Robinhood (NASDAQ:HOOD) customers tend to be young, with a long way to go before retirement. As such, Robinhood may have figured out a great new way to capture that market by announcing the start of a new program – Robinhood Retirement.
Robinhood Retirement addresses the needs of gig workers, independent contractors, and people in a similar situation. It’s an IRA that comes with a 1% match from Robinhood. However, other fees may be involved.
Those who are interested only need to select their IRA of choice, invest accordingly, and even set up instant deposit systems as they see fit. Robinhood offers several IRA options, including traditional and Roth IRAs, supported by stocks and even ETFs.
A recent Pew Charitable Trust study found that 77% of respondents wanted access to defined contribution savings plans like an IRA. The fact that most of those respondents had no access to such a plan further demonstrates an unexplored market niche. The move is likely to pull in more interested customers at a time when Robinhood can sorely use them.
Overall, Wall Street analysts have a consensus price target of $13.39 on HOOD stock, implying 43.36% upside potential, as indicated by the graphic above.
