Acorns – Automatically Invest Your Spare Change
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Re: Acorns – Automatically Invest Your Spare Change
#2Their fees aren't actually that low. In fact with their fee structure and inflation, you're likely to lose money in the long run, or at least underperform against the stock market. It seems like a great idea on the surface though.
Re: Acorns – Automatically Invest Your Spare Change
#3A lot of my friends who aren't experienced investors are really excited by this. The fact that they will automagically invest a small amount of money without having to think about moving money or choose what to invest in seems great to them. I personally would rather decide how much to invest and what in myself so I am not particularly interested in paying someone else fees to take this control away from me.
But definitely a cool product for the average person who doesn't want to put any time/effort into investing.
Re: Acorns – Automatically Invest Your Spare Change
#4A lot of my friends who aren't experienced investors are really excited by this. The fact that they will automagically invest a small amount of money without having to think about moving money or choose what to invest in seems great to them. I personally would rather decide how much to invest and what in myself so I am not particularly interested in paying someone else fees to take this control away from me. But defi…
For the person who wants to put time/effort into investing, where you suggest they start?
Re: Acorns – Automatically Invest Your Spare Change
#5I created an account a month or so ago, but never completed the signup. Why would a service snoop into my bank accounts instead of, let's say, withdraw $10/month via ACH?! I really don't get this "spare change" idea (like BofA's). $10/month sounds much easier to grasp, implement, and it's safer at the end.
Re: Acorns – Automatically Invest Your Spare Change
#6A lot of my friends who aren't experienced investors are really excited by this. The fact that they will automagically invest a small amount of money without having to think about moving money or choose what to invest in seems great to them. I personally would rather decide how much to invest and what in myself so I am not particularly interested in paying someone else fees to take this control away from me. But defi…
For the person who wants to put time/effort into investing, where you suggest they start?
With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocation before your paycheck gets cut (i.e. you never see the money).
Re: Acorns – Automatically Invest Your Spare Change
#7Earlier quoted context omitted.
For the person who wants to put time/effort into investing, where you suggest they start?
With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocation before your paycheck gets cut (i.e. you never see the money).
What about someone like me with no 401k?
Re: Acorns – Automatically Invest Your Spare Change
#8I tried this for a little while but I really did not like how variable the monthly amount was depending on how many transactions I had. It's much easier to budget $X per month.
Their fees seemed higher and fund selection lower than my other banks. Probably I'm just not the target market for this because it's a really cool idea.
Re: Acorns – Automatically Invest Your Spare Change
#9Earlier quoted context omitted.
With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocation before your paycheck gets cut (i.e. you never see the money).
What about someone like me with no 401k?
IRA or equivalent. If you have no option for a tax advantaged account, the advice to pick a broad unmanaged index fund or etf still holds.
Re: Acorns – Automatically Invest Your Spare Change
#10Earlier quoted context omitted.
For the person who wants to put time/effort into investing, where you suggest they start?
With your companies 401k or equivalent. Just put whatever percentage you want into a low cost, broad index fund. The most important part is to make this allocation before your paycheck gets cut (i.e. you never see the money).
> you never see the money
Also important to add, if you invest with 401k/IRA money, if you don't want to pay a lot of taxes or early withdrawal fees, you won't "see" the money until you retire.