SoFi Roth IRA Review: Best Investment Account For Retirement?
In a word: SoFi Invest offers Roth IRA accounts to help you get the most out of tax-free withdrawals in retirement. With a choice of active or automated investing at no cost, our SoFi review agrees that this is one of the best ways to grow your retirement fund.
SoFi was originally started by Stanford business students in 2011, but it wasn’t until 2019 that SoFi Invest was launched. Various types of ARI would be taken care of shortly thereafter.
With over $ 12 billion in assets held under the SoFi banner, investors quickly jumped on this roboadvisor due to their no-cost, no-frills approach.
His position as a roboadvisor means that he specializes in helping ordinary people enter the market for the first time. With their Roth IRA accounts, you can take control of your financial future.
Under SoFi Securities, all Roth IRA accounts are FDIC insured for up to $ 500,000 in securities and $ 250,000 in cash, so you know your money is safe.
Features of SoFi Roth IRA
Our SoFi review made it clear that the functionality provided by this platform is revolutionary. Simplify the management of your Roth IRA with SoFi.
Here are the main features relevant to your SoFi IRA account.
SoFi’s flagship feature can also be used for your Roth IRA account. Automated investing allows you to invest with confidence, even if you have no prior market experience.
When you create a SoFi account and choose a Roth IRA, you will be able to choose from 10 predefined portfolios and 13 different asset classes. All you have to do is determine your own risk tolerance.
SoFi portfolios are made up mostly of big name ETFs, including Vanguard and iShares. They also have their own ETFs.
The fees that you will have to pay are the expense ratios. These are not taken by SoFi but by the ETF provider. Fortunately, the fees are extremely low at just 0.05%.
Fractional share trading
Due to the low annual contribution limits allowed, it can be difficult to make your money work for you. Below current annual limits, that’s only two or three shares of Amazon.
SoFi allows the trading of fractional shares, called “Stock Bits”. Every time you deposit into your Roth IRA, your money can be automatically invested, so every dollar is constantly gaining market exposure.
Free access to financial advisers
Planning for your retirement is difficult. Your decisions now will impact you decades from now. Forget about traditional financial advisers and choose a SoFi financial advisor instead.
Every Roth IRA account holder has access to a qualified financial advisor who can guide you on best practices for your Roth IRA and how to maximize your earnings.
This is a cool feature that is not offered by many other investment platforms, at least not for free.
SoFi Roth IRA fees
Holding a Roth IRA with SoFi does not make you eligible for additional fees. You have the same rights as a person with a standard investment account, including:
The only fees involved are the ETF expense ratio of 0.05% and an account migration fee of $ 75 if you choose to leave the platform.
SoFi Roth IRA FAQ
If you are wondering if opening a Roth IRA with SoFi Investing is the right decision, 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 $ 6,000 per year for those under 50 and $ 7,000 per year for those over 50.
Is my retirement account protected?
Yes, all SoFi investment accounts are FDIC insured 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 choose your own investments.
SoFi Roth IRA: is it right for you?
Planning for retirement is tough, but this SoFi Roth IRA review believes this platform has simplified the process.
For newbies, the automated investing option and free access to human financial advisers is a great way to start.
Learn more by reading our full SoFi Invest review now.
If you’re ready to set up your SoFi Roth IRA, sign up and invest for free now.