ACORNS REVIEW 💰 Is The Acorns Investing App Legit?

TL;DR

Acorns is presented as a legit investing app that automatically invests purchase roundups in one of five pre-built portfolios, though the review does not guarantee returns. Plans cost $1 to $3 per month below $5,000 invested, while college students can use any plan for free. Read on to compare its automation, portfolios, rewards, fees, and limitations.

Transcript

• So in this video today, we are going to be doing a review of the Acorns investing app, maybe you downloaded the app already, maybe you're seeing the abundance of ads all over social media talking about this spare change roundup investing app. And honestly of all the different brokerage accounts out there personally I'm seeing more ads for Acorns ... Read More

Key Insights

• 🎯 Acorns is targeted towards individuals who struggle with saving and offers an automated solution for investing spare change.
• 💰 The app follows a dollar cost averaging strategy by regularly moving money from a checking account to an investment account.
• 😑 Investing in pre-built portfolios is a conservative and successful approach to investment, according to industry professionals.
• 🤑 Acorns offers retirement accounts, allowing users to grow their money in a tax-sheltered way.
• ✋ While the fees for smaller accounts can be high, Acorns becomes a more cost-effective option for those with larger investments or college students.
• 🕴️ The portfolio selection on Acorns is limited and may not suit everyone's specific needs, unlike platforms like Betterment that offer custom portfolios.
• 👻 Acorns does not allow individuals to invest in individual stocks, which may be a downside for those who prefer that style of investing.

Questions & Answers

Q: Is Acorns legit as an investing app?

The review presents Acorns as a legitimate investing app with clear features, pricing, and portfolio choices. It invests roundups in pre-built portfolios holding ETFs offered by BlackRock and Vanguard, but the transcript does not promise returns or say the app suits every investor.

Q: How does the Acorns investing app work?

Acorns rounds each linked purchase up to the next whole dollar and invests the difference after the required transfer limit is met. For example, a $1.75 purchase creates a $0.25 roundup for the investment account.

Q: How much does Acorns cost?

Acorns charges $1, $2, or $3 per month based on the selected plan. Once an account has over $5,000 invested, the review says Acorns switches to a 0.25% asset management fee.

Q: Is Acorns free for college students?

Yes, the review states that any Acorns plan is 100% free while the user is in college. It describes this as a way to get young people thinking about investing and retirement saving.

Q: What portfolios can Acorns investors choose?

Acorns offers five pre-built portfolios ranging from conservative to aggressive. The choices also include moderately conservative, moderate, and moderately aggressive portfolios, with risk and potential return increasing across the range.

Q: Can you buy individual stocks through Acorns?

No, the review says Acorns users do not put their money into individual stocks. They must choose one of the app's five pre-built portfolios.

Q: What are the main benefits of the Acorns app?

The review identifies automated saving as the biggest benefit, particularly for people who forget to transfer money or struggle to save. Acorns also offers retailer cashback deposited into the account, integrated debit and checking options, and retirement accounts through Acorns Later.

Q: What are the drawbacks of investing with Acorns?

Acorns is not free for most users, and its $1 to $3 monthly charge applies while less than $5,000 is invested. It also limits investors to five pre-built portfolios and does not support selecting individual stocks.

Summary & Key Takeaways

• Acorns is a spare change roundup investing app that takes the spare change from your purchases and puts it into an investment account.

• The app also offers a cashback rewards program where selected retailers deposit the cashback directly into the Acorns account.

• Acorns provides a debit and checking account integration, retirement accounts, and offers portfolio-based investing.