Is Acorns Worth It for New Investors?
Is Acorns worth it or not? The original king of micro-investing has an ever-growing user base and high-profile investors. However, can you really make money with this all-in-one financial application?
Is Acorns Worth it for You?
Acorns launched in 2009 as a way to invest your spare change. Since its release, the investment app has received generally positive reviews and a long list of celebrity investors. And it’s now expanded into a complete financial application.
You have almost certainly seen an Acorns’ commercial with Ashton Kutcher gushing over its potential. He is one of many celebrity investors, which includes Jennifer Lopez, Alex Rodriguez, Kevin Durant and music icon Bono.
The list keeps growing as the company continues to grow in popularity. As of 2020, Acorns has over 8.2 million users and over $3 billion in assets under management.
But is Acorns worth it for new investors? It’s actually a perfect entry into investing. And the company targets a younger demographic for that exact reason.
When you setup an account, Acorns will ask you about your general information and financial goals. Next, it will recommend an ideal portfolio for you that considers your risk tolerance, age and financial timeline.
And it will automatically invest your spare change into the portfolio. This is how it works: Every charge to your bank account will be rounded up to the next dollar and Acorns will invest the difference.
For example, let’s say you have a $9.50 charge to your bank account for lunch. Acorns will round it up to $10.00 and invest the $0.50 difference. There are no account minimums though it’s recommended to load the account with a little money when you sign up.
Acorns All-In-One Features
Acorns rose to stardom due to its spare change investing. However, it has grown into a fully-fledged financial app. So, is Acorns worth it to sign up and begin investing?
The company now offers you the ability to setup your own checking account or save for retirement. In addition, you can invest money for your children through a custodial brokerage account.
There are three different account types, which vary in pricing and give you access to different features. These include:
- Lite Account: $1 a month for access to spare change investing, bonus investments and investment education.
- Personal Account: $3 a month for all-in-one investing, retirement and checking. You also receive a metal debit card and more.
- Family Account: $5 a month for all-in-one investing, retirement, checking and investment accounts for kids. You also have access to exclusive offers and content.
Each account option is relatively cheap in comparison to most robo-advisors and online brokerages. And it’s a great way to learn more about investing and “get your foot in the door” so to speak. Many young investors use Acorns to gain a better understanding of the market while growing their portfolio in the process.
Acorns Review
Visit our Acorns review for a complete breakdown of its features, costs and more. In fact, there are a wide variety of investment apps to consider for your portfolio. Each has its own set of benefits that best suit the needs of certain types of investors. And Acorns is perfect for novice users that are looking to create a low-risk portfolio while learning about the stock market.
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Is Acorns worth it for you? It may not be for everyone, but it’s a great opportunity for young investors to begin their investment journey.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.