Some people will say that free money is a good thing, and I would agree. However, a 3% match (RH Gold) only yields $225 a year in a Roth IRA if you are under age 50, and $258 per year if over age 50. With a SoFi match, you're only getting $75 to $86, respectively. Those numbers don't exactly light the afterburner for investing. Yes it is free money, but it doesn't amount to much of anything in the big picture.
What am I missing with these accounts? Is it all a gimmick?
Robinhood vs SoFi IRA Match = Joke?
byu/GenXDrummer ininvesting
Posted by GenXDrummer
7 Comments
Are you aware the “big picture” is made up of many smaller pictures?
that’s $161,753 after 45 years at average SPY returns (10%)
Are you applying the same “logic” to an employer’s 401k match?
I’ll continue to use a reputable broker like Schwab or Fidelity. Robinhood does sketchy stuff with execution prices, and yea, $200/year isn’t enough for me to move there.
3% might seem small but it boosts your 7-10% annual average return to 10-13% for the first year.
I have $1445 total from IRA match on Robinhood so far. It adds up.
So go open an IRA somewhere with no match. Then enjoy your big picture missing out on 7k + whatever the potential to grow that 7k throughout 30 years will bring.
~33 years would get you current years full amount from the match.
Match money in same time would grow to ~$33k by itself with normal assumptions