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How this startup is taking on Wall St

John Stein, Matt Davis, Alison Considine, Ritu Malhotra

Two of three floors in a building in Chelsea, Manhattan, there are standing desks, dogs, and cold brew on tap. This is Betterment HQ, the home of the startup that is taking on the Wall Street old guard. They are also my technology partner, back-office, and custodian for clients' assets. I was fortunate to attend the advisor conference last week, meet the team, and learn how they are helping our clients and plans for the future.

They have made big strides in streamlining complex investment transactions, reducing client costs, and adding tax mitigation strategies for clients. Using behavioral finance, they are keen to keep clients from making grave investment errors, such as selling assets during a short-term correction, by using specific colors that create an emotional response and by showing the tax consequences of a transaction before it happens. They are software engineers, quantitative analysts, and behavioral finance experts and they all take part in executing investments solutions for my clients.

Traditional financial services have been playing catch-up when it comes to leveraging technology to improve the lives of investors. It took a start-up, Betterment, to fill a void in the marketplace that demands automation of trading complex transactions, like rebalancing after a 3% drift from the initial asset allocation, and tax-loss harvesting, where investors can benefit from a tax-break after a drop in the market.

Betterment is among a few technology firms that will change the way investors take risks and manage money. This will further push away the old-guard of Wall St from the FinTech revolution forcing them to compete in a world where technology will outperform traditional methodologies.

Eureka Wealth Management uses Betterment to custody client assets and perform complex transactions, such as tax-loss harvesting, to improve performance for my clients. I also provide financial planning and tax & estate strategies. Call for a free, initial consultation at (760) 537-0791 or book a meeting online at

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