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.
- Passive investors
- Cost-conscious investors
- Portfolio builders
- 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
- 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 1-stop-shop for financial services including student loan refinancing, personal loans, mortgage, life insurance and SoFi Money.
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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 2 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 1-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The firm does not mandate any minimum holding period, and the money deposited can be withdrawn at any time.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
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 5 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 1st IRA, your 7-step game plan to reach your 1st $500,000 and more.
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 2-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 email@example.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.
Try SoFi Today
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.
Visit SoFi online today to set up an account and get started today.
Frequently Asked Questions
Q: When should I start investing, and how much money do I need?
SoFi Invest has no minimum for investing, and sometimes earlier is better.
Starting early means you may be able to take advantage of the power of compounding. Compounding interest is the phenomenon of earning a rate of return on both the money you’ve invested and all of the profits you’ve already earned on that investment.
It’s also smart to set up a secure emergency fund before you start investing. An emergency fund is often held in cash separate from your checking account, preferably in an accessible, FDIC-insured savings account. It’s recommended to save between 3 to 6 month’s worth of expenses before investing.
Q: Are ETFs or mutual funds better for new investors?
Mutual funds and ETFs are similar. They each bundle together some other type of investment, such as stocks are bonds.
They also have some important differences. ETFs trade throughout the day, like a stock. Mutual funds trade once per day.
Funds, both mutual funds and ETFs, come in 2 varieties: actively managed and index. (Currently, many ETFs are index, though there are actively-managed ETFs.)
An actively-managed fund typically has higher costs, while an index fund aims to invest in the market using a passive strategy, usually at a low cost. (Not sure of the cost? Look for a fund’s annual fee, called an expense ratio.)
They’re called “index funds” because they track an index that aims to measure market performance. For example, the S&P 500 is an index designed for the sole purpose of tracking U.S. stock market performance. But, it is possible to buy an index fund that mimics the S&P 500—and this can be done via either an ETF or an index mutual fund.
Both fund types have something to offer new investors. Like all financial decisions, it’s important to do your research and due diligence before going forward.