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Benefits of Sofi Automated Investing

Jeremy Biberdorf

Image by Gerd Altmann from Pixabay

SoFi Automated Investing is a leading platform for investing in ETFs (exchange-traded funds). There are zero fees, no account minimums, and plenty of investment options that make SoFi a solid trading platform and robo-advisor. SoFi’s platform is intuitive and easy to use, offering an excellent haven for passive investors. They are one of the best robo-advisors on the market; check out this comparison of 11 robo-advisors to see how they compare. 

Sofi Automated Investing doesn’t have all the bells and whistles of a full investment service; however, they pack in many features considering zero management fees. Notably, they provide financial goal planning, quarterly automatic rebalancing, no account minimums, and even free investment advice from CFPs (certified financial planners). 

Somehow, Sofi can offer all of these great features without taking any management fees. No management fees really give you great value for the money you invest. Check out this great SoFi Invest Review for a thorough, in-depth look at SoFi. This article just covers the benefits of SoFi Automated Investing; read on to learn more.  

SoFi Automated Investing Portfolios

SoFi makes investing easy by offering ten different diversified portfolios ready for you to make investments. It has various portfolios for all desired risk levels, ready for you to invest in and at absolutely zero fees. Yes, that’s right; SoFi Automated Investing is free to use, there are no fees to open an account, and there are no monthly service or subscription fees either. 

The SoFi Automated Investing platform lets you invest within ten different portfolios with 12 different asset classes. The portfolios, on average, are made up of 10 or so ETFs from various brokerages like Vanguard, iShares, and SoFi’s own ETFs. SoFi’s ETFs include: 

  • SFY Select 500 ETF– Made up of the top 500 largest US companies
  • SFYF SoFI 50 ETF– Made up of the top 50 most commonly held US stocks
  • TGIF SoFi Weekly Income ETF– Made up of high-dividend stocks that provide a weekly income
  • SoFi Next 500 ETF– Made up of 500 mid-cap US stock base on three growth signals
  • SoFi Gig Economy ETF– Made up of companies providing gig-economy services

These are just a few examples of the ETFs that SoFi manages. Within the portfolios they offer, you will see a mix of these with ETFs from other brokerages. Depending on your risk level and expected retirement date, you can choose a portfolio allocation from conservative to aggressive. However, you can change your investment strategy once you set- so be confident of the risk level you want first. 

SoFi is Automated 

SoFi properly and wisely describes their service as “automated,” and rightly so, since that is arguably one of the best features. Once SoFi investors choose their investment strategy and risk tolerance, all they have to do next is to set up recurring deposits. SoFi can even reinvest your dividends if you desire. 

In a true “set it and forget it” fashion, SoFi investors don’t even have to lift a finger to make investments periodically. Their accounts are funded over time and benefit well from dollar-cost averaging. If investors want to change their recurring deposits, they can quickly log in and change them. The automated feature is excellent for investing with minimal effort. 

Additionally, if they happen to have extra money they wish to invest, they can make a one-time deposit. There’s no obligation to keep a recurring deposit with SoFi. You can stop your automatic deposits completely anytime you wish, and you won’t be charged a fee to do so. 

SoFi Automated Investing Additional Features

While SoFi doesn’t have the most advanced set of features around, it still provides quite a few exceptional facets that help your money grow. Besides no account minimums and only a $1 investment to get started, SoFi Automated Investing provides: 

  • Zero Fees– As previously mentioned, SoFi Automated Investing has zero fees, allowing investors to save money in managing their own portfolios themselves. 
  • Goal planning– whether your goal is a home purchase, a grand vacation, saving for your wedding, retiring early, or savings for your children’s education, SoFi has investment strategies for them all. 
  • Free advice from CFPs– SoFi’s certified financial planners are available at your request to help you with your investment goals and discuss SoFi’s investment and account options. 
  • Quarterly automatic rebalancing– SoFi ensures your investment allocations remain where you want them. In other words, if your stock/bond ratio grows more than 5% away from your desired allocation, they will automatically rebalance it quarterly. 
  • Diversification– SoFi’s diversification is a tremendous benefit of their pre-set portfolios, all of which are diversified among various ETFs, which are themselves diversified among several stocks and bonds. 

As you can see, SoFi provides great account features that will ensure you invest your money exactly how you want to and adequately manage your savings goals. 

SoFi’s Customer Support

Compared to other robo-advisors, SoFi really emphasizes its customer support. As mentioned earlier in this article, SoFi employees certified financial planners to help you best use the Automated Invest platform. They won’t be giving you “stock picks” or telling you what investment options you should choose. They will talk through your goals with you, then discuss all the investment options available to you in SoFi’s platform. 

Sofi’s CFPs can be reached during regular business hours through live chat, email, or phone at 1-855-456-7634.

SoFi Automated Investing Other Account Types

Besides SoFi’s Automated Investing product, SoFi has additional account types for all of your investment needs. They cover retirement accounts, individual stock investing, cryptocurrencies, and recently added access to IPOs (initial public offerings). 

SoFi Active Investing for Individual Stock Investing

Suppose you want to have more control over your investments and purchase individual stocks of any publicly-traded companies like Apple, Amazon, and Starbucks. In that case, you can achieve that with Active Investing. 

Even better, with SoFi’s Stock Bits, you can invest in fractional shares of companies for as low as $1. 

SoFi Retirement Accounts 

Besides your individual stock portfolio and Automated Investing account, you can house your retirement account with SoFi too. They have generous offerings with minimal fees for the following retirement accounts: 

  • Traditional IRA
  • Roth IRA 
  • SEP IRA
  • Rollover IRA

SoFi Cryptocurrencies

With a SoFi Crypto account, you can now invest in the leading cryptocurrencies on the market. And you can do it safely, too- SoFi Invest ensures protection against hacking, theft, and fraud. Here are the available cryptocurrencies on SoFi:

  • Bitcoin
  • Ethereum
  • Litecoin

SoFi IPOs

SoFi’s newest feature its early initial public offering (IPO) access. Unlike other robo-advisors, SoFi grants eligible investors a chance to participate in IPOs before they are traded on an exchange. Early access to IPOs could allow investors to benefit significantly from the initial gains some IPOs experience. 

Conclusion

While any robo-advisor is a good idea for any investor to use, SoFi’s features and benefits make it one of the best services around. Get started today at SoFi’s website or mobile app.