Stash and Acorns Investing

Are these popular micro-investing platforms worth it?

I tried Stash and Acorns out for a while, but I decided not to keep them. While Acorns is very basic, I think Stash is a great platform and really enjoyed it, but in my opinion, both of them cost too much.

Disclaimer

I used Stash and Acorns mostly in 2018; I’m aware there have been several changes to the platforms, so my information may be outdated.

They’ll say they only cost $1 per month, but that’s $12 per year, which is a lot for micro-investing. If you only have a $100 or $200 portfolio, you’re spending 6-12% of your portfolio on fees, which might let you break even, if you do well. Though it may not account for inflation. If you want to invest with either of them, make sure that you invest a good amount of money. I would recommend an absolute, break even minimum to be $424 (preferably much larger).

Pros of Acorns

• Hands-off - I’d recommend Rich Uncles instead.

• Good for new investors - I’d recommend M1 Finance instead.

• Don’t have to pick your own portfolio - I’d recommend M1 Finance instead.

• Automated investing and round-ups - I’d recommend Worthy instead.

• $5 minimum investment - I’d recommend Stockpile instead.

• Debit cards - I haven’t used this feature, so I can’t comment on it.

Pros of Stash

• Gamification of investing - This I do agree they do better than other platforms.

• Easy to understand information - This is also probably better than other platforms.

• Great for new investors - I’d recommend M1 Finance instead.

• Partial shares in each stock - I’d recommend Stockpile instead.

• Stocks are grouped into easily understood categories based in themes and interests - I’d recommend Stockpile instead.

• Round-ups - I’d recommend Worthy instead.

• Market summaries - I’d recommend Robinhood instead (though I will agree that Stash is easier to understand than Robinhood).

• $5 minimum investment - I’d recommend Stockpile instead.

• Debit cards - I haven’t used this feature, so I can’t comment on it.

Please note that all investments are subject to risk.

If you really want one of these, go for Stash (I don’t have any promotions since I don’t have Stash anymore, but you can probably find a promotion of some kind for signing up on some other website). I don’t really recommend them, but I would recommend these:

• Fundrise - real estate crowdfunding, higher investment and returns

• Robinhood - individual, free stock trader

• M1 Finance - hands-off stock trader

• Stockpile - teach kids about the market

• Rich Uncles - 6% real estate crowdfunding

• Worthy Bonds - 5% bonds

Challenge

Look around at these investments for yourself, but don’t sign up for anything today. Wait at least until tomorrow.