Acorns is a stock investing app that has many special features customized for the beginner investor. Its main selling point for customers is their specialized “round up” feature. If you connect your bank account to the app, they will monitor your personal bank account and round up every dollar spent and use the cents toward your stock account.
For example: If you bought a cup of coffee this morning that cost you $2.75, Acorns will round up to the nearest dollar to $3.00 and place the $0.25 cents towards your stock portfolio to be invested.
(Another example presented by Acorns)
- Acorns will charge you $1 a month for holding an account under $5,000 ($12 a year).
- Any account over $5,000 will be charged 0.25% on your overall account balance.
Simplified, Acorns does all the work for you. When you sign up for a free account, you will be asked a few questions that will customize your investment portfolio. You will be able to choose your investing style from categories that range from conservative, moderate conservative, moderate, moderate aggressive, and aggressive. These customized stock portfolios will have a range of investments from government bonds and real estate stocks to corporate bonds and emerging market funds.
Acorns also have a few new features such as Acorns Spend (checking account), and Acorns Later (retirement investing account).
In my humble opinion…
This is a very simplified way to invest into your stock account, however, I didn’t make many purchases and I found that it was best for me to add my own money instead of using their automated feature.
Acorns use stock advisors form Vanguard and Blackrock to customize their managed portfolios. This is exceptional, however, Blackrock’s ETF’s at times has higher fund management expenses that may give your a less return from other ETFs.
Also, I prefer taking charge of my own investments and arranging my own stock portfolio. Acorns didn’t give me the liberty to add or take away any stocks.
This app is best for the new investor that doesn’t want to put a lot of time into studying the market. If you find yourself in the position with a very busy career or you find the stock market confusing but you still want to invest, this may be an application for you to try.
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