SoFi Review 2023: All-In-One Financial Tool

SoFi (formerly Social Finance Inc.) is an online investment platform that started out providing student loan refinancing, but now offers a financial wellness package of products and services.

SoFi has a strong focus on millennials and is best for those looking to manage their entire investment portfolio in one place. SoFi's 401(k) rollover service is available only to SoFi members, not SoFi IRA customers.

What Is SoFi?

SoFi is a multifaceted financial services company that offers an all-in-one platform for beginner investors. SoFi's goal is to help simplify the investment process for those who are just starting out.

SoFi offers products and services for debt consolidation, mortgages, wealth management, and more. SoFi is available to US residents only.

SoFi has a SoFi Wealth Management division that offers financial planning services including retirement planning, estate planning, risk management, and more.

SoFi revamped its IRA rollover service in July 2019 and now it is available to SoFi IRA customers only (formerly SoFI direct investors).

SoFi IRA customers can use their existing account to roll over assets directly from an employer plan or from another IRA provider. SoFi IRA customers may also be eligible for Sofi's new Roth conversion program.

SoFi is best for those looking to manage their entire investment portfolio in one place and those who need help planning their financial future.

Pros and Cons of SoFi

Pros:

• They provide financial advisors:

SoFi Wealth Management offers financial planning services, which can be helpful for those who are just starting out and don't know where to begin. For instance, SoFi can help you plan for retirement, build an estate plan, and more.

SoFi Wealth Management also offers retirement projections using Monte Carlo simulations to show how your savings may perform under different market conditions over various time horizons.

It is like having a financial planner on your team, at no charge (investment advisory services are not available without SoFi Wealth Management).

• It has a low cost:

SoFi has minimal account fees, and there are no commissions charged on stock or ETF trades. For example, SoFi has no account minimum, no annual SoFi Wealth Management service fee for SoFi IRA customers with accounts under $100,000 in assets.

It also doesn't charge an account closing fee. SoFi has low-cost ETFs to choose from in its investment selection--some SoFi customers have even lower fees thanks to the Vanguard OneSource Select List that SoFi participates in.

• They offer mortgages and debt consolidation:

SoFi offers mortgages and debt consolidation products, which can be helpful for those looking to save money on their monthly payments. SoFi also offers a SoFi Pro program, which can help you get a lower interest rate on your mortgage.

• It has easy to use mobile app:

SoFi has an easy-to-navigate mobile app and website that millennials will enjoy using. SoFi's goal is to make investing easy and fun for those who are just starting out, and its mobile app reflects that goal.

SoFi also offers a SoFi Money product, which is a checking and savings account with no monthly fees or minimum balance requirements.

Cons:

• No tax-loss harvesting:

Tax-loss harvesting is a process of selling securities that have lost value and then using the resulting capital loss to offset taxable capital gains realized in the same year. SoFi Wealth Management does not offer tax-loss harvesting.

• It has a limited investment selection:

SoFi's investment selection is limited when compared to other investment platforms. SoFi offers access to ETFs and stocks, but there are no mutual funds or bonds available. SoFi also does not offer options trading.

• It is only available to US residents:

SoFi is only available to US residents, so those living outside of the US are not able to use its services.

• It offers a limited track record:

SoFi has only been around since 2013. SoFi's track record is relatively short, but SoFi offers 100% transparent portfolio holdings on its website so that SoFi customers can see what the company invests in.

SoFi Wealth Management also has a reputation for fighting for clients' best interests and does not own any proprietary mutual funds or ETFs. SoFi's SoFi Wealth Management unit is also recognized as an RIA, which means that SoFi must follow the Investment Advisers Act of 1940.

How to set up a SoFi account?

To open a SoFi account, you will need to provide some personal information, including your name, address, Social Security number, and date of birth. SoFi will also ask what type of account you would like to open: individual or joint.

SoFi offers both taxable and tax-advantaged investment accounts, including Traditional and Roth IRAs, SEP IRAs, and 401(k)s. SoFi also offers a SoFi Money product, which is a checking and savings account with no monthly fees or minimum balance requirements.

What is SoFi Invest?

SoFi Invest is SoFi's automated investing service. SoFi Invest is great if you're looking for a no-hassle way to invest, but doesn't require the level of customization that SoFi Wealth Management offers.

Sofi Invest allows you to automate your investment portfolio by selecting from a range of ETFs and stocks. SoFi also offers SoFi Select, which is a portfolio of hand-selected stocks and ETFs. Investing can be done in 2 ways:

• Actively trading (buying and selling) stocks.
• Let Robo-advisor invest for you.

What is active trading?

Active trading is the process of buying and selling stocks within a short time frame (usually a few days or weeks). This style of investing involves taking on more risk in order to try and make a quick profit.

Active traders use a variety of strategies, such as technical analysis, to make their buy and sell decisions.

What is Robo-advisor?

A Robo-advisor is a computer algorithm that builds and manages your portfolio for you. SoFi Wealth Management uses a system of software to create portfolios based on your goals and risk tolerance.

SoFi also offers SoFi Money, which is a checking and savings account with no monthly fees or minimum balance requirements. SoFi Money customers can also transfer SoFi Money to SoFi Wealth Management accounts.

How to sign up for SoFi Invest?

Signing up for SoFi Invest is very easy and takes just a few minutes. SoFi offers a free, instant setup that requires no paperwork or complicated forms to fill out.

SoFi's sign-up process does not have any minimum account balance requirements, which means you can start investing with SoFi even if you don't have a lot of money.

What is SoFi Money?

SoFi Money is SoFi's checking and savings account. SoFi Money has no monthly fees or minimum balance requirements, so anyone can sign up for it.

SoFi offers a SoFi debit card that you can use to withdraw money from your SoFi Money account at an ATM, as well as an overdraft line of credit if you ever need it. SoFi Money customers can also transfer SoFi Money to SoFi Wealth Management accounts.

What are the features of SoFi Money?

• Early Paychecks:

SoFi will process your SoFi Money paycheck early and deposit the money into SoFi Money for you.

• SoFi Bill Pay:

SoFi Money will also pay bills without you ever having to lift a finger. SoFi automatically detects and pays bills, all while avoiding late fees and reducing stress.

• No Overdraft Fees:

SoFi Money doesn't charge overdraft fees, so you won't have to worry about being charged extra for spending more than you have in your account.

• FDIC Insured:

SoFi Money is insured by the FDIC up to $1.5MM SoFi Money customers can also transfer SoFi Money to SoFi Wealth Management accounts.

• Alerts and Notifications:

SoFi Money customers can receive alerts and notifications for transactions, SoFi Money balances, and more.

What is SoFi Vault?

The SoFi Vault is SoFi's online savings account. SoFi Vault has a 0.25% annual percentage yield (APY), making it one of the best online savings accounts available. SoFi Vault also has no monthly fees or minimum balance requirements, so anyone can sign up for it. SoFi Vault customers can also transfer money to SoFi Money and SoFi Wealth Management accounts.

What are SoFi Loans?

SoFi Loans is SoFi's marketplace for student loans and mortgages. SoFi's SoFi Loan offerings can help you refinance your existing student debt, as well as find the right loan to buy a home or pay for SoFi Wealth Management fees.

SoFi will shop around with top lenders to find you the best rates and terms available, instead of you having to go out and shop for a loan on your own. SoFi will even help you figure out which SoFi Loan option is best suited for your needs.

SoFi's SoFi Loans have no application fees, no origination fees, and no prepayment penalties. SoFi Loans also has a simple online application with clear eligibility requirements.

SoFi Loan customers can also transfer SoFi Money to SoFi Wealth Management accounts.

What is SoFi Premier?

SoFi Premier is SoFi's luxury credit card, which offers a low introductory rate and SoFi Wealth Management benefits. SoFi Premier cardholders receive a 0% intro APR on balance transfers for the first 12 months, SoFi Premier has Sofi Wealth Management benefits, and SoFi Premier customers get access to SoFi Concierge service.

Who is SoFi Automated Investing best for?

• Little Investors:

SoFi Automated Investing is great for people who want to start investing with SoFi but don't have a lot of money. SoFi Automated Investing has no account minimums, so you can start investing with SoFi even if you don't have a lot of money.

• People Who Want to Invest But Don't Have Time:

SoFi Automated Investing is perfect for people who want to invest but don't have time to do it themselves. SoFi Automated Investing takes care of all the work for you, so you can focus on other things.

• People Who Are Confused About Investing:

SoFi Automated Investing is also great for people who aren't confident about investing but still want SoFi Wealth Management benefits. SoFi Automated Investing simplifies the process so you don't have to be an expert before getting started.

• Young Investors:

SoFi Automated Investing is a great way for young investors to get started in the markets. It has no account minimums and makes it easy to invest small amounts of money at a time. SoFi Automated Investing also offers SoFi Wealth Management benefits, so you can grow your money while you're still young.

Is SoFi safe and secure to use?

Yes, SoFi is safe and secure to use. SoFi is insured by the FDIC up to $1.5MM and all customer data is encrypted. SoFi also has a number of security features in place to protect your information, including multi-factor authentication and fraud monitoring.

SoFi also has a strict privacy policy in place, which outlines how SoFi will use and protect your personal data. SoFi is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), so you can be confident that SoFi is a reliable financial institution.

Is SoFi trustworthy?

Yes, SoFi is trustworthy. SoFi has been in business since 2011 and has helped over 200,000 people refinance their student loans and invest their money. SoFi is also insured by the FDIC and a number of other financial institutions, so you can be confident that your money is safe with SoFi.

SoFi also has a strict privacy policy in place, which outlines how SoFi will use and protect your personal data. SoFi is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), so you can be confident that SoFi is a reliable financial institution.

How is the customer service of SoFi?

SoFi offers SoFi Money customers 24/7 phone support, live chat support, Sofi.com support, SoFi app support, email support, SoFi Learning Center resources, and access to SoFi TV online educational resources.

SoFi has a SoFi Concierge service for SoFi Money customers, so you can reach SoFi representatives to help you with any questions or concerns. SoFi also offers customer support through phone, live chat, email, and Sofi.com support.

Related FAQs:

Q. What is investing?

Investing is the act of committing money to an endeavor (a business, project, real estate) with the expectation of obtaining an additional income or profit.

Q. What are ETFs?

ETFs are exchange-traded funds, which are investment funds that hold a collection of assets (stocks, bonds, commodities, etc.) and can be bought and sold on an exchange like a stock. ETFs, offer investors a way to diversify their portfolios without having to invest in individual stocks or bonds.

Q. Who is a Financial Advisor?

A Financial Advisor is an individual who provides advice on financial matters, generally for a fee or commission. SoFi recommends discussing the costs involved with any potential Financial Advisors before you sign up with them to work together.

The Bottom Line:

SoFi is a great all-in-one financial tool for anyone looking to invest their money, manage their finances, and learn more about personal finance. SoFi offers a number of features that make it easy to get started investing, manage your money, and learn more about personal finance.

SoFi also has a strict privacy policy in place, which outlines how SoFi will use and protect your personal data. SoFi is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), so you can be confident that SoFi is a reliable financial institution.