Acorns Review – Part 2
I wanted to take some time to do a follow up with another Acorns review. My first review was written when I first started using the Acorns investing app. I have been using it for a few months now and played with it quite a bit. I have used both the mobile app and website and I thought I would put together a part 2 to my Acorns review.
My Expectations From the Acorns Investing App
My expectations for Acorns is pretty basic, I just want something that automatically puts money towards an emergency fund. It’s not my sole retirement or savings account so I’m not dependent on it, but the more I can stash away, the better.
I started my account on June 7th, 2018 and at the time of writing this, September 2nd, I have an account balance of $298.86 plus about $22 in Found Money that is pending, I will talk more about that later. As an additional investment tool, I’m pretty happy with my contributions.
The minimum for an emergency account is $1,000 and I’m making good progress. I’m putting about $100 a month away so I should have a decent emergency fund by the 1 year mark.
First Steps Acorns Review
First thing I did was link all the credit cards I use for the spare change roundup. You would actually be surprised how much this adds up to. My 30 day round-up challenge is about $35-40 per month.
Then I set up recurring investments. When I started, I started off small with only $5 a week. I have been making $2.50 increases every few weeks. As I cancel subscriptions or expenses I up my contribution a little bit.
Personally, I set a goal to be at $100 per week by the end of the year. For me, that will be a big goal to reach but if I can get there I will be on my way to my bigger financial goals.
Acorns Review Investment Choice
In terms of performance of my portfolio, I have mine set to moderate. As a reminder, moderate is broken down into the following:
– 29% large company stocks
– 10% small company stocks
– 3% emerging market stocks
– 6% real estate stocks
– 20% Government bonds
– 20% corporate bonds
Typically, I would have gone for more of an aggressive portfolio option but with how long we’ve had a bull market, I wanted something a little less volatile.
So far my account hasn’t seen tremendous growth but it’s not horrible based on the account size. So, it’s up about $4 in value and I’ve received $0.57 in dividends. So over the 3 months, I’ve had the account, I’m up about 1.5%.
Some people may look at this as not so great returns but it’s not bad considering I’m on a moderate plan and I’ve only had the account for 3 months.
Another aspect that I really like is the Found Money section. Basically, Acorns has partnered with different businesses to offer either a percentage back or a certain dollar amount. So far I have earned about $22 from the Found Money.
At first, I did not use the found money feature but I started just recently a few weeks ago. The funds are currently pending so I am not sure how long they take to process.
I’ve earned the Found Money through two different offers, one was 15% back on Udemy and the other was $10 back with Bill Shark. I’ve seen some offers be worth as much as $200.
Round Up Feature
This is kind of the bread and butter of their service, rounding up your purchases and investing the spare change. It’s great.
They give you a statistic to show how much you’ve added via the different methods and I usually do about $35-45 a month in roundups. I’m pleased with that, you hardly notice it being taken out and over the course of a year it could be like $450 or more.
Acorns Potential Feature
As I’ve mentioned throughout this, with the other methods of adding, I’m putting in like $100 a month.
The Acorns investing app has a “Potential” feature that shows how much you could have at a certain time in your life. Currently, mine says I will potentially have $188,000 when I am 67. Now, that’s not enough to retire on but it kind of shows the power of small savings over time. The graph factors in 6% annual growth.
$100 a month isn’t a lot but when it’s something I don’t really notice, it’ll be a nice chunk of change one day.
Acorns Review 3 Month Follow Up Final Thoughts
Simply put… I love the Acorns investing app.
It does exactly what I want. I don’t even notice the money going in but in a few short months, I have been able to build my account up to about $300.
To conclude my Acorns Review Follow Up, I will give them a 9.5 out of 10 stars. The only thing against them so far is it’s been a couple weeks and my Found Money is still pending.
If you haven’t tried it, you should, it’s worth it and my favorite thing I have reviewed for you guys. Well, that and the Panda Planner are pretty close, I love that thing too. If you sign up through my link for Acorns investing app, we both get $5, who doesn’t love free money?