This past Wednesday, during my Investments class, I mentioned that some 401k plans have expensive and limited alternatives. I suggested someone should startup a firm that provides 401k plans at a lower cost with a wide range of investment choices including ETFs. I think Google News is listening to the microphone on my phone (which was set to “do not disturb” during class of course).

The linked article popped up on my Google News page. The article describes how Betterment is doing as I suggested. The issue of customer service still needs to be addressed in the context of robe-advisors like Betterment. I suspect it will in time.

-Dr. Moore

http://www.investmentnews.com/article/20150911/FREE/150919985/betterment-to-become-first-major-robo-adviser-to-offer-401-k-plans