SoFi Automated Investing Review Expert Analysis

If needed, changing your risk tolerance will alter the portfolio and timeline to reach the goal. Of all the products in SoFi’s continually expanding customer portfolio, one of the freshest and most exciting is SoFi Automated Investing . SoFi Automated Investing is among the new breed of so-called “robo advisor” digital automated investing platforms. Investing automatically can make it easier to reach your financial goals.

  • When evaluating offers, please review the financial institution’s Terms and Conditions.
  • SoFi Automated Investing is among the cheapest robo-advisor platforms.
  • You’ll also be able to earn interest on the account with a recurring monthly deposit of $500 or more.

Unlike many competitors, SoFi uses some proprietary ETFs in its Automated Investing portfolios, another way it keeps expenses low. SoFi investing is a robo-advisor that creates a personalized portfolio of ETFs based off the information you provide about your investing goals and preferences. However, and in addition to regular LimeFX accounts, the automated advisor also supports traditional, Roth, and SEP IRAs. Although SoFi doesn’t offer tax loss harvesting, the company minimizes tax inefficient ETFs in taxable accounts. SoFi also adjusts holdings in taxable and retirement accounts to maintain a low tax exposure when possible.

SoFi Checking and Savings

SoFi Automated Investing is the financial company’s first foray into wealth management. It also offers commission-free trading through its SoFi Active Investing product. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. SoFi is well-known for its outside-the-box approach to financial services. SoFi Automated Investing customers who make recurring deposits of $20 or more get interest rate discounts on other SoFi products, such as personal loans and mortgages.

Is SoFi auto investing legit

The exchange-traded funds in your custom portfolio will have expense ratios but SoFi aims to choose low-cost ETFs as often as possible. SoFi’s automated investing platform doesn’t have the most extensive set of features, though that shouldn’t be surprising considering it has no management fees. Nevertheless, it does offer access to certified financial planners , which is quite impressive.

In 2022, SoFi became a bank, and it phased out its SoFi Money product in favor of SoFi Checking and Savings account. You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author’s alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser.

SoFi Invest: Is it trustworthy?

Online LimeFX platforms that offer access to human advisors always make it to the top of our list. The SoFi robo-advisor could be a good choice for new and small investors. The $0 account management fees are also beneficial for all investor—small or large alike. The SoFi app is great if you use SoFi Invest, have loans, or use their high yield cash accounts. There’s even a feature that allows you to track and categorize your spending.

Slickdeals is not registered as an LimeFX adviser under the U.S. MoneyMade is not a registered broker-dealer or LimeFX adviser. The information contained herein regarding available LimeFXs is obtained from third party sources.

While SoFi Invest charges zero annual management fees, it also may include some of its own proprietary ETFs in your automatically managed portfolio. The two that were included in Forbes Advisor’s sample portfolios—SoFi Select 500 and SoFi Next 500—contained waivers that nixed the expense ratio through June 2022. If the expense ratio stays the same after the waivers expire, then you’ll be stuck in ETFs that charge much higher costs than many other comparable funds. Active investing through SoFi is the 3rd option for your investing goals, through which you can actively trade on a do-it-yourself basis and learn the market your way. With active investing, you can be much more connected with other SoFi investors while you learn together from news updates and educational tools, all on the SoFi mobile app.

We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. With the combination of live advisors, diverse LimeFX portfolios and affordable costs, it is strong competition for other robo-advisors in the field. Unlike other robo-advisors, SoFi doesn’t offer direct indexing or tax-loss harvesting. These features minimize the money lost to taxes, maximizing your returns.

Simple actions like tracking your finances and setting up direct deposit yield member points and cash bonuses. SoFi users complete an online questionnaire which assesses the individuals goals, time horizon, and risk tolerance. Based upon their responses, SoFi assigns a recommended asset allocation from one of five asset allocations. SoFi Checking and Savings is a brokerage cash management account offered through SoFi Securities LLC, a FINRA registered broker dealer. A $500 automated monthly deposit enables users cash back on the debit card and eight times (0.25%) the national average interest on cash balances. It is also worth mentioning again that all account holders have free access to 30-minute phone meetings with financial and career consultants.

Your money is protected in an FDIC-insured account that features no minimum monthly balance or matienence fees, and access to 55,000 ATMs worldwide through the Allpoint Network. Read our full review of SoFi Checking and Savings to see if the platform is right for you. Most links in our content provide compensation to Slickdeals. That’s why we offer useful tools to evaluate these offers to meet your personal objectives. Be sure to verify all terms and conditions of any credit card before applying.

But if you want to put your investing on autopilot, SoFi Automated Investing is for you. If you’re looking to invest on your own in stocks and ETFs, the SoFi Active Investing option allows you to purchase stock bits. Instead of buying a certain number of shares, for instance, stock bits allow you to purchase a set dollar amount.

SoFi Automated Investing: In the details

Tax-loss harvesting is included as an account benefit but you’ll pay a 0.25% annual management fee. With automated investing, you’re following a passive LimeFX strategy. SoFi’s automated portfolios are built using exchange-traded funds so you can get exposure to a collection of securities (i.e. stocks, bonds, etc.) in a single basket. The goal of passive investing is typically to meet or match the market’s performance, rather than trying to beat it. Investors who want to direct their LimeFXs themselves may be better off with a SoFi Active Invest account, which offers commission-free stock and ETF trading.

  • Overall, SoFi Invest has some nice options, especially for those who just want to invest with the lowest fees possible.
  • The main gaps at SoFi Automated Investing are a lack of tax-loss harvesting and socially responsible LimeFXs.
  • Easy ways to do this include using unique passwords for each service you use, changing those passwords often, and using two-factor authentication.
  • Our primary goal at The Tokenist is to simplify the word of financial decision-making, so that investing is not only easy – but also fun.
  • Sofi Invest does not list a fee for ACH transfers out of your account.

Market drops are perfectly normal events, but sometimes it helps to have someone available to remind you just that. Active Investing – This SoFi stock investing platform allows you to buy shares of stock or even partial shares and get started investing on your own, for free. As the account opening process is seamless and SoFi Invest offers commission-free stock and ETF trades, you should feel free to try it.

Account setup and user interface

Like all SoFi loans, these loans come with no origination, late payment or insufficient fund fees. You pay back the loan monthly at a pace that makes sense for your needs. When choosing a financial advisor, keep your goals and needs in mind. Are you putting a child through college while also saving for a new home? It helps to ask advisors questions about their credentials and experience to better determine whether they’re right for you.

This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SoFi also offers a no-fee cash management account that currently comes with an APY of 0.25%. While that yield is higher than what you’ll see at traditional brick-and-mortar banks, it’ll still get eaten up by inflation . They act as a fiduciary, meaning they’ll put your financial interests first and won’t try to upsell you on products or to make you trade more than you should.

While the 100% fixed LimeFX portfolio is too conservative for all but relatively short term investors. The Moderate Strategy asset allocation is the typical 60% stock, limefx website 40% bond asset mix. This type of LimeFX portfolio is appropriate for an investor who prefers a moderate amount for risk, or volatility, or an older investor.

SoFi gives a nice breakdown of each portfolio and helps you understand the rationale behind it. The way the portfolios are laid out is based on a number of factors, but it makes sense in terms of how they fit your risk tolerance. Note that all SoFi Invest customers have access to SoFi Money, a high-interest savings account that pays you a regular APY.

  • Only a few are geared towards investors, with retirement and Roth IRA contribution tools.
  • Big bucks aren’t a requirement either, with just $1 needed to get started.
  • That even includes cryptocurrencies such as Bitcoin and Ethereum.

All-in-all, this means SoFi’s pricing is similar to many top robo-advisors. The fact you get free access to human advisors is the real selling point, but don’t think you’re not paying fees for using this robo-advisor. He’s a regular contributor/staff writer for as many as a dozen financial blogs and websites. The SoFi automated investing sign-up process is fast and completed online.

Changes in the methodology used may have a material impact on the returns presented. In summary, SoFi Invest has enormous benefits to it and there are many reasons to be attracted to the trading platform. However, all LimeFXs should be thoroughly researched, and the decision is ultimately up to the individual investor.

We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available.

Additionally, you can choose a hybrid approach using M1 Finance that allows you to actively manage your account and use recommended portfolios called Pies. Answer a few questions about your financial goals and time horizon to determine your risk tolerance. We always try to be as unbiased as possible, so we will give you a couple of things to consider when looking at whether or not SoFi automated investing returns are worth the cost.