Advice Line with Jon Stein of Betterment - How I Built This with Guy Raz Recap
Podcast: How I Built This with Guy Raz
Published: 2026-02-05
Duration: 46 min
Summary
In this episode, Guy Raz welcomes Jon Stein, founder of Betterment, to discuss the challenges of starting a business during uncertain times and the importance of finding the right financial advisor. Stein shares insights on navigating fear in investing and emphasizes the potential for opportunity even amidst market turmoil.
What Happened
Guy Raz kicks off the episode by inviting listeners to call in for advice on their business challenges, introducing Jon Stein, the founder of Betterment, who returns to the show to share his journey. Stein reflects on the origins of Betterment, which launched in 2008 after the financial crisis, and highlights how it has grown to manage nearly $60 billion in assets for over a million customers. He notes that while investing advice has improved significantly, the way people discover financial advisors has not kept pace, leading him to create a new business focused on building a comprehensive directory of financial advisors.
As the conversation progresses, Stein addresses the current anxieties surrounding investing, particularly in light of recent market conditions. He recognizes the fears people have about choosing the right advisor and the overall economic climate. However, he reassures listeners that maintaining a diversified portfolio and staying invested over the long term is typically the best strategy. Stein encourages aspiring entrepreneurs to consider the opportunities that exist even in uncertain times, drawing parallels to past economic downturns when many successful businesses were born out of necessity and innovation.
Key Insights
- Starting a business can be daunting in uncertain times, but opportunities often arise when others are fearful.
- The discovery of financial advisors remains outdated and can limit consumer options.
- Investing in a diversified portfolio is a long-term strategy that often yields the best results.
- Historically, significant economic downturns have led to the creation of many successful businesses.
Key Questions Answered
What is Betterment and how does it work?
Betterment is a robo-advisor platform that simplifies investing by using algorithms alongside human advisors. Founded by Jon Stein in 2008, the company has grown significantly, managing nearly $60 billion in assets and serving over a million customers.
How can I find the right financial advisor?
Jon Stein emphasizes that the traditional method of finding financial advisors through referrals limits options. His new venture aims to create a definitive directory of financial advisors, leveraging technology to help consumers find advisors that align with their specific needs.
Why is it a good time to start a business during economic uncertainty?
Stein reflects on his experience starting Betterment during the financial crisis, suggesting that challenging times often lead to innovative solutions. He believes that those who can navigate uncertainty may find opportunities that others overlook.
What are common fears people have about investing?
Stein identifies various fears related to investing, including the anxiety of choosing the wrong advisor and concerns about market volatility. He reassures listeners that a diversified portfolio is generally the best strategy to mitigate these fears.
What role does technology play in modern financial advising?
With advancements in technology, especially tools like Zoom, consumers can now connect with financial advisors across the country. Stein's new business aims to harness this technology to improve the advisor discovery process, making it more data-driven and accessible.