SoFi Wealth Management review
A no-fee robo-advisor that provides unlimited access to free financial planning with human advisors
SoFi, short for “Social Finance”, is an online financial services company with wealth management tools that can help you define your financial goals and develop an investment strategy to reach them. Like many robo-advisors, SoFi offers goal planning, diversification, portfolio management and auto-rebalancing. What sets it apart, however, is its commitment to no management fee and free, unlimited access to financial advisors and wide selection of student and personal loan options. With help from real financial advisors, SoFi Invest aims to help you decrease your debt and increase your wealth and equity.
Minimum deposit to open
How does SoFi work?
SoFi works like many other robo-advisors but takes a slightly different approach. From start to finish, here’s how SoFi handles wealth management:
- Set up your account. Register for a free account and create a profile. Choose from a variety of account types, including Traditional, Roth, 401(k) rollover, and SEP IRAs.
- Enter your investment preferences. Enter your financial information, investment preferences and goals to give SoFi an idea of what you’d like to achieve.
- Get a recommendation. SoFi uses modern portfolio theory and will recommend an investment mix based on your age, finances, goals and investment preferences.
- Invest. Whether you take SoFi’s advice or choose your own path, you’ll invest in a diversified mix of ETFs and be able to track performance on the website or app. While all investments have the potential to lose value, SoFi is SIPC-insured, which covers up to $500,000 if the company were to shut down.
- Sit back. SoFi uses a passive investment strategy to build your portfolio but actively makes adjustments to adapt to market changes and new information. Plus, it manages the mix of assets in your portfolio on a daily basis to ensure that it stays aligned with your risk tolerance and goals.
- Use your perks. Members get access to a number of perks, like free financial advice, career services and more. SoFi also offers a blog and learning center to help you improve your financial knowledge.
What does SoFi cost?
SoFi’s popularity is due in part to the fact that it charges no management fee regardless of the balance in your account. Because SoFi invests in ETFs, though, you can expect to pay a similar expense ratio as you would for an ETF with any other service. The amount of that fee will vary from one fund to another.
What are the benefits?
Every robo-advisor has its perks, but here’s how SoFi stands out from the rest:
- Easy to get started. SoFi has a low $100 initial deposit requirement and doesn’t charge a management fee on any portion of your account balance. Plus, it only takes about 5 minutes to invest money.
- Fee transparency. There are no trading, transfer, custodian or commission fees, meaning you can hold on to more of your money.
- Free personalized help. SoFi financial advisors can help you adjust your goals, portfolio and strategy to align with your financial situation.
- Premier access for high-net-worth investors. Qualified investors gain unique access to a portfolio of prime consumer credit.
- Loans. SoFi also specializes in personal loans, student loan refinancing, mortgages and other lending options, so you’ll get great rates if you need to borrow.
- Perks. Members get access to unemployment protection, career services, exclusive events and a suite of planning tools.
What to watch out for
Just like any investment, there are a few things to look out for if you choose SoFi Wealth Management:
- No tax optimization. Unlike other services, SoFi cannot help you optimize your tax losses.
- Few account types. If you’re looking to get a head start on saving for your kids’ education with a 529 account or set up a trust, SoFi won’t be able to help.
- Limited investment options. SoFi only invests in ETFs, meaning you won’t be able to pick and choose the exact companies you invest in. On top of that, most ETFs charge fund fees which you’ll be responsible for.
- Short track record. SoFi’s wealth management service is fairly new, with only $12 million under management that’s spread across 2,000 accounts.
Compare with other robo-advisors
How to sign up for SoFi
- Visit the SoFi website and click Get Started.
- Click Sign up for a SoFi account.
- Enter your first name, last name and email, and create a password.
- Now that you’ve signed up, click Get Started to set up auto investing.
- Follow the three steps to enter your investment preferences.
- Complete your profile and verify your identity.
- Fund your account.
In order to sign up for a SoFi account, you’ll need to meet a few eligibility requirements:
- Be at least 18 years old
- Have a valid Social Security number or tax ID number
- Have a valid US address
- Make a minimum initial deposit of at least $100
When you sign up for an account with SoFi, you’ll be asked for the following information
- Date of birth
- Contact information
- Social Security number
- Current savings and income information
- Investment preferences and goals
How to get in touch with SoFi customer service
If you need to reach customer service, there are a few ways you can get in touch with a representative:
- Email: investsupport@SoFi.com
- Phone: 855-525-7634
- Live chat: Visit the website
- Facebook: SoFi
- Instagram: @SoFi
- Twitter: @SoFi
What to do after you’ve signed up
Now that you’ve signed up and set up your profile, you should take advantage of everything else SoFi has to offer. Here’s how:
- Keep your profile up to date. Make sure to keep your profile, preferences and goals up to date. If anything changes, you might want to consider adjusting your investment strategy.
- Manage your account. Log on or use the app to manage your account and track progress.
- Set up recurring deposits. You can set up weekly, bi-weekly, monthly or bi-monthly recurring deposits to help reach your goals faster.
- Speak with a financial advisor. If you need financial advice, need to change your goals or simply want to speak with a professional, set up a free appointment with one of SoFi’s financial advisors.
- Use your perks. Take advantage of free perks like career advice, better loan rates, members-only events and more.
- Read up. Check out SoFi’s blog and learning center to brush up on your investment knowledge or read up about industry news.
If you’re new to investing and want some help managing a portfolio, SoFi might be right for you. It offers human-assisted robo-advising, meaning you’ll get a personalized portfolio based on a statistically-optimized mix of stocks. Plus, you’ll get free financial advice and won’t pay any management fees ever. However, if you’re looking for more flexibility in your holdings or want to open a trust or 529, you might want to compare your options to find another robo-advisor that meets your needs.