Acorns (The Good vs. The Risks)

ACORNS+LOGO

What’s Acorns?

It’s an app that has modernized the old school strategy of saving your loose change in an investment portfolio. It’s FREE for college students and under 24  however, it is $1 a month for a taxable account for everyone above 24.

How does it work?

If I go to Starbucks and buy a cup of coffee for $2.75 on my debit card, the Acorns app will “round up” my purchase to $3.00, thus taking $0.25 out of my account and storing it into an investment portfolio. Using Acorns, you can even elect to boost your “spare change” amount by as many as 10 times. So instead of investing $0.25, you can invest as much as $2.50 for that single transaction.

This approach is a great way to mindlessly save more – especially for those who are terrible at saving their money!

You can also invest lump sums manually (let’s say, $100) or recurring deposits on a daily, weekly, or monthly basis.

How you can earn “Fund Money” (Free money)

How this works: Every time you use your Acorns-linked debit or credit card at the select retailers below, that retailer will invest a portion of money into your Acorns investing account!

Pretty sweet deal!

Here’s a list of the current Fund Money participants and the amount they’ll contribute (As of 2018):

Screen Shot 2019-02-02 at 3.34.23 PM

Start Investing Now

The earlier you can start investing, the more compound interest has to work in your favor.

Acorns invests your money into a portfolio that consists of low-cost iShares and Vanguard ETFs funds that cover five to seven asset classes (real estate, large-cap stocks, small-cap stocks, emerging markets, and corporate and government bonds).

Risks

Okay, so you are probably wondering… “What’s the catch? This sounds too good to be true…”

Management Fees: long-term, a $1 a month fee may sound cheap, but this can be a high percentage for investors with small accounts. For example, having $100 in your account will cost you $12 a year, which means you could lose 12% of your portfolio.

Screen Shot 2019-02-02 at 3.38.08 PM

For context, Acorns competitors charge 0.25%; but these other “robo-advisers” have higher account requirements. (see comparison below)

Screen Shot 2019-02-02 at 3.43.33 PM

Is Acorns a good match for you?

If you want to make the most out of your spare change and get “free invested money” from popular retailers, there’s really no better starting point. You will be surprised how quickly your pennies can accumulate. The risk? By having a small balance, Acorns fees can cut into or wipe away your returns. Do your research and start investing in your future!

 

Make Today Count.

 

-Cooper

 

 

If you liked this article, check out a similar post that can teach you more about how to invest in an inexpensive way. Be smart with your money.

cooperbrunnerfitness

Hey Everyone! I'm really excited to announce that I will be officially starting cooperbrunnerfitness! To give a quick overview, I will basically be discussing concepts or frameworks I've learned through research that I believe are critical to learn to become a disciplined, successful individual in all aspects of life. Your probably wondering.. Why are you all of the sudden deciding to become a blogger? Well... For years I have been studying/reading about influential people (Warren, Gary V, Tony Robbins, Zuck, Jobs..) that began with nothing and incrementally worked their way into becoming successful entrepreneurs. My hope is that while writing these blogs, I can ultimately inspire you to change your life and conquer those challenges you face everyday that block you from your goals. By no means am I saying that everything I talk about is the magic secret to success, but by reading the content I write about, hopefully you can take away some small tips/advice that can help inspire you to create ways on improving your life and the others around you. MAKE TODAY COUNT.

This Post Has 2 Comments

  1. An interesting concept…Thank you for the follow 🙂

    1. No problem! Thanks for checking out my blog! Please write a review, I’d love to hear your feedback!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

×
%d bloggers like this: