SoFi is mostly known for student loan refinancing. However, in recent years the company has expanded its offerings to include mortgages, life insurance and now investing through SoFi Automated Investing.
Using the principles outlined in Modern Portfolio Theory, SoFi Automated Investing, formerly known as SoFi Wealth, aims to help you grow your wealth over time. SoFi Automated Investing uses ETFs to construct your portfolio based on your answers to a questionnaire. There are different strategies you can choose from and you have access to financial advisers, but ultimately, SoFi Automated Investing acts as a robo-advisor that puts together a portfolio for you based on your goals and risk tolerance.
SoFi Automated Investing is ideal for beginning investors looking to get their feet wet without the need for a large amount of money. You can open an account with a $100 one-time deposit or $20 monthly deposit. This makes it easy for newbies to begin investing.
Additionally, SoFi is especially suited for long-term investors looking to do very little of their own portfolio management.Due to broad-based ETFs that donâ€™t rely on individual stock picking, there is very little effort required on the investors side. This makes SoFi investing ideal for financial goals such as retirement.
|Amount minimum to open account||
|Account fees (annual, transfer, inactivity)||
|Tax loss harvesting|
|Tax loss harvesting detail||SoFi does not currently offer tax loss harvesting.|
|Offers fractional shares|
|Ease of use|
|Mobile app||iOS, Android|
|Customer support||Phone, Email, 4 branch locations|
SoFi Automated Investing has several things going for it, making it a good choice for many investors.
SoFi can be a great option for beginners looking to get started and who need a little help planning a goals-based roadmap.
No SoFi Automated Investing review is complete without offering some of the drawbacks to the product. While there are some great upsides, the reality is that SoFi is relatively new to investing and doesnâ€™t offer some of the benefits you might see with other robo-advisors like Betterment and Wealthfront.
Anytime you invest, itâ€™s important to be careful and comfortable with your strategy. You always run the risk of loss whenever you put your money into any investment account. However, SoFi investing is as safe as any other robo-advisor. The use of index ETFs means that your portfolio follows overall market trends, which, over time, tend to head higher returns (despite short-term losses).
On top of that, SoFi Automated Investing carries SIPC insurance, which protects account holders if the broker fails. However, realize that SIPC insurance doesnâ€™t protect your portfolio from losses due to market and economic events.
Before you invest, check with resources like FINRA BrokerCheck and the Better Business Bureau to see what disclosures and complaints might be related to the company.
SoFi Automated Investing is a good option for most investors looking for a simple way to manage a long-term portfolio. Itâ€™s very easy to open an account and you get free personalized financial planning help and advice to help you coordinate your portfolio to meet your financial goals.
SoFi investing is still relatively new, so you might miss out on some benefits and tools offered by those that have been in the investing space for decades. Consider your needs and compare SoFi Automated Investing with services like Betterment, Ellevest, and Wealthfront to see if it works for you.
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