SoFi Automated Investing makes it easy to build your passive investment portfolio using a Robo-advisor approach and low-cost ETFs.
What is SoFi Automated Investing Account?
SoFi Invest offers the SoFi Automated Investing account for cost-conscious and beginner investors. There is no investment minimum, no management fee, and you get access to advisors–human advisors for investment advice.
In contrast to SoFi Active Investing (where you actively invest and trade), Automated Investing takes the reigns and uses Modern Portfolio Theory (MPT) to create asset diversification and growth using low-risk exchange-traded funds (ETFs).
How SoFi Automated Investing Works
SoFi Automated Investing is an investing platform offered by SoFi Invest–a comprehensive mobile app that enables members to invest in securities. With Automated investing, you will:
- Choose between a taxable brokerage account or retirement account (IRA and Roth).
- Answer a few questions about your financial goals and time horizon to determine your risk tolerance.
- Invest in low-cost ETFs that match your risk tolerance.
- Have portfolio managed with no fees by assessing performance, rebalancing, and optimizing to follow investment strategy.
- Speak with no-fee financial advisors to discuss your portfolios and investment goals.
SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. SoFi Securities LLC is a Member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).
Features and Benefits
SoFi Automated Investing offers several features:
- No account minimums: you can start an account with $1.
- Goal planning: answer the questionnaire to gain a big picture and long-term strategy.
- Automatic rebalancing: adjust your investments to make sure your portfolio stays in line with your target allocation.
- Diversification: get a diversified portfolio to have your money allocated across different asset classes.
- Autopilot: set the schedule for recurring investments into your funds.
- Financial advice: get unlimited access to financial advisors and no-fee certified financial planners.
- At least 18 years old.
- Must pass personal information verification.
- Social security number.
SoFi Automated Investing has no management fee, and funds have very low expense ratios.
- Management fee: $0
Who is it best for?
SoFi Invest is best for the cost-conscious investor. Specifically, Sofi Automated Investing can help individual investor who wants their portfolios managed through a Robo-advisor service.
SoFi Automated Investing Review
SoFi Invest is a legit investing product offered by a publicly-traded company ($SOFI). The SoFi Money app has a 4.7 out of 5-star rating in the App Store.
Our SoFi Automated Investing review taught that investors could benefit from the Robo-advisor for a more hands-off approach to long-term financial growth. And with unlimited access to investment advisors, you can gain peace of mind and assurances of your portfolio’s performance along with discussions about other aspects of your financial life.
In reviewing the process, it’s simple to get started. If you’re a current SoFi Invest member, setting up your Automated Investing account takes a few minutes. Answer the questionnaire and let the algorithms determine your risk profile to suggest investment options.
Pros and Cons
- Easy and intuitive mobile app
- Low-cost Robo-advisor
- Unlimited access to human advisors
- No tax-loss harvesting
- No mutual funds
How to Start a SoFi Invest Account
The time needed: 3 minutes.
Step-by-Step to open SoFi Automated Investing
- Getting started
- Download the app or click this link to activate.
- Select Automated Investing
- Answer the questionnaire to determine your risk level.
- Review and fund your account
- Review your target allocations
- Add money to your new brokerage account.
SoFi Automated Investing Alternatives
Additionally, you can choose a hybrid approach using M1 Finance that allows you to actively manage your account and use recommended portfolios called Pies.
Find more investing apps in the marketplace.
What is SoFi?
SoFi is a financial technology company that provides loans for college students. The company was founded in 2012 by former Goldman Sachs executives and has raised $1 billion from venture capital firms like Andreessen Horowitz, General Catalyst Partners, and Sequoia Capital. In 2021, SoFi became a publicly-traded company.
With SoFi, you get access to a wide range of financial services such as:
- SoFi Invest: trade and invest using taxable accounts.
- SoFi Retirement: choose active and automated using tax-advantaged traditional and Roth IRA accounts.
- SoFi Money: use a free checking account with a debit card, bill pay services, and rewards all-in-one app.
- Student Loans: apply for private student loans and student loan refinancing.
- Loans: apply for personal loans for any reason and mortgages too.
What’s the difference between SoFi Automated and SoFi Active Investing?
SoFi Automated is for passive investors who want financial guidance using Robo-advisors as a cost-effective alternative. Basically, you invest money in a group of stocks, such as low-cost index funds or exchange-traded funds (ETFs). It requires very little management and takes advantage of automation, compounding, and time for your portfolio to grow.
In contrast, SoFi Active Investing is about buying and selling stocks with a goal of short-term gains but can be set for long-term growth. It requires actively doing your own trades, balancing, and tax strategies.
Understand that both investing types come with a level of risk.
Is automated investing a good idea?
Using a Robo-advisor is an excellent option for those unable to meet the requirements to work directly with a human advisor. With a Robo-advisor, you a portfolio matching your goals and risk profile, pay lower management fees, and invest in low-cost expense ratios.
Is Roth IRA available on SoFi Automated Investing
Yes, you can open a Roth IRA and a traditional IRA and use the Robo-advisor services to manage your retirement plan.