SoFi Robo-Advisor – 5 Reasons It Might be Right for You


Jeremy BiberdorfBy: Jeremy Biberdorf

April 8, 2022April 8, 2022

SoFi (Social Finance) is an excellent platform for beginners. There are low to no fees, pretty good returns, and quite a few perks awarded to its users. SoFi robo-investing is one of many platforms that offer similar services, so why should you choose this one? How does it compare to the big names such as WealthSimple, Betterment, and M1 Finance, to name a few? Let’s find out.

What Is SoFi Robo-Advisor?

SoFi is an investment platform suited for hands-off and beginner or more inexperienced investors looking for a low-cost option. It gives access to a nice portfolio mix, career counselors, and real-person financial advisors to point you in the right direction. The low fees are also optimal for people who do not have a lot of assets.

SoFi robo-investing is quite new to the scene and doesn’t have a long track record for users to gauge the performance. With competitors such as Betterment and M1 Finance, why pick this newcomer?

5 Reasons Why SoFi Robo-Investing Is for You

 

Access to Financial Advisors

SoFi robo-advisor can get you in touch with certified financial planners (CFPs). All clients can enjoy unlimited access to human advisors – for free. Yes, there is no extra charge, unlike its competitors.

You can rely on unbiased opinions and recommendations from the CFPs because they are non-commissioned and do not take a fee for the actions they suggest.

Users can contact the financial advisors either through a phone call or video chat during various hours of the day. The availability instills confidence in new users and investors.

Low Costs

The low fees for SoFi robo-investing are one of the primary reasons why it is popular. There are 0 minimums or account management fees. Clients can start investing with as little as $5! Some funds may still carry their own standard fees, but SoFi’s proprietary ETFs do not.

In comparison to other platforms, the costs you do have to pay on SoFi are much lower. Miscellaneous fees involved with using the platform will not exceed $75. These costs include outgoing wire transfers (ACH is free), IRA closing fees, and paper statements.

Broad Investment Portfolio Choices

Clients have 10 standard portfolio options to choose from that differ in risk levels and investment goals. The assets available are:

  • Fixed income ETFs
  • Standard ETFs
  • Non-proprietary ETFs

Within these ETFs are U.S. stocks, treasury bonds, high-yield bonds, and international stocks.

Automatic Rebalancing

One drawback of the SoFi robo-advisor is it does not possess tax-loss harvesting, which is a feature that is very useful and many of its competitors have. However, it does have automatic rebalancing.

The automatic rebalancing feature in SoFi makes sure to realign your portfolio to make sure it is no more than 5% off the target allocation.

The risk and return of your investments will always be rebalanced to meet your goals.

Highly-Rated Desktop and Mobile Interfaces

Another feature that users rave about is the interface and user-friendliness. The iOS and Android apps are very highly rated and easy to navigate, as is the desktop site. There isn’t much of a learning curve, and you won’t find yourself spending much time trying to figure out how to use the features.

Everything is labeled clearly on the header, and if you have any questions, the FAQ section has all the answers. Sometimes the mobile apps don’t give access to all the features offered by the desktop site, but in the case of SoFi robo-investing, you can pretty much do everything on the app.

If you have any questions, the customer service is ready to help with comprehensive phone support. There is also a chatbox that can give you some assistance during the off hours.

SoFi Robo-Advisor Pros and Cons

Of course, SoFi offers more than just the top 5 reasons why it is a good choice. Some of the other considerations before deciding if it is the right pick for your portfolio include:

Pros

  • Access to CFPs for all clients at no additional cost
  • No management fees and account minimums
  • Just $5 is needed to begin investing
  • 10 portfolio options
  • Low investment expense ratios
  • ETFs from 13 asset classes
  • Automatic rebalancing
  • Accessible customer support options
  • Easy-to-use interface

Cons

  • No tax-loss harvesting
  • Very few socially responsible options
  • Quite a new platform

As you can see, the pros greatly outweigh the cons, but your decision can’t be summed up in a simple pros and cons list. For example, if your main focus is tax-loss harvesting, then it doesn’t matter how many benefits SoFi provides, it won’t be for you because it doesn’t have that feature.

Final Takeaway

The SoFi robo-advisor is an excellent platform for people looking for very low costs, helpful knowledge and guidance from career counselors and financial advisors at no additional cost, and a hands-off investing experience on user-friendly platforms. Click here to learn more about what the SoFi robo-advisor can do for you.

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. He has been blogging at ModestMoney since 2012. Also check out his contributions to Equities.com and Benzinga.

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