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  • Acorns Investing

    Wanted everyone's opinion about Acorns, i'm debating opening an account. I already have a taxable account with Vanguard that I contribute to monthly but I am intrigued by boosting our savings rate with no effort with the round up feature and having it be completely automated. I will continue to contribute to the VG taxable monthly the exact same amount. My plan would be to choose an ETF such as VT (VG Total World) in Acorns and just let it ride. No TLH or re-balancing needed. Basically my plan would be to set it to round up my transactions and invest whenever it reaches the $5 mark. My only concern is the fee. $12 a year which will be pretty high % wise for a while.

    I realize I could basically do the same thing in my VG Taxable account but it would be more effort and would have to buy an entire share of the ETF. I also realize I could just increase my monthly VG contribution by $40-$50 dollars and accomplish the same thing without the $12 yearly fee. Haha.

    But just wanted everyone's advice, especially if you have experience with Acorns. I'm probably overthinking it and should just increase my monthly VG contribution.

  • #2
    Originally posted by Jarpee View Post
    I'm probably overthinking it and should just increase my monthly VG contribution.
    Agree. Why complicate things?
    “Work” is a four letter word for good reason.

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    • #3
      Originally posted by Lithium View Post
      Agree. Why complicate things?
      Writing the post itself was a good exercise in making me think it through. Haha. You are correct. It will just complicate things.

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      • #4
        Originally posted by Jarpee View Post
        Wanted everyone's opinion about Acorns, i'm debating opening an account.
        never used. dont see anything they offer as being useful to us.

        Originally posted by Jarpee View Post
        I am intrigued by boosting our savings rate with no effort with the round up feature and having it be completely automated.
        so you want to create and manage an entirely separate account to invest money you already have lying around? i boost savings by....saving more.

        Originally posted by Jarpee View Post
        My plan would be to choose an ETF such as VT (VG Total World) in Acorns and just let it ride. No TLH or re-balancing needed.
        which is what vanguard currently is offering you....in an account you already have.

        Originally posted by Jarpee View Post
        Basically my plan would be to set it to round up my transactions and invest whenever it reaches the $5 mark. My only concern is the fee. $12 a year which will be pretty high % wise for a while.
        so for 12/year, you cannot manually invest 12 extra once a year?

        Originally posted by Jarpee View Post
        I realize I could basically do the same thing in my VG Taxable account but it would be more effort and would have to buy an entire share of the ETF. I also realize I could just increase my monthly VG contribution by $40-$50 dollars and accomplish the same thing without the $12 yearly fee. Haha.
        yes......

        sorry, you are not the target audience for this gimmick.

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        • #5
          Originally posted by Peds View Post

          sorry, you are not the target audience for this gimmick.
          yeah, this is more for the average american living paycheck to paycheck. they don't have the discipline to save and invest so they pay someone else to help them to do it.

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          • #6
            Thanks for the replies. This is exactly the feedback I was wanting. Nothing like writing a post for advice and realizing you don't need the advice after writing the post.

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            • #7
              I participated in Acorns several years ago, for a couple years. My account maxed out at $580 in 2015. As a percentage, it is expensive, and it increases some complications and paperwork to your financial picture. More to the point, I was rebuked by the @WCI: "Doctors don't invest in Acorns!"

              He is correct. For less than 0.01% of your NW, it's just not worth the hassle or the cheap thrills.

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              • #8
                I'm going to contradict myself ("Why complicate things?") by saying I've collected (guessing) $10-15k in free money over the years by opening new accounts at various brokerages for bonuses. Those are mostly going away, but I still do it when I find a good deal.

                Point being, if you want to complicate your financial picture, rather than pay $12 a year for it, you might as well make it worth it.

                Here's a shameless plug for a current ETrade bonus: https://www.doctorofcredit.com/etrad...0000-required/ If someone wants to use me for a referral so I can augment my Amazon balance, send me a DM.
                “Work” is a four letter word for good reason.

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                • #9
                  Yeah not worth it for VT contributions if your plan is just for investing. You can do this yourself for less. If you want a fun money account, Robinhood and Sofi Invest are popular (Not endorsing either) and cost $0.

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