Navigating the Future of Automated Investing: Unveiling who Wins the Match between M1 Finance and Acorns.
Investing can seem like a challenge with so many options out there. Let’s simplify things by comparing two popular automated investing platforms, M1 Finance and Acorns. Which one is better for you?
M1 Finance gives you more control over your investments. It’s automated, but you select your investments or how your portfolio is allocated. It’s great if you already have some investing knowledge. M1 Finance also offers a free basic account, or for $125 a year, you can opt for the M1 Plus premium account for extra benefits.
On the other hand, Acorns invests for you, offering less control but more simplicity. If you’re new to investing or you don’t want to worry about specific investments, Acorns may be right for you.
Both M1 Finance and Acorns are aimed at making investing easy for the average person. But while the former offers long-term investment strategies to help you meet your financial goals, Acorns spins things a bit differently. It invests your spare change from purchases into diversified portfolios.
Each platform offers unique features. M1 Finance offers Portfolio Level DRIP, fractional shares, expert portfolios, and tax minimization strategies. It also provides checking accounts, known as M1 Spend, and a credit card named “Owner’s Rewards Card”, as well as options to borrow from your portfolio.
Meanwhile, Acorns has five portfolio options based on risk tolerance. It has unique features such as Acorns Early for setting a foundation for your kids’ investing and Acorns Later designed for retirement savings. Checking and “Found Money” cash bonuses for shopping with partners are other attractive Acorns features.
When it comes to fees, M1 Finance is free unless you opt for the M1 Plus premium features. Acorns has a tiered fee system ranging from $1 to $5 per month based on the services you choose. Both platforms require different minimum investments to get started.
To sum it up, M1 Finance gives you more tools and control, great for informed investors. Acorns is ideal if you prefer a hands-off, simple approach to investing. Whichever platform you choose, it’s all about finding the one that aligns best with your investment goals and comfort level.
