Today, Robinhood Gold subscribers earn a 3% match on all eligible annual IRA contributions. For a limited time only, Robinhood Gold subscribers will also earn a 3% match on transfers and rollovers into your Robinhood Retirement account between January 17, 2024 and April 30, 2024, with no limit on the amount of match earned.
…
We don’t charge a fee to transfer assets in. However, your outside retirement account may charge you a transfer fee to transfer your assets. For any full or partial account transfer into Robinhood that’s $7,500 or more, we’ll reimburse the transfer fees your other brokerage may charge, up to $75. Contact us to request a reimbursement.
After the transfers promotion ends on April 30, 2024, transfers and rollovers will earn 1% match, and IRA annual contributions will continue to earn a 3% match for Robinhood Gold subscribers.
Keep in mind, you must hold the funds in your IRA for at least 5 years to keep the match, and be a Robinhood Gold subscriber for 1 year after the first deposit that earns the 3% match.
The gold subscriber cost is pretty negligible, <$10/mo.
I’ve got to think this through. My largest accounts is a Traditional IRA with $317K in it, rolling it over would bring in a fairly painless $9,500. Just need to make sure I’m OK not touching that for five years.
Okay somebody convince me NOT to do this. Because that sounds amazing. I have Roth/Trad IRAs of $220k/$50k and have been intending to reclassify it all as Roth anyway. Might tidy that up and roll it all over.
Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
We’ve purchased an additional insurance policy for Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC to supplement SIPC protection. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance policy provides protection for securities and cash up to an aggregate of $1 billion, and is limited to a combined return to any customer of $50 million in securities, including $1.9 million in cash. Similar to SIPC protection, this additional insurance doesn’t protect against a loss in the market value of securities.
Created by Congress in 1970, SIPC is a non-profit corporation that has been protecting investors for over 50 years. SIPC has recovered billions of dollars for investors.
So SIPC covers 500K and if Robinhood disappears more than a billion, you aren’t made whole (if you had more than 500K). Probably hard for them to fudge securities, but cash …
So in my case, go ahead and plop in a secured $250k and then move back to Vanguard in 5 years. Seems worth it for slightly >1 year of max contribution.
I must say this, filling out the form to get the IRA transferred was a breeze compared to my previous experience bringing stuff into E*Trade. We’ll see how it goes. I sold off the stuff in my IRA (CDs, 20-yr treasury bond, bond funds) so it’s $320K of pure cash now (or very soon).
Attempted to discuss this with my father, who is concerned about the size of his nest egg and has most of his money in an IRA.
He said he doesn’t want to offend his financial advisor who is only charging him 0.85% expenses by taking his money out now.
I didn’t mention that 0.85% isn’t great nowadays. I have the feeling that for an active financial advisor it is cheap, but still not cheap overall. I figured that a penny-pinching frugal guy like him would jump at the chance to make something like $30k in an afternoon.
He’s a guy who grew up when stock trading was a mystical art guarded by advisors. I don’t think he’ll change his mind and wasn’t going to argue about it. He at least asked for info to Google it for himself, so I put a bug in his ear.
This program seems a little desperate to me for a financial institution and I’m not thrilled about that. OTH I have been a Robinhood brokerage customer for 4 years with no issues so I decided to take a small dose of this program. My last year’s and this year’s Roth are going into Robinhood and I rolled one of my two other Roths in as well. The result is that I have about 15% of retirement assets and 20% of securities holdings in Robinhood. I’ll see how it goes.
At the same time I am consolidating traditional IRAs at Fidelity, closing out my Vanguard holdings.
Vanguard doesn’t play that way. Schwab or Fidelity or a bank that wants to get into modern investing will probably buy Robinhood. Or Robinhood and SOFI could merge.
They also eliminated the ability to see the performance of individual holdings in tabular format. You can see your entire portfolio as a table, but individual holdings far as I can tell are only viewable as a graph. No idea why they did a revamp to make it worse.
As for Robinhood making their fees worse @tty, I doubt that they’ll increase it significantly enough to even noticeably offset the $7,500 I should get by switching - and I plan after 5 years to immediately move back to Vanguard. If they did start something ludicrous like a 2% expense ratio I would do the math and potentially drop my clawback amount and leave right away.
As long as you’ve held your eligible funds for at least 5 years , the IRA match is yours to keep. If you withdraw money earlier than 5 years, and your remaining IRA balance stays at or above your contribution amount that earned the IRA match, it’s yours to keep .
