Acorns is an investment app that enables users to invest their spare change automatically. It rounds up their purchases to the nearest dollar and invests the difference.
Has anyone made money on Acorns? Yes, many people have made money on Acorns through their investment features. Investing involves risks, but one of the best ways to mitigate risk is by adopting a long-term investment strategy.
Since its launch in 2014, the app has become popular among millennials and Gen Z investors, making investing accessible to everyone.
This article explores the question of whether anyone has made money on Acorns and discusses the app’s benefits, fees, and risks.
It’s important to note that investing is not a guaranteed way to make money, and there is always a risk of losing money.
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Benefits of using Acorns
Acorns offers five portfolios that range from conservative to aggressive. Each portfolio is composed of exchange-traded funds (ETFs) that track different sectors of the economy.
The app’s automatic investment feature is one of its primary benefits. Users do not have to think about investing as the app does it for them. This feature is especially helpful for beginners who may not know how to start investing.
The app’s tax-loss harvesting technique is another benefit. It is a strategy where the app sells losing investments to offset gains in other investments, minimizing the user’s tax burden.
Acorns’ portfolios are also designed to be diversified, reducing the risk of losing money if one asset class underperforms.
Acorns also allows users to invest in a Roth IRA, a retirement account that enables users to invest after-tax dollars. The money in the account grows tax-free, and withdrawals in retirement are also tax-free.
Investing spare change in a Roth IRA through Acorns makes it easier for users to invest for their retirement without much hassle.
If you want to learn how to use the Acorns investment app effectively, be sure to check out my post on the topic!
Has anyone made money on Acorns?
Yes, many users have reported positive returns on their investments using Acorns. The app’s diversified portfolios and tax-loss harvesting technique can help mitigate risks and optimize returns.
I made money using Acorns by setting up automatic investments and utilizing their diversified portfolios, and now I plan to use Acorns Later to invest in a Roth IRA for my retirement savings.
Investing comes with inherent risks, and past performance is not an indicator of future returns.
Fees
While there is no minimum amount required to open an Acorns account, it is necessary to have funds in your account to begin investing, saving for retirement, or banking smarter.
Acorns offers different tiers of service to cater to different needs, with pricing as follows:
- Acorns Personal: $3/month, which includes investing tools and financial education to get started, as well as the Invest, Later, and Checking features.
- Acorns Personal Plus: $5/month, which includes all the features of the previous tier, plus tools to learn, save, and invest, as well as live Q&A sessions with financial experts and Premium Education.
- Acorns Premium: $9/month, which includes a full suite of tools to save and invest for your family, along with all the features of the previous tiers, plus Early.
Risks
Investing always comes with inherent risks, including market volatility, economic changes, and unforeseen events.
However, there are several ways to mitigate these risks and increase the chances of achieving investment success.
One of the best ways to minimize risk is by adopting a long-term investment strategy, diversifying investments across different assets, and avoiding emotional reactions to market fluctuations.
Acorns that help investors reduce risk and achieve their financial goals. With automatic savings and investment tools, users can set up recurring deposits and invest in diversified portfolios based on their risk tolerance.
This approach helps to minimize the impact of market volatility and spread the risk across multiple asset classes.
Acorns also offers a feature called “Round-Ups,” which rounds up each purchase made with a linked debit or credit card and invests the spare change.
This small but consistent investment helps users build wealth over time and encourages regular investing behavior.
Additionally, Acorns’ Later feature allows users to save for retirement by investing in an IRA. With tax advantages and compounding interest, investing in a retirement account can help users reach their long-term financial goals.
If you’re curious about Acorns Later and want to learn more about the retirement savings feature, check out my post on “What is Acorns Later?”
Overall, while investing carries risk, Acorns provides features that help users mitigate that risk and achieve investment success over the long term.
Slow and Steady Wins the Race
When it comes to investing, the old adage of “slow and steady wins the race” certainly rings true. Investing requires patience, discipline, and a long-term outlook.
A diversified portfolio, one that includes a mix of different asset classes, can help investors mitigate risk and maximize returns over time.
Acorns, the popular investment app, offers all of this and more. With their automatic savings and investment tools, users can set up recurring deposits and invest in diversified portfolios based on their risk tolerance.
This approach helps to minimize the impact of market volatility and spread the risk across multiple asset classes.
Acorns offers different portfolios, each with a different risk level and asset allocation, to suit a variety of investment goals and preferences.
Their portfolios are designed by experts and optimized for long-term growth, so users can feel confident that their investments are in good hands.
Acorns also encourages regular investing behavior with their “Round-Ups” feature, which rounds up each purchase made with a linked debit or credit card and invests the spare change.
This small but consistent investment helps users build wealth over time and reinforces the idea of slow and steady investing.
Overall, Acorns offers a simple, accessible, and effective way for users to start investing, save for retirement, and build wealth over the long term through a diversified portfolio.
Conclusion
In conclusion, many users have made money using Acorns. The app’s automatic investment feature, tax-loss harvesting technique, and diversified portfolios make it easy for users to start investing.
While fees and risks are associated with investing, many users find the benefits of Acorns outweigh the costs.
It’s important to invest according to one’s risk tolerance and consider long-term investment goals.