It seems to me from a casual peek at the website that Acorns offers a low-cost entry into investing and is more a learning tool than a get rich tool. That includes the Great Recession years, as well as the bull markets prior and after. But that's because I invest on a 5-year timeline (if I'm buying something, I expect to own it at least 5 years, unless something goes drastically wrong) and while I'm hoping for my portfolio to grow an average of 7% a year, I have in the past, seen a 40% percent drop in my portfolio over 1 year and over nearly 20 years it actually returned an average of 10% a year. $10 down in a $3K portfolio over 4 months seems inconsequential to me. So it's important to know both the index and the timeframe.Īlso, I hope you know, that you could lose ALL your money. If you look at these indices over the last 6 months, the performance is different. There are dozens of benchmarks, which one does your Acorns portfolio use? Then you can start to see if they are doing well relative to their slice of the market.Īccording to T.Rowe Price the S&P 500 index was up 0.28% for the 2nd quarter (Apr-May-Jun), but the S&P Midcap Index was down 1.06% for the same period. The index did X%, your personal return (hopefully) >X%. Typically, judging investment products is done by comparing them to a benchmark index of some kind. I'm not very knowledgeable about Acorns, but what were your expectations when you started investing in them? And what is your timeline? Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.If any newbies are interested, here’s my link! You’ll get $5 as well. $36 a year from here on out seems like a great deal to me. Up until this point it was only $1 a month, however, they have expanded resources and information. After 5 years I reached my goal of $20,000. Meaning as your money grows, your fees grow.Īfter a couple years, I have exponentially grown my money in Acorns. However, In my experience, the other companies that I have an account with charge you a percentage. With $36 in fees, that’s a measly $14 of gains in a year. I understand wanting to start small to personally experience and learn how it works (I started very small), but you won’t see adequate growth with less than $500. Whenever my friends ask me if Acrons is worth it (I refer a lot of people, which has paid my fees and then some), I say as long as they plan to put at least a couple thousand within the first few years. $36 a year for the resources and support that Acorns has is totally worth it for the information alone. You also get free withdrawals at 60,000+ AllPoint ATMs. Chime pricing: Chime doesnt charge any monthly fees or require a minimum account balance. But, overall, its a far more robust platform than Acorns. Ya, there are ways I “could” have made the same amount of money, however I was completely on my own, I made many mistakes. The biggest downside to Chime is that it doesnt offer any investing options. I initially started investing on my own through Ameritrade. I love it for getting started in Investments. For comparison, I invest $100/week in both my investment and IRA accounts during the spring and lower it to $50/each in the summer and fall. With how you're currently investing, that $3/month is going to hit you harder than it would me in terms of percentage. One with smaller or no fees is going to be better.Īll in all, it's best to put things in context for yourself. If you want some more control over your investments and/or can't contribute much, maybe another platform is right for you. But you gotta break through that period of time where the $3/month is going to hurt you more than anything. If you want something that's set and forget and still plan on contributing on a regular basis, I'd stick with acorns. But it depends what you're looking for too and what your plans are and how you go about things. I could easily switch to something similar that doesn't charge fees, but the fees don't bother me either.Ī lot of folks on here will tell you to put your money into other platforms and whatnot, and they're not wrong. And I've invested enough where the $3/month isn't a big hit percentage wise and plan to keep investing. I don't have a lot of time to be looking up information on stocks and the like, so the robo investing is a good fit for me. Personally, $3/month is nothing compared to not saving anything let alone growth.
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