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SoFi Automated IRA Review

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SoFi is a mobile-first, Millennial-friendly financial institution that offers an excellent, no-fee automated IRA.

Pros

Mobile-first, clean user interface.
No fee to manage your IRA for you.
Access to a large suite of other financial services.

Cons

Limited ability to influence the portfolio they create for you.

Snapshot

Best if you wantA zero-fee portfolio from a Milennial-focused brand with a range of other financial products like student loan refinancing and debit cards.
Fees0%
What you can invest inAll digital advisors create a diversified porfolio of ETFs (Exchange-traded funds) based on your risk tolerance and preferences.
LimitationsNot much ability to influence the portfolio they create for you.
Account minimum$0
Ease of Use4.5 stars

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Best if you want

SoFi is a digital-first institution that offers a simple, no-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 Automated IRA is a great option.

Fees

Most automated accounts charge what’s known as an “advisory” or “management fee” to manage your portfolio for you. This fee is usually expressed as a percentage of your assets that’s paid each year (e.g. 0.50% per annum). 

SoFi is one of the few providers that charges no advisory fee to manage your IRA portfolio for you. This compares well to other players in the market who can charge 0.25 – 0.35% of your assets each year for a similar service.

What you can invest in

The SoFi investment process is similar to other roboadvisors – you open an account, answer some questions, and they suggest a portfolio for you.

That portfolio is based on a combination of “asset classes” like equities (stocks), fixed income (bonds), and international investments. They’ll actually put your money in a collection of exchange-traded funds (ETFs) that allow you to efficiently get access to these asset classes.

Those ETFs are generally provided by large financial institutions like Vanguard and Blackrock and will live inside your portfolio. SoFi also offers its own ETFs and some of your money will be invested in those.

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.

Limitations

The SoFi Automated account has the same limitations as other digital, managed accounts – you won’t be able to really change the portfolio allocations much, though that’s best if you want to outsource your money management. They also don’t have physical branches so if that’s important to you then you’re best off with a slightly older brand.

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.

Compare SoFi Automated IRA to another IRA product

Ready to take control of your assets?

Capitalize helps you consolidate your old 401ks by rolling them into an IRA of your choosing. Use an existing IRA if you have one, or we’ll help you open one if you don’t.