Acorns is a new way to save your loose change. Since most people use debit or credit cards instead of cash, you can’t just toss your old change into a jar and save your pennies anymore. Even if you still save your change, you have to roll it up and take it to the bank before you can invest. With Acorns, you can start saving money and invest quickly. In this Acorns review, we will cover some of the benefits and drawbacks to this new program.
Acorns Review: How It Works
There are several different ways that Acorns can help you invest. One of the main ways is through round-ups. When you start your account, you link it to your debit or credit cards. Every time you spend money, you can round it up to the next dollar. You can also add a multiplier so that 2, 5 or 10 times your change amount is added to your account. This is a painless way to start investing in the future, and you don’t even notice that the extra money is being taken from your account.
You can also increase your investments by adding one-time or reoccurring investment amounts to your account. If you set up your account to transfer $10 a week, your Acorns account can have a $520 balance in a year.
The entire account is computer-managed, so you do not have to pick stocks or bonds. When you start the account, you choose the type of investments you want based on your risk tolerance. The program also helps you choose your risk by looking at when you plan on withdrawing the money. If you need the money in just a few months or years, your risk tolerance is less because you need the cash sooner. When you plan on holding your investment for decades, your account can tolerate a higher level of risk.
One of the newer options for Acorns is the Acorns Later program. This option allows you to start a retirement account using the same spare change and small investments. Like the normal Acorns investment account, you are able to choose your risk tolerance. If you are a college student with a .edu email, you can skip the monthly fee. If you use Acorns Later as a normal investor, then it costs $3 a month.
Acorns Review: Is It Worth It?
It depends on how much you have in your account and your investing style. Many platforms charge a percentage of your investment. When you have a large investment, this can quickly add up. Acorns charges a management fee of $1 a month for your account. If you have enough money in your account, then this is a much better deal. If you only have a few dollars in the account, then this amount can cut into your investments.
Acorns is currently offering a sign-up bonus of $5, so you can try the account for five months without the sign-up fee actually coming from your own money. If you want to sign-up, go to this link here to get started.
Acorns is also useful if you are not currently an investor and have problems setting aside the money you need to invest. Most investment programs require a minimum investment. With a site like Vanguard, you may need $1,000, $3,000 or more to get started. If you are struggling to get this amount, then Acorns is a good alternative. It allows you to painlessly invest money in the stock market. Once your investment grows, you can transfer the money to Acorns Later for a retirement account. The Found Money option also lets you get cash back when you spend at more than 100 companies, which is a great way for your spending to automatically help your financial future. The website and platform is easy to use,
Is Acorns the Right Choice?
The Acorns Review verdict: Yes and No. If you want a hands-off approach that lets you get retailer kickbacks and invest your spare change, then this account is a good option. This program works best if you want your spare change to start working for you. If you already have a large amount of savings, then there are other investment options that offer more options. Acorns’ fees can cut into your balance if you only have a few dollars in your account, so keep that in mind as you start saving. If you are looking for an automated investment option that works for a small budget, then Acorns will work fairly well.