Betterment, a stand-alone automated investing service with about $7 billion in assets, announced Tuesday that it will offer access to human financial advisors.
The robo-advisor will provide customers with three planning options: It will charge a 0.25 percent annual fee for its basic digital plan, a 0.40 percent fee if a customer has at least $100,000 in assets and wants an annual call with a certified financial planner, and a 0.50 percent fee for someone with a $250,000 minimum balance and unlimited access to financial advisors.
Those fees are less than the annual 1 percent that many traditional financial advisors charge their clients.
"This is something our customers have been telling us they wanted from us for a while," said Jon Stein, founder and CEO of Betterment.
"Dozens" of CFPs and registered investment advisors will be providing the human guidance from Betterment's New York City headquarters, Stein said.
The Betterment move follows Charles Schwab's December announcement that it will add human advisors to an automated investing service for clients with assets of $25,000 or more in the first half of the year. Schwab's new service is expected to charge an annual fee ranging from 0.36 percent to 0.52 percent depending on the portfolio.