![]() ![]() Here’s some more math: If you’re on the Personal tier and you have a balance of $100, you’re paying a management fee of 36%. Any reasonable Acorns review will mention that the company’s flat rates can be expensive for the amount you’re investing. Many asset management companies charge a variable fee equal to a small percentage of your overall investment dollars. Here’s the math: The tiers cost $36, $60 or $108 per year. The Premium tier adds access to Acorns Early, which unlocks investment accounts for kids through UGMA and UTMA custodial accounts. What used to be known as the “Family” tier for $5 a month is now almost double that in price. Acorns labels this as “premium education.” For an extra $24 a year, you get access to live Q&A sessions with financial experts. It also gives you access to Acorns Checking, an FDIC-insured checking account that includes mobile deposit, ATM access and a debit card (that’s made out of tungsten!). The Personal tier unlocks an automated investment account and adds access to Acorns Later, a retirement plan that allows you to contribute to a Roth, traditional or SEP IRA. Well-known investment management companies Vanguard and BlackRock designed the portfolios.Īcorns claims that its average user invests more than $30 per month through its “Round-Ups.”Īcorns offers three monthly membership tiers after discontinuing Lite ($1) in September 2021: You can accept that recommendation or choose your own risk level when you set up your account. Acorns gives you a recommendation based on your age, goals, income and time horizon. The company offers five portfolio types: conservative, moderately conservative, moderate, moderately aggressive and aggressive. The Acorns website claims that every dollar you invest is automatically diversified into more than 7,000 stocks and bonds through fractional share purchases. The system’s pretty flexible.Īcorns invests your change in ETFs, which tend to spread your investments across a large spectrum of companies and asset classes. And you can make automatic daily, weekly or monthly investments or even one-time deposits. This modern version of a piggy bank sweeps the change from your linked account into your Acorns account. ![]() For example, if you buy your favorite candy bar for $1.20 at a gas station, Acorns would set aside 80 cents. When you make a purchase from a checking account, credit or debit card linked to your Acorns account, Acorns rounds up to the nearest dollar and sets aside your change. The fintech company is also considered a robo-advisor because it automatically invests your money into one of several pre-designed plans. The company has raised more than $500 million from the likes of NBCUniversal, BlackRock, PayPal, Jennifer Lopez and Alex Rodriguez. You can even increase your balance by shopping with the company’s retail partners (more on that later).Īcorns had 4.6 million users and $6.2 billion in assets under management as of 2022 with an average account balance of $1,338. ![]() You can make traditional money transfers and deposits. The “Round-Ups,” Acorn’s name for its loose change method, are not the only way to fund an Acorns account. You can also save for retirement, open a checking account or invest for your children through Acorns. It charges a monthly fee between $3 and $9. The same can be true of investing if you subscribe to Acorns’ way of doing things.Īcorns rounds your purchases up to the nearest dollar and automatically invests the change in exchange-traded funds (ETFs). To paraphrase an old saying, a mighty oak tree starts with a tiny acorn. Its name explains what it does in a metaphorical way. I’ll also address whether the platform’s fees are worth it so you’ll understand who should - and shouldn’t - pay for this service.Īutomatically invests change on purchasesĪcorns launched in 2012 as a micro-investing app. ![]() In this Acorns review, I’ll explain how the automated investing tool converts your change on every purchase you make into an investment portfolio - with almost no effort on your part. If you’re looking for companies to help you invest your money, one big player is the Acorns platform. ![]()
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