Investing on a Budget: Is Acorns Worth It?!
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Acorns is a popular investment platform that has gained a lot of attention in recent years. This micro-investing platform is ideal if you’re on a budget because you’re able to invest your spare change automatically. Here’s what you need to know about Acorns Invest, including how it works, the benefits of micro-investing, and how to get started with only $5
What is Acorns Invest?
Acorns is a micro-investing platform that’s perfect for beginner investors. It rounds up your purchases to the nearest dollar and invests the difference in a portfolio of exchange-traded funds (ETFs). It’s designed to help people with little money start investing, and it’s also great for people who want to invest, but don’t have the time or knowledge to manage their investments actively.
Acorns Invest acts as a robo-advisor. It does all the hard work for you, so you can sit back and watch your portfolio grow.
How Does Acorns Invest Work?
To get started, you’ll need to create an account and link your bank account. After answering a few questions, Acorns will recommend a portfolio that suits your investment goals and risk tolerance. It’s really that simple and straightforward. As a bonus, if you sign up using my invite link (here), Acorns will give you $5.
I’ve been using the platform for over three years and I was able to set up my account in just a few minutes. Keep in mind, you have to “opt into” the round up feature. Once you do so, Acorns will start rounding up your purchases to the nearest dollar and investing the difference. I love this feature because investing small amounts adds up over time.
Along with round ups, you can make one-time and recurring contributions into your investment account at anytime starting at $5 – which is perfect if you don’t have a lot of extra money.
Acorns Invest offers five different portfolios to choose from, ranging from conservative to aggressive. The portfolios are made up of ETFs and track specific markets and sectors. Acorns Invest will automatically rebalance your portfolio periodically to ensure it stays on track.
Other Useful Information
Acorns is not a bank, but rather an investment account. Monthly fees start at $3 a month, and there are no transaction fees or commissions – making it an affordable option for those on a tight budget.
Acorns Invest also offers a range of additional features, such as Acorns Later, which is a retirement savings account, and Acorns Spend, which is a checking account with a debit card that rounds up purchases and invests the difference.
Bottom Line: Acorns is an excellent platform for people investing on a budget because they don’t need a lot of money to get started. So what are you waiting for? Sign up now and start investing your spare change!
FAQ
Is it worth investing with Acorns?
If you’re new to investing and want a simple, hands-off approach to growing your money, Acorns could be a good fit for you. However, if you prefer to have more control over your investments or you have a larger amount of capital to invest, you might consider other investment platforms that offer more options and flexibility.
What is an Acorns Invest account?
Acorns is a type of investment account that allows you to invest your spare change from everyday purchases. When you link your bank account to Acorns, it’ll round up each purchase you make to the nearest dollar and invest the difference in a portfolio of exchange-traded funds (ETFs). The platform offers a range of portfolios to choose from, each with a different risk level, so you can select the one that best suits your investment goals and preferences. You can start investing with as little as a few cents per purchase, making it an accessible option for those with limited funds.
Is Robinhood or Acorns better?
Robinhood is a trading platform that allows users to buy and sell individual stocks, options, and cryptocurrencies without paying commissions. Acorns, on the other hand, is an investment platform that invests your spare change in a diversified portfolio of ETFs. If you’re interested in actively trading, Robinhood might be a better fit for you. However, if you’re looking for a simple, hands-off approach to investing, Acorns might be the better choice.