One obvious question: How does a $3 per month fee compare to what you might pay for a robo-advisor investment account at a competitor? Here are a few examples: Plus, the ability to open investment accounts for kids (UTMA/UGMA custodial accounts). There's also a $5 per month Acorns Family plan option that allows you to have multiple separate accounts. This fee includes the ability to set up a non-retirement taxable investment account, a retirement account (IRA), and banking products, including a checking account and debit card, should you wish. While it launched with a monthly fee of just $1, the subscription price rose to $3 per month last year for the basic plan. Perhaps this is where Acorns falls short. Is There a Cost to Using Acorns?īut, of course, everything has its price, and so does Acorns. There's also a selection of financial literacy-themed blogs on the site, albeit somewhat limited. You can use Acorns to invest in a taxable (i.e., non-retirement) account or open an IRA through Acorns. There is no minimum balance to get started with an Acorns account. To be clear, the round-up feature will probably not be how you reach your dream of financial independence.īut it's (1) kind of fun and (2) may be the extra kicker that motivates someone to become interested in investing who was not really into the idea before.Īs an Acorns subscriber, I amassed about $500 in my Acorns account exclusively through round-ups over 11 months. You’ll earn bonus investments from retailers including: There's also the ability to earn extra investment through merchants allied with the Acorns platform who deposit a set amount or percentage of your purchase into your Acorns account. You can also add an automatic multiplier to increase your round-up amounts.) (As a practical matter, round-up transfers are grouped into batches of not less than $5.00. In addition to one-off transfers, mobile check deposits, and regularly scheduled direct deposit or recurring transfers from your bank to Acorns, you can link your Acorns Invest account to your debit card and credit card.ĭoing so enables every spending transaction you make to be rounded up to the nearest dollar, with the “excess” deposited in your Acorns account.įor example, your $78.56 total at the grocery store checkout results in a deposit of $.44 in your Acorns account from your linked bank account. Where Acorns Invest diverges is in the various ways you can send money to your Acorns account for investment. So far, it’s much the same as you might have experienced with other robo-advisor services. Unlike a purely DIY approach, the Acorns investment app will automatically rebalance your portfolio as market prices fluctuate, ensuring that your investment portfolio retains your desired asset class allocation in line with your overall investment strategy. Most recently, their investment options have broadened to include an ESG (environment, social, governance)-themed ETF option.Īfter downloading the investing app and setting up a user account, you’ll be directed to complete a short survey to gauge your investment risk preferences and financial goals.īased on your response, the Acorns computer algorithm proposes a diversified portfolio that mixes a variety of ETFs holding the securities suited to your parameters, from aggressive (mostly stocks) to conservative (primarily bonds). Through Acorns, one can invest in a range of low-fee ETFs (Exchange Traded Funds), representing both equities and bonds. Sign up with Acorns, and get a $20 bonus! Like its competitors, such as Fidelity, Vanguard, Betterment, E*TRADE, and newer rivals like Robinhood and M1 Finance, Acorns simplifies the path to investing by offering a user-friendly interface.Īnd in Acorns’ case, extremely low barriers to entry. Should you be one of them? Using Acorns to Invest With celebrity backers such as Ashton Kutcher, Dwayne Johnson, and Kevin Durant (plus a host of well-known corporate names), Acorns’ website reports it has grown to 9 million subscribers. Through the Acorns app, you can bank, save, and start investing with just your spare change or more. Among the various popular investment apps, one of the buzziest is surely Acorns.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |