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SoFi Ivesting is offering a new interesting bonus for those looking to set up recurring investments: Earn 1% on total net recurring purchases (total recurring purchase amount less sales) whenever you make three recurring purchases of the same security during the incentive period (now through 9/30/20). The max bonus payout per user is $1,000. The email does not say anything about being targeted, but it is possible that it’s a targeted bonus.
The Deal
- SoFi Investing is offering a (possibly targeted) bonus on recurring investments:
- Earn 1% on total net recurring purchases (total recurring purchase amount less sales) whenever you make three recurring purchases of the same security during the incentive period (now through 9/30/20)
- If you are new to SoFi Investing, it isn’t clear whether or not you will be eligible for the above offer. However, you can get a bonus of $50 in free stock when you sign up under a referral and deposit at least $1,000 in your SoFi investing account (there’s no requirement to invest that money, you just need to deposit it).
Key Terms
- Maximum bonus per member is $1,000.
- All bonuses will be paid within 10 business days of the conclusion of the offer period.
- Recurring purchases must be continually active from purchase to end of offer period (9/30/2020).
- Recurring purchases pull from your bank account, not your SoFi Invest account balance.
Quick Thoughts
This is an interesting push to get recurring investment activity. Many of those who invest regularly like to do it on a recurring schedule for dollar cost averaging purposes (essentially to avoid trying to time the market and instead bring able to pick up new shares during both high times and low times in order to get the average price). If that’s your bag, this would be an extra 1% on your recurring investments during the period. That might not sound like a lot, but as I’ve recently written about, small amounts add up to a lot over time.
There are a few “gotchas” to consider:
- The bonus will be based on net purchases — that’s total recurring purchase amount less sales. That forces your hand toward buying and holding (which is probably good practice in general, but it’s worth considering whether you want to feel boxed into it).
- Recurring purchases pull from your bank account, not your SoFi Invest account balance. If you recently took advantage of their 1% deposit bonus and have cash sitting in the account, that cash won’t qualify for this unless you move it out and get it pulled back in for auto-investing (I think that would work as I don’t see a requirement for it to be “new” money, just that it come from a bank account source).
- Recurring purchases must be continually active from purchase to end of offer (i.e. don’t end that scheduled buy before 9/30/20).
I don’t think any of those things are deal-breakers for a serious investor with a set asset allocation and recurring investment plan, but they may be issues for someone who is just hoping to take advantage of the bonus.
Overall, this should be an easy little bonus for those who were already planning to invest and don’t mind doing it through SoFi. It could also be an opportunity for those who already have $100K invested and want to jump through a couple of hoops to move it over as a $1K bonus on that money is a great deal.
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Would 1k this month, 1k next month, and 30k in sept work? For a $320 match. Would rather keep my money in a high interest savings account as long as possible.
Also annoying it buys fractional shares, doesnt let you select a specific stock (only from ones previously invested), and doesnt give the ability to do a limit price.
“ …dollar cost averaging purposes (essentially to avoid trying to time the market and instead bring able to pick up new shares during both high times and low times in order to get the average price)”
Actually, dollar-cost averaging will over time get you less than the average price. You are buying more shares at the lower price for your fixed investment and fewer at the higher. On shares that fluctuate wildly, this works very well.
Say a stock is at $100. You have $600 and want to invest either $200 monthly or all at once. First investment with DCA you get 2 shares. Stock goes to $50 a month later. Now you get to buy 4 shares. Stock goes to $200 a month later. Now you buy 1 share. Finally a month later the stock goes back to $100.
You own 7 shares worth $700. Had you invested the whole $600 at the beginning, you’d still only have $600.
Just as a data point, I use both a SoFi money and an invest account, but have no offer on the app, website or by email. Perhaps targeted for new users only?
Definitely not targeted for only new users. Stephen and I both have SoFi Money and SoFi Investing accounts and we both received this offer. Greg hasn’t gotten the email yet and neither has my wife. My guess is that the emails may be staggered. There is no language within the emails noting that they are targeted, but it is certainly possible that they are (but if it is targeted, it isn’t only targeted at new users).