SoFi automated investment – is the return worth it?

The SoFi robo-advisor platform seems to have it all – no administration fees and only $ 1 to get you started. There are also many features, ranging from access to advisors to various ETFs to portfolio diversity. It works great, especially for those who do not have much experience with automated investing. The big question is whether it is worth it. The most obvious way to come to a conclusion is to analyze SoFi’s automated return on investment.

SoFi Robo-Advisor returns

Robo advisor Year to date (YTD) to September 2020
SoFi automated investment 4.10%

What we can see here is that SoFi offers a fairly consistent return, but it may not be as high as you might think, but that’s after fees are deducted.

Just to give you a better idea, we have compared SoFi with some of the other great robo advisors out there that we often see here at Modest Money.

What we can see here is that SoFi offers a fairly consistent return, but it may not be as high as you might think, but that’s after fees are deducted.

Just to give you a better idea, we have compared SoFi with some of the other great robo advisors out there that we often see here at Modest Money.

Robo advisor Year to date (YTD) to September 2020
Improvement 5.49%
M1 Finance 0.79%
Wealth front -0.30%
Wealth simple 5.35%

How do I evaluate Robo-Advisor returns?

In general, we know that robo-advisors are a better option because you do not pay salaries to human advisers. In other words, AI is much cheaper. Robo advisors are usually less risky and most of your money will go to stable ETFs that are also cheap.

Humans can make decisions on the go and make appropriate adjustments, while it is more difficult for robo-advisors to do so because they work from an algorithm. The sophisticated algorithm behind your AI advisor will have a huge impact on your returns.

It can be difficult to predict the success of future performance because the past is not an indication of the future – but it does give you a pretty good idea. We believe that the best way to assess a robo advisor’s performance and possible future returns is to compare it to a benchmark (the S&P 500 is a good one).

How often does the robo-advisor fall short, match or exceed the performance of a long-term and credible stock index?

You should also make sure to account for all fees and deductions before coming to a conclusion. Online investment platforms that offer access to human advisors always come at the top of our list.

Is SoFi automated investment worth it?

After looking at potential SoFi automated return on investment, are the results worth it?

As we saw, the return is pretty standard and even a bit on the high end when you compare it to some other robo investment platforms. The percentages we presented above are returns after fees.

Wealthsimple and Betterment, two titans in the robo-investment niche, have higher returns, but is that all you should consider?

Let’s compare SoFi with Betterment (which has historically higher returns) against Wealthfront, which is the one that gives a negative return.

Although returns with SoFi are lower compared to Betterment, it may offset in the end (depending on your total assets) because SoFi has 0 administration fees, but Betterment takes 0.25% annually, just like Wealthfront does.

SoFi also does not have an account minimum, so you can go at your own pace while spending at least $ 500 for Wealthfront. Betterment also has an account minimum, but $ 10 should do nothing for most people.

Wealthfront is all things considered very expensive compared to its competitors. However, it does give you a promotion on managing up to $ 5,000 in assets for free. Betterment’s promotion is up to one year with a qualifying deposit.

The great thing about SoFi is that you get career advice and loan discounts with a qualifying deposit, completely FREE. Not only that, but there are also no advisory or administrative fees, and investors can choose from a wide range of portfolio options.

Do you remember when we mentioned that access to real-time advisors gives a platform a higher place on our list? Well, SoFi qualifies because it gives you unlimited access to Certified Financial Planner (CFP).

We always try to be as impartial as possible, so we’ll give you a few things to consider when looking at whether SoFi’s automated return on investment is worth the price.

First, there is no tax loss harvest. It may not be a big deal, but it is a feature offered by several competitors that is very convenient. It’s also a fairly new platform that makes some people skeptical, and we can well understand that. There is also a $ 75 account fee when you choose to transfer.

The bottom line

Is SoFi worth it? Considering everything that includes fees and promotions, we would definitely say that SoFi automated return on investment is definitely worth it. Although the return may not be as high as some of its more famous competitors, but when you take everything into account, you get a pretty good deal. Join SoFi’s agreement here.

SoFi comparisons:

  • SoFi vs Robinhood
  • Improvement vs SoFi
  • M1 Finance vs SoFi
  • SoFi vs Vanguard

Related investment product reviews:

  • SoFi Invest Review
  • Benzinga Pro review
  • Mindful Trader Review
  • Variegated Fool review
  • Improvement review
  • M1 Financial Review

The post SoFi Automated Investing – Is The Return Worth It? first appeared on Modest Money.

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