Friday, July 15, 2016

Is Acorns really worth it?

There are a lot of naysayers if Acorns is really worth it.

One argued that:

"High % of assets fee makes it not worth it. If you're disciplined just throw fifty bucks a month into an investment fund yourself...You subtract the annual fees from the annual returns. So with 1% monthly fees on 7% annual returns... Well, you are literally giving them money for their "fun" way to save. It's a great marketing plan and great deal...for them."

However, Acorns is very transparent about their fees. It is clearly listed on their website and mobile application.

Acorns simplifies investing for a lot of people. That's exactly what if offers.

Now, those seeking higher returns could move on to Fidelity or Scottrade.

Those starting to invest will learn a lot from Acorns and it makes it worth it.

Here's a testimony for Acorns:

"For me, I'm 18, American, and have limited knowledge of stocks. I've been saving $100 per week in my checking account since I got a job, and it just sort of sits there unless I buy something big. When I saw Acorns, I did a lot of research into it. I asked my friends and coworkers how they felt about the idea as well. I eventually decided to put in 200. After 4 trading days, I'm up over 3 dollars. If I continue at the current rate with just my 200 investment, I'll have made some decent money by the end of the year. In a worst case scenario, I'll start losing and eventually could drop down to 0 with terrible luck. For me, the reward outweighs the risk. I've (hopefully) got another 50 years til I retire and another 20-30 years of life after that. Being 18 I get a free account. Even if I wasn't 18, being a student with an .edu email would give a free account. Use Acorns for a bit to watch the market, then you can try to make some investments on your own. For me it's working well short term, but I don't know how long it'll last. Also, no withdrawal fees."