If you are a professional, you can perhaps skip Acorns. Of course, it may not be the right platform if you are looking for retirement savings. Final verdictĪcorns is an excellent service in the micro-saving category. You can indeed begin investing without affecting your regular lifestyle. It can also be the right option if you have very little income and do not have much to save. In case you are someone who needs a nudge to begin investing, Acorns could be of interest for you. The roundups indeed accumulate fast, and you could be surprised to find your portfolio growing. If you want to make the best out of your spare change and get access to occasional cashback, Acorns should be a great option. (Image credit: Acorns) Is Acorns right for you? It can indeed be a great idea to gift high school students Acorns Gift cards: Want to bring someone onboard Acorns? This is an excellent option to make your friends or relatives start investing.This feature is available with the $2 per month fee Make sure you are eligible by checking with your tax adviser for any of the IRA accounts. Acorns Later: Acorns now offers RIA accounts as well.However, the feature would be a little costly as it involves a $3 monthly fee The feature lets you integrate your spending and retirement savings. Acorns Spend: This involves an FDIC insured checking account along with a debit card.The feature is available with $1 a month fee This can also be a great option to avoid overspending. Acorns Multipliers: This is a feature that helps you boost your contributions.Some of the features that Acorns offer you can be summed up as Considering that Acorns is designed for small savings, as a percentage of your pot this charge could be quite a significant cost. It charges a flat management fee which varies between $1-$3 a month depending on the features you want. One criticism, however, is the high cost. They currently have over 250 partners including Boxed, Expedia, Lyft, Nike and Sephora. You can either opt for the Tap and Get an offer with a purchase through your mobile phone or use the Simply Spend offer for spending by swiping your linked card as usual. The cashback bonus can range across 10 to 5 %. It lets you earn cashback if you spend money at any of the Acorns’ partners. The platform does not charge them any management fee in such a scenario for a period of four years.Īcorns also offer you a cash back reward option labelled Found Money. The target market for the platform basically comprises of students who have a valid. Who can invest in it? Practically anyone can, but the focus is on young adults who are entirely new to investment and kind of abhor it. Something akin to what we used to do during the olden days, where the spare change was stored in a jar and one fine day, was carried to the bank. Of course, it is a small amount but eventually adds up. Then it withdraws the difference – the spare change – from your linked account and invests it in the portfolio you have chosen.įor instance, if you made a purchase of say, $1.65, it will be rounded up to $2.0, and the difference amount of $0.35 is invested in the portfolio. What is a Roundup? Well, when you use your linked debit or credit card to make a purchase, Acorns rounds up the purchase to the nearest dollar. Moderately Aggressive and Aggressive: same as above, but with an increased risk factorĭepending on your time horizon and risk levels, you can finalise a genre of portfolio and link your credit/debit card with Acorns.Moderate: stocks, emerging stocks, real estate stocks and all above options with moderate risk.Moderately Conservative: Large and small company stocks, real estate stocks, government bonds, international stocks and Corporate bonds.Traditional: Short term Government Bonds, Ultra short term Corporate bonds, Ultra short term Government bonds. Some of the options you can invest in would be: The options for the different portfolios range across traditional to aggressive. Based on your responses, you will then get a recommendation for a suitable portfolio. You will have to download the app and answer a few questions that it poses to you.
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