Acorns App - A great way to invest spare change
I recently downloaded the Acorns app on my phone at the beginning of the month. I thought it was an interesting way to effortlessly save money. The idea is simple. Every time you spend money using your debit card, it rounds up your change and put its into an index fund. I opened up my Acorns app today and had over $100. Granted, this is not a large sum of money by any means, but it's kind of cool to see my change accumulate like this.
Does anybody else use this app? What are your thoughts?
First question that jumps out at me is what information you are giving access to, how is it protected, and who gave you the information for those answers?
It's a great concept in my opinion. One that I'd utilize if I was comfortable with the security of the product after doing due diligence
Just signed up yesterday. The fee structure is pretty fair in my opinion, the app is super user friendly and I'm looking forward to using it.
Am I understanding the fee structure right such that if I only have $20 in there for a while, I am still paying a $1 a month in fees? That seems high if you are only putting in the "loose" change.
@GeorgeMilesArnold
Yes, it's $1/month on balances less than $5000, then it's 0.25-0.50% of the balance annually (less than 5bps). The fee is high depending on the balance, but once your balance exceeds $1000, it's becomes pretty competitive with hih cost mutual funds. Considering you're not paying commissions on trading or rebalancing, it becomes equivalent to low-cost mutual fund annual expense ratios.
There are also ACH and Transfer Fees as well, but those are in-line with online brokerages I believe, so it's a wash.
It is a good secure app. I've done quite a bit of research into it. It is has the same level of security as any online brokerage account (Scottrade, e-trade). All are SIPC insured.
This sounds great for income-less college kids, but anyone making even average money should not need help to put away an extra $200 a year.
Never underestimate the power of compounding returns. If this app can help you save $200 per year with you not even realizing it, and assuming only average rates of return (7.5-11.5) that is an extra 90-400k at retirement. assuming a 20 years old starting (Income-less college kid) and retires at age 70 (BSD). I'll take that action any day.
this app sounds like a great thing to try out ... if only to encourage the habit of consciously investing larger amounts down the line..
Do I have to disclose Acorns account to firm. (Originally Posted: 01/09/2018)
Hi all,
I work at a BB as an analyst, and have been with my current firm for less than a year. I have an Acorns (Mobile app) investment account with a couple thousand in it, and was wondering whether I am required to disclose this to my firm. I am under the impression that I am not, since I can't transact individual stocks/ETFs and all I do is set aside some money on a monthly basis.
If I was required to disclose it, should I just close the account immediately and hope the firm doesn't find out somehow?
Any help is greatly appreciated.
Probably supposed to, but you're probably fine long term without saying anything.
Voluptate consectetur voluptas doloribus dolore. Inventore a et voluptatem consequatur et quia ut. Et a error sint explicabo aperiam.
Provident dolorum iste quasi quidem quidem sunt. Enim voluptatem pariatur minima quaerat cum rem laudantium.
Officia doloribus commodi vel cumque rerum quibusdam voluptate totam. Quam non velit dolores non rem doloribus.
Est non unde magni. Corrupti commodi omnis voluptatibus quia ratione. Sit nihil officia est. Labore officiis ex dolore eum commodi. Et necessitatibus deleniti porro nulla rem quo enim quis. Ea et voluptate veritatis modi autem. Voluptas fugit ut aut asperiores enim iusto nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...