Robinhood to Launch Retirement Investment Accounts

Over the years, fans of the FinTech app Robinhood have gained a reputation (accurate or not) for being risky and impulsive market players. However, the company will soon look to promote long-term investments by introducing retirement accounts on the platform.

During a third quarter earnings conference call with investors, co-founder CEO Vlad Tenev formally announced plans to roll out Robinhood Retirement accounts soon. Specifically, Teniv stated that the company is working toward launching the feature in time for tax season. Furthermore, he confirmed that Roth IRAs would be offered alongside traditional ones.

The launch of Robinhood Retirement will mark the latest expansion for the company, which was unveiled a number of new features so far this year. Most recently, the company emphasized its premium Robinhood Gold product by offering 3% APY on uninvested funds to Gold members (Tenev noted that this rate will now be rising following the Federal Reserve’s recent hike). Elsewhere, the company has begun rolling out its non-custodial web3 wallet to waitlist customers, with plans to take this app global in the future. Robinhood has also been testing an instant withdrawal options for users, which began making its way to select users last month. While this speedier option comes at a cost of 1.5%, Tenev stated that the free transfer option would remain available.

Get a Free Share of Stock

Not a Robinhood user? If you haven’t signed up yet just click the button to create an account and get a free share of stock just for opening an account with this Dyer News link.

Free Stock

In a press release announcing the FinTech’s earnings for the quarter, Tenev stated, “In the third quarter we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned. We delivered on top feature requests for customers including advanced charts, options in cash accounts, instant withdrawals and our self-custody, web3 wallet.” He added, “In the next week, we are raising the yield on uninvested cash for Gold members – making it one of the best rates in the industry.” Robinhood CFO  Jason Warnick also said of the quarter, “We drove positive Adjusted EBITDA by increasing revenues and reducing expenses. We also continued to deliver on our 2022 product roadmap, which helped maintain steady net funded accounts and drive strong net deposits.”

Robinhood Retirement seems to be a logical extension for the popular app as it continues to diversify its offerings. In fact, it seems like a feature that would have arrived earlier than now. Nevertheless, it will be interesting to see what Robinhood’s retirement accounts look like, what types of investments they allow (will crypto holdings be offered in IRAs?), and whether consumers respond well to these long-term investment products.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Apple Begins Rolling Out BNPL Platform Apple Pay Later

More than nine months after initially announcing plans to offer its own "buy now, pay later option, Apple has begun rolling out its new platform. With Apple Pay Later, customers will be able to finance purchases by paying them off over the course of six weeks. These short-term loans come with no fees or interest. Currently, the company is inviting certain (randomly selected) users to access the platform. Like with...

Credit-Building Tool StellarFi Raises $15 Million

A credit-building platform is adding to its coffers, announcing a fresh injection of funding. This week, StellarFi (previously known simply as Stellar) announced that it had closed a $15 million round. The Series A was led by Acrew Capital, while ATX Venture Partners, Trust Ventures, Dream Ventures, Interplay, Accomplice Ventures, Vera Equity, FJ Labs, Fiat Ventures, Gaingels, Kelmhurst, Oyster Funds, Hilltop Ventures, Permit Ventures, Kindergarten Ventures, J2 Capital, Socially Financed...

Rocket Companies Introduces Rocket Visa Card for Homebuyers

Rocket Companies — the parent company of Rocket Mortgage, Rocket Homes, Rocket Loans and Rocket Money — is now adding a branded credit card to the mix. This week, Rocket introduced the Rocket Visa Signature Card. Not only will the new offering integrate with Rocket Money but will allow cardholders to earn up to 5% back. With the Rocket Card, customers can earn 5 Rocket Rewards on every purchase they make....