SoFi Active IRA vs Vanguard IRA

SoFi: best if you want

A SoFi Active Invest IRA is best for retirement savers who want an easy-to-use, low-cost platform that offers optional extras (like fractional shares and margin trading) that can help them go the extra mile once they get their feet wet.

The SoFi Invest platform offers a beginner-friendly interface for those just getting started on their journey, but it packs enough punch for more experienced investors to find what they’re looking for.

SoFi offers traditional IRAs, Roth IRAs, SEP IRAs and regular investment accounts, which offer not only stock trading but also access to ETFs, mutual funds, alternative funds, fractional shares, options and margin trading.

Crypto is also available, but not directly on the SoFi platform; the firm has partnered with partners like BitGo and Blockchain.com.

With its low costs, wide range of investment options, and free live advisory service, it’s a worthy match for plenty of investors. However, the SoFi platform doesn’t offer tax-loss harvesting, and uninvested cash sees no interest growth. Still, these are relatively minor drawbacks if you want to use SoFi as a one-stop shop for your financial needs.

Vanguard: best if you want

Vanguard’s platform is built on trading low-cost mutual funds, index funds, and ETFs. As an investor, you’ll get access to Vanguard’s research, easy-to-read fund performance analyses, and helpful retirement planning tools. These perks, as well as Vanguard’s low-cost philosophy, make them a good choice for buy-and-hold investors planning for long-term goals like retirement. Vanguard’s low fees and earnest investment philosophy continue to attract new customers, the company’s assets under management (AUM) recently hit $6.2 trillion.

SoFi: other features

Over time, SoFi has become something of a one-stop shop with its wide range of financial products ranging from student loans to mortgages to personal loans to a cash management account. These days, SoFi even offers a credit card as well as insurance products. The SoFi cash management savings account offers yields north of 4% APY, which is substantially higher than the national average, and members can access all of their accounts and products through the company’s easy-to-use mobile app or web interface.

Vanguard: other features

Vanguard offers a wide selection of investment account types, including standard brokerage accounts and goal-oriented investments like education savings plans. If you’re saving for several different goals in addition to retirement, Vanguard’s platform will allow you to manage it all from one online dashboard.

Vanguard offers customers the ability to work directly with a financial advisor, though you’ll need at least $50,000 to invest. Until then, you can take advantage of their free research and planning tools to help you invest wisely.

Conclusion

For those looking for low costs, SoFi’s IRA offers a wealth of opportunity. If you’re looking to fund your new SoFi 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.

If you’re a buy-and-hold investor looking for low fees, Vanguard may be the place for you. However, if you’re looking for access to a wide variety of investment choices and a high-tech platform, you’ll likely get frustrated by Vanguard’s narrow investment selection and simplistic trading platform.