Acorns is revolutionizing the way we save our spare change. It is a fresh new take on dropping your pocket change into a jar at the end of the day. The app rounds up purchases that are linked to your debit or credit card, then the app places these “roundups” in an investment portfolio.
By no means will Acorns make you wealthy or speed up your retirement savings at first but it is a great app for people who struggle to save. You can sign up via this link to receive $5 when you open a new account.
What’s so great about Acorns? Well, let’s dive into this Acorns review and see why it is worth downloading.
Founders: Walter & Jeff Cruttenden
Fees: $1 per month for accounts over 5k; 0.25% for accounts over 5k
Promotion: Use this link to receive $5 for opening a new account. College students can invest for free up to four years.
Who is Acorns great for?
- College students considering no fees for four years
- People who struggle to save
- Some who wants to save for a major purpose
- Short term investing
- Long-term investing
- Hands off investors
The benefits of Acorns
Automated approach – Once your account is set up, there is little to no maintenance on your part. You select which investment approach best fits you and then you are done. At any time, you can deposit lump sums of cash into Acorns or if you would rather, you can set a recurring investment of $5,10,15, etc. on a weekly or monthly basis.
Minimum investment – There is no minimum requirement to start with Acorns, but the app does need a $5 investment into one of the five portfolio types to start.
Found Money – When you buy from your favorite retail online, that retailer will make an investment on your behalf, as long as you used the card that is linked to your Acorns account. You simply log into Acorns, go to the retailer you want to shop and when you buy, that retailer will invest in your account within 30-60 days. Retailers will be investing for you.
Acorns has partnered with over 100 major retails and companies who are willing to invest for you. Companies like Apple, Beats by Dre, Airbnb, Zeel, Uber, Hurley, GNC, Fandango, and the list goes on.
Portfolio Types – There are 5 pre-built portfolio types. All you have to do is select which one best suits your investment strategy. Don’t know if you should invest moderately or aggressively? Acorns can help and make a recommendation.
Educational Resources – Acorns is a thought leader and will help anyone who is new to investing or seasoned. The app always has new content about credit card debt, investment types, loans, and all types of financial advice.
The downside of Acorns
Management Fee – You might say that 1 dollar is no big deal but if you for an entire month you only invest 10 dollars, 1 dollar is going to be taken as a fee. That is 10 percent of your monthly deposit. If you invest over 5k, that industry standard is 0.25% so there is no worry there.
If you are going to use Acorns, we suggest trying to use it a way to save money every month. Try to aim to save 50-100 dollars a month as that will dramatically reduce the percentage taken from the dollar fee each month.
Account Options – You only have 1 option for the type of account you set up. That is a personal taxable brokerage account. Hopefully in the future Acorns will roll out other types of accounts for people who age with the platform and want to be able to deduct taxes from capital gains or losses.
Which portfolio is for you?
There are 5 portfolios you can pick from. Acorns will make a suggestion depending on the answers you gave to the questionnaire and the settings.You can always change your investment portfolio from aggressive to moderate or vise versa.
Here are two of the portfolios to give you an idea. We personally like the Moderately Aggressive portfolio. (Moderately Aggressive portfolio is not shown here)
Is Acorns for you?
If you want to make the most out of your spare change, then this is the best app for you. If you also want the occasional investment from retailers when you shop, this is for you.
Acorns makes investing easy and fun. Those who have trouble saving or find investing to be boring will have no problem using Acorns.
You might be shocked how quickly your pennies start to stack. Use this link to receive $5 when you open a new Acorns Account.