The Finance World Magazine| Edition: October 2023

SoFi Automated Investing
Established in 2011, SoFi introduced
its fee-free Automated Investing
platform in 2019, with the aim of
providing accessibility and simplicity for
individuals initiating their investment
journey. Investors can kickstart their
accounts with just $1, and the core
objective of Automated Investing is to
assist members in crafting a strategy
aligned with their risk tolerance and
financial objectives. Beyond offering
cost-effective investment choices, SoFi
Automated Investing extends benefits
to users, including complimentary
consultations with certified financial
planners (CFPs), an array of educational
resources, access to events, exclusive
discounts, and additional perks.
SoFi Automated Investing allows you
to invest towards a diverse range of
goals, although in-platform retirement
and large purchase planning tools are
not available. Members have access
to credentialed financial planners to
discuss their objectives. SoFi also offers
resources for credit score monitoring,
expense breakdowns, financial insights,
and property tracking. For shortterm
goals, users can establish a SoFi
checking and savings account, with the
savings account featuring zero fees, a
competitive APY, and the option to save
for specific goals by creating “Vaults.”
These Vaults can be designated for
various purposes, such as a car, home,
or emergency fund, and members
can automate their savings through
Autopilot. SoFi’s diverse investment
options cater to a wide range of risk
tolerances and financial goals, making
it a suitable platform for all kinds of
investors. This versatility ensures that
users have the flexibility to construct
portfolios that align precisely with their
unique preferences and objectives.
SoFi Automated Investing stands
out not just for its financial tools and
low fees but also for its commitment
to sustainability. The platform offers
users the option to invest in portfolios
Anthony Noto,
CEO
aligned with environmental, social,
and governance (ESG) principles.
This reflects SoFi’s recognition of
the growing importance of socially
responsible investing.
Vanguard Digital Advisor
Since its inception in 2019, Vanguard
has consistently refined
its Digital Advisor service to
enhance the provision of personalized
and convenient financial advice.
While the foundational strength of
Vanguard’s offering has always been
the passive management of your assets
through top-tier, cost-effective index
funds, the past year has witnessed
substantial enhancements to the digital
investment management platform.
These enhancements include the introduction
of tax-loss harvesting, an ESG
portfolio, active funds, select municipal
bonds, tailored goal planning and
optimization, a spouse-oriented user
experience, and Medicare matching.
Vanguard Digital Advisor also boasts
impressively low fees, charging a mere
0.15% of assets under management
(AUM), a rate significantly below industry
averages. This cost-efficiency
is a major draw for those seeking to
maximize returns while keeping expenses
in check.
Vanguard’s Digital Advisor offers
a wide range of advanced planning
tools to help investors achieve their
financial goals. These tools include
comprehensive retirement planning,
personalized goal setting, and specific
tools for various financial goals.
For instance, the “Next Steps” feature
offers step-by-step guidance to
ensure investors stay on track. The
“Rainy Day Tool” helps with emergency
savings, and the “Debt Calculator”
aids in efficient debt repayment. The
“Medicare Match” aligns Medicare
plans with individual preferences
and health status. The “Health Care
Cost Estimator” estimates healthcare
expenses, and the “Social Security
Optimizer” assists in informed Social
Security decisions. Vanguard’s unique
approach combines all funds into a
single portfolio, making it versatile
for managing multiple goals. During
goal-setting, users gain insights into
projections and risk management,
helping them make informed financial
decisions.
Vanguard Digital Advisor offers a
user-friendly mobile app for convenient
portfolio management on the
Mortimer J. Buckley,
CEO
go. Its access to Vanguard’s extensive
expertise in asset management,
coupled with a wealth of educational
resources, empowers investors to
make informed decisions. Automatic
rebalancing and an intuitive user interface
add to the platform’s appeal,
making Vanguard Digital Advisor an
ideal choice for investors seeking a
cost-effective and hassle-free investment
experience.
October 2023 www.thefinanceworld.com 17