Benefits, Drawbacks, and Options of a Self-Directed 401(k) Plan

By the end of January, you should receive tax documents from employers, brokerage firms, and others you did business with.

Waiting until the last minute to prepare for tax filing is never advisable. Taxes may not be as complicated for people with one employer, but for those who have side gigs or are self-employed, tax returns can take a while to fill out.

You should receive a Form W-2 by Jan. 31 or, with any mail delay, soon thereafter. The same deadline applies to certain 1099-MISC forms for independent contractors. Each financial institution that paid you at least $10 of interest during the year must send you a copy of the 1099-INT by Jan. 31 as well.

Whether your goal is to lower your taxes or just file them on time, the key is preparation. To answer your tax questions, we’ve compiled a selection of informational articles on such key tax topics as capital gains, retirement savings, stock options, refunds, and more.


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.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
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.

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Saving for Big Life Events Like… Buying a Home

Maybe you have always dreamed about owning your own place. Maybe you’re just in “that” phase of your life. Or maybe, it simply makes the most financial sense for you to own rather than to rent.

Either way, buying a home is one of the biggest financial decisions you can make in life, and there are plenty of pitfalls to avoid along the way.

When you start looking, think about what you can — and want to — afford. That’s not just a question of how big a mortgage you might be able to get, as your monthly costs will be more than just your loan payments. There might be HOA fees, maintenance costs, and taxes coming out of your account regularly. Know what the monthly costs of a place would be all in to decide whether it’s the right fit for you.

Also know what you’re looking for. If you need certain transport links and school access to make your life work, a cheaper home in an inaccessible location likely won’t be the answer. Don’t forget, to make financial sense for you, it has to be workable in your day-to-day.

Equally, the perfect home probably doesn’t exist. There will always be something, and that’s okay. Just make sure you know what your needs and non-negotiables are so you can make the best decision for your household.

Saving Hacks for a Downpayment

For many people, transferring their down payment at the start of a home purchase is the single biggest banking transaction they’ve ever completed. So how do you get to having such a big stash of cash?

Convention suggests you should aim to pay down 20% of the total purchase price, even though this could vary depending on your personal situation, what makes sense for your finances, or if you’re a Veteran. Use our home affordability calculator to figure out your goal down payment by calculating how much home you can afford.

Next you can draw up a budget, comprising your existing savings, income streams, and other financial obligations, including debt payments and rent.

Saving your way to a down payment might also take a little time, so let your money work for you along the way. Stashing your cash in a high-yield savings account can help you get there faster.

Check out SoFi’s high-yield savings accounts, and get going on your savings goals.


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.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
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.

©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Terms and conditions apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 12/28/23.

SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently NOT able to accept applications for refinance loans in NY.

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The Best Time to Start Saving

You might not like our answer here, but the best time to start saving for retirement was probably yesterday.

Funding your life for some 30 years from just savings and investments, without other supplementary income, is no small feat. And the earlier you can get going on your big pile of cash, the better.

Another key reason to start saving early: compounding interest. This means that if you’re earning interest on your nest egg, that money is then added back on top of your deposit, and you then earn interest on the “new” total.

When it comes to investing for retirement, there’s another reason to start early: Your goals, time horizon, and risk tolerance will look rather different when you’re young.

If you have a long way to go until retirement, you might consider riskier assets, such as stocks, in your investment portfolio. Meanwhile, people closer to retirement age tend to be more conservative in their choices, and allocate their portfolios to less risky assets, such as bonds, that also tend to yield less.

The Key to Saving — Do It When you Don’t Notice

Putting money away every month can be hard. And retirement’s time horizon decades away, isn’t making it easier. That’s why baking your savings into your regular financial planning can be helpful.

You broadly know your income, even if it fluctuates. Can you automate your savings in a way that minimizes the pain of seeing a big chunk of your paycheck going into the retirement piggy bank?

This might already be the case if you’re taking advantage of an employer-sponsored retirement plan, such as a 401(k), which lets you pick a monthly contribution.

Also consider adding a set amount to your cash savings stash when you receive your paycheck, the idea being that you can’t spend what you can’t see. Make your money work for you and consider a high-yield savings account. It can help you save up for big expenses in the near-term, and help you get closer to the maximum for your retirement contributions every year.

Check out SoFi’s high-yield savings accounts, and get going on your savings goals.


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.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
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.

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

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
​​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. Information related to lending products contained herein should not be construed as an offer to sell, solicitation to buy or a pre-qualification of any loan product offered by SoFi Lending Corp and/or its affiliates.
SoFi doesn’t provide tax or legal advice. Individual circumstances are unique. Consult with a qualified tax advisor or attorney about your specific needs.

©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included. Offer ends 12/31/23.

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Getting Your Debt Right

If you’re in debt, you’re not alone. The average American has more than $100,000 in debt, according to Experian. But being debt-free is possible, and it’s a freedom like no other. If 2024 is the year you want to Get Your Money Right® by tackling your debt, read on.

Not all debt is created equal. A home loan, for example, has different implications for your financial health than the same amount in credit card debt.

That’s because when you have a mortgage, you also own part of your home. Sure, maybe the bank owns the majority, but your monthly payments decrease your debt and increase your equity in your home.

Meanwhile, a mortgage-sized amount of credit card debt is a different pair of shoes. That’s because credit card debt tends to be higher in interest. Plus, it doesn’t help you build any equity. It just weighs on you.

Start by writing down all your debts, needs and income streams to get going on a budget that can help you knock out your debts one by one.

Finding the help you need to tackle your debts

There are many strategies for tackling your debts. But you’d be best served to find one you can stick with.

The snowball method works by listing out all your debts and starting with the smallest one. It will help you feel like you’re making headway, and might give you the momentum you need to keep going.

The avalanche method is targeting your debts with the highest interest rate first, minimizing how much you pay in interest over the long run.

If you’re in credit card debt, paying more than the monthly minimum payment can also help you chip away at the total amount owed.

But sometimes debt can feel overwhelming, and maybe none of the methods above is feasible for you.

Depending on your situation, you might consider a debt consolidation loan, which allows you to transfer high-interest credit card balances to a personal loan to reduce your monthly payment. Learn more about the debt consolidation loans SoFi offers.


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.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
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.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. Additional terms and conditions may apply. Lowest rates reserved for the most creditworthy borrowers. The average of SoFi Personal Loans funded in 2022 was around $30K. Information current as of 12/27/23. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details.

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Do I Need a Will? Who Needs a Will (And When?)

Talk to Your Loved Ones About Wills, Trusts, and Estate Planning

If talking about money makes you uncomfortable, you might not like the next topic: estate planning.

Estate planning is about making sure your assets go where you want them to go in the event of your death. This may involve documents like a will, health care proxy, or power of attorney.

Important Conversations

Nobody likes talking about death. But having a conversation about estate planning is important to make sure everyone is on the same page, and the right paperwork is in place well ahead of time. It’s not just about leaving money behind. You can make a lot of decisions in your end-of-life planning that may help take care of your loved ones, and can also involve minimizing taxes on the assets left behind.

Writing a Will

There are four different types of wills that can help ensure your plans are carried out after death.

•   A simple will, which lets you have control over what happens to your assets

•   A joint will, which is created by two people

•   A testamentary trust will, which involves creating a trust

•   A living will, which specifies your wishes if you were medically incapacitated

If you die without a will you risk having your property go to people you didn’t intend it to go. There are online templates to create a simple will or you can work with an attorney to put your end-of-life wishes in writing, and take care of your loved ones.

Learn more about estate planning with SoFi here.


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.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
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.

Read more
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