Acorns is a California-based fintech that specializes in micro-investing and robo-investing. Launched in 2014 by Walter and Jeff Cruttenden, the company aims to make investing accessible to everyone by allowing users to invest small sums of money regularly towards their retirement.
Acorns Review, Pros & Cons
- Automatically invests the spare change
- Cashback at selected retailers
- Various educational content
- Mobile investment app
- Small investment portfolio
- High fee on small account balances
- Limited account funding options
- USA investors only
Acorns offer five unique investment products: Invest for your future, Later starts today, Earn extra money, Early investors, and Bank smarter.
- Invest for your future: Starting at $3 per month, this allows you to invest in a smart, diversified ETFs portfolio built by experts and recommended for you and your long-term money goals.
- Later starts today: This is an easy, automated way to save for retirement. When you sign up for Acorns Later, the firm will suggest the IRA type that is best suited for you.
- Earn extra money: The Acorns “Earn” product explores several ways to help you earn more when you shop or find a job so that you can save and invest more.
- Early investors: This is built into the Acorns family; it features various Early accounts for each Family at no extra cost and access to the Acorns financial wellness system, all for just $5 per month. It is designed to help you begin your investment plan at birth, stick to it, and change a child’s future.
- Bank smarter: This offers a checking account with a heavy metal debit card that saves and invests for you. It features all-digital banking, with direct deposits, mobile check deposits, check sending, and more.
Acorns is owned and operated by Acorns Advisers, LLC, an investment advisory firm that is registered with the Securities and Exchange Commission (SEC).
Acorns Supported Countries
Currently, Acorns is only available to US citizens or legal residents who currently reside in the United States.
Acorns Portfolio Construction
Acorns allow you to invest in a managed portfolio, which the firm chooses for you based on your goals and risk profile. That is, the firm will help you choose investments and allocate your funds to those investments based on the portfolio’s risk level. In doing that, Acorns considers your financial situation, including your age, time horizon, goals, income, net worth, and employment status.
Acorns clients are offered a Limited Trading Authority account and allowed to choose one of 5 Acorns investment portfolios, while the investment firm decides the ETFs that make up those portfolios. Additionally, Acorns also will enable clients to invest in fractional shares.
Acorns Platforms & Tools
Acorns provide clients with a mobile investment platform that is designed for smartphone devices running on Android and iOS. The mobile app operates in a simple way: it connects to your credit and debit cards and invests the change from each purchase — rounding up to the next dollar — into an investment portfolio. In addition, the platform allows you to choose between five different risk options, from aggressive to conservative investment options, while letting you monitor the performance of your investments over time.
Acorns makes available various learning resources that are designed to educate users on how to build good financial plans and determine the right investment plans. These educational resources include learning articles, money basics, press releases, and more.
Acorns Accounts & Fees
Acorns support the following account types:
- Individual non-retirement accounts.
- Roth, traditional and SEP IRAs.
- UTMA/UGMA accounts for kids.
These accounts and their fees are bundled into subscription tiers: Personal ($3/month) and Family ($5/month).
As Acorns fees can vary and change, additional fees may not be listed in this Acorns review. It is imperative to ensure that you check and understand all of the latest information before you open an Acorns account for online investing.
The firm allows investors to send all their inquiries to a knowledgeable client support team by submitting a support ticket or live chat.
Acorns Deposit & Withdrawal
Investors can deposit and withdraw funds to and from their Acorns account using bank transfers and credit/debit cards.
Acorns Account Opening
To open an account, click on the “Get Started” button at the top right corner of the website and follow the prompts.
It is imperative to ensure that when you are creating an account with Acorns, you clearly read all of Acorns’ terms, conditions, and policies. Only proceed if you fully understand and agree to them.
Overall, Acorns is an online investment platform that aims to ensure the best interests of the up-and-coming investors, beginning with the empowering step of micro-investing. In addition, they provide clients with a mobile app to ensure the ease of making smart investments and reaching their financial goals.
Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Please consider, among other essential factors, your investment objectives, risk tolerance, and Acorns pricing before investing.