SoFi Roth IRA Review 2023
|By: Jeremy Biberdorf||May 13, 2023|
In a nutshell: SoFi Invest offers Roth IRA accounts to help you make the most of tax-free withdrawals upon retirement. With a choice of active or automated investing with no fees, our SoFi Roth IRA review agrees that this is one of the best ways to grow your retirement fund.
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- No trading fees
- No commission fees
- No minimum account balances
- No minimum deposit
- Broad range of asset classes
- Active or automated trading
- $75 account migration fee
- Basic research tools
- No Tax-loss harvesting
SoFi Invest Roth IRA Review Introduction
When it comes to planning for your retirement, a Roth IRA account enables you to pay tax on your income but benefit from no tax on withdrawals when you retire. If you believe your account is going to grow (and it should!), then this is an extremely tax-efficient way of preparing for your retirement.
SoFi Invest’s main draw is being able to invest without any trading fees, no minimum account balance requirements, and no commissions. In fact, there are no fees at all, including on wire transfers. Considering the fact that 2023 annual Roth IRA contribution limits are currently set at $6,500, or $7,500 for those over 50, every dollar counts.
Keep reading our SoFi Roth IRA review to find out more about why this is the ideal platform for a retirement account.
What is a SoFi Roth IRA?
SoFi was initially launched by business students from Stanford in 2011, but it wasn’t until 2019 that SoFi Invest was launched. Various types of IRAs would be supported soon after.
With more than $12 billion in assets held under the SoFi banner, including SoFi Invest and SoFi Money, investors have quickly jumped onto SoFi automated investing due to their low-fee, no-nonsense approach.
Its position as a robo advisor means it specializes in helping ordinary people who enter the market for the first time. With their Roth IRA accounts, you can take control of your financial future.
Under SoFi Securities LLC, all Roth IRA accounts are FDIC insured up to $500,000 in securities and $250,000 cash, so you know your money is safe.
SoFi Roth IRA Features
Our SoFi review made it clear that the wide range of investment options provided by this platform are revolutionary. Here are the main features relevant to your SoFi IRA account.
SoFi Automated Investing
SoFi Invest’s flagship feature can also be used for your Roth IRA account. SoFi automated investing allows you to invest with confidence, whether you are a beginner investor or an experienced investor.
When you create a SoFi automated investing account and choose a Roth IRA, you’ll be able to select from 10 prebuilt investment portfolio options and 13 different asset classes complete with asset allocation. All you need to do is determine your own personal risk tolerance.
SoFi investing portfolios consist mainly of Exchange-traded funds (ETFs) from big names, including Vanguard and iShares. They also have their own low-cost ETFs.
One fee you will need to pay is expense ratios. These are levied not by SoFi but by the ETF trading provider. Thankfully, fees are extremely low at just 0.05%.
Fractional Share Trading
Due to the low permitted annual contribution limits, it can be difficult to make your money work for you. Under the current annual limits, that only amounts to two or three shares in Amazon.
SoFi allows fractional share trading, known as “Stock Bits”. Whenever you deposit into your Roth IRA, your money can be automatically invested, so every dollar is constantly gaining exposure to the market and your risk level is kept to a minimum.
Free Access to Financial Advisors
Planning for your retirement is tough. Your decisions now will impact your retirement savings decades from now. Forget traditional financial planners and choose a SoFi financial planner instead.
Every Roth IRA account holder gains access to a qualified financial advisor who can guide you on best practices for your Roth IRA and provide financial advice and advisory services that can maximize your investment gains.
Your human advisor can work with you on creating an investment strategy and offering portfolio recommendations that are in line with your long-term investment goals.
It’s a cool feature not offered by many other investment and trading platforms or financial institutions, at least not for free.
SoFi Roth IRA Fees
Holding a Roth IRA with SoFi doesn’t come with any additional fees. You have the same unlimited access as someone with a standard SoFi Invest account, including:
- No minimum account balances
- No minimum deposit
- No trading fees
- No annual management fees
- No commission fees
The only fees involved are the 0.05% ETF expense ratio and a $75 account migration fee if you choose to leave the platform.
SoFi Roth IRA User Experience
One of the aspects often overlooked in reviews but highly important to the potential investor is the user experience. In this section, we will delve into what it’s like to navigate and use the SoFi Roth IRA platform.
Setting up a SoFi Roth IRA Account
Setting up a SoFi Roth IRA account is a simple and straightforward process. To start, you will need to visit the SoFi Invest website or download the mobile app, which is available for both Android and iOS devices.
The platform will guide you through a series of questions about your financial goals, risk tolerance, and investment knowledge. It will also require some personal information to verify your identity as per standard financial regulations.
The process is user-friendly, and you can complete the setup in less than 10 minutes. After setting up the account, you’ll need to fund it. SoFi allows you to transfer money directly from your bank account, and there’s no minimum deposit, so you can start with whatever amount you’re comfortable with.
Navigating the SoFi Platform
The SoFi platform is designed with usability in mind. The interface is clean, intuitive, and easy to navigate. The primary functions such as portfolio overview, trading, and account settings are easy to find and use. The platform also provides a clear view of your investments, including performance and asset allocation.
For active traders, SoFi provides a simple and easy-to-use trading interface. You can search for individual stocks or ETFs, view real-time quotes, and execute trades without any commission fees.
If you prefer a more hands-off approach, the automated investing feature will manage your investments based on your risk tolerance and financial goals.
SoFi Mobile App
The SoFi mobile app mirrors the functionality of the website, allowing you to manage your Roth IRA on the go. You can check your account balance, view your portfolio’s performance, and make trades directly from your smartphone.
The app also includes educational resources and access to SoFi’s financial advisors, which can be a great help if you’re new to investing or need advice on your retirement strategy.
SoFi offers a high level of customer service. You can reach out to them via phone, email, or live chat. Their customer service is available seven days a week, which can be a significant advantage if you need assistance outside of typical business hours.
Furthermore, as a SoFi Roth IRA holder, you get free access to certified financial planners who can provide personalized advice for your retirement strategy.
We’ve gathered some customer reviews from various sources to provide a balanced view of SoFi Invest’s strengths and weaknesses.
SoFi Roth IRA FAQ
If you’re wondering whether opening a Roth IRA with SoFi Investing is the right move, here are the answers to some of the most common questions.
How much can I contribute to my Roth IRA?
These limits are set by the Federal government and are currently $6,500 per year for those under 50 and $7,500 per year for those over 50.
Is my retirement account protected?
Yes, all SoFi Invest accounts are FDIC insured up to $250,000 cash.
Can I actively invest my money?
Yes, you’re not compelled to use SoFi Automated Investing. You can also use SoFi’s Active Invest to create your own custom portfolio.
SoFi: A Multifaceted Financial Services Platform
SoFi, short for Social Finance, goes beyond just offering Roth IRA accounts. It is a comprehensive, one-stop financial services platform designed to cater to various financial needs of modern consumers.
Alongside its investment services, SoFi also provides student loan refinancing, personal loans, home loans, and even insurance products. It also offers SoFi Money, a cash management account that combines the best features of checking and savings accounts, offering high yield, no minimum balance, and no account fees.
Furthermore, SoFi has a strong focus on financial education and community. It offers a wealth of free educational resources, including articles, webinars, and financial planning advice, helping members to become more financially savvy. It also hosts member events and offers career counseling, emphasizing its commitment to member success beyond just financial services.
SoFi Roth IRA: Is it Right for You?
Retirement planning is difficult but this SoFi Roth IRA review believes that this platform has simplified the process.
For beginners, the automated investing option and free access to human advisors are great ways to get started.
Learn more by reading our full SoFi Invest review now.
If you’re ready to create your SoFi Roth IRA, sign up and invest for free now.