Jennifer Lopez, Alex Rodriguez, and other celebs have all invested in a new finance-tech company, and you can jump on it too, regardless of your wealth.
Acorns Grow isn’t your typical investment model—you don’t need $25,000 to buy in. As a matter of fact, you can do it with “spare change”, according to the Acorns website. The concept seems a good fit for struggling artists who aren’t able to tuck away large sums.
This really isn’t a brand new concept in every way, though.
Banks have for quite some time offered savings accounts where you can round up and save the difference. If you’re a small saver, you probably realize the current interest rates aren’t doing you any favors. With Acorns, you can even open an IRA without busting your checking account.
There’s also the option called “Acorns Core”, described this way on the website:
“The only micro-investing account that allows you to invest spare change. Set up in under 5 minutes and automatically add money to your diversified portfolio, built with help from a Nobel laureate. More than $1 billion invested already! The only micro-investing account that allows you to invest spare change.”
The ease in establishing an account is definitely a plus. Setting up and monitoring traditional investment accounts can be very time consuming, and you need a fairly good sum to open one. With Acorns, it looks like you can get in for a pittance and start to “save” immediately.
There is a subscriber fee—it ranges from $1-3 monthly, depending upon your choices. For instance, the $3 monthly subscription fee includes a checking account. Here are some key differences between the Acorns model and traditional banks—”The difference that could set Acorns apart is that its debit card comes with no ATM fees, overdraft fees or minimum balance requirement.”
In my opinion, having worked as a freelancer for much of my life, this may be a good option for those who work in the ‘gig economy.’ You’d never miss the spare change, and with time, the investment could certainly grow nicely.
In an age where banks probably have an approval rating almost as bad as the US Congress, Acorns may offer indie artists a way to invest and save.
You can learn more at Acorns. I haven’t tried it myself, so I can’t personally recommend it, but I’m toying with the idea just out of curiosity. If you take a look see, be sure to read the fine print at the bottom of the home page, so you’ll know which funds are protected and which aren’t. As with all investments, risk is a factor.
(Kay B. Day/Aug. 20, 1029)
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