Best investment account for retirement?


Something small: SoFi Invest offers Roth IRA accounts to help you make the most of your tax-free withdrawals in retirement. With a choice of no-fee active or automated investing, this SoFi Roth IRA review agrees that this is one of the best ways to grow your retirement fund.

SoFi Roth IRA Pros and Cons

Positives

  • There are no trading fees
  • There are no commissions
  • There is no minimum account balance
  • There is no minimum deposit
  • Wide range of asset classes
  • Active or automated trading

cons

  • $75 account migration fee
  • Basic search tools

SoFi Invest Roth IRA Review Introduction

When it comes to planning for retirement, a Roth IRA enables you to pay tax on your income but benefit from no tax on withdrawals in retirement. If you think your account will grow (and it should!), this is a very tax-efficient way to prepare for retirement.

The main draw of SoFi Invest is the ability to invest with no trading fees, no minimum account balance requirements, and no commissions. In fact, there are no fees whatsoever, including wire transfers. Given the fact that annual Roth IRA contribution limits are currently set at $6,000, or $7,000 for those over 50, every dollar counts.

Continue reading our SoFi Roth IRA review to learn more about why this is the perfect retirement account platform.

Get started with a SoFi Roth IRA

What is a SoFi Roth IRA?

SoFi was initially launched by business students from Stanford University in 2011, but SoFi Invest wasn’t launched until 2019. Various types of IRAs will be supported soon after.

With more than $12 billion in assets held under the SoFi banner, including SoFi Invest and SoFi Money, investors quickly jumped into SoFi automated investing because of their low-paying, no-nonsense approach.

Its position as a robo-advisor means that it specializes in helping everyday people entering 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 locked Up to $500,000 in securities and $250,000 in cash, so you know your money is safe.

SoFi Roth IRA Features

SoFi’s review made it clear that the wide range of investment options offered by this platform is revolutionary. Here are the main features relevant to your SoFi IRA.

SoFi Automated Investing

SoFi Invest’s main feature can also be used to calculate your Roth IRA. SoFi Automated Investing allows you to invest with confidence, whether you are a novice investor or a seasoned investor.

When you create an automated SoFi investing account and choose a Roth IRA, you’ll be able to choose from 10 pre-built investment portfolio options and 13 different asset classes complete with asset allocation. All you need to do is determine your personal risk tolerance.

SoFi investment portfolios consist primarily of exchange-traded funds (ETFs) from big names, including Vanguard and iShares. They also have their own low cost ETFs.

One fee you have to pay is expense ratios. This fee is not charged by SoFi but by an ETF trading provider. Fortunately, the fee is very low at just 0.05%.

Partial stock trading

Due to the low annual contribution limits allowed, it can be difficult to make your money work for you. On current yearly limits, that’s only about two or three shares of Amazon.

SoFi allows trading of fractional stocks, otherwise known as “Stock Bits”. When you deposit into your Roth IRA, your money can be automatically invested, so every dollar is continually gaining market exposure and your risk level is kept to a minimum.

Free access to financial advisors

Planning your retirement is hard. Your decisions now will affect your retirement savings decades from now. Forget the traditional financial planners and choose a SoFi financial planner instead.

Every Roth IRA account holder gets 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 to create an investment strategy and make portfolio recommendations aligned with your long-term investment goals.

It’s a great feature that many other investment and trading platforms or financial institutions don’t offer, at least it’s not free.

SoFi Roth IRA fees

Holding a Roth IRA with SoFi comes with no additional fees. You have the same unlimited access as anyone with a standard SoFi Invest account, including:

  • There is no minimum account balance
  • There is no minimum deposit
  • There are no trading fees
  • There are no annual management fees
  • There are no commissions

The only fees involved are a 0.05% ETF expense ratio and a $75 account migration fee if you choose to leave the platform.

Frequently asked questions about the SoFi Roth IRA

If you’re wondering if opening a Roth IRA with SoFi Investing is the right move, here are answers to some of the most frequently asked questions.

How much can I contribute to my Roth IRA?

These limits are set by the federal government and are currently $6,000 per year for those under 50 and $7,000 per year for those over 50.

Is my retirement account protected?

Yes, all SoFi Invest accounts are FDIC insured for up to $250,000 in cash.

Can I actively invest my money?

Yes, you don’t have to use SoFi Automated Investing. You can also use SoFi’s Active Invest to create your own custom portfolio.

SoFi Roth IRA: Is It Right for You?

Retirement planning can be difficult but this SoFi Roth IRA review believes this platform has simplified the process.

For starters, an 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 own SoFi Roth IRA, sign up and invest for free now.
Get started with a SoFi Roth IRA

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