For many of us, investing can seem overly complicated and somewhat intimidating if you don’t know the ins and outs. Acorns intend to simplify and demystify this process through a revolutionary mobile app. The Acorns app was created to remove any mental roadblocks or anxiety about becoming a regular investor. Using Modern Portfolio Theory, it recommends optimized portfolios and keeps them on track with automatic rebalancing and dividend reinvestment. Here’s our Acorns review.
- Painless Way to Save —Since the amounts taken out of your account are small, you won’t notice them missing from your checking account.
- Hides the Complexities of Investing — You don’t need to understand Modern Portfolio Theory to use Acorns.
- Start Investing With No Money — Acorns doesn’t require a minimum deposit to start using the service.
- Easy to Set Up Custodial Accounts — Acorns Early makes it easy to set up a custodial investment account for your children and start investing in their future.
- Only for “Boosting” Your Savings — Acorns’ savings amounts aren’t really suited to save the 5% to 20% annually you need to put toward retirement or larger goals.
- Can Lose Principal—It’s possible to lose money with Acorns, although the recommended investments are pretty conservative.
- Expensive for Small Accounts – Monthly Acorns fees can be high for very small investment portfolios.