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Acorns vs Stash: Which Micro-Investing App Is Right for You?

Acorns vs. Stash Comparison: Micro-Investing Apps

Are you looking for a simple way to start investing but don’t know where to begin?

The rise of micro-investing apps has made investing more accessible than ever. Two popular options on the market are Acorns and Stash.

In this article, we’ll compare the two and help you decide which one is best for you.

Overview of Acorns and Stash

Acorns and Stash are both mobile apps designed to simplify investing. Acorns is an automated approach to investing that rounds up your purchases to the nearest dollar and invests the spare change.

It also offers fractional ETFs and a simple approach to investing. Stash, on the other hand, allows users to personalize their investments by investing in individual stocks and ETFs. It also offers custodial accounts for children and Smart Portfolios for hands-off investing.

Stash: Best For Personal Investments

Stash is ideal for investors who want to build a personal investment portfolio. Stash offers three different account plans: Stash Beginner, Stash Growth, and Stash+.

The Beginner account is suitable for new investors and allows for a low minimum deposit of $5. The Growth account is designed for investors who want to grow their portfolio over a long-term period.

Finally, the Stash+ account is for experienced investors who want to invest more aggressively.

Fees

Stash charges a monthly fee starting at $1 for the Beginner account, while the Growth and Stash+ accounts charge $5 and $9 per month, respectively. Additionally, Stash charges a $0.25 transfer fee each time you add funds to your account.

Account Types

Stash offers a variety of account types, including investment accounts, retirement accounts, and custodial accounts. Custodial accounts allow parents or legal guardians to invest on behalf of a minor.

Finally, the Smart Portfolios account is for investors who want a hands-off approach to investing.

Investment Options

Stash offers more than 1,800 individual stocks and ETFs for investors to choose from, including socially responsible portfolio options. Additionally, Stash offers automatic rebalancing and tax-loss harvesting to help investors manage their portfolio.

Stash

Round-Ups

Stash

Round-Ups is an automatic investment feature that rounds up your purchases and invests the spare change. For example, if you spend $3.50 on a coffee, Stash will round up to $4.00 and invest the remaining $0.50.

Auto-Stash

Auto-Stash is an automatic deposit feature that allows investors to set up a recurring deposit into their Stash account. This feature helps investors stay on track with their investment strategy and avoid forgetting to transfer funds.

Stash Pros & Cons

Stash’s customizable investment options make it an attractive option for investors who want to build their personal investment portfolio. However, the monthly fee and transfer fees can add up over time, making it a less attractive option for investors who want to invest small amounts.

Acorns: Best For Simple Approach

Unlike Stash, Acorns offers a simple approach to investing. The app allows investors to round up their purchases to the nearest dollar and invest the spare change into fractional ETFs.

Fees

Acorns charges a monthly fee starting at $1 for the Lite account. The Personal and Family accounts charge $3 and $5 per month, respectively.

Acorns does not charge transfer fees.

Account Types

Acorns offers only one account type, which includes investment accounts and custodial accounts. Custodial accounts allow parents or legal guardians to invest on behalf of a minor.

Investment Options

Acorns offers five different investment portfolios designed to match various risk tolerances. Additionally, Acorns offers automatic rebalancing to help investors manage their portfolio.

Round-Ups

Acorns offers the same

Round-Ups feature as Stash, where it rounds up your purchases and invests the spare change. Additionally, Acorns offers a Found Money feature that gives investors additional cash back when making purchases from partner retailers.

Pros & Cons

Acorns’ simple approach to investing makes it an excellent option for novice investors who want to dip their toes into the world of investing. However, the limited investment options and lack of personalized portfolios make it a less attractive option for experienced investors.

Conclusion

In conclusion, both Acorns and Stash are excellent options for investors looking for a simple way to start investing. Stash offers customizable investment options, while Acorns offers a straightforward approach.

Ultimately, the choice between the two depends on personal preferences and investment goals. Regardless of which option you choose, both apps can help you start your investment journey and build wealth over time.

Acorns: Simplified Investing for Everyone

Investing is no longer just for the wealthy. Today, anyone with a smartphone and a few dollars can start investing.

Acorns is a micro-investing app that aims to make investing easy and accessible for everyone. In this article, we will delve deeper into the features and benefits of Acorns.

Account Plans

Acorns offers three different account plans: Acorns Lite, Acorns Personal, and Acorns Family. Acorns Lite is the basic plan with a monthly fee of $1.

The Personal and Family plans offer additional features such as investment accounts for kids, joint accounts, and access to financial advisors.

Fees

Acorns charges a monthly fee starting at $1 for the Lite account. The Personal and Family accounts charge $3 and $5 per month, respectively.

While this may seem like a small fee, it can add up over time and eat into your investment returns.

Account Types

Acorns offers three different account types: investment accounts, retirement accounts, and custodial accounts. The custodial accounts allow parents or guardians to invest on behalf of minors.

The retirement accounts are available for both traditional and Roth IRAs. The Smart Portfolios account is a hands-off approach to investing, where users can invest in a portfolio managed by a team of experts.

Investment Options

Acorns offers a range of ETFs (exchange-traded funds) that invest in various asset classes such as stocks, bonds, and real estate. Acorns also offers sustainable ESG (environmental, social, and governance) investing options for users who want to invest in socially responsible companies.

Additionally, Acorns recently announced it will launch a bitcoin ETF for users to invest in cryptocurrency. Acorns Earn is another feature that allows users to earn cash back through partner retailers.

Acorns

Round-Ups

Acorns

Round-Ups is similar to

Stash

Round-Ups, where it rounds up a user’s purchases to the nearest dollar and invests the spare change. Acorns also gives users the option to make additional contributions to their investment account.

Acorns Education

Acorns offers education and investment tips to help users understand the basics of investing and plan for retirement. This includes articles and videos on topics such as budgeting, saving, and understanding risk.

Acorns Pros & Cons

Acorns is a great option for beginner investors looking to start investing with ease. However, it’s important to note that Acorns does not have human advisors to guide users through their investment journey.

Additionally, like all investments, there are risks involved, including the potential loss of money due to fluctuations in securities.

Key Takeaways

When comparing Acorns and Stash, it’s important to understand the differences in account plans, fees, account types, investment options, round-ups, education, and pros and cons. It’s also important to consider the risk involved with any investment.

Investment Risks

Investing always involves risk. The value of securities can fluctuate, and there is a potential for the loss of money.

It’s important to understand your risk tolerance and diversify your investments to mitigate these risks.

Conclusion

In the end, choosing between Acorns and Stash depends on personal preferences and investment goals. Both apps offer unique features and benefits to simplify the investment process.

However, it’s important to weigh the fees, investment options, and risks before making a decision. Whether you choose Acorns or Stash, remember that investing is a long-term strategy, and patience is key to seeing results.

In conclusion, micro-investing apps like Acorns and Stash have made investing more accessible and simple for everyone. Acorns offers a straightforward approach for beginners, while Stash offers customizable investment options for the more experienced.

Both offer investment accounts, retirement accounts, and custodial accounts, but it’s important to consider the fees and risks involved with any investment. The key takeaway is to understand your investment goals and risk tolerance before choosing an app.

Investing is a long-term strategy, and with patience and persistence, anyone can build wealth over time.

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