment:
- They have extremely low fees
- The money is easily accessible
- The program helps me reallocate my funds easily
- The dashboard helps to show me if I am on track and the likelihood of reaching a certain amount over a given amount of time.  In fact the Dashboard is a great tool to play with different scenarios.

Other than Pensions and Retirement Funds (401k, Roth IRA), this is really my first dabble into the investment world where I control the amounts.  I am just dipping my toes into the water to see how I do.

I will track this account over time and see if we can grow that emergency fund.

Emergency Fund Tracker:
Month 1 [January 2014]: Initial Investment $250, Bonus $25 - Total Invested: $275.00
Month 2 [Feb 1, 2014]: Auto Deposit $100, Market Adjustment: -$11.47 Total Invested: $363.53
Month 3 [Mar 1, 2014]: Auto Deposit $100, Market Adjustment: $12.30  Total Invested: $475.83
Month 9 [Sept 1, 2014]: Auto Deposit $600 [$100 Apr-Sept], Market Adj: $38.22  Total: $1,114.05


Okay that probably wasn't the best month to start, since the market dropped in January, but I am still optimistic that I will earn much more than the measly half a percent that I would have in my savings account in the long run.  Should be fun.


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