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Acorns is a passive investment solution based on the idea of investing spare change to meet long-term investment goals. With more than 10 million customers since it was founded in 2012, the California-based company offers solutions for investors, retirement savers, and families.
Through its app-based Invest solution, investors can gain access to exchange-traded funds (EFTs), as well as a diversified mix of stocks and bonds. The firm also provides more specialist products for environmentally-minded investors and Bitcoin enthusiasts.
Acorns offers solutions to suit investors at almost every life stage. For instance, its products for children enable you to begin investing on behalf of your kids, while also allowing friends and family to put money into the account. Its broad selection of individual retirement accounts (IRAs) will also help you to start building a nest egg for later in life.
Based on the principle of investing in the background, the company aims to provide options for those who want to put their investments “on autopilot.” As such, its round-ups tool is one of its trademark features. This will allow you to set aside any spare change from purchases made with linked debit cards or credit cards.
Imagine you spend $14.75 on your lunch in a diner. The app will round this up to $15 and place the additional 25 cents in your investments. Once this money has reached $5, the company will add it to your investment fund.
Acorns may be an especially attractive option if you’re new to investing and would prefer to let experts choose the stocks you invest in. Once you sign up for an account, the company will suggest an investment portfolio based on your financial goals. Acorns will also periodically review and adjust your portfolio to reflect your underlying investment objectives.
Alternatively, you may want to consider Acorns if you have an interest in eco-conscious investing. In addition to its wide range of sustainable investment products, the company is involved in a project to plant oak trees across America as part of the fight against climate change.
On top of that, the firm may be suitable if you’d like to earn rewards on your spending. With Acorns Earn, you can receive cash back and rewards when you shop with more than 15,000 retailers.
If you decide to open an account, you can choose between three subscription types: Personal, Personal Plus, and Premium.
| Personal | Personal Plus | Premium | |
|---|---|---|---|
Key features |
|
|
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Costs/fees | $3 per month | $5 per month | $9 per month |
Acorns’ model of charging a flat monthly rate is relatively unusual for this type of brokerage firm. Many of its competitors will charge an annual percentage fee on the amount you hold in the account.
Determining whether Acorns offers good value for money will depend on your account balance. If, for instance, you only hold a small amount with the company, this flat fee could work out as a relatively high percentage fee. In contrast, paying a flat rate may offer good value if you intend to hold a large amount with the broker.
Be aware, you’ll pay a $50 fee per ETF if you move your funds to another brokerage firm.
Acorns breaks its product offering into five key categories.
As a passive investment solution, Acorns’ Invest tool allows you to set up automatic recurring payments into your portfolio. Furthermore, the company will also automatically adjust your portfolio to meet your needs and reinvest any payments you receive from your stocks and shares. If you choose this option, Acorns will invest your funds into ETFs, stocks, and bonds.
According to the company’s website, some of these ETFs are managed by investors at top firms such as Vanguard and Blackrock. When you set up your account, you’ll also be able to choose whether you’d like to take a more aggressive or conservative approach to investing.
As Acorns’ solution for retirement products, this option allows you to invest in Roth, traditional, and SEP IRAs. As well as being able to set up automatic investments and recurring contributions, you can use the platform to automatically invest a portion of your paycheck into your pension pot.
Early is Acorns’ solution for kids, which allows you to set up different accounts for all your children and to create recurring investments for these accounts. These are Uniform Transfer/Gift to Minors accounts, which means a trustee will oversee the account until the child is an adult.
This option provides you with access to companies with a strong track record in environmental, sustainable, and governance (ESG) issues. Your investments will primarily be in EFTs.
With this option, you can allocate up to 5% of your investment to a Bitcoin-linked ETF. Funds in this solution are invested in Bitcoin futures.
One point to bear in mind: unlike many of its competitors, Acorns doesn’t offer a tax-planning strategy.
If you’d like to open an account, the first step is to download the company’s app or sign up for an account through its website.
You’ll need to provide:
A valid email address
Your address
Your online banking login
Your social security number or individual taxpayer identification number
At this stage, the company will also ask you to enter your profile information, including your occupation, income, and financial objectives.
After you’ve signed up, you may also need to upload a government-issued photo ID, which Acorns will use to verify your identity.
In most cases, the signup process should take just five minutes, and the company typically approves accounts within one business day.
Once you’ve opened it, your investment account will work around three key features:
Automatic recurring investments: These allow you to set up regular automatic investments in order to get into the investment habit.
Automatic portfolio rebalancing: Acorns will adjust your investments to make sure your portfolio aligns with your long-term goals.
Automatic dividend reinvestment: If you receive a payout from your investments, the company will automatically reinvest this into your portfolio.
Overall, I was impressed by my experience while testing the site and found its layout and navigation very user-friendly.
As Acorns is a robo-advisor, it is designed for you to use through an app or online. You can download the company’s app from Google Play or the App Store.
You can use the app to:
View your investments in real time
Set up recurring investments
Invest spare change through automatic round-ups
Access investment products for your children
Manage your retirement investment products
The app currently has a rating of 4.7 out of 5 on the App Store, and 4.2 out of 5 on Google Play. Many users who rated the app praised its ease and convenience for those lacking in-depth investment knowledge. In contrast, some reviewers who scored the app less favorably claimed to have had difficulties with its navigation and in setting up an account.
As a provider of investment products, Acorns is a member of the Securities Investor Protection Corporation (SIPC), which offers financial protection in the event that a brokerage firm fails. Under this framework, SIPC protects your investments with Acorns to the value of $500,000.
From a cybersecurity perspective, Acorns uses SSL 256-bit encryption, which allows it to establish a secure connection between your device and its own servers. As the highest level of security in the industry, this can help keep your personal information and data secure.
You may also be reassured to learn that you can set up alerts that will notify you of any unusual activity on your account. Likewise, you’ll have the option to add two-factor authentication (2FA) to your account.
However, at the time of writing, Acorns has a rating of only 2.2 out of 5 on Trustpilot. Those who score the company highly describe it as a simple and effective way to save for retirement. But less satisfied customers claim to have had difficulty in closing their accounts and accessing their funds. Furthermore, the company isn’t accredited by the Better Business Bureau.
You can contact Acorns over live chat, phone, or through its online query form. Live chat agents are available 24/7, while phone support hours are 5am-7pm (PT) every day.
When I contacted Acorns by phone, I got through to an agent in exactly one minute after listening to an automated options menu. I then contacted the company over live chat and was immediately connected to a helpful agent who answered all of my questions within a couple of minutes.
If your query is more general, you may be able to find the answer within the company’s help center, which features detailed articles on the company’s offerings. The website also contains “Grow your Knowledge” and “Money Basic” sections, which include videos, articles, and tips for investors of all levels of experience.
When testing the site, I was particularly pleased to see nifty tools like a compound interest calculator. This feature allows you to view the return you could potentially see on your investments over time, based on your initial deposit, regular contributions, and investment term.
If you’re looking for a hassle-free investment solution, Acorns could have a great deal to offer.
By putting your investments “on autopilot,” you can invest in financial markets through the benefit of automatic investments and recurring payments.
Although the company’s ratings with the Better Business Bureau and Trustpilot are a potential cause for concern, it’s pleasing to see that the app scores highly on both Google Play and the App Store.
Overall, I was impressed by all the features that Acorns has to offer for those who are time-pressed or new to investing, as well as the wide range of products it has available.
5300 California Ave.
Irvine, California, 92617
Is Acorns safe to invest in?
Acorns is a member of the Securities Investor Protection Corporation (SIPC), which protects all your investments up to the value of $500,000, should the company fail.
You should be aware, however, that any investment carries a risk, and the value of your portfolio can rise or fall depending on activity in financial markets.
Is Acorns good for beginners?
Acorns has several features that could make it a suitable choice for those new to investing. When you sign up, for example, the company will suggest a portfolio based on your investment goals. It will then allow you to make automatic investments with the spare change from your everyday spending.
Likewise, it also provides access to 24/7 live chat if you have a query and includes a detailed selection of FAQS, beginners’ guides, and educational videos on its website.
Can I withdraw money from Acorns at any time?
Yes, the platform allows you to take out your funds whenever you like. However, you should remember that there may be tax considerations if you make an early withdrawal from a retirement savings account. lt typically takes three to six business days for withdrawals to reach your checking account.
Note, you’ll pay a $50 fee per ETF if you transfer your funds to another brokerage firm.
