Congratulations on making it to part three of our Retirement Power-Up Challenge! I’m Sam Soland, senior writer at SoFi, and together we’ve found your freedom number, identified your savings gap, and taken action in your investment account.

Now, it’s time to lock in the mindset that will keep you moving forward. Because investing for retirement is a marathon, not a sprint. (On the Money will be back to its regular programming on Wednesday, Sept.3.)

Part 3: Perspective for the Long Term

Day-to-day market headlines can overwhelm investors, tempting them into kneejerk reactions, like selling during a drop or chasing a stock that’s surging. But investing for retirement is a long game. Decisions rooted in your personal financial goals will help insulate you from day-to-day noise and navigate market shifts with confidence.

Your objectives and time horizon – two topics we addressed in part one of this challenge – are key parts of this strategy. Another is your risk tolerance.

Every investment comes with a certain degree of risk, but some are riskier than others, and there is often a tradeoff between risk and reward. Developing an understanding of your personal risk tolerance can both help you make better-informed decisions about your money and give you peace of mind about the path you’re on.

Your SoFi Toolkit

Talk to a Certified Financial Planner® from SoFi. Members can schedule a complimentary 30-minute session and SoFi Plus members¹ have unlimited access to our CFPs.

Today’s Challenge: Find Your Risk Tolerance

Knowing your risk tolerance is like having a compass for your investing journey. It helps you avoid taking on more risk than you can stomach, while still aiming for returns that meet your goals. SoFi’s risk tolerance quiz – which should take you less than two minutes to complete – takes into account your time horizon, biggest financial priorities, and capacity for volatility to help you determine where you fall on the spectrum: aggressive, moderate, or conservative.

There are a few reasons that matters:

•  Shapes your portfolio: Your mix of stocks, bonds, and other investments should reflect how much volatility you can handle. A higher tolerance may allow you to embrace growth assets like stocks, while a lower tolerance may lead you toward the relative stability of bonds or money market funds.

•  Keeps your emotions in check: When markets swing, investors who don’t understand their own risk tolerance and how it’s reflected in their portfolio are more likely to panic-sell at the worst time. Knowing where you stand and why helps you stay calm and stick to your plan.

•  Aligns with your goals: If you need money in the near term (say, for a home down payment), your investments should reflect that through lower risk and easy accessibility. But if you’re saving for a retirement that’s decades away, you may more easily tolerate ups and downs in the market to capture long-term growth.

•  Prevents regret: Investing in ways that don’t align with your risk tolerance can leave you second-guessing yourself – either wishing you’d been more aggressive or regretting taking on too much. A thoughtful strategy will help you feel comfortable and remain consistent.

Take our 90-second quiz here.

Knowing your risk tolerance helps you balance peace of mind with opportunity, so you can stay invested long enough for your strategy to work. And now that you have a sense of where you stand, you can take the next step. Put this newfound perspective into action by having a conversation with a financial advisor or leveraging a robo advisor to automate your investments.

In Short

“When making a decision about how to build a portfolio, keep in mind that risk and reward are two sides of the same coin. You cannot have one without the other.” – Brian Walsh, Head of Financial Planning at SoFi

Challenge Complete ✅

Congratulations! Over the past week, you’ve powered up your retirement savings journey by taking action and learning about yourself. Now you can put that knowledge to work. With a solid strategy, the right tools, and a long-term mindset, you’re ready to build a future you can look forward to.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:

•  1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

•  2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

Individual customer accounts may be subject to the terms applicable to one or more of these platforms. For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

¹Unlimited financial planning: SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

SoFi Plus: SoFi Plus is a premium membership that gives members access to our best APY, discounts, rewards, and more when they set up Eligible Direct Deposit or pay the SoFi Plus Subscription Fee. Benefits are subject to change and may not be available to everyone. All terms and conditions applicable to the use of SoFi Plus apply. To learn more about SoFi Plus and available benefits and terms, please see the SoFi Plus page.

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We’re onto part two of our three-day Retirement Power-Up Challenge. In part one, you identified the amount you’ll need to retire, reviewed the amount you’re on pace to save, and found the gap in between. Today’s challenge is about making your money work for you, because that’s when the real magic happens.

Part 2: Making Money Magic

One tool for building wealth – and reaching your savings goal – is investing. The engine behind it is called compound growth.

When investment returns begin to generate their own returns, that’s the power of compounding in action. Picture a snowball rolling downhill; as it rolls, it gathers more snow, building both size and speed.

Retirement accounts are one of the best ways to take advantage of compounding. They’re built for long-term growth and offer tax advantages that can help your money grow more effectively over time through your investments. Don’t forget that all investing also bears risk.

The most common types are workplace 401(k) plans, where you save pre-tax dollars from your paycheck, and individual retirement accounts (IRAs), which may also offer tax benefits. (There are two types of IRAs; find out which one is right for you with this quiz.)

Hot Tip: You can have a 401(k) and an IRA. While a 401(k) has a higher annual contribution limit and a potential match from your employer, an IRA can give you access to more investment choices, such as individual stocks, ETFs, or alternative investments like real estate. Greater flexibility means more control, and even more ways to potentially build wealth over time.

Your SoFi Toolkit

When you open a SoFi IRA¹, we’ll match 1% of your contributions to give you an extra boost from day one. Don’t forget that contributions are not automatically invested — you’ll need to choose a mutual fund, ETF, or another investment that aligns with your goals.

Today’s Challenge: Start Investing

It’s time to take action. Choose one path to boost your savings and invest.

•  If you already have a 401(k), increase your contribution by 1%. Extra points if your employer is matching your contribution.

  Great for: making an impact with little effort, especially if you aren’t taking full advantage of your employer match yet. If you increase your contribution, it will likely automatically be invested.

•  Open an IRA, or fund an existing one. Then make your investment choices.

  Great for: investors who want more control and a wider range of choices over their investments. Check out SoFi’s Investing 101 library to make more informed decisions.

•  Explore robo-investing in your IRA for an automated service that picks and manages investments for you.

•  Great for: investors looking to optimize their investments but lacking time and resources to do all the heavy-lifting

Make sure your investment choices reflect your financial goals and risk tolerance. We talk more about this in part three of this challenge.

In Short

“The sooner you can start investing, the quicker you can start taking advantage of compound growth, which can accelerate your ability to build wealth. Compound growth is the return you earn on your returns, which can help your earnings grow over time.” – Brian Walsh, Head of Financial Planning at SoFi

Good Habit of the Day

A bonus, tax refund, or unexpected gift can fuel your retirement journey. Resist the urge to spend it and optimize your windfalls by funneling them directly into your investments.

Coming Up

You’re two-thirds done with the Retirement Power-Up Challenge! Today was about the power of investing, and we only just touched on retirement plans — you can learn more about all of the different types of plans and tools here.

In the third and final part, we’ll cover one of the greatest challenges of all: staying the course and playing the long game, even when the market gets bumpy. Check out part three to learn how resilience can make all the difference.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

¹Terms and conditions apply. For 401(k) rollovers, existing SoFi IRA members must complete 401(k) rollovers via this link. For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401(k) rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401(k) provider for any fees or costs associated with the rollover.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:

•  1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

•  2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

Individual customer accounts may be subject to the terms applicable to one or more of these platforms. For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.

SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective

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