SoFi Retirement Review 2024: Top Features, Getting Started
Saving for retirement is an important financial goal. The first place you might look for retirement savings is a 401(k) plan at work, but you can also use Individual Retirement Accounts (IRAs) to grow wealth.
SoFi offers both traditional and Roth IRAs as well as SEP IRAs for people who are self-employed. You can invest using an automated approach or an active approach, depending on what best meets your needs. If you’re ready to start saving for retirement, you might be interested in what SoFi has to offer.
Who Is SoFi Retirement For?
SoFi’s investing products are designed to fit the needs of both beginning and more experienced investors. You might consider opening an IRA with SoFi if you:
- Have a 401(k) at work but want to supplement your savings with another tax-advantaged plan
- Want to roll over an old 401(k) account with minimal hassle
- Don’t have access to a retirement plan at work and want to start saving something for the future
- Are self-employed and need a way to save for retirement on your own
- Are interested in using an automated approach to building retirement wealth OR want to be able to choose your investments yourself
- Would like to be able to talk to professional financial advisors without paying a fee
You don’t need a lot of money to start saving for retirement with SoFi, which makes it accessible for beginning investors. It’s easy to set up recurring deposits from a linked bank account, so you can grow your balance on autopilot. If you have a SoFi Money account, which is the platform’s version of an online, fee-free checking account, scheduling deposits or transfers is quick and simple.
SoFi may not be right for investors who want access to a suite of advanced analysis tools or in-depth stock data. While you can find those things with other trading platforms, you won’t get them here. But you do have the ability to speak with a financial advisor and get advice on how to shape your investment strategy without having to pay a steep fee.
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Compare SoFi Retirement to Others
SoFi isn’t the only way to save for retirement. You may also consider one of these platforms for opening an IRA.
Betterment
Betterment offers traditional, Roth, and SEP IRAs as well as IRA conversions. Betterment uses an automated, robo-advisor approach to building retirement portfolios and charges a 0.25% annual management fee.
Ally Invest
Ally Invest offers traditional and Roth IRA accounts with no monthly or annual maintenance fees. Investors can choose from automated or self-directed retirement investing.
See how these and others stack up against other investment accounts.
Top Features of SoFi Retirement
SoFi aims to make saving and investing for retirement as easy as possible. With that in mind, here are some of the best features to know about the platform:
Multiple IRA options
With SoFi Retirement, you can choose the IRA that best fits your needs and goals. So if you’re looking for tax-deductible contributions, then you might go with a traditional IRA. But if you want to be able to withdraw earnings tax-free in retirement, you might pick a Roth IRA instead. And, of course, you can choose a SEP IRA if you’re self-employed.
Automated investing
If you’re a set-it-and-forget-it type of investor, a SoFi IRA could work well for you. You can tell SoFi what your investment goals and risk tolerance are, and SoFi will create a custom portfolio for you. If you’re comfortable with those investment options, you can set up recurring deposits into your account and build wealth hands-free.
DIY investing
SoFi also offers the option to pick and choose what you want to invest in for retirement. You can review SoFi’s investment choices and then select the ones that you think are best suited for achieving your long-term financial goals.
Financial advice
As mentioned, SoFi IRAs offer access to professional finance experts. You can ask questions and receive guidance on the best way to achieve your retirement goals without having to pay the high fees that some advisors may charge.
User-friendly
SoFi doesn’t complicate things in terms of how to open an account or manage it. The website and app are both easy to navigate, so you can focus on investing for retirement without getting bogged down by technical details.
How to Get Started
It’s possible to open an IRA with SoFi online in as little as five minutes. The first step is deciding which type of IRA is right for you. Here’s a quick overview of how each IRA option compares:
- Traditional IRA. Allows for tax-deductible contributions; qualified withdrawals are subject to ordinary income tax.
- Roth IRA. No deduction for contributions, but qualified withdrawals are 100% tax-free.
- SEP IRA. Designed for self-employed people and small business owners, follows the same tax rules as traditional IRAs.
You’ll be asked which type of IRA you want to open when you start the account opening process on the SoFi website. You’ll also be prompted to share some basic information, including your name, date of birth, Social Security number, email address, phone number, and mailing address.
As part of the account opening process, SoFi will ask you whether you prefer automated or DIY investing. If you choose automated investing, SoFi will ask additional questions about your retirement goals and risk tolerance. This information is used to generate portfolio recommendations.
Once your account is open, you’ll need to fund it. You can do this by linking an external bank account and providing your routing and account numbers. Or if you have a SoFi Money account already, you can use that to fund your IRA.
Rating the Features
SoFi has some great features overall, but it’s helpful to know exactly what you’re getting before opening an account. Here’s more on how the features measure up.
User experience
As mentioned, SoFi is designed with the beginning investor in mind. The website and SoFi mobile app are easy to use, and if you do need help, customer support is available seven days a week. SoFi also enhances the overall user experience by offering additional benefits to its members, such as complimentary career coaching and reduced interest rates on SoFi loans.
Fees and rates
Becoming a SoFi member won’t cost you anything in terms of a monthly or annual fee. There are no account fees to use SoFi Money and no management or commission fees to invest. SoFi won’t charge you fees for ACH transfers, though a $25 wire transfer fee does apply. If you decide to close your IRA, there’s a $20 fee for that. Aside from those costs, the individual funds you invest in through your IRA will carry expense ratios, though SoFi primarily uses low-cost funds.
Transparency
SoFi is transparent in terms of making information available to its customers. There’s an extensive FAQ section on the website, but if you can’t find the answers to your questions, you can contact customer support.
Flexibility
Saving for retirement with SoFi is flexible in that you can choose which type of IRA to open and whether you’d prefer automated or DIY investing. And if you start off with automated investing and decide you’d rather change to DIY or vice versa, you’ll have the option to do that.
Customer support
SoFi customer support is available by phone at (855) 525-7634, seven days a week. You can also chat with customer support by logging in to your SoFi account.
Pros and Cons of SoFi Retirement
SoFi’s retirement account options may work better for some savers than others. Here’s a closer look at the main advantages and potential disadvantages of saving for retirement with SoFi.
Bottom Line
Opening an IRA can be a smart financial move if you have yet to start saving for retirement. SoFi could be a good fit if you’re looking for simplicity with added benefits. If you’re ready to take the next steps, you can open an IRA with SoFi today.
