Investing apps and services seem to be booming lately. However, when it comes to taking the concept of easy investing a step further and automatize investment strategies as much as possible, Acorns investing does it best. But before you run to their website and set up your profile, you should have a look at our review of Acorns Investing. In this essential guide, you’ll find all the information you need to decide whether this service is the right fit for you.
What Is Acorns? (Review of Acorns Investing App)
Acorns Investing is one of the several app-based investment platforms you can find in the market. What makes it unique is its concept of using spare change to invest. To put it simply, the application rounds up your transactions and invests those cents into a diversified portfolio. All without you having to do anything. The app’s idea is to remove anxieties and mental blocks to become investors and simplify the whole process.
In this review of Acorns investing, we need to talk about the pricing; Acorns currently offer its services at three pricing levels: the Lite, Personal, and Family profiles ranging from $1 per month to $5 per month for a family profile. It is worth mentioning that aside from that monthly fee, there are no charges on transactions on Acorns.
The app is easy to use and offers efficient customer support, available seven days a week from 6 a.m to 7 p.m.
The Pros of Acorns
In this review of Acorns investing, we want to discuss pros and of course, cons of using the App. But first, the pros; The app offers portfolios ranging from conservative to aggressive. The system suggests the best fit for your characteristics. Once you’ve linked your debit and credit cards to your Acorns account, the investment of spare change will be automatic. The application will take care of it all, which takes away a lot of stress. Plus, the amounts taken from your account are so small, you won’t even notice they are missing.
Removing Complexities of Investing
The application, therefore, takes away all of the complexities of investing. The idea is that you don’t need to understand economics and financial theories to use Acorns.
Another big win for the app is that, contrary to other similar services, Acorns Investing does not require a minimum deposit to start using it. Furthermore, if you are a new investor, you might appreciate the educational content you’ll find in the app. Their videos and articles are useful to make sense of the world of investment. Also, you’ll get some advice on personal finance, credit cards, and loans.
The Cons Of Acorns Investing
As with many things in life, not all is rosy about the application. We have to include all of the drawbacks of the service in this review of Acorns Investing to give you a good overview of what you’ll encounter.
One considerable drawback of Acorns is the possibility of losing money, even when investing in rather conservative portfolios. After all, Acorns is an investing platform, not a savings account. Also, because of the small quantities managed by the app, it is unlikely you’ll be able to save the 10-25% per year you need for your retirement goals.
Limited Investing Range
The portfolio you’ll find in Acorns is smaller if you compare it to other applications. Also, it’s usually made up of low-cost iShares and exchange-traded funds, which might feel restrictive to more experienced investors.
The Bottom Line: Review of Acorns Investing
It is no doubt that Acorns and similar apps have contributed to making investing more popular. If you are new to investing, you should consider getting an Acorns account: you’ll be surprised to discover how quickly your pennies can accumulate. Acorns is an efficient way to save and invest little money that you would spend on other things. Still, investing is not for everyone, so think twice before setting your account, as you might lose money.
It is important to point out that Acorn’s fees might wipe away your investment returns due to the little balances.
Overall, Acorns Investing can help you start nudging yourself into investing without causing overwhelming changes in your lifestyle. Acorns investing is a good choice for boosting your savings and opening your path to investing. In general, it is fair to state that Acorns is good for you if you are looking to automate investing as much as possible and if you value simplicity over other elements (such as variety in portfolios).
My Final Take
Whenever you select a new way to invest, it’s really important to look at all the facets of that program. Personally I do use the Acorns Investing App for a small portfolio. I like that they use ETFs in their portfolios. Acorns has taken the thought out of picking ETFs and custom tailor a portfolio for each individual. In this review of Acorns investing, we see that the portfolio is still managed and there are fees as stated above. Be careful with the fees that it doesn’t take away from you gains. You might even want to compare this option with Betterment Investing.
How To Generate Consistent Cash Flow
That being said, I’ve stated in many other articles and on my YouTube videos, paper assets are only one piece of the puzzle. It’s important to have multiple streams of income. This way you can have consistent cash flow to fund any investment you are interested in. The best way to do that is to start a side hustle or a side business. My personal choice is in digital marketing.
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If we are generating multiple sources of income and cash flow from multiple assets, it can make saving and investing much easier.
Cheers to your success and See you at the Top!