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SoFi Wealth Review

securely through SoFi Wealth's website

1 Minute Review

The wealth management arm, which aids in both passive and active investing, provides personalized advice based on the client’s unique financial situation and goals. Advisors offer assistance and robo-advising is also available through portfolio building and auto rebalancing.

Best For

  • Beginners
  • Passive investors
  • Cost-conscious investors
  • Portfolio builders

Pros

  • Affordable pricing
  • Free for borrowers of a SoFi loan
  • Tools for goal setting and retirement analysis
  • Availability of advisors at no extra cost
  • Automatic portfolio rebalancing

Cons

  • Limited product options
  • Doesn't possess tax-optimization features such as tax los harvesting

So-Fi Wealth is the wealth management unit of SoFi, or Social Finance, which serves as a one-stop shop for financial services including student loan refinancing, personal loans, mortgage, life insurance, and SoFi Money.

Who's SoFi Wealth For?

SoFi is available for all U.S. citizens and most permanent residents, although it does not permit accounts for permanent residents who hold citizenship in certain countries that are considered high risk.

The firm offers taxable, joint and IRA accounts. Among the IRA accounts, traditional IRA, rollover IRA, Roth IRA, and SEP IRAs are offered.

Beginners: SoFi Wealth appeals to beginners in two ways. Since beginners are price-sensitive and sometimes skeptical about committing huge amounts to start with, SoFi’s low account minimum, modest advisory fees, and zero administration fees appeal. The availability of qualified advisors at no extra cost could help beginners overcome their starting hiccups.

Passive investors: Robo investing and automatic portfolio rebalancing are offered for passive investors.

SoFi Wealth's Commissions and Fees

You’ll need a one-time deposit of $100 to open an investment account. Alternatively, you can set up an auto deposit of $20 per month. At times, the firm offers a bonus to open a taxable account.

The firm does not mandate any minimum holding period, and the money deposited can be withdrawn at any time.

There are no SoFi management fees for SoFi Wealth clients. 

SoFi Wealth's Platform and Tools

SoFI Wealth's mobile interface. Source: Sofi.com
SoFI Wealth’s mobile interface. Source: Sofi.com

The firm’s wealth management platform combines an easy-to-use online and mobile interface and you can access your accounts through the web as well as through the SoFi Wealth app, which is available for both Android and iOS.

The SoFi app allows you to invest, keep track of SoFi loans and apply for new accounts, among other things.

SoFi offers five different investment strategies, ranging from conservative to aggressive, and allows you to change your strategy at any time.

In order to choose the right investment strategy, you can consult with a financial planner at no extra cost.

 

 

 

 

 

SoFi Wealth's Research

SoFi’s Resource Center offers a host of articles on investing and valuable tools such as an IRA contribution calculator and a guide for investing intelligently. Some of the articles available include market commentary, investment resources, how to open your first IRA, your seven-step game plan to reach your first $500,000, etc.

SoFi also features a blog post and articles on investing.

SoFi Wealth's Security

SoFi Securities LLC and Apex Clearing, the custodian of securities, are members of the Securities Investor Protection Corporation, or SIPC. The SIPC protects client funds up to $500,000, including $250,000 in cash claims.

SoFi Wealth is an SEC Registered Investment Advisor.

SoFi uses encryption to keep client data and information safe, and it asks for two-factor authentication. Both Face ID and Touch ID are available for iOS device authentication.

SoFi Wealth's Customer Support

SoFi doesn’t have brick-and-mortar branches. The firm’s customer service team is based in California and Utah. Phone support for the Wealth unit is available at (855) 525-7634, between 4 a.m. and 5 p.m. (PT) Monday through Thursday and between 7 a.m. to 5 p.m. (PT) on Fridays.

To speak to a SoFi Certified Financial Planner, schedule a call by inputting the time and day you’d like to be called, your name, email address, and phone number. Live chat is also available.

The firm’s financial advisors can also be contacted using the email address advisor@sofiwealth.com.

SoFi Wealth's Tradable Asset Classes

The firm builds portfolios from a broad mix of 20 index-following ETFs, which represent the historic performance of a group of investments or asset classes.

The underlying asset classes include U.S. stocks, international stocks, high-yield bonds, real estate, short-term Treasuries and the stock markets of other countries.

The firm automatically rebalances investments about once a month.

SoFi Wealth's Ease of Use

You can set up an account and schedule a deposit in just a few minutes after you input details on your goals and personal information. Once your account and bank information are approved, it would take one to two business days for funds to be reflected in your account.

If you need to withdraw money from an account, it can be done any time by selecting “Withdraw Money” under Settings.

Final Thoughts

SoFi, which has robo advising as well as advisory services, offers low minimum deposit, no or low management fees and automatic portfolio rebalancing. The best advantage could be wringed out by existing SoFi borrowers and those who invest under $100,000. Even the 0.25% management fee charged for the rest is comparable to other robo advisors such as Betterment.

However, the limited tradable asset classes and the absence of an automatic tax-harvesting feature are major deterrents.