Discovering Acorns: Putting a Modern Twist on Savings and Investments by Embracing Automation and Micro-investing.

Title: A Simple Guide to Acorns: Auto-Savings and Bite-Sized Investing

Are you interested in investing but overwhelmed by the jargon or don’t know where to start? Also, do you think your small amount of savings won’t make a significant difference? This is where Acorns, an easy-to-use investment app, comes in.

Acorns makes investment as easy as pie by offering a way to invest small change into a customized portfolio. But is Acorns the right choice? Do better options exist? Let’s dive in to find out!

**What Is Acorns and How Does It Work?**

Acorns is a modern app designed for those starting their investment journey, emphasizing ‘micro-investing” which means you invest little amounts (from $1 to $10). The cool part is Acorns can round up your daily purchases to the nearest dollar, depositing the ‘spare change’ into your investment account.

Just answer a few questions to open an account, and Acorns will take care of your investing strategy. It offers a robo-advisor service, which means a computer program automatically allocates your investments based on an algorithm.

**What Does It Cost?**

There are three plans you can subscribe to:

– **Lite ($1/month)**: Offers a basic individual investment account and access to educational content.
– **Personal ($3/month)**: Everything in Lite, plus a retirement account (IRA) and a checking account.
– **Family ($5/month)**: All of the above, plus an investment account for kids.

There’s no need for an opening balance or minimum balances to maintain.

**What Types of Accounts Does Acorns Offer?**

Based on your responses, Acorns suggests the best account types for you. These include:

– Individual investment accounts
– Individual Retirement Accounts (IRAs)
– Custodial investment accounts for children

**Key Features and Benefits**

Why should you choose Acorns over other similar platforms like Stash, Robinhood, or M1 Finance? Here are some unique features of Acorns:

– **Round-Ups**: This feature rounds up your daily purchases and invests the change. You can even multiply these round-ups.
– **Recurring Investments**: Besides round-ups, you can deposit lump sums and schedule regular deposits.
– **Found Money**: This is Acorrn’s cash-back program. Access special deals via partnered retailers, and the cashback is invested directly in your account.
– **Acorns Spend**: Acorns offers a basic checking account, which allows real-time round-ups.
– **Acorns Early**: A custodial account for kids to begin saving for their future.
– **View Potential Growth**: This feature offers you a glimpse of your hypothetical future savings.
– **Acorns Grow**: A blog/education center providing insights about finance and investment.

**What’s not so great?**

Despite these cool features, Acorns may not be everybody’s cup of tea. For instance, the limited investment options (only five portfolios to choose from) may not be suitable for those who want diversity or specific companies. The fees may seem cheap but could add up if you have a small account balance. Your fees would be more than the norm of 0.25% annual fee for managed portfolio if you invest less than $4,800 for Acorns Lite, $14,400 for Acorns Personal, and $24,000 for Acorns Family. Lastly, the platform offers limited tools for conducting market research.

**Is Acorns Right For You?**

Acorns is best suited for those who are new to investing, have limited funds to start, are time-poor or those who want a basic one-stop-shop to invest, save, and learn. Those investing small amounts might find better alternatives like M1 Finance.

**Closing Words**

While Acorns can be a great choice with its unique automatic investing feature, the costs may be high for those with smaller balances. Ensure you find a platform that aligns with your specific needs and financial capability. If you are seeking more diverse options, you might want to explore platforms like Webull, Robinhood, or M1 Finance.

We hope this simplified overview of Acorns helps you take your empowering step towards investing!