SoFi Automated IRA vs Wealthfront IRA

SoFi: best if you want

With no account minimum, low annual management fee, and access to a range of great financial tools including Certified Financial Planners, a SoFi Robo IRA is a great option for beginner and hands-off investors. While there is some limited ability to influence the portfolio they create for you, you can change portfolio themes or your risk appetite. SoFi’s mobile app and web platforms are well liked, as seen by the positive reviews across app stores. Overall, those looking for a mobile-first experience that takes the work out of investing with recommendations built by industry experts will appreciate a SoFi Robo IRA.

SoFi is a digital-first institution that offers a simple, low-fee rollover IRA managed for you. One of the early “fintech” companies, SoFi started out by helping people refinance their loans. From that start they’ve expanded into a range of financial services, recently launching investment accounts that include rollover IRAs.

The SoFi experience is built for mobile, so if you want a well-designed, mobile-first way to manage your retirement savings, then the SoFi Robo IRA is a great option.

Wealthfront: best if you want

Wealthfront is a great choice for investors looking for a robo-advisor account that allows them to set it and forget it. This is an automated investment platform with low fees. Since Wealthfront does not offer access to a human advisor, it’s ideal for people who are comfortable with software driving their retirement savings, or who are working with a financial advisor on their own to tackle their financial planning needs.

Wealthfront’s user-friendly website offers investors access to great planning tools that are helpful for both experienced and novice investors. Because these tools are integrated directly into the website’s user interface, they’re easier to access than similar tools offered by other brokers. Plus, Wealthfront features include automatic rebalancing and daily tax-loss harvesting to help you get the most bang for your buck, whether you invest in its low-cost index funds and mutual funds or buy fractional shares of individual stocks.

SoFi: other features

SoFi’s overall mission is to help you “Get your money right”. To do that, they offer a broad selection of financial services – all digital, and all built with a younger, tech-savvy user in mind. Besides investment accounts, SoFi offers a checking account, student loan refinancing, personal loans, home loans, and even insurance products.

As part of your investment account experience, you’ll get access to a team of certified financial planners (CFPs) available to chat with you by phone. This is a nice perk for those who might have extra financial questions.

Wealthfront: other features

Wealthfront stands out from other robo-advisors thanks to its expert-curated investment options. When you set up your Wealthfront account, you’ll answer a series of questions about your financial situation, goals, and preferences. This is known as a risk tolerance questionnaire. It’s a common starting point when creating an investment portfolio.

Based on your answers, Wealthfront will calculate your risk score and create a portfolio for you. The money in your automated investing account will be allocated across a combination of asset classes like equities (stocks), fixed income (bonds), and international investments. Like other roboadvisors, Wealthfront tends to invest your money in exchange-traded funds (ETFs) and low-cost index funds that allow you to get easy access to a diversified mix of investments in these asset classes.

Wealthfront also separates out its investment options into categories based on your goals and preferences. For instance, you can choose to invest in ETFs focused on technological innovation or put your money into cryptocurrency trusts, or you can opt for socially responsible portfolio options that align with your values. While the funds themselves are pre-arranged (and therefore pre-diversified), you have a lot of say when it comes to where your money is going.

Conclusion

SoFi offers a simple, no-fee, automated IRA. If you want somebody to manage your IRA with little fuss, it’s a solid option. You’ll also be able to establish a broader relationship with SoFi and access a full range of financial services over time.

If you’re looking to fund your new SoFi Automated Investing IRA with a 401(k) rollover, Capitalize can help. We’ve made it our mission to make this process easier for everyone. We can handle the entire process for you. Most of the process can be done online and our rollover experts will guide you through any of the manual parts. Get started with your 401(k) to IRA rollover in just a few minutes.

Wealthfront offers one of the best robo-advised IRAs on the market, with a wealth of different asset classes and sectors available to investors. Plus, it has additional offerings, including a college savings plan and an interest cash account that works like a checking account, that allow you to save and invest for a number of goals.

Wealthfront is a good choice for “set-it-and-forget-it” investors who want to keep all their financial accounts in one place. Just remember: Wealthfront advisers are not easily available for those looking for real, live, human interaction.