Katherine from Betterment here. If youu2019re concerned with tax consequences, you should consider a taxable Betterment account. Betterment uses automatic rebalancing and automatic reinvestment of dividends to avoid capital gains taxes. Hereu2019s how we do it:When your account receives any cash, whether a deposit or dividend, Bettermentu2019s software identifies which investments need to be topped up.Betterment automatically use the incoming deposit or dividend to buy more shares of the lagging part of your portfolio, and return it back to the original asset allocation.Betterment is able to do this because we can trade fractional shares. Every penny of inflows to your account adds to full diversification. This automated tax efficiency is virtually impossible to achieve in a DIY account. While many online brokers offer an automatic option to reinvest dividends into the fund where the cash came from, this is not the most efficient use of dividends. It can lead to a sell-off for gainers and an accompanying capital gains tax. Thatu2019s exactly what youu2019re trying to avoid!You mention goals: a house, a car, preparing for future children, etc. Betterment is a goal-based investment manager. Tell us what the goal is and weu2019ll use your risk tolerance (based on amount needed to reach the goal and time horizon) to pran appropriate asset allocation to help you get there. Weu2019ll also monitor the account constantly to make sure you are on-track to meet your goal. A Betterment account is the best way to put your additional assets to work for you, just like you are doing with your retirement.