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SoFi Automated Investing Review 2022: Free Access To Certified Financial Advisors

Bobby Hall

SoFi has created an excellent platform that offers a more focused customer approach for members who want to place their investments on autopilot. The Robo advisor collects information on your financial situation and goals, then uses the data to build an investment portfolio, trades on your behalf, and rebalances the portfolio if the need arises. 

Overall rating

4.6

Summary: Sofi Automated Investing offers zero management fees and access to member benefits such as discounts, interaction with the online community, and free financial advice from certified advisors. 

SoFi Automated Investing

sofi logo

0%

Annual Fee

$0

Account Minimum


Reviews

5

Account Opening

4.5

Fees

4

Deposits & Withdrawals

4

Product Offerings

5

Portfolio Construction

4

Portfolio Management

5

Customer Service

5

Education

5

Safe & Secure

Pros

  • Impressive bonuses
  • Wide range of investment portfolios

Cons

  • Lacks tax-loss harvesting

Best For

  • Zero account management fees
  • Access to financial planners
  • Excellent customer support
  • Automatic rebalancing

Features

HQ234 1st St, San Francisco, CA 94105
Fees0%
Account Minimum$0
AccountsTaxable, Retirement Accounts, IRAs, 401(k), Roth IRAs, Simplified Employee Pensions (SEP-IRA)
AccessWebsite, Mobile App (Android or iOS)
Portfolio RebalancingAutomatic
Tax Loss HarvestingNot available
Automatic DepositsAvailable
AdvisorFinancial advisors available
Fractional ShareAvailable
Socially Responsible InvestingNot available
Smart BetaNot available

In depth review on SoFi Automated Investing

SoFi’s robo advisor uses algorithm-generated investment data to assist members with their investment goals. Based on your selections, the advisor allocates assets and trades them. 

SoFi Automated Investing is best for 

  • Zero account management fees: SoFi Automated Investing does not charge management or administrative fees. Other leaders in the market charge up to 0.25% management fee annually. However, it will cost you $75 if you wish to close your account.  
  • Access to financial advisors: Members enjoy access to free financial advice from certified experts to help you shape your financial goals.
  • Excellent customer support: The platform offers a wide range of options through which you can contact their friendly and reliable customer support. You can reach them through the website or mobile app supported on iOS and Android.  
  • Automatic rebalancing: When there is a 5% drift in the market, SoFi automatically rebalances your portfolio to suit the market needs. The robo advisor conducts the automatic rebalancing quarterly. 

SoFi Automated Investing benefits 

  • Impressive bonuses: SoFi rewards members who invest a minimum of $20 per month. Some rewards include reduced rates on your SoFi loans and access to the online community. The platform also helps you draft your will at no cost. 
  • Wide range of investment portfolios: The platform offers several investment portfolios to members. It selects a suitable portfolio depending on your financial goals and risk tolerance. 

SoFi Automated Investing Drawbacks

  • Lacks tax-loss harvesting: SoFi Automated Investing does not offer tax loss harvesting services. Tax harvesting helps members to save more by reducing taxes on investment gains. 

Account opening

5

Opening an investing account is straightforward. You can sign up from the official website or use the mobile app supported on Android and iOS. You can get started here.

You will need to provide:

  • Full names 
  • Email addresses 
  • Personal identification information 
  • Age asset information 
  • Account type preference
  • Financial goals
  • Risk tolerance 

The platform will automatically select a suitable portfolio based on your objectives and risk tolerance. 

You can settle for the portfolio suggested by SoFi or override and edit your risk profile. If you are unsure about your choice, you can speak to a financial advisor or use the chat option. 

After setting up your account, you are directed to a funding section. The platform allows 401(k) rollovers and transfers. 

Fees

4.5

SoFi Automated Investing does not charge any fee to manage your account. Also, the robo advisor does not charge any fee on deposits and withdrawals. 

Although the account management fee is zero, the robo advisor charges a fee per trade. For instance, users incur a fee of between 0.03% -0.08% on investment funds, depending on their account expense ratio. SoFi calculates the fee using this expense ratio on Exchange Traded Funds (ETFs) and Mutual funds. 

It invests your funds in low-cost ETFs and index funds that help you to save even more. Additionally, you will incur a 0.19% fee on expense ratio when you trade using the S&P 500 themed index ETFs. 

Deposit and withdrawal

4

SoFi accepts 401(k) rollover and transfers from external accounts through ACH or wire transfers. Also, the advisor requires members to open a SoFi checking account separately and use it for deposits and withdrawals.

The SoFi checking account provides a debit card for fund withdrawals. You can deposit funds into the account through one-time deposits or set up recurring deposits weekly or monthly. 

Product offerings

4

SoFi Automated Investing offers a wide range of portfolios. Whether you are a beginner or a frequent investor, the platform asks a series of questions when setting up your account to determine the type of portfolio that suits your financial goals, risk score, and end dates. 

Ensure you answer the questions honestly. If you select a taxable account or retirement account, the features in the portfolio may vary slightly. SoFi also automatically invests your money if the balance is above $1. 

Users can trade through various ETFs that SoFi offers, including Vanguard Funds.

Portfolio Construction

5

Some of the Portfolios include:

  • Aggressive Portfolio: 90% -100% of your investment goes into stocks
  • Moderately Aggressive Portfolio: 80% goes to stocks while 20% goes to bonds
  • Moderate Portfolios: 60% is allocated to stock funds while 40% is allocated to bond funds
  • Moderately Conservative Portfolio: 40% is allocated to stock funds while 60% is allocated to bond funds
  • Conservative Portfolio: All your funds (100%) is allocated to bonds. 

Portfolio Management

4

SoFi portfolios are managed based on the Modern Portfolio Theory. It frequently monitors your portfolio to assess your risk score and market drift. If there is a 5% drift on your target, SoFi automatically rebalances your portfolio. 

Education

5

SoFi offers excellent financial planning resources to its members. The platform also has multiple financial tools to help you invest smartly. 

The app publishes numerous “How to” blogs, magazines that help to improve your financial awareness. 

Additionally, the platform offers checklists, calculators, and certified financial advisors to guide you.

Customer service

5

SoFi has excellent and reliable support staff. The app offers several options that members can use to contact customer support, such as a phone, online chat option, email address, and social media. Users can view these contact details through the online digital platform. 

Customer service hours are as follows.

  • Monday to Thursday: 5:00 am to 5:00 pm PST
  • Friday to Sunday: 5:00 am to 4:00 pm PST

You can also enjoy one-on-one career coaching and complimentary financial advice from certified financial planners. Based on your financial goals, the customer support staff offers personalized advice that fits your individual needs.

Safe and secure

5

SoFi Automated Investing uses strict policy measures on member information collection and disclosure. 

The automated platform also uses 256-bit encryptions and SSL connections to secure your data. These security measures are similar to those of leading banks in the US. 

Is SoFi Automated Investing right for you? 

With zero accounts management fee, SoFi helps you to save and invest more in low-cost ETFs. It also offers free financial advice to improve your financial situation and shape your goals. Additionally, it automatically rebalances your account where there is a drift. 

These benefits make SoFi Automated Investing suitable for all investors, from beginners to experienced.