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Recent Press Coverage Contents DOW JONES | New Firms Taking Financial Advice Online ................................................................................................................................ 3 THE WALL StREET JOURNAL | Searching for Financial Advice Online ............................................................................................. 5 NY DAILY NEWS | Tech Startups Give Wall St. Run For Its Money ........................................................................................................... 7 FAST COMPANY | The Financial Institutions Banking On Occupy Wall Street’s “Move Your Money Day” .................... 8 THE DAILY | Breaking up the Bank ................................................................................................................................................................................ 10 THE NEW YORK TIMES | Betterment Adds International Investments to Portfolio .................................................................... 12 THE NEW YORK TIMES | Investment Advice for Small Fry .......................................................................................................................... 13 AMERICAN BANKER | Mint Teams Up with Betterment to Boost Revenue .................................................................................... 17 THE NEW YORK TIMES | Betterment Raises $3M to Give Casual Investors a More Accessible Portfolio .................. 19 INC. | Congratulations! You’ve Closed Your First Round. Now What? ...................................................................................................... 20 TECHCRUNCH | Bessemer Backs Better-Savings Startup Betterment with $3 Million ............................................................. 21 NY DAILY NEWS | Former Banking Consultant Jon Stein Founds Betterment.com, Advises Investors on Smart Finances ............................................................................................................................................................................. 22 CNN MONEY | 9 Smart New Ways to Manage Your $$: Investing with the Twist of a Dial ................................................... 25 INVESTMENT NEWS | A Better(ment) Mousetrap for the Mass Affluent? ...................................................................................... 26 TECHCRUNCH | A Better Savings Account? ......................................................................................................................................................... 29 CNN MONEY | Simple Tools For Savvy Investing ................................................................................................................................................ 33 TECHCRUNCH | Betterment Wants To Be Your New, Higher-Yield Savings Account ................................................................. 34 VENTUREBEAT | Investment Startup Betterment Says It Can Make Savings Accounts Extinct ........................................ 36 NY DAILY NEWS | Get Financially Fit for 2012 By Starting to Save Early and By Maxing Out Your 401(k) ............... 37 CBS NEWS | 4 Personal Finance Technology Trends for 2012................................................................................................................... 38 THE HUFFINGTON POST | OWS: Where Rubber Meets the Road ........................................................................................................... 41 FOX BUSINESS | Ask the Readers: Which Financial Products Do You Actually Use? ................................................................ 43 CRAIn’s | Reinvented by Technology: Financial Services .............................................................................................................................. 46 NY DAILY NEWS | Financial Planning Tools Pay Off ........................................................................................................................................ 47 THE HUFFINGTON POST | The Investment Cost of Being Human ....................................................................................................... 48 CRAIn’s | The Endless “Disruption” Eruption .......................................................................................................................................................... 51 RECENT PRESS COVERAGE | PAGE 2 New Firms Taking Financial Advice Online BY RUTHIE ACKERMAN Jonathan Stein, Even as many financial advisers try The company has about 10,000 to shift upward from the mass- customers, says Stein, and over founder and CEO affluent segment to a wealthier $20 million in assets under of Betterment, sees clientele, some new Internet-based management. start-ups are aiming their services When a client signs up with online advisory at the not-so-rich. Betterment, they fill out a platforms as the While online investment platforms questionnaire about their age, answer for the aren’t new, such fledgling services savings goals, income and timeline, as Wealthfront and Betterment are with scenarios to determine their “99% of everyone trying to distinguish themselves risk tolerance. Based on their with new programs to provide responses, Betterment makes in this country” with advice electronically. The recommendations using two less than $500,000 investment minimums are as low as ETF baskets: a basket of stock- $5,000 – or even nothing at all. focused ETFs carrying higher return to invest. expectations but also higher risk, Generally speaking, they seek and a lower-risk basket of bond clients who are satisfied with an ETFs. The client is then free to adjust online, largely automated process their allocation between the baskets. and who don’t feel the need for Accounts are rebalanced quarterly, face-to-face contact with an or sooner if holdings shift more than adviser. As the public gets more 5% from the target allocation. That, comfortable carrying out all Stein says, “almost makes up for our kinds of activities online and as fee in and of itself.” traditional advisers pursue the wealthy, this new market should “By automating our whole process, grow. Jonathan Stein, founder and we’re able to serve even $2,000 CEO of Betterment, sees online customers,” Stein said. advisory platforms as the answer Betterment currently focuses on for the “99% of everyone in this investment services, but Stein country” with less than $500,000 see platforms like his moving into to invest. other areas, such as tax advice and Online brokerage firm Betterment, estate planning. based in New York City, has no Andrew Rachleff, co-founder investment minimum and charges of Wealthfront, believes online a 0.9% fee for those with up to financial platforms could reshape $25,000. At the top of its sliding the advisory industry the way scale, the fee drops to 0.3% for travel sites like Expedia and Orbitz those with $500,000 and above. Source: http://financialadviserblog.dowjones.com/blog/stay-ahead-of-your-clients/new-firms-taking-financial-advice-online RECENT PRESS COVERAGE | PAGE 3 Continued: New Firms Taking Financial Advice Online transformed the travel industry platforms in that clients interact when they eliminated the need to online with a financial adviser, who use travel agents. Clients are able is assigned to them and offers to get a tailored portfolio through individualized investment portfolio software that is “accessible and management. These advisers can simple enough for the consumer to be reached via email, phone, video use directly, eliminating the need and through the chat function on for a human being,” he says. the site. “When you get rid of the human Launched in September, Personal being, you get rid of much of the Capital said the firm has close cost without getting rid of any of to 5,000 clients with an average the rigor,” he says. managed account size of about $300,000, a spokesman says. Wealthfront, based in Palo Alto, Calif., has a minimum investment One challenge for the firms is of $5,000 and charges no getting investors, shaken by advisory fees on a customer’s the 2008 crisis, to be willing to first $25,000 under management. experiment with new approaches It charges 0.25% on assets over to investing. Even in the best of $25,000, including the cost times, “financial services is not of monitoring and periodically a place where people take a lot rebalancing the portfolio. of chances on a firm that they’ve never heard of,” says Katharine Another online advisory platform Wolf, senior analyst at Cerulli, a is Personal Capital, which charges research firm specializing in the a 0.95% fee to manage the first financial services industry. “The $250,000 in investable assets biggest hurdle we see for these and scales down the more money platforms is getting people to the client has to invest. But the trust them.” § minimum to invest is $100,000. The company’s founders include Bill Harris, the former chief executive of PayPal and Intuit Inc. It is different than some of the other online RECENT PRESS COVERAGE | PAGE 4 Searching for Financial Advice Online BY RUTHIE ACKERMAN The company has Even as many financial advisers try When a client signs up with to shift upward from the mass- Betterment, they fill out a about 10,000 affluent segment to a wealthier questionnaire about their age, customers, says clientele, some new Internet-based savings goals, income and startups are aiming their services risk tolerance. Based on their Stein, and over $20 at the not-so-rich. responses, Betterment makes recommendations using two million in