Get your first $5 free when you register
Investments are an essential part of a sound financial plan, but it can be hard to figure out where and when to begin. Acorns is a micro-investing tool that offers a unique way to grow your wealth by allocating your virtual spare change to stocks and fixed income securities in a personalized investment portfolio.
Minimum deposit to open
$1 per month
|Annual fee||$1 per month|
|Minimum deposit to open||$0|
|Available asset types||Stocks|
|Available asset classes||Real estate|
Emerging market stocks
Emerging market bonds
Think of it this way: If your morning coffee costs $2.29, by the end of the year, Acorns will have invested $259.15. Imagine if you drank two cups a day!
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|18 Jan 2019||Get your first $5 free when you register||********|
Here’s a simplified explanation of how to get up and running with this micro-investing tool:
When you sign up, you’ll choose a portfolio that meets your investment preferences. There are five diversified portfolios available, each consisting of a mix of Exchange Traded Funds (ETFs) quoted on the S&P 500 or Dow Jones Industrial Average. These diversified portfolios are constructed by an investment committee that is assisted by Nobel Prize-winning economist, Dr. Harry Markowitz.
The unique benefit of Acorns is a feature called Round-ups that allocates and invests your spare change automatically. Anytime you make a purchase, your transaction is rounded up to the nearest dollar and the change you would have had is added to your Acorn account to be invested.
You can set your methods for investing, withdrawing or depositing money from your account at any time. Plus, with Acorns Grow, you can even set up recurring deposits to help your account grow faster. Any activity within your account, like withdrawals or deposits, will start corresponding transactions that work to automatically rebalance your account so it stays within the risk tolerance of your chosen portfolio.
After you’ve set up your account according to your preferences, you can simply sit back and watch your money grow. All eligible transactions will be rounded up to the nearest dollar and invested, and Acorns will balance the ETFs according to market fluctuations. Plus, your money is kept safe as it grows with bank-level security and up to $500,000 in coverage by SIPC deposit insurance.
Best of all, every Acorns account comes with extra perks. Grow by Acorns is a comprehensive personal finance blog and magazine that provides tips, stories and other relevant info. On top of that, members get access to the Found Money program, which gives you cash back for your investment portfolio when you make a purchase at over 100 participating companies.
Acorns Later is a variation of the standard Acorns investing tool. It works just like Acorns but instead of accumulating wealth in a savings account, your spare change and other contributions are placed into a tax-advantaged IRA. Since retirement is different for everyone, Acorns will help you find an IRA and portfolio that suit your financial situation and long-term savings goals.Back to top
The financial service offers a flat fee for usage rather than an annual percentage of your account balance. No matter how much money you have in your account, there will only be a maintenance fee of $1 per month.
Compared to other micro-investing companies, Acorns‘ pricing is quite reasonable. However, keep in mind that the $1 fee will account for a higher percentage of your contributions if you’re only making a few transactions per month. For example, if you make 10 transactions with an average round-up of 25 cents, you’ll only be investing $2.50, so that $1 fee is effectively 40%. However, if you were to make 100 transactions with an average round-up of 25 cents, that $1 fee is only 4% of your overall contribution that month.
You can get Acorns Core + Acorns Later for a total of $2 per month as long as your balance is under $1 million. Once your balance exceeds that amount, you’ll pay $1 per month for Acorns Core, plus $100 per month per $1 million invested with Acorns Later.
Many companies make it possible to start investing from a young age, but it’s not every day that you find a product that does this by saving and investing your spare change. Acorns will automatically invest your spare change into a diversified mix of ETFs, each representing a different asset class.
While there are a handful of micro-investing tools out there, Acorns is one of the more popular ones for a number of reasons:
Am I actually investing in my future with Acorns? Absolutely not. I’ve been a member for over a year and have accrued just over $800 from a recurring $10 monthly deposit, including Round-Ups. After a few months my all-time total gain/Loss is $25.93, or +3.38%.
I originally thought I’d use Acorns until I was 40 to save up for a boat. But at this rate I’m only projected to have $6,395 by then — so it’s back to the drawing board.
I’ll likely pull out my money within the next few months and dump it into my 401(k). Acorns might work for someone who is investing more of their money, but it doesn’t seem right for my situation.
In order to sign up for an Acorns account, you’ll need to meet a few eligibility requirements:
When you sign up for an account, you’ll be asked for the following information:
The financial service offers dedicated support through email and phone at: (855) 739-2859, available between 6:00 am-5:00 pm PST, Monday- Friday. You can also contact the team through their Twitter, @Acorns.
Now that your account is all set up, you’re ready to start investing. Here’s how to get the most out of your Acorns account:
If you’re interested in investing but don’t know where to start, Acorns might be right for you. This low-cost micro-investment service rounds up your purchases to the nearest dollar and invests the spare change in a personalized portfolio. You’ll get to choose from five portfolio options to find an investment strategy that meets your goals and risk tolerance, and you can even set up recurring deposits to grow your account faster. It might not be the right service if you’re looking for a more hands-on approach to investing, but you should compare your options anyways to find a product that suits your needs.
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