A breakdown of micro-investing app Acorns

Acorns provides a safe, easy and customizable way to start investing.

A breakdown of micro-investing app Acorns

           June 15, 2016         acorns, investment app, micro-investing,

Believe it or not, there are millennials like me who worry about saving money and spend time thinking about their investments. There are even more millennials like me who are constantly trying out new ideas in the form of smartphone apps (because their mobile devices are basically an extension of their hand and brain).

The reasons stated above, and the fact that our client list includes several businesses in the trading and technology space, prompted me to download micro-investing app Acorns about a month ago to kick the tires and play around with the functionality. Over the past six weeks or so, I’ve become a big fan of the app, and we thought it would be an interesting blog topic for our readers.

What is Acorns?
Acorns is a micro-investing app that allows you to invest spare change from everyday purchases, set dollar amounts to invest on specific timelines and add chunks of money to your account into a diversified portfolio.

How does it work?
The setup process is simple and, within a few days, you’ll start to see your money active within the app. Once Acorns has all of your personal information, you’ll set up your investment preferences. You get to choose how often you want to invest a certain amount, select the level of aggressiveness for your investments and manage “Round Ups” from your connected accounts — the spare change from each transaction in your account. Once that amount hits $5, it’s automatically invested in your Acorns account (this is to reduce the number of transactions


The setup process is simple and, within a few days, you’ll start to see your money active within the app. Once Acorns has all of your personal information, you’ll set up your investment preferences. You get to choose how often you want to invest a certain amount, select the level of aggressiveness for your investments and manage “Round Ups” from your connected accounts — the spare change from each transaction in your account. Once that amount hits $5, it’s automatically invested in your Acorns account (this is to reduce the number of transactions

What’s the differentiator with Acorns?
Personally, I think Acorns is on to something because it makes investing simpler — after the initial setup, I didn’t have to do too much. I decided to try out Acorns because I don’t have extensive knowledge about particular stocks and I don’t make a lot of time to research them. Following the markets and news relevant to trading is part of my job, but my knowledge isn’t extensive enough to start trading myself. Using Acorns will help me determine my risk appetite, and it’s a great introduction to participating in the markets.

Having Acorns create a portfolio for me based on my preferences is perfect for my level of expertise. It’s not flashy, but here’s what my portfolio currently looks like:

IMG_0199

While I check on my portfolio almost daily to see how it’s going, I don’t have to worry about making tough investment decisions or taking on a lot of risk as I start investing in the stock market. I’m also a big fan of the Round Ups feature because it allows me to invest every time I spend money on my credit or debit cards. The money invested starts to add up over time, and the potential returns are exponentially better than if I just let my hard-earned money sit in a bank account.

I won’t say Acorns is a viable alternative yet for traditional means of investing, like a 401k or IRA, but it’s a great place to invest money that isn’t going to your long-term savings accounts. If you have any questions about my experience with Acorns, feel free to get in touch with me at will@3ptscomm.com. Happy investing!

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