Wharton FinTech Podcast Designing the Future of Wealth with Betterment CEO Sarah Levy
Dec 16, 2025
Sarah Levy, CEO of Betterment and former executive at Disney, dives into the evolution of financial services and the critical role of trust in decision-making. She discusses how Betterment balances simplicity with increased investor choices, while emphasizing fiduciary responsibility. The conversation explores AI's impact on wealth management and the unique financial behaviors of Gen Z, highlighting their confidence alongside anxiety about the future. Sarah offers insights on navigating the wealth sector, underscoring the importance of starting retirement planning early.
AI Snips
Chapters
Transcript
Episode notes
Hidden Cost Of Cash And Overconfidence
- Many people keep too much cash in low-interest bank accounts and novice investors overestimate their ability to beat the market.
- Recognizing these behaviors highlights why Betterment's automated, low-cost approach helps customers keep more of what they earn.
Prioritize What You Keep Over What You Make
- Focus on after-fee, after-tax returns because what you keep matters more than nominal returns.
- Use low-cost funds, tax-aware strategies, and dollar-cost averaging to improve long-term outcomes.
Blend Automation With Self-Directed Choice
- Offering self-directed trading alongside automated portfolios meets customer demand and supports lifecycle flexibility.
- Tax transparency across both modes prevents unintended tax events and preserves automated benefits like tax-loss harvesting.