Smart Investing: Enhancing Your Portfolio with SoFi

Digital investment platforms have simplified the way we allocate money and plan financially for the future. They have disrupted traditional finance by leveraging technology to democratize and streamline investment, opening a wide range of financial products to an unprecedented user base. 

These novel fintech platforms blend business and investment management with automated financial functions. They offer intuitive user interfaces and lower fees compared to traditional options. 

Moreover, they provide a wide range of investment products, making them attractive to seasoned investors and newcomers. Consumers can now save money or invest their funds in stocks, bonds, investment funds, ETFs, cryptocurrency, and other instruments in one or multiple accounts through the same provider.

One of the key players in this space is SoFi, which has gained considerable popularity for its comprehensive suite of investment products and robust educational resources. SoFi is a top-notch digital financial services company that provides people with unprecedented access to financial markets and investment opportunities. It has revolutionized digital investing, streamlining it and offering user-friendly options. 

SoFi has transformed the process of creating a smart portfolio. Here, we discuss the ways to enhance your portfolio using smart investing with the products available on SoFi. We will also explore the benefits of converting to a reliable digital investment platform versus sticking to traditional means. 

What is smart investing?

Smart investing is an expansion of basic investing principles. It requires making the optimal investment choices to align with your individualized financial needs and goals. With many options available for today's investors, it is much easier to build a portfolio by selecting financial products from digital platforms like SoFi. 

The benefits of smart investing include creating additional sources of income, building post-retirement wealth early, minor capital requirements for retail investors, and the ability to plan for long-term financial security.

Develop a Diversified Portfolio With Financial Products on SoFi

With digital platforms like SoFi, smart investing is achievable for people of all demographics and financial capacities. Starting can be as simple as opening an online account. 

After signing up, you can establish your portfolio according to your risk preference, time horizon, and financial goals. In addition, you can use SoFi's extensive library of educational tools to help fine-tune your investment decisions. The following are banking and investment products worth exploring on SoFi:

Stocks

Stocks, also known as equities, represent ownership of part of a corporation. Stock units are called shares. These shares entitle their owners to a proportionate allotment of the corporation's assets and profits. 

Bought and sold mainly on stock exchanges, they make up the foundation of many investor portfolios. 

SoFi offers online stock trading, allowing users to invest in IPOs at IPO prices. You can get a bonus of up to $1000 if you fund a new trading account. 

Fractional shares

A relatively new development in investing, fractional shares are catching on quickly as an affordable means to invest. Fractional shares refer to fractions or slivers of company shares. They can also represent portions of shares of exchange-traded funds (ETFs). 

These investments offer the same benefits as buying whole shares. Owners have the right to receive a proportionate share of dividends paid by the company. 

Fractional shares are attractive to investors with insufficient capital or funds to buy entire company shares. Some big-name stocks can come with high share prices out of reach for ordinary individuals—several of these stocks trade at hundreds, thousands, or even hundreds of thousands of dollars per share. 

Moreover, this type of share usually applies to large companies that haven’t implemented stock splits to reduce their share prices. Berkshire Hathaway’s shares, for example, currently trade at $633,899. A fractional share enables retail investors to buy a stake in a company affordably. 

Under SoFi’s Active Investing umbrella, you can buy a fraction of your favorite company for as little as $5, with applicable restrictions. 

Individual Retirement Accounts (IRAs)

It’s never too early to plan for retirement. Individual Retirement Accounts, or IRAs, provide a financial foundation for your future. 

IRAs are accounts that enable you to make tax-deferred contributions that provide financial security for retirement. In other words, they can act as retirement savings accounts with other benefits. Your invested money grows tax-deferred or tax-free, depending on the kind of IRA you open. SoFi offers traditional, Roth, and SEP IRAs. 

Banking services

You'll need an online banking account to connect and fund various investments. An online checking account with SoFi offers numerous benefits, including no account fees, a new checking account bonus, no minimum balance fees, ahead-of-schedule access to your paycheck, and up to 4.60 percent APY (annual percentage yield)—up to 10 times the national average. 

In addition, you get live customer support all days of the week and extensive deposit, bill payment, and money transfer services as you independently manage your digital wallet on an app.

Automated investing 

Automated investing refers to technology-driven investments. It’s a broad term for investment management methods that employ mathematical models and algorithms to invest money on clients’ behalf. 

To start with automated investing, users must understand their investment goals thoroughly and how algorithm-driven robo-advisors follow standardized approaches to align with their investment objectives and risk tolerance. 

Among the most significant advantages of automated investing to build a portfolio is that it doesn't charge advisory fees, thus reducing costs. It also offers a hands-off approach to investing, requiring less expertise and market analysis on the user's part. SoFi's service streamlines diversification, investment planning, and recurring deposits. It also auto-rebalances your stock and bond funds every quarter. 

Develop a Smart Investment Strategy With All-Digital Tools

Today, it is possible to create a well-diversified portfolio without the help of human advisors. With digital financial services from trusted companies like SoFi, users can integrate online banking with their investments, covering multiple financial products like stocks, bonds, mutual funds, IRAs, ETFs, and alternative investments.

Digital investment platforms allow individual investors to compose a customized portfolio at a lower cost. They also ensure maximum accessibility, being available on apps and websites that offer customer service 24 hours a day, seven days a week. 

With the help of automated investing and robo advisors, users can take a hands-off approach to investing even as algorithms and mathematical models handle their investment selections based on their risk tolerance, time horizon, and investment goals.

For a new generation of digital natives, online investment platforms are the most straightforward and intuitive way to grow money. Whether saving for retirement, investing for a significant purchase, or growing your wealth, SoFi offers a convenient avenue to achieve your financial goals. With the power of technology, your savings, loans, and investments can be aligned into a comprehensive investment plan, allowing you to aim higher and attain better returns.