Robinhood Markets Inc HOOD, the trading app that helped revolutionize and democratize finance, introduced a new product Tuesday. Here's what you need to know.
What Happened: Robinhood traders can now join the queue for Robinhood Retirement, which will allow customers to register an individual retirement account (IRA) and pick between a regular or Roth IRA to start saving for retirement.
Robinhood's IRA product provides a 1% match from Robinhood on every qualified dollar deposited to the account, allowing individuals who aren't already benefiting from an employment match to increase their retirement savings for the first time.
Those who join the waitlist now can expect to receive access to the product on a rolling basis, until the product becomes fully available for all users in January 2023, according to Robinhood.
Here’s How It Works: Investors can build a custom portfolio with Robinhood's tailored in-app recommendations, by choosing their own investments or a mix of both.
The sign-up process and onboarding flow takes a few minutes.
Once a customer contributes, they will have access instantly to their funds to start investing, up to $1,000.
With Robinhood’s retirement program, earnings can grow either tax-free or tax-deferred, which means customers will save on taxes while saving for their future; an added tax benefit even if they already have a 401k elsewhere.
HOOD Price Action: Shares of Robinhood were trading down 2.59% to $9.42 midday Tuesday.
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