2023 Acorns Review: Is Acorns the Right Investment App for You?

If you’re looking for a way to start investing, you may have heard of Acorns. Acorns is an investment app that allows you to invest your spare change. It’s been growing in popularity over the past few years, and for good reason. But is it the right investment app for you? In this blog post, we will take a look at what Acorns has to offer and see if it’s the right fit for your needs.

What is Acorns?

Acorns is a smartphone application where you “round out” your spending to the nearest dollar and then invest the difference. To begin saving and investing with Acorns, simply link your credit cards and checking account. From there, Acorns does the rest of the work for you! This revolutionary app offers people the chance to save money with minimal effort, allowing them to invest in their future by only spending a few dollars at once. The new Acorns app is mainly targeted at Millennials. In addition, the company has also released an online version that supports desktops and laptops. Essentially, this app can be a perfect start for any investor with only a little guidance.

Pros:

• Easy to Use: Acorns account is easy to use and requires minimal effort to set up and start investing. The app takes care of the rest, and users can choose from a variety of investments such as stocks, bonds, ETFs, and more.
• Low Fees: Acorns charges a monthly fee between 3-5$/month
• Automated Investing: Acorns automatically invests your spare change for you (Roundups), making it easy to start investing without having to make additional deposits or take any further action. The app’s “round-up” feature is a great way for people who have trouble saving money to start building their savings without really noticing it.
• Educational Resources: Plenty of educational content related to finance is available online on the website called Acorns Learn
• No account minimum requirement: 0$ to open account and 5$ to start investing
• Seamless Account Management: With its intuitive interface, the app facilitates effortless account management, allowing you to track your investments and contribute extra funds with ease.
• Bonus investment: Acorns also offers Cash back for your purchases at 450+ in-app partner brands and 15000+ top brands using chrome extension

Cons:

• Limited Investment Options: Acorns only offers a limited selection of investment options, including stocks and ETFs. This may not be enough for some investors who are looking to diversify their portfolios more.
• No Tax-loss harvesting: Acorns does not offer tax-loss harvesting strategies
• No Customization: The app does not offer any customization options for different types of investors such as those who are more risk-averse or those looking to invest in specific stocks or industries.
• No human financial advisors option available
• At small balances Acorns monthly fees can nearly wipe out all the returns gained through the investment (not applicable for accounts >10,000$ in balance)

Acorns Invest review

• Invest in spare change with Roundups, once you link up credit and debit cards, Acorns will set aside spare change from every purchase and invest the change once it reaches at least 5$
• Automatic recurring investments available for as low as 5$
• Automatic Portfolio Rebalancing available
• Automatic dividend reinvesting available

There are five different Acorns Core portfolios and four different Acorns ESG Portfolios, built by experts. Each portfolio is composed of exchange-traded funds — ETFs for short. An ETF is made of broad holdings of stocks and/or bonds. Depending on your portfolio, you’re invested in a mix of companies, markets, and bonds—and if you choose, a Bitcoin-linked ETF. The overview of the ETFs can be found below:

• Large Company – VOO 
• Medium Company Stocks – IJH 
• Small Company Stocks – IJR
• International Company Stocks – IXUS 
• Short Term Bonds – ISTB
• US Aggregate Bonds – AGG
• iShares ESG Aware MSCI USA ETF | ESGU
• iShares ESG Aware MSCI EM ETF | ESGE
• iShares ESG Aware MSCI USA Small-Cap ETF | ESML
• iShares ESG Aware 1-5 Year USD Corporate Bond ETF | SUSB
• iShares ESG Aware MSCI EAFE ETF | ESGD
• iShares 1-3 Year Treasury Bond ETF | SHY
• iShares MSCI USA ESG Select ETF | SUSA
• iShares U.S. Treasury Bond ETF | GOVT
• iShares MBS ETF | MBB
• iShares ESG Aware USD Corporate Bond ETF | SUSC
• Proshares Bitcoin Strategy ETF – BITO
• Shares Short Treasury Bond – SHV
• SPDR Bloomberg Barclays 1-3 Month T-Bill – BIL
• Goldman Sachs Access Treasury 0-1 Year – GBIL
• JPMorgan Ultra-Short Income – JPST
• iShares Ultra Short-Term Bond – ICSH

Acorns invest account provide tailored portfolios to fit your individual needs, taking into account age, income level, objectives and risk tolerance. The ETF selection spans from aggressive (complete stock) to conservative (comprised of bonds), as well as a mix in between. If you wish to make any changes post-registration with Acorns account, no fees or penalties will be imposed; however keep in mind that altering portfolios may have tax ramifications depending on the investment account utilized.

Acorns retirement review (Acorns Later)

Acorns Later platform helps you save for retirement with ease. Later offers a variety of portfolio options designed to fit your risk tolerance and retirement goals. You can open a Traditional IRA, Roth IRA, SEP IRA, all starting with just 5$ and low fees (expense ratios) ranging from 0.10%-0.30%.

Later also offers an automatic portfolio rebalancing feature, which helps keep your account in line with your age and risk profile. The platform also provides tax-efficient investing options and guidance on Roth conversions. In addition, Acorns Later (retirement account) allows you to set up recurring deposits so you can save a little each month without having to think about it, and is included with all Acorns subscriptions.

Acorns early review

Acorns Early is an investment accounts for kids that can come with potential tax benefits. If you are in the Personal Plus tier, Acorns Early is built into your subscription at no extra cost.

1. you can get started in minutes and add multiple kids at no extra cost.
2. Set up an easy Recurring Investment account for the child you love.
3. Get potential tax benefits while you invest. 
4. Acorns Early is a UTMA/UGMA account, which stands for Uniform Transfer/Gift to Minors Account. This type of account is more flexible than a traditional college savings account and the funds can be used in other ways that directly benefit the child.
5. Invite friends and family to invest for the child, too!

source: acorns.com

• simple automatic recurring contributions available
• If you’re looking for an easy way to give the gift of long-term financial security and success, then Acorns Early is here. This account is open to kids under 18 years old from your own children, nieces/nephews or even a friend’s child – all that’s needed is their full legal name, date of birth and Social Security Number.
• Investing in an Early account provides more flexibility than other funds like a 529 plan, as the money can be used for expenses that directly benefit the designated child. That’s why so many parents find them to be a great option!
• When your child reaches the designated age of transfer, as defined by their state’s laws (which may be from 18 to 25 years old), they will be able to access all funds stored in their Early account. To help ensure a smooth transition and provide you with guidance for when this time arrives, Acorns will contact you directly.

Acorns banking review

• No hidden fees, No minimum balance fee. No overdraft fees. 55,000+ free ATMs
• Real-time Roundups. invest your spare change every time you swipe a credit card with Acorns visa debit card.
• you get paid early with direct deposit
• FDIC insured up to 250,000, 256-bit data encryption and digital card lock option.
• Smart Deposit option: A piece of every paycheck gets deposited automatically into all Acorns accounts
• Online banking with mobile check deposit, digital checks etc.
• you get Acorns personalized Visa Debit card

Acorns pricing

Acorns offers three different pricing tiers – Assist, Personal, and Family.

The Assist tier costs $1 per month and allows you to invest in a portfolio of ETFs with no minimum balance requirement. The Personal plan costs $3 per month and provides access to more sophisticated portfolio management tools as well as educational resources. Lastly, the Family plan costs $5 per month and allows investment account for kids on top of what’s available on the Personal tier.

In addition, Acorns also offers a Cash Back bonus for in-app purchases at certain partner brands as well as bonus investments when users refer friends or family.

Earn extra money with acorns (Acorns Earn review)

Acorns Earn helps you earn more money when you shop and can help you find a job and is included with all Acorns subscriptions. Since 2016 Acorns Earn customers have earned and invested over 30,000,000$. Most rewards are earned by shopping through the offers in the Earn section of the acorns app. There are also some “Simply Spend” rewards that you automatically earn when you shop with a card linked to Acorns. You can also install the Earn Chrome and iOS Safari Browser Extensions to earn rewards when you shop online. Source: acorns.com

You should receive a reward confirmation email and see the reward pending in Earn within 3 to 7 days of making the purchase. The reward will be invested within 60 to 120 days, giving you plenty of time to return any items; rewards may be adjusted due to returns or cancellations. Please check the terms and conditions for each offer for more details.

you can earn:

• while you shop at thousands of top brand
• while you browse and shop from the desktop or app
• from a side hustle (explore all the jobs available)
• By inviting friends

Acorns Learn review

A great feature of Acorns is its wide range of educational tools, including videos and articles that cover everything from building wealth to understanding the basics of investing.

Acorns Learn offers an array of resources for users to learn about investing topics such as stock market basics, crypto, portfolio diversification, risk tolerance, insurance and real estate planning, tax management strategies, and more. A lot of these resources are free to use and available on the app as well.

Additionally, Acorns Learn also offers tools such as a compound interest calculator which allow users to estimate potential returns on investment.

FAQs

Can the acorns app be trusted?

Yes, Acorns is a secure and trusted app. It uses 256-bit data encryption, digital card lock, and two-factor authentication to ensure your account is always safe. Additionally, all funds are FDIC insured up to $250,000. Note: Acorns is not a bank. Acorns Visa™ debit cards and banking services are issued by Lincoln Savings Bank or NBKC Bank, members FDIC. Investment advisory services are offered by Acorns Advisers, LLC (Acorns), an SEC-registered investment advisor. Brokerage services are provided to clients of Acorns by Acorns Securities, LLC, an SEC-registered broker-dealer and member of FINRA/SIPC.

How does Acorns work?

Users link their debit and credit cards to the app, and every time they make a purchase, the app rounds up the amount to the nearest dollar and invests the difference into a portfolio of ETFs chosen based on the user’s risk tolerance.

Is acorns worth it? Do acorns really work?

Acorns is an easy-to-use cash management account and investing app that offers a wide range of features to help its users manage their investments. With its personalized portfolios, Cash Back bonus program, Acorns Learn educational resources, and low monthly fee tiers, it’s an attractive option for those looking to start investing with minimal effort. Although the monthly fees can add up over time, the rewards you receive from using it can make it worth it in the long run.

Can I withdraw my money from Acorns?

Yes, users can withdraw their money at any time, although there may be tax implications to consider.

Conclusion

Overall, Acorns is a great option for beginner investors who want to get started with investing in stocks and ETFs. The app is easy to use and requires minimal effort from the user. Acorns is well worth the investment in terms of its ability to offer a reliable and efficient service for stocking away investments for the future. With its suite of innovative products, including Recurring Investments, Round-Ups and Acorns Later it can become an indispensable tool for personal finances – providing investors with peace of mind in knowing their money is growing responsibly towards a fruitful future.

Our review of Acorns shows that the user experience is first class and no stone has been left unturned in delivering a premier investment service that can be tailored to fit any investor’s level of comfort and sophistication. Overall, Acorn’s intuitive interface, its features and its customer service make this an excellent option as an increasingly popular choice among millennials seeking to invest easily with low fees and good returns.