SoFi Personal Finance Review

SoFi makes investing easy, understandable, and affordable. The company gets high marks from us for a variety of factors, including its pricing, comprehensive services, smart investing methods, and transparency.

The company has waived all management fees, making it even more affordable for beginning investors to get started. SoFi also makes its services available to a wider variety of investors than most of its competitors by letting customers open an account with only $1.

There are substantial perks for wealth management customers as well, including invites to community events, career coaching, discounts on other SoFi products, and free access to financial advisors. Although its services are classified as robo-advisory (investment decisions are made mostly by algorithm), this is not necessarily a drawback. Their system is based on Modern Portfolio Theory, an idea that won its creator a Nobel prize and is highly regarded as a smart way to invest. With this method, SoFi can truly diversify your portfolio by spreading funds over thousands of individual assets, which reduces your losses if one asset class or company suffers a downturn. The algorithm will also rebalance your portfolio automatically, so it keeps the proportion you choose throughout time. For example, if you designate your portfolio as 80% stocks, 20% bonds, then the algorithm will adjust it to keep this balance. Additionally, SoFi also gives free access to (human) financial advisors so you have the support you need.

Lastly, there is the transparency factor. SoFi says its advisors do not receive fees or compensation from funds in order to make their picks. They also publish their portfolio picks weekly and their methodology is clearly defined and explained, which are all great signs for an investment firm. Overall, SoFi is an excellent choice for those who are ready to begin investing and want to do so in a simple, affordable way.