To the beginner, investing in the stock market might seem hard. There are terms you have to know, charts to look at, and numbers everywhere. Unless you’re reading our site or shelling out dough to have your hand held by a high-priced broker, you never really know where to start.
Thankfully, there’s one app that will not only help you get started with investing, but also skip a few steps in the learning process, too. It’s called Acorns, and it’s so easy to use that you don’t even need to open it to make a good investment.
Acorns is a dead-simple app for iOS and Android that lets you put any dollar amount of into the stock market.
Instead of buying shares of stocks, bonds, and ETFs, Acorns automatically allocates your money into microshares of each. For instance, if you invest $5, Acorns will put part of that $5 to investing in the real estate market, another part in index funds, another part in big stocks, and so on. In the end, you own fractions of a share for each.
Acorns constantly monitors each portfolio style and fine-tunes them for maximum profit, kind of like a mutual fund. You don’t need to know what to buy and when to buy it, because Acorns does it for you.
The financial managers at Acorns pick and choose the best stocks for its users.
The stocks, bonds, and other securities in your account are chosen based on your age, income, and other factors. For instance, this portfolio invests in more high-risk stocks and funds, which will ultimately yield more gains but has a higher chance of loss on the original investment.
Remember: there’s always a certain degree of risk when investing in the stock market.
If you want less risk, that’s fine, too. Acorns can automatically invest whatever you deposit into your account in more bonds and less real estate funds to properly balance possible gains and possible losses.
There are five portfolio styles to choose from, ranging from conservative investing to aggressive investing.
You can put in any dollar amount whenever you want. You can also have Acorns automatically do it for you, which is arguably their best feature.
There is no minimum that you must have in your account.
You can set Acorns to monitor your spending activity through your bank account and your credit cards in a feature called round-ups, which round up your recent transactions to the nearest dollar and invest the difference.
For instance, if you spend $5.45 at McDonald’s, it will see that you spent that much and invest 55 cents. If you spent $1.09 on a soda, it will take the remaining 91 cents out of your checking account and invest it into your Acorns account. This is a very handy feature if you want to invest without thinking about it.
Aside from gains, your stocks also pay dividends from time to time.
These dividends are automatically reinvested in your Acorns account. You never have to pay taxes on any gains until you withdraw them from your account.
There are fees involved, but they are minimal.
For accounts with a balance under $5,000, Acorns simply withdraws $1 from your bank account each month. For accounts over $5,000, they take a small percentage on a sliding scale. If you’re a student, you don’t pay any fees.
With Acorns, you don’t need to figure out which stocks to purchase. You just need to assess your risk level and deposit money into your account. They do all the heavy lifting, while you can set it and forget it. It’s a great way to get into investing if you know nothing about the stock market and want to invest with relatively lower risk.
Share this app with your friends below. It might actually get them interested in investing.