Have you been fighting with yourself regarding investments? Not sure whether you are up for scheduling an appointment to discuss such matters with an advisor? No problem, developers behind an app called Acorns are on a mission to make investing easy and accessible. Captivatingly, on Google Play alone, the app has amassed 4.5 out of 5 stars over 201,917 reviews. Without a doubt, the statistics caught our attention, and so, here’s an at-length analysis on Acorns.
What is Acorns?
Acorns is an app designed to help individuals save for their future. What makes it unique? As put by Forbes, this app proves investment is open to all. Additionally, Acorn offers services for investors who appreciate ETFs and cryptocurrency (such as Bitcoin) and want to set themselves up for a comfortable retirement. Interestingly, this app can also be used to access the bank and accumulate rewards for over 12,000 brands. The developers created Acorns with one mission in mind: “We look after the financial best interests of the up-&-coming, beginning with the empowering, proud step of micro-investing.” In accordance with everything, the time has finally come to assess its listed features.
What can you do with the Acorns App?
From our introduction, individuals are likely to have understood the endless possibilities with Acorns. For clarity, here’s a summary of each investment/learning opportunity at hand:
Invest Spare Change with Round-Ups®
With Acorns’ Round-Ups® feature, individuals can invest spare change, which will be invested into one of their diversified ETF portfolios built by experts on the team. Starting with $3 per month, funds will be distributed for long-term money goals. Their portfolio rebalancing is an automatic way through which individuals are presented with a chance to grow their money without even thinking. This is ideal and finally puts manual rebalancing behind us.
Upon browsing through the app, one will notice the recurring investments option. At just $5 a day, week or month, individuals can tap into the power of dollar-cost averaging (DCA). DCA is an investment strategy where investors divide the total amount to be invested across periodic purchases. Some noteworthy benefits include minimized risk and impact of volatility and lower cost than average price. This guarantees profits by no means, but the general idea is that regular investment amidst fluctuating price levels is far more advantageous than a one-time purchase.
Within a few taps, the Acorns app will recommend an IRA and portfolio most suitable on an individualistic basis. Once selected, recurring contributions can be made for as little as $3 per month. The beauty of setting up a retirement account with this app is that small amounts, as little as $5, can be invested at a time. Our research suggests that the main types of IRA can be accessed via this app (e.g., Roth IRA, traditional IRA, or SEP-IRA).
Invest for Kids
In under 3 minutes, kids can now open an easy investment account with the Acorns family. With potential tax advantages, multiple kids per family can be added at no extra cost. As for the benefits, there are exclusive savings and more considerable bonus investments from partners like Disney+ and ABC Mouse, not to forget UTMA/UGMA accounts where funds deposited as a child can be transferred when grown up. Unlike the 529 used for education, the UTMA/UGMA account can be used for anything that benefits the child.
Sustainable ESG Portfolios
ESG stands for environmental, social, and governance. Acorns Sustainable portfolios are made of ETFs designed to provide exposure to more sustainable companies while aiming to perform on par with a traditional portfolio. Why choose this type of account? At the height of the COVID crisis, net new assets into ESG ETFs supposedly grew by $900 million. With Acorns, investors will get signals of ESG-friendly companies.
Through the Acorns app, individuals can invest in fractions of Bitcoin. The team will allocate up to 5% towards a Bitcoin-linked ETF for further diversification. Our editorial team was fond of this account’s conservative as the lowest, and highest risk levels are 1% and 5%, respectively. In justifying why Bitcoin is yet another strategy for diversification, the team said, “Assets with low correlation tend to move in different directions. For instance, when stocks are up, Bitcoin or a Bitcoin-linked ETF tend to be down.”
Finally and most desirable to us is the section on Education. There is an article on every conceivable topic regarding investing, risk-return relationships, portfolio rebalancing, modern portfolio theory, market benchmark, bear and bull markets, types of interests, dollar-cost averaging, passive investing, fractional shares, and types of debts, among others.
How much does it cost to get started with Acorns?
There are two primary pricing options to choose from. Listed below are their respective features:
Personal Pricing Option ($3 per month)
- All-in-one investment, retirement, checking, a metal debit card, bonus investments, money advice, and more.
- Access to the Invest (Round-Ups®), Later (retirement accounts), and Banking accounts
Family Pricing Option ($5 per month)
- Investment accounts for kids, plus personal investment, retirement and checking accounts, and exclusive offers and content.
- Access to the Invest, Later, Banking, and Early accounts
Acorns is an investment app open to practically everyone. What drew us closer to this option is access to unique accounts, elaborate education, and affordable minimum investments. The pricing options for the available accounts are also quite desirable, permitting people of all financial backgrounds to test the waters. While their presentation is stellar, mixed reviews can be found online. The positives range from works as intended to a great concept. However, many people were dissatisfied with rising fees, difficulty pulling out money, and canceling selected plans when it comes to the negatives.
At the end of the day, individuals need to assess their goals. Is it to generate significant profits or to get into the habit of saving? The latter thought process is far more suitable for a beginner-friendly app like Acorns than the former. To learn more about Acorn and how it works, visit the official website by clicking here! >>>
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