YouSaid · the spoken record

Sarah Levy

lines on the record: 29
first: 2025-03-18
most recent: 2025-03-18
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Be invested, right? To me, at the end of the day, be invested with whatever you can, start early. And in these worlds, this time of uncertainty, people with advisors do better because they have someone they can call who they trust, who prevents them from making mistakes. We believe deeply that like human and digital go hand in hand and everyone should choose how much of each they want and they're comfortable with.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“We always tell people, think about your money. We call them goals, but in sort of buckets, right? Which is to say, okay, you should always have an emergency savings account. That is three to six months relatively liquid assets so that if you get in a bind, which happens on a lot of occasions, that's there for you. That's like an early first principles recommendation that our folks make. Think about retirement early, right? Take advantage of whether it's an IRA, a Roth versus a traditional. There are different rules depending where you are in your life journey, right? And where your income is, where you can really get great advantages from government policies in terms of tax advantages, we have a concept called asset location where we put, we have different treatment for where you save money in either tax advantaged accounts or taxable accounts. That can enhance your returns. So, you know, I would say you just want to be”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Was when we started the early days of Nickelodeon and we did a lot of research around preschool content, for example, we always wanted to sort of enrich the content with good lessons. There was always a lot of educational underpinning and educators helping us with it. Again, not to overplay the analogy, but again, back to being a fiduciary. Like I think it's sort of similar, which is we were not trying to just sell kids a toy. Now, what ended up happening is if they fell in love with those characters and they learned to count, then maybe they'd want to buy the toy that counted with them. So there were hence why it was good for business to basically do the right thing. And I think that's where we're here. We talk about like eat your vegetables versus eat candy. You ask about Robin Hood. And I think they're serving you a piece of cake and then you wake up the next day and you're like, oh, I really need a diet. We're saying, you know, eat your vegetables, have some spinach. You're choking it down, but you feel pretty good the next day.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“That and there are people who want nothing to do with it. Great, nobody is asking you to opt in or to opt out. We're giving you choice so that you can pave your own way, basically.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“That's a perfect question for me because I've always been super private. I'm not big on social media. And I have always felt like the day I got here actually, it was controversial, but I didn't want to speak out on everything because I'm not comfortable doing that. And because I want to separate myself personally from the brand and coming from a founder-led organization where he really was the brand, I think speaking out with his opinion made a lot of sense, right? Because they were one and the same. And one of the distinctions I wanted to make, and it was controversial with the employees more so than anything else, was they wanted to hear from me. And I said, look, if it impacts the business, I'll talk about it loud and proud. But if it's not about the business, we serve customers with different viewpoints. And my perspective is we need to be a platform that offers choice. And so if that choice includes crypto for those who like it great and for those who don't want it, also great. Same with socially responsible investing portfolios, right? We have a climate portfolio. There are people who love.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Concepts and apply them to another industry has just been like an incredibly fun journey for me. I've been here now four and a half years and I think, look, TV, yeah, TV's having a rough go. It's down to basically sports and news and news is arguably not even news anymore. It's opinion. So what do you do with that?”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“I draw parallels actually from my media experience to betterment all the time, right? Which is Netflix, you know, as a pioneer in streaming, didn't do anything different than ABC, CBS, and NBC, right? They're offering great shows, but they're doing it in a way better environment. You watch the shows When You Want Them without Commercials at a lower price point That is literally exactly what we're doing here, right? Which is lower price point, better user experience, but the same core principles. Who are the winners in media? I think the winners are going to be the great user experiences that understand that people want it for a lower cost and they want it in their pocket all the time on their mobile device, right? And again, that's true of finances and that's true of media. I think it's sad for me to watch because I think there's great brands and great content that are struggling because their distribution model is not good. And so, you know, again, it's like, how do we take those?”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“And even within that, there's been regulation saying, okay, if it's a new plan, it's auto enrollment and auto escalation. So what does that mean? Every one of your employees gets put in and they have to opt out as opposed to having to opt in. The difference between opt out and opt-in is enormous. The power of compounding on that money is really impactful in retirement.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“She's totally reasonable, which is totally reasonable. That being said, the power of compounding is your friend and the tax advantages that the government offers to put away money now for the future is also real money that people should take advantage of. And so to me, this is where employers come in. And we have a really robust 401k arm, which actually was probably less developed when I last spoke to you because it was sort of early days and a little bit of a side hustle. And now I'm a passionate believer in this business because I think this idea of expanding access that we pioneered on the retail side is hugely applicable to retirement. And so there's been a lot of cool legislation both at the federal level and at the state level, basically requiring smaller and smaller businesses to support employees with retirement plans.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Retirement, I don't want to call it a crisis yet, but I think because I think maybe that sounds dramatic, but I do think the reality is you have huge, huge portions of the population that think retirements for another day and the price of eggs is too high right now. So I got to pay my bills.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
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2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“I just came back from Vegas. I was doing a panel in Vegas, right? Gambling is there to make money, but not for the customers, for the casinos, right? If you look at the net deposits on some of these platforms, the amount of leakage in a sort of gamified strategy is really, really high, right? Yeah, sure. There's people who are making money, but then there are a lot more people who aren't. And even if you think about portfolio managers, I would love to know how many of them actually beat the market, right? It's hard to be a portfolio manager. And those are folks who have dedicated their career to this. So the idea that every retail investor on the street is going to have the ability to sort of outperform on average and over time, that's a big ask of people.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Day to focus on investing, it's harder to beat the market than you think. And it doesn't end well for a lot of folks. And so I think that's sort of the fallacy. And so how do you give people the sort of degrees of freedom and say, look, we get it that you want to self-direct. That's okay. But at the same time, give them good guidance and good advice to make responsible choices. For example, think about taxes, right? Like, you know, we think about taxes all day long, and I think our superpower is saving customers taxes. That's what we aim to do. But day trading generates taxes. That's not something anybody's talking about. That stuff worries me.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“The dopamine hit of social media, right? The constant attachment to your phone and the beeping of your, the buzzing of your phone all day long, applying that to investing is not a safe idea, right? And so I think behavioral economics plays like a huge role here, which is, and that's why I say like, you know, don't pay attention to the headlines when they're screaming about volatility, right? Because this is elong game. Now, I think, yes, so where you get your financial advice, yes, does it worry me? There is a belief among generations that just because the information is available to you, that therefore you should take total control of yourself. And I think the idea that you should self-direct is absolutely true. You should invest in things you believe in. But if you don't have all...”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Up smart decision making, a long term framework, and build good habits. And ironically, we were seen as sort of the competition to advisors in the early days. I actually think we're the on-ramp to advisors. So we are a place to come and think about dollar cost averaging and diversification and all these things that aren't that sexy, but that in the end deliver incredible performance. Can I tell you, over 15 years, like since our inception after fees, our core portfolio has delivered 9% annual returns. That's pretty great, right? And so ignore the volatility and, you know, stay the course.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“So I listened to that podcast and I agree with you. The idea that betting on a sports game is a prediction market versus a bet, like that is a distinction without a difference for me, right? So I think that the problem that we've seen sort of with this new generation of investors is basically many of them entered the market when the market was all up and to the right, right? Saw no volatility. And so everybody's a winner, right? And you saw a little bit, you know, I love the movie Dumb Money. I like to talk about, right? You saw a little bit of the perils of that strategy, right? Look, what I respect about what Robin Hood is doing is I think they have built a brand that is connecting with a generation. And I believe we are building a brand that is connecting with a generation. But I think that the heart and soul of those brands are very, very different. And I think what we're trying to do is help people early in their investing journey set.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“I think definitely evolved. It's a little polarizing, right? We definitely have customers who say betterment lost their way once they introduced crypto, like this isn't for me, right? We definitely get those complaints. And then there are other customers that say, I love that there's crypto available. I'm so thankful better my brothers to me. In the advisor community, same thing because our advisor platform is a big part of why we develop a lot of these products. And our advisor platform, you have advisors who think, great, let's get a little bit of exposure for my clients who want the risk and want the reward. And then there are advisors who say, no way, no how, you know, this thing is unregulated and we don't know what it's going to be. So truly, you could all the way at the right, all the way at the left.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Getting smarter, right? And it didn't used to be. So that's been like an incredibly powerful tool. And now what I'm excited about is now how do we take that and apply that to advice? And how do you apply that to advice and also stick within a fiduciary framework? That's where there's a little bit of tension that I think we have to work through, which is how do you remain a fiduciary? How do you be careful of hallucination in the tool? And how do you basically expand those, the number of relationships that an advisor can have with customers because now they have power tools, basically.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“That's true. I am totally over that term, Robo. I have talked to some other CEOs who actually think the term may come back around. But I think when you think about the history of expanding access, I think what AI is going to do is going to just continue to expand that access, right? So how do we sort of take power tools and put them in the hands of advisors and then put them in the hands of our employees to basically be a force multiplier? So at the moment, AI is a total force multiplier in what I'll call the operations of the business, right? So doing first drafts of marketing, completing code for engineers, anywhere that you can insert AI and sort of speed up your employees. Fantastic. And we're doing it and learning new ones every day. And some work and some don't. And then you move to the next. So on the cost side, it's awesome. On the customer service side, we're seeing Gen AI has been incredible. The customer satisfaction is moving hugely up and to the right because the bottom.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“That's exactly right. That's exactly right. So most recently, like in the last couple weeks, we launched solo 401ks, right, which is for small business owners because we had incredible demand on that product. Well, that was a fantastic product that is a sort of heavily tax efficient product that is offered that we didn't offer. And that interestingly, it's a product that's been around a long time, but is incredibly paper-based. So we launched the first completely digital solo K. Now I looked at my marketing people and I literally said, like, that's really a selling point in 2025. And the answer is yes, because these incumbents are still collecting checks and they're just so many steps that are still just clunky. And when you think about even the LFS customers coming over here, they will have access, for example, to things that they couldn't get at LVS. For example, the savings and cash side. Like these were things that they didn't offer.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Doing. And so we're moving well beyond kind of those roots, even to the point of introducing more of a human layer as well, because they're as your customers grow, they may want to talk to someone and have that be part of the mix alongside the digital. And we're a real believer that that mix of digital and human interaction on your financial journey is different for every customer and is different at every time in their lives.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Is a low cost business for the right at 25 basis points, which is the base price of our offering, you get a lot for that price, right? You get a tremendous amount of tax efficiency, which is really the superpower of what we provide. So we are above $55 billion in assets now under management. Last time I talked to you in 2022, I would say that number was in somewhere in the 20s, maybe 30 odd billion a couple years ago, right? And so at this point, to be a profitable business, what we realize is, number one, you need scale, and this is what the competitors have realized. Number two, you need to begin to round out your product suite, right? And so it's not really just about, quote, robo anymore, which was a great concept. Now what we need to do is we need to understand that we're here as a wealth building partner for our clients. We need to bring them more account types. We need to bring them more investment choice. And so that's what we're doing.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“And what Eleves represents is really lots of folks enter the market, but there is a very clear minimum scale, and this is hard to do. And at the end of the day, while let's call it there were, I don't know, 20 entrants in the space one by one, folks have sort of peeled off and cried uncle and said, like, I can't really reach scale. And so this is LFS represents actually our third such acquisition. We acquired in 2021 Wealth Simples US business, Goldman Sachs's Marcus Invest product.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“So, I wouldn't say that L of Est as a standalone unlocks particular opportunities. I think this is a journey we've sort of been on. We pioneered advice driven, digitally driven advice. That's where we started 15 years ago. And the conceit was really about expanding access to great advice, right? Customers used to need a million dollars for an advisor to be interested in talking to you. Technology really lowered that barrier to entry. And we've taken that same premise and brought it to retirement to the 401k. And then we're bringing it to the advisor space as well. So LVST in particular hits the first one, which is the digital retail business that we have is a scale business. And a decade and a half ago when the founder John Stein started the business, he was a pioneer. It was an innovative idea. But then over the last 15 years, every big incumbent built some version of digital advice and lots and lots of folks entered the market.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Well, the interesting thing for us is that we have investing and savings on the platform. And over the last couple years, while rates have been high, introducing bond investing has been really like kind of the next wave for us when there's volatility. We see more deposits flowing into cash that's still paying. We have a high yield cash account paying four or four and a quarter percent. Like that's still a really good principal protected return. But we don't have anything in particular. We're not like a shop that is asking people even to check in daily on their investments because we just don't think that that breeds good behavior.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“I think it is very difficult to get into the mind of the administration right now. So I wouldn't want to prognosticate on that. I think where I tend to focus is what are the things that directly are going to impact my business and on what time horizon. Some of this short-term stuff I'm trying to ride it out.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Well, I think your point is absolutely right when you're thinking about the SP 500, for example. And I think the point of a diversified portfolio, which incorporates international small cap, fixed income, really is an attempt to say, look, when you're having these sort of anomalies that sometimes are short-term and sometimes are permanent corrections, If your time horizon is long-term, that should correct itself and the right allocations should withstand the test of time. And that's how we build our portfolios. But it takes stealing yourself against maybe the headlines and the fear and stuff that is prevalent around us. But I think our advice would be don't get sidetracked by the headlines.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“Large part, our advice is stay the course. It can be a good moment when markets are volatile to think about your tax strategy and tax lost harvesting. So sometimes there are opportunities. But beyond that, we generally believe that the right long-term allocations set you up to withstand volatility.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT
“The dopamine hit of social media, right? The buzzing of your phone, you know, all day long, applying that to investing is not a safe idea. The problem that we saw is basically the market was all up and to the right, right? Saw no volatility. And so everybody's a winner, right? You saw a little bit of the perils of that strategy, right? Here we talk about like eat your vegetables versus eat candy. You ask about Robin Hood. And I think like they're serving you a piece of cake and then you wake up the next day and you're like, oh, I really need a diet. We're saying eat your vegetables, have some spinach. You feel pretty good the next day.”
2025-03-18 · Masters of Scale · From 'Trump bump' to 'Trump slump,' with Betterment CEO Sarah Levy · IDENTIFIED FROM THE TRANSCRIPT