Acorns: Start Investing your Spare Change

Have you wanted to get in to investing but don’t know where to start?  Do you have trouble saving the amount to reach the minimums to invest in individual stocks or mutual funds?  Have you recently become interested in getting your feet wet in the market but not sure where to start?

If your answer is yes to any of those questions, then Acorns is a website that you should check out!  Here are the basics:

Site: Www.Acorns.com                         

Goal: Invest spare change automatically from everyday purchases into a diversified portfolio.  This is accomplished by linking your checking, savings, and even credit card accounts to their website.  Then each purchase will be rounded up to the nearest dollar and invested in stock portfolio designed for you.

Investment Options:  Each portfolio is comprised of six ETF’s based on your risk tolerance profile.  The various stock portfolio options are conservative, moderately conservative, moderate, moderately aggressive, and aggressive.

Minimum Investment Options: There is no minimum investment or account balance to start an Acorns account; however, in order for you to start investing your total rounded up purchases/or regular systematic investments much reach $5.

Fees: $1 per month for balances under 5k or 0.25% per year for balances above 5k; however, if you are a student or 24 and under using .edu email address, the fees are waived.

Additional support:  Acorns sends regular emails regarding investing basics and there is an app available on your mobile device.

After reading about Acorns for some time, I decided to try the site for myself.  The sign up process was very quick and easy!  It took me about 5 minutes to register with my personal information.  To start out, I provided my primary checking account number and routing number for the purpose of investing the “spare change” from each of my transactions.  There was also an option to set a reoccurring deposit of any dollar amount weekly or monthly but I skipped that part for now.

Selecting a portfolio was based on the following information:

  • Current Salary Range/Net Worth
  • Investment goals
  • Time Horizon
  • Comfort level of risk

Based upon the above information, acorns suggested that I start with the moderately conservative portfolio.  Despite their suggestion, I decided to use the moderately aggressive portfolio.  Below are the allocations that I was given:

acorns mod ag

All in all, I was looking for a way to get my feet wet in investing outside of my company sponsored 401k and other retirement vehicles.  Many “do it yourself” brokerage accounts require much higher minimum investments ($1000-$2000) but they also provide thousands of individual stock or mutual fund options.

Interested in trying acorns for yourself? Check out this link for an automatic $5 added to your account.

Have you tried acorns or any other similar platforms?  Share your experience below!

 

 

 

 

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