What Is The Acorns Investment App & How Does It Work?
Investing on a regular basis can generate large long term returns, so we're told by top investors. But what if you don't have much money to begin with? Where can you start? And how will you know what to invest in?
Well, whether you have little money to begin investing, or you have a lot to invest, this article will give you some insight on a revolutionary way of making a great return on your money.
In this article i'm going to review the acorns investment app, and show you how investing with little money can generate amazing results and return on investment. I will cover the pro's and con's of Acorns, as well as any fees, and common questions you may have asked. My ultimate objective is to help you determine whether it is a smart tool for you to begin using, or whether you have a better option out there.
Acorns Investment App Overview
Min. opening deposit: $0
Min. amount to invest: $5
Target Audience: Anyone who struggles saving money, or anyone looking to diversify and grow their net worth. Both beginning and expert investors can benefit.
What is the Acorns Investment App?
Acorns is a simplified investment company created with the intent of making it easier for people to save money automatically, and allow people to take part in stock market gains with little money.
They do this by linking your new Acorns account to your bank account and rounding up any purchase you make, investing the rounded up change from a recent purchase. For example, lets say you stop at a local grocery store to purchase some milk and eggs, costing you $7.40. Acorns would round up the purchase to $8.00 and invest the extra $0.60 for you.
When you open up your Acorns account, they will ask you a series of questions to help determine which of their 5 investment portfolios fits your goals. Each of the 5 portfolios include a mix of stocks and bond investments, ranging from a conservative investment approach (less risk) to an aggressive investment approach (higher risk).
Along with the ability to “round-up” your day to day purchases and invest the extra change, you also have the option to set up automatic investments on a recurring basis starting with as little as $5 each recurring transfer. You even have the ability to make a one time deposit into your account if desired.
Acorns Found Money – Free Cashback
The “round-up” investments of your daily purchases isn't what's most fascinating about opening an Acorns account. Acorns has partnered with some of the largest retail companies such as Walmart, and Apple. When you make a purchase at one of their partnered companies such as Walmart or Apple, that company will deposit a percentage of your purchase back into your Acorns account. Yup…free cash back! And it's not even a credit card cash back program!
Some of the partner offers like LifeLock will give you $25 into your Acorns account for setting up identity fraud protection insurance to monitor your credit, bank accounts, and watch for fraudulent activity done under your name.
Each partnered company has a unique offer, and allows for real cash back simply for being a client of Acorns. Some offer as low as 1% cash back, while others will even offer up to 20% cash back, or a set dollar amount when purchases are made with that company.
Some of the main retail companies who have partnered with Acorns are:
- Apple (And Apple Music)
- Banana Republic
- Barnes & Noble
- Bed Bath & Beyond
- Blue Apron
- Choice Hotels
- Dollar Shave Club
- Game Stop
- Liberty Mutual
- New Balance
- Norton Security
- Sams Club
- The Wall Street Journal
- Stitch Fix
- The Honest Co.
- 24 Hour Fitness
Are there any fees associated with an Acorns account?
Acorns has done a great job at making it very easy and convenient to to begin investing. As with any investment bank, there are associated fees, but fear not because they are so small you won't even notice they exist. Acorns fees are as follows:
For accounts with balances below $5,000: $1 per month
For accounts with balances above $5,000: 0.25% of your account balance per year
In other words it's $12 per year for accounts under $5,000, and $12.50 and above for accounts over $5,000.
Is The Acorns Investment App Worth It?
If you are a beginner investor looking to get started in investing, Acorns is a great option. Their easy to use platform and choice of 5 different portfolios make things simple and automatic.
If you are looking to find some added ways to make some true passive income, Acorns gives you access to some of the most popular retail stores cash back which is essentially free money. If that's not passive income, i'm not sure what is!
If you're a wealthy investor wanting a simplified platform that is well trusted, and totally controlled by you, Acorns gives you a great platform to add to your portfolio.
Passive income is my passion, and I believe there are many ways that ANYONE can get started growing their wealth through passive income streams. Click here to see my top recommendation on passive income and making money on the side to grow wealth.