How it works

Acorns is app-based investment vehicle.

With as low as $5, you can start investing. The best thing about Acorns is that it charges no commissions which usually costs $4.95-$8.95. The dividends are reinvested automatically, growing your investment using compound interests. 

Acorns works by diversifying your portfolio using your investing style:

1. Conservative
• offers income and capital preservation
2. Moderately Conservative
• offers income and capital growth
3. Moderate
• offers capital growth with safe cushion
4. Moderately Aggressive
• offers capital growth with risk
5. Aggressive 

• offers maximum capital growth with a lot of risk

Acorns uses six exchanged traded funds which are like mutual funds, but are more easily tradeable like stocks in general. 

We have LQD, SHY, VB, VNQ, VOO, and VWO. You can click the SYMBOLs for more detailed explanation. 

I like the MODERATE PORTFOLIO because it provides great diversification. 

Composition:

Large Company Stocks 16% - Top dog US stocks that will stand market shocks

Small Company Stocks 19% - Small companies showing tremendous growth

Emerging Company Stocks 10% - I would love to see this at 5%. Too much risk with China. 

Real Estate Stocks 16% - This is where you will get the most dividends. Love REITs.

Government Bonds 19% -  With the backing of Uncle Sam, very safe, status quo, pennies

Corporate Bonds 20% - Top dog in bonds, very safe, dimes

If you are in your teens or twenties, I highly recommend Aggressive, Moderately Aggressive, and Moderate. However, it all depends on when you will need the money invested. If you don't need the money in 5 years, the Aggressive and Moderately Aggressive portfolio will work.

If you need the invested funds in a year, I highly suggest the Moderate, Moderately Conservative, and Conservative. Your money is protected and you will not see much fluctuations during market crash. 

For those nearing retirement, Moderately Conservative and Conservative provides some growth (pennies and dimes), but your invested funds are preserved from any market crash. 

Don't forget the fees. 

It's free for students under 24 years old who used their .edu email to register.

It's $1 a month for account holders with below $5,000 total invested.

If your investment goes above $5,000, there will be a flat fee of 0.25% from your total fund per year.