Imagine that every time you bought something, you invested your spare change into your retirement account. Thirty years down the line, you are a millionaire without even thinking about it! Thanks to an app called Acorns, you won’t need to imagine this scenario — it will be your real life.
Right now, my Acorn app says that by the time I’m 32, my spare change investments will be worth 12 million dollars! You read that right. Each time you make a purchase, the leftover change gets invested into a balanced portfolio that meets your retirement goals.
I get hundreds of comments a day asking me if I invest in stocks and use apps like Robinhood. While I love that investing is becoming more mainstream among the youth, day trading is a speculative investment. Speculative investing is when you invest in something knowing that it is extremely risky. When you invest in just one stock, you aren’t setting up a retirement plan. You could (and most likely will) lose all of your money. In fact, only 5% of professional traders that have algorithms and use teams find success. Don’t bet your future on odds like those!
Right now, we are experiencing a bull market. Anybody with an extra dollar can invest and it will go up in value. Many are being blindsided by this high and think that whatever is put in the stock market grows. However, eventually there will be a crash and the market will correct itself. You could either put all your eggs in one basket and lose it all or diversify via a S&P index fund. The choice is really up to you but I’m sure you can tell which of the two I would choose.
What is Acorns?
Acorns invests into those index funds and ETFs based on your goals via a robo advisor. Everything is automatic and you never have to think about it.
Features I Love
Unless you are swiping your credit card all day every day, the change you invest will probably not be enough to retire on. Here are a few features that will help you expedite your goals.