Do pennies really add up over time? Find out whether the Acorns investing app is actually worth it.
While the concept of investing might be daunting, it can be easy when you approach it one step at a time. After a while, you’ll realize you’ve trekked quite an impressive financial distance.
If you’re looking for an easy and convenient way to step up your investment game, the Acorns investing app is the answer. Acorns provides everyone, no matter how much or little they have to invest, with a user-friendly platform to take advantage of investments through microinvesting. Keep reading for more on this Acorns review.
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What is Microinvesting?
Micro investing is the act of investing small amounts of money at a time for long-term gains. This strategy is often used by individuals who don’t have a lot of extra money to invest but still want to experience the potential benefits of investing. This method of investment is very profitable and low budget. In addition, it requires little time to process each transaction, and all funds accumulated can be accessed at any time.
What is the Acorns Investing App?
The Acorns app is an investment platform that allows users to start investing with as little as $0. The app rounds up your spare change and invests it into a portfolio of exchange-traded funds (ETFs).
An innovative team designed the application to help investors with little capital achieve their big goals over time. It provides several investment options that allow users to automatically stake bits of currency for each transaction made on a linked platform, card, or browser.
How Does Microinvesting Work With Acorns?
The Acorns investment app provides a variety of payment plans that make micro-investing more profitable with each tap of a button. Whenever you make a purchase with a linked credit or debit card, the app will automatically round up to the nearest dollar and invest that change into a diversified portfolio.
The beauty of this system is that it’s hands-off – once you link your cards and set your goals, the app does the rest. The Acorns team has created an algorithm that will automatically reinvest your money based on your investment goals, risk tolerance, and time horizon.
What Are the Benefits of Microinvesting?
Like any investment, micro-investing supplements other sources of income, and when investing with the Acorns investing app, you can expect that backup to be secured.
Investment grows your wealth despite inflation.
Over time, the value of investments generally goes up, whereas the purchasing power of cash decreases. This is due to inflation, which is the rate at which prices for goods and services increase over time.
While there are always risks associated with any kind of investment, micro-investing can help you mitigate those risks in several ways:
- By investing small amounts of money at a time, you’re less likely to lose everything if the market crashes.
- You can spread your investment across many different companies, which reduces the risk that you’ll lose money if any company goes bankrupt.
- The Acorns app will automatically reinvest your money based on your investment goals, risk tolerance, and time horizon.
- If you’re looking for an easy way to start investing, Acorns is the perfect solution. Acorns makes it easy to start building your nest egg with its user-friendly platform and automatic reinvestment feature.
Investments help you reach financial goals.
Investing is a critical component of building wealth over time. It allows you to grow your money while taking less risk than gambling or stock market speculation. In addition, micro-investing can help you reach your financial goals sooner than you think.
Whether you’re looking to retire early, save for a down payment on a house, or want to have a nest egg to fall back on, Acorns can help you get there.
Investments offer a financial cushion in emergencies.
No one knows what the future holds, but having investments can help you weather any storms that come your way. If you lose your job or have an unexpected medical expense, having a financial cushion can help you get through it.
What Are the Benefits of Acorns?
With over 9 million users investing through the Acorns investing app, several features make it an attractive investment tool.
First, there is no minimum balance required to start investing. This makes it easy for anyone to get started with Acorns, regardless of how much money they invest.
Another great feature is the ability to set up recurring investments. This means that you can automatically invest a set amount of money regularly without thinking about it each time. This makes it easy to stay consistent with your investment goals.
Additionally, Acorns offers a referral program that allows users to earn free money when referring friends to the app. This is a great way to grow your investment portfolio without putting any additional money in.
The Acorns app is a great way for anyone to start investing, no matter their financial situation. The low barrier to entry and hands-off approach makes it easy and convenient for busy people to invest small amounts of money on a regular basis. This consistent investing can lead to significant returns over time without putting any strain on your day-to-day life.
Pros and Cons of the Acorns Investing App
There are a lot of things to like about Acorns investing app. However, there are also a few things to consider before signing up.
Registering is a breeze.
Registration on the Acorns investing app is fast and easy. It can be done within 5 minutes and requires basic information you can easily access.
Acorns is secure.
One of the major pros of this investing app is that it protects all transactions and information of their users with top-notch security that banks rely on.
You don’t need much money to start.
This app is perfect for those who are new to investing and don’t have a lot of money saved up yet. In addition, the minimum amount required to start investing with Acorns is only $5!
The returns could be higher.
While the average annual return for the stock market is around 11-12%, Acorns’ returns are only about average. Of course, they try to make up for it with their low fees, but if you’re looking to maximize your returns, there are better options out there.
Acorns may not be available in your country.
Currently, Acorns is only available in the United States, Australia, and the United Kingdom. So if you don’t live in one of those countries, you won’t be able to use this app.
There are fees.
One thing to keep in mind is that Acorns charges a monthly fee of $0.25-$0.50 per month, depending on the account type you choose. This may not seem like much, but it can add up over time.
Should You Use Acorns?
If you’re looking for a simple and easy way to start investing, Acorns is a great option. It’s perfect for busy people who don’t have a lot of time to research investment options or monitor their portfolios. Additionally, the low fees and referral program make it an affordable option for those on a budget.
However, if you’re looking to maximize your returns, there are better options out there. Additionally, if you don’t live in the United States, Australia, or the United Kingdom, you won’t be able to use this app.
Alternatives to the Acorns Investing App
There are several apps to look out for when searching for an alternative to the Acorns Investing App. You can easily access them from the mobile app store, and they perform similar functions.
This app offers commission-free stock, ETF, and options trading. It also has a feature that allows users to trade cryptos like Bitcoin and Ethereum. Features and forex trading options are not part of this platform’s investment methods, but it still makes for a great source of investing small amounts for a return over time.
Webull is another investment platform that deserves a look, especially if your budget is precise and inflexible. This platform offers stocks, ETFs, and options for trading. It also allows for transactions through bank transfers.
This is a brokerage app that offers low-cost trades, zero commission ETF trades, and other options for trading almost any amount. It is owned by a trusted bank that provides tools to help investors better analyze the markets they hope to trade.
M1 Finance offers investors passive portfolio management, free stock tracking, and round-up change investing. However, they let you pick your investments and automate the rest. There is a $100 minimum and the service fee is $3 a month.
With Acorns Investing App, you can gradually accumulate a massive amount from little investments. The app is convenient and easy to use with a sleek design. It also doesn’t have much of a learning curve, making it perfect for beginner investors. However, there are some cons to consider before signing up, such as the fees and country availability.
There are also some great alternatives to Acorns that offer similar features and options. But, ultimately, the decision of whether or not to use Acorns comes down to your individual needs and preferences.
What are your thoughts on the Acorns investing app? Have you used it before? Let us know in the comments below!
Theresa is a personal finance blogger. She writes content for busy professional women to take control of their money and investments. She enjoys reading, traveling, cooking, and writing. Her work has been featured on GoBanking Rates, Your Money Geek, Savoteur, the Corporate Quitter, Thirty Eight Investing, and more.