The bottom line: Free management and access to financial advisors and career counselors make SoFi Automated Investing ideal for beginning and younger investors, though the lack of a track record may give some potential customers pause.
Pros & Cons
Broad range of low-cost investments.
Access to certified financial planners.
Limited account types.
No tax-loss harvesting.
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The lender SoFi is a relative newcomer to the robo-advisor industry, but in many respects competes — and even beats — top players. SoFi Automated Investing (formerly known as SoFi Wealth) charges no advisory or administrative fees and offers access to low-cost exchange-traded funds. The service includes unlimited access to a team of certified financial planners and complimentary career coaching.
SoFi Automated Investing is best for:
Beginning and younger investors.
Investors who need financial planning guidance.
Users with low balances.
SoFi Automated Investing at a glance
Account management fee
Investment expense ratios
Portfolio expense ratios average 0.05%
Account fees (annual, transfer, closing)
$75 full outgoing transfer fee.
ETFs from 13 asset classes; choice of 10 strategies with allocations representing different risk levels for taxable and tax-deferred accounts.
Tax portfolios have exposure to municipal bonds.
Portfolios are automatically rebalanced if there's a 5% drift for any security.
Human advisor option
Free, unlimited access to certified financial planners.
Savings account/cash management account
SoFi Money is a cash management account with a competitive interest rate.
Customer support options (includes website transparency)
Email, chat and phone support Monday - Thursday 8 a.m. to 8 p.m. Eastern; Friday 8 a.m. to 7 p.m. Eastern.
Free career coaching and educational events.
Where SoFi Automated Investing shines
Management and administrative fees: Since 2018, SoFi has charged no management fees. By comparison, major robo-advisors such as Wealthfront and Betterment charge 0.25% annually. SoFi Automated Investing charges $75 for closing an account.
Broad range of low-cost investments: SoFi clients have a choice of 10 portfolios based on risk tolerance and investment objectives, using a diversified selection of low-cost ETFs that give exposure to U.S. stocks, developed international stocks and emerging markets, as well as high-yield and Treasury bonds.
The cost of portfolios averages 0.05%, competitive with some of the cheapest robo-advisor portfolios out there, including those from Vanguard Digital Advisor and TD Ameritrade Essential Portfolios.
As with some of the most popular robo-advisors, SoFi Automated Investing provides automatic rebalancing. Every time money enters or leaves your account (for example, a deposit), SoFi checks your portfolio against the target allocation and rebalances it as close as possible. In addition, the advisor monitors your portfolio daily to see if it's more than five percentage points off-target and, if so, will adjust the portfolio back to the target.
Financial planning: SoFi stands out here. All clients have unlimited access to the company's financial advisors at no extra charge. These advisors are CFPs with the Series 65 designation (or similar), which holds them to a fiduciary standard that binds them to operate in your best interest. They’re also noncommissioned advisors, meaning they don't make money off of specific trades or actions they recommend.
On top of this, advisors are available at a range of hours and through various contact methods. You can schedule a phone or video appointment between the hours of 7:30 a.m. and 6:30 p.m. Eastern time Monday through Thursday, and 7:30 a.m. to 3:30 p.m. Eastern time on Fridays. This is a great advantage for newer investors or those looking to access certified professionals.
Customer support for more technical issues is also available during an extended range of hours: Monday through Thursday from 8 a.m. to 8 p.m. Eastern time; Friday from 8 a.m. to 7 p.m. Eastern time.
High-interest savings: Like competitors Wealthfront and Betterment, SoFi offers a high-interest savings account. SoFi Money functions like a checking and savings account that pays 0.20% interest annually and carries up to $1.5 million in FDIC coverage, six times more insurance than the average bank account. SoFi Money also charges no account fees and offers unlimited reimbursement for ATM fees each month.
Special bonuses: SoFi offers bonuses to clients who invest at least $20 per month. These "members" can receive complimentary career coaching as well as members-only events such as dinners and talks. They’re also eligible for reduced interest rates on SoFi loans. If you already have your student loans or a mortgage with SoFi, or are planning on taking out a loan, extending your relationship with the company could be worth something extra to you.
Where SoFi Automated Investing falls short
No tax-loss harvesting: SoFi does not offer tax-loss harvesting, a service offered by many of its competitors that can reduce taxes owed on investment gains.
Limited track record: SoFi started up its robo-advisor platform in 2017, so it’s among the newer kids on the block. That may give some investors pause, especially when larger players such as Wealthfront and Betterment have established track records.
Is SoFi Automated Investing right for you?
SoFi’s free management is attractive compared with other robo-advisors that charge a management fee of 0.25% or more. But it's especially enticing relative to competitors who charge significantly more and offer similar unlimited access to advisors, such as Betterment Premium (0.40%).
With a broad range of low-cost ETFs, SoFi provides strong features for cost-conscious investors, especially those just starting out. These beginners are also more likely to find value in SoFi’s member bonuses, particularly its career coaching and interest discounts on student loans.
on SoFi Invest's website