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Acorns Investing Review 2020: Automatically Invest Spare Change
Last Updated On December 31, 2020 Joe Raspolich 21 Comments
If you’re anything like me, you probably remember your parents or grandparents filling up cups, jars, cup holders and desk drawers with leftover coins from daily cash spending. Once in a blue moon, you might have rolled these coins and deposited them at the bank. It was a surprisingly effective way to save hundreds or even thousands of dollars each year.
These days, most of us don’t use paper currency, so we rarely have “spare change”. Hoarding coins in jars for a rainy day fund simply isn’t a realistic option. Instead, our money is electronic digits on a screen. As a result, we simply spend our money without wondering what we should do with the “spare change.” However, many apps want to change that habit.
One of the first apps to come out with the spare change concept was Acorns. It’s an automated investing app that rounds up your transactions. Then it automatically invests your money into a portfolio that makes sense for you.
Since its initial release, Acorns has continued to innovate, and it’s raised the bar for micro-investing apps. A few of the new feature releases make it reasonable to consider Acorns again. Should you create an Acorns account, or is it an overblown app? This review explains the good and the bad.
Bonus: Right now, Acorns is offering a $10 bonus when you register an account. Get stared here >>
- Round up app that applies round up to your investments
- $1-3 per month fee to use (free for college students)
- Automatic investing to help you build wealth
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Taxable and IRA
What Does Acorns Do?
Acorns is a micro-investing platform designed around the concept of modern portfolio theory. As an Acorns user, you’ll download the Acorns App and answer a few questions. The app will then recommend an efficient portfolio for you.
Acorns portfolios range from conservative (lots of bonds) to aggressive (all stocks and real estate).
All the portfolios contain exclusively low cost ETFs from Vanguard and BlackRock. From time to time, Acorns may swap out one ETF for another ETF that tracks the same index. These are the investments that Acorns is using today. It’s worth noting that these options haven’t changed in at least a year (likely because they are still among the lowest cost ETFs in the market).
- iShares iBoxx $ Investment Grade Corporate Bond ETF | LQD
- iShares 1-3 Year Treasury Bond ETF | SHY
- Vanguard Small-Cap Index Fund ETF Shares | VB
- Vanguard REIT Index Fund ETF Shares | VNQ
- Vanguard 500 Index Fund ETF Shares | VOO
- Vanguard Emerging Markets Stock Index Fund ETF Shares | VWO
- Vanguard FTSE Developed Markets Index Fund ETF Shares | VEA
Once you’ve chosen your portfolio, you’ll link your debit and credit cards to the Acorns platform. When you make a transaction, Acorns will “round up” the transaction to the nearest dollar. The round up (or spare change) gets deposited into a holding account. If you spend $7.55, Acorns will deposit $.45 into your holding account. When the account has at least $5, Acorns will automatically invest the proceeds into the market. They will use the investing opportunity to rebalance your portfolio.
A new feature that Acorns recently released is “round-up multiplier.” Essentially you can double to 10X your roundups. For example, a $.45 round-up could automatically become a $.90 round-up if you select a 2x multiplier. If you select a 10x multiplier it will become $4.50. The multiplier can be adjusted through the app, but not from the Acorns website, so be careful with it.
You can also set up recurring investments. For example, you could choose to invest $5 per day on the platform, or $200 per month if you prefer.
If your portfolio gets way out of line, Acorns will engage in rebalancing. In the non-tax advantaged accounts, the rebalancing may have tax implications for you. However, if you opt to set your money into an IRA (using Acorns later), the rebalancing will not have immediate tax consequences.
Finally, Acorns has a new debit card platform called Acorns spend. The advantage of Acorns spend is that you can immediately deduct round-ups from your checking account (something that could take several days from a credit or debit account). Acorns offers unlimited ATM reimbursement, has no minimum balance, and doesn’t charge overdraft fees. However, you will need to pay the $3 per month Acorns fee, to maintain the account.
Found Money Partnerships
Acorns has also created referral relationships with a number of online retailers and service providers. When you use the Acorns app to purchase from a select list of retailers, the companies will deposit Found MoneyⓇ into your account.
Found money ranges from 1-2% of the purchase price for most retailers. Retailers include Apple, Walmart.com, AirBnB, The Wall Street Journal and more.
The Found MoneyⓇ concept combines the micro-investing concept with the cashback site concept. While Acorns has a few unique partners, EvoShare offers better cashback rates, and they will deposit money directly into your retirement account.
Multipliers- To boost your Acorns contributions without setting up automated investments, you can opt for the acorns multiplier. You can multiply your round-ups by 2x, 3x, or 10x. With the 10x option, an average monthly round-up of $50 becomes $500. This can be a great way to keep yourself from overspending. This feature is available at the $1 per month level.
Acorns later- Acorns now supports IRA accounts including traditional IRAs, Roth IRAs, and SEP-IRAs (for self-employed people). You may need to check with a tax professional to see if you’re eligible for any of these accounts. Contributing to Acorns in a tax advantaged account is a great way to start investing for retirement, even if you can’t afford to max out contributions just yet. The cost for Acorns Later is $2 per month.
Acorns spend- Acorns created a debit (checking) account for users who want to integrate their spending, and their retirement savings. Round-ups are deducted right away, and depending on where you live, you may qualify for “Found Money” at local shops. The advantages of Acorns spend are the unlimited ATM reimbursements, no minimum balance, and no overdraft fees. Unfortunately, Acorns spend costs $3 per month which is a high fee to pay considering the number of low fee accounts that are available.
Acorns gift cards- Want to help a friend, sibling, or relative start investing? Acorns offers gift cards to get them started. You essentially give them a gift card worth $25 or more, and they sign up for an account with Acorns. Personally, I love the idea of giving an Acorns gift card to a high school graduate, who can get a head start on investing by creating an account with Acorns.
How Much Does Acorns Cost?
When you combine Found MoneyⓇ and all your round ups, most people will invest at least a few hundred dollars every year. Saving and investing the change can make a huge difference when you’re just getting started.
If you want to add the IRA option, you’ll spend $2 per month. Compared to robo-advisors like Betterment and Wealthfront (which charge .25% per year), Acorns is a steal. Of course, M1 Finance is still free.
Finally, if you want to add the Acorn Spend app, you’ll pay $3 per month. This does have the advantage of allowing you to invest extra found money, since Acorns round-ups won’t just apply to online retailers. You may earn up to 10% cash back from local retailers (especially restaurants, grocery stores, and coffee shops). Of course, the amount of cashback you might earn really depends on the partners in your area.
Aside from the management fee, Acorns does not charge transaction fees. That means you can deposit a lump sum (up to $20,000 per day) into your Acorns account, and you can withdraw money at any time without transaction costs.
You’ll never pay trading fees which is a big cost saver for small investors.
Are these prices worth the service that Acorns provides? Let’s say you save $20 through roundups your first month. Then you pay a $1 maintenance fee. In that case, you’re paying an 5% management fee your first month. As your portfolio grows, the ratio shrinks.
If you end up investing $400 your first year, you’ll pay $12 in management fees. That’s an effective 3% management fee.
3% or even 0.25% is a hefty fee to pay for mediocre investing. Acorns isn’t offering tax loss harvesting, and the ETFs they offer can be purchased for free from a traditional brokerage.
If you exclusively use the $1 per month option (for an after-tax) portfolio, you’re getting a low cost. However, Acorns doesn’t engage in tax loss harvesting, so it’s probably better to choose a robo-advisor instead. This is especially true if you aren’t adding regular contributions and just relying on round-ups to build your portfolio.
That said, Acorns newer features may make the platform worthwhile for more users. If you set up regular contributions, you could save $6,000 in an IRA or Roth IRA, and even more in a SEP-IRA (depending on your income and the IRA contribution limits). When you take into account that Acorns automatically rebalances for you, $2 per month is a great deal. Since you’re inside a tax advantaged account, tax-loss harvesting becomes less important.
The $3 per month gives you access to the $2 per month option, plus an option for more found money, real time roll-ups and a debit card. I suspect that most people won’t earn an extra dollar per month in found money to offset the cost of the account. Instead of opening an Acorns account, you would be better served to open a fee-free account instead.
If you’re concerned about the pricing (and you should be), check out our list of places to invest for free.
Note: Acorns ended its under 24 with a valid .edu email address program in 2020.
Final Thoughts On Acorns
College students who can waive the monthly fee should consider opting in to the Acorns platform. It’s a great way to invest a little bit of money that would otherwise get spent. But remember, Acorns is an investing platform, not a high yield savings account. Your investments could lose value, so you need to think hard about whether investing is the right choice for you.
The $2 per month option can make sense for people who need a little push to invest. The round-ups plus a modest $100-$200 monthly automatic deposit will get you well on your way towards saving for retirement. If you haven’t started investing for retirement yet, I think the $2 per month option can be a good deal that will pay long term dividends for you (literally and figuratively).
Professionals entering their peak earning years can probably skip Acorns. They should prioritize retirement accounts, savings accounts, and business investments over Acorns. I would also advise against the Acorns spend account right now. Although it costs just $3 per month, most people can get a free checking account, with similar benefits.
The bottom line is that Acorns is expensive – relatively. If you’re investing low amounts, the percentage is a big bite of your money. However, if you need the boost and automatic saving portions, then check it out.
SCAM – AdTokenz.com Review- Scam or Paying
Adtokenz is a new revenue share program, created by the founder of Adfeedz! The concept reminds paidverts, MyBAPSpot programs.
What are the ways to make money with Adtokenz?
You can make money by buying a ptc ads.
Each $1 purchase will give you 100 visits and 2400 Tokens i.e. you will have 120% back.
To increase your earnings you need buy more PTC ads and will receive higher value ads daily.
1 Token is worth $0.0005.
You can either remain a free member and receive everyday 10 PTC ads with value of 5 tokens, but According to my experience with Adfeedz, I consider it worth to buy tokens earn some more money.
You can also earn commissions from your referrals 7% for every ad purchase they make and 5% per click.
What payment processors they use?
Adtokenz.com payment processors are Perfect Money, Payeer, and crypto-based digital wallets (BitCoin, LiteCoin, Ethereum etc.) through CoinPayments gateway.
Minimum cashout limit is $5 and have withdrawals fee of 5%. All withdrawals are made manually within 7days. Usually the same/next day depend on our task load.
You can join Adtokenz Here -> JOIN NOW
Disclaimer: This article should not be viewed as an endorsement of any of the services mentioned. Please do your own research before considering investing any funds. You should never make an investment into any online program if you do not know what you are doing.
NEVER invest what you CANNOT afford to LOSE in these programs!
Please, share your opinion, payment proofs if you have, and rate it in the comments below to help people know more about it.
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Not received payment yet I request $5 on 29/11/2020 and to this moment no payment received this owner is big scammer all his projects not give any profits
If not paying then it can be declared scam and added to scam site list
I am a member of AdTokenz since 13.9.2020. I made 2 withdraw requests: 1. 3.10.2020 – received money in about 24 hours! 2. 27.12.2020 – recevied money in about 3 days. This is a PAYING site not scam!
I agree with your assesment that if the admin pays members selectively, then the project is a scam. However I am telling you that the project is paying it’s members and on the site you can also see a lot of payment proof posted by members: https://www.adtokenz.com/paidouts . (And I know some people which uploaded these payment proofs and I claim, they are REAL people and real payment proofs).
Also I have checked the internet if other people might have same problems as you have encountered and I did not find similar problems reported.
conclusion: I believe that you encountered problems with this project, but one negative oppinion from you should not be the reason to classify the project as scam. Expecially as there are many people saying the opposite – that the project is good and paying and also since many payment proofs available show the payments long time after you encountered the problem with the project.
Also the experiences from the past have taught me that many people often try to cheat the system in such projects and when the admins catch them, block their account and of course not pay them, they start screaming all over the internet that the project is a scam. I am not saying you are such person, all I want is to explain one of the possibilities why the admin would not respond to your support requests.
How Much Should I Invest and Where Should I Invest It for the Greatest Return?
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“How much should I invest and where should I invest it?”
The question may be straightforward, but the answer isn’t quite so cut and dry. How much any person or family should invest depends on several factors, including their income, goals, and current financial stability.
However, there are some good practices for investing that you can work to implement regardless of your budget.
Should I Be investing 10% of My Income?
Many experts say that a good rule of thumb is to invest 10-15% of what you earn. While that’s a great starting point, personal finance is never as simple as a one-size-fits-all formula.
New investors often wonder about the balance between saving vs. investing, asking questions like “How much of my savings should I invest? Should I invest all my money, or should I split my excess income between savings and investments?”
In order to answer those questions, we first have to look at the differences between saving and investing.
|Savings Account||Investment Account|
With those differences in mind, your first course of action should be to build up an emergency fund in a traditional savings account. That way, you’ll have money available in case something happens, like your car breaks down or you have to replace the refrigerator in your home.
If you’re paying off high-interest debt, such as credit cards or private loans, then a $1,500 to $3,000 emergency fund is a good place to start. Once you’ve at least paid off your high-interest debt, aim for an emergency fund of 3 to 6 months worth of your living expenses.
How much should I invest in my 401(k)?
Once you have an emergency fund, the next place you should focus your investment efforts is your 401(k). Many employers offer to match employee 401(k) contributions up to a certain percent.
For example, a 2% match means that if you contribute 2% of your salary to your 401(k) account, your employer will throw in an additional 2%. However, if you continue to add to your account, your employer will not match contributions above the set limit.
Say you make $50,000 with a 2% 401(k) match. If you contribute $1,000 to your 401(k) — 2% of your annual salary — your employer will add an additional $1,000. If your current employer offers a 401(k) match, then you’re turning down free money by not contributing to your account.
However much your employer offers to match in 401(k) contributions is the minimum you should invest in that account. If it’s 1% of your salary, then you should be contributing a bare minimum of 1%. If it’s 3%, you should contribute at least 3%.
Employer matching in a 401(k) is literally free money for your future and an immediate 100% return on your investment. If you can’t afford to contribute the maximum amount your employer matches, find places to make cuts in your budget and increase your contributions.
Talk to your boss or the human resources department for details on your company’s 401(k) program.
How much should I invest in stocks and other accounts?
Once you have an emergency fund and you’re maxing out your employer match for your 401(k), what comes next?
This is where the hard-and-fast rules end. The next step varies depending on your situation, goals, and where you are on your financial journey. There’s no right answer for everyone.
At this point, you might want to consider opening an individual retirement account (IRA). When it comes to IRAs, there are two types to choose from.
A Traditional IRA works much like a company 401(k) in terms of taxes. In other words, you don’t pay taxes on the money you contribute today. You’ll only pay taxes once you withdraw the funds in the future.
A Roth IRA is the opposite. You pay taxes on your contributions today, but then you withdraw money tax-free in the future. This is ideal if you expect to be in a higher income tax bracket later on. Since income tends to increase with age and experience, that’s often the case.
You can open an IRA online or at your local bank in just a few short minutes. Keep in mind, there are limits to how much you can contribute to individual retirement accounts per year. Once you’ve reached this limit, you might want to consider opening a brokerage account and investing in the stock market.
While there’s no one right amount to invest, it can be helpful to set goals in terms of a percentage of your income. For example, let’s say your goal is to invest 10% of your annual salary. If you make $50,000 per year, you would aim for $5,000 towards your investment accounts.
However, you always have the option to increase this number. Once you’re comfortable investing 10% of your income, challenge yourself to invest 13%, then 15%, 20%, and so on. The more you invest now, the faster you’ll reach your financial goals.
How Much Should I Risk with My Investments?
The amount of risk you should take depends on your goals, risk tolerance, and investment time frame.
For example, a 24-year-old who plans to retire at 60 has 36 years to invest. Since they won’t need their money for several decades, they can afford to take on more risk today. On the other hand, someone who is 55 has a much shorter investment time frame. Therefore, they’ll want to take on less risk in order to protect their money.
Regardless of your age, one of the best ways to protect your investments is to create a diversified portfolio. In other words, you’ll want to own a variety of different types of investments. That way, your success isn’t dependent on just one thing.
For example, you wouldn’t want to invest entirely in software companies because they each face many of the same risks. A swing in the technological landscape could wipe all of your investments off the map.
A diversified portfolio means investing in companies across a variety of industries.
In addition to the types of investments you choose, you’ll also need to decide how much to invest in each type of asset. The three main asset classes are stocks, bonds, and cash.
Each one comes with its own set of risks and potential returns. Generally speaking, however, greater risk equals greater reward.
If you’re younger and have more time to build up your savings before retirement, you might prefer an asset allocation of 85% stocks and 15% bonds. As you get older, your allocation will likely shift to fewer stocks and more bonds to shield against drops in the market.
Is Investing 10% of My Income Really Enough?
Again, the amount you should invest depends on your current financial situation and goals.
Thanks to the snowball effect of compound interest, the earlier you start investing, the less you’ll need to save overall. Saving 10% of your income could be plenty if you start investing early enough. On the other hand, if you waited to invest and are catching up, you may need to save 15% or more in order to reach your goals.
Should I Invest Monthly or Yearly?
Whether you invest monthly or yearly comes down to personal preference. For most people, however, monthly is the better option. That way, you can build investing into your monthly budget.
Investing monthly also gives your money more time to work for you. If you start setting money aside in January, but only invest it once yearly in December, the money you save in January, February, March, and so on won’t earn a return until after December when it’s invested.
The exception is if you plan to receive and invest a lump sum, like a holiday bonus or tax return. Even so, it’s still a good financial practice to build saving into your monthly budget.
How Much Should I Invest? That Depends on You.
Knowing exactly how much to invest can be tricky. Like everything in personal finance, it depends on your budget, goals, and financial situation. The most important takeaway is that it’s never too early to start investing. If you haven’t started already, now is the perfect time.
Even if you can only swing a few dollars a month, you can begin to build a habit that will change the rest of your life.
Incomely Review – Is it a Scam or Real Method to Make $1500/mo?
Art flair has just released a new training on how to build a passive income online. But can you trust his method? Is Incomely a scam or legit?
In this review, I would like to cover all you need to know about Incomely a give my honest opinion about it.
By the way, if you want to discover the strategy that earns me $900+ per month from my laptop, don’t forget to check out my #1 recommendation.
- Name: Incomely
- Website: www.artofmarketing.academy/incomely/
- Price: $10 – $13 + 4 Upsells
- Owner: Art Flair & Pallab Ghosal
[yasr_overall_rating size=”medium”] 3/5
The first thing you should notice from Incomely’s front page is that it makes you think you will work only 15 minutes per day and start raking in $1,500 + per month.
I have been an internet marketer for over two years, and I can guarantee it’s never that easy. Plus the less work you have to do, the higher your financial risks!
Starting a business with unrealistic expectations is the worst path because you are more likely to give up when you start facing obstacles.
What is Incomely?
Incomely is advertised as a step by step video series and a case study that show you how to generate fact, high-quality traffic and make instant commissions.
That doesn’t tell you much, so I am here to spill the bins. It will teach you how to take advantage of bing advertising to promote Clickbank products as an affiliate.
It’s too bad you have to buy the course without knowing what exactly will be required from you.
So, no. You won’t need to create your own product or write blog articles, BUT you will have to invest in PPC (pay-per-click) ads.
Pros and Cons
- Easy to follow lessons.
- You can make money with this method, but you should not expect easy results.
- Bonus training.
- It’s overhyped.
- Beginners usually struggle to make a profit with paid traffic.
How Does it Work?
The method is simple.
The first step is to select a high converting product for sale on marketplaces like Clickbank and WarriorPlus.
You will have to sign up for its affiliate program (for free) and build a squeeze page, which is a web page with a form that allows people to subscribe to your email list. Here is just one example:
After people subscribe to your list, they will be instantly directed to the official product’s site, and if they purchase the product, you earn a commission.
Besides, as you will collect people’s email, you can use a follow-up email sequence to communicate with your audience and keep promoting other products or the same product over and over.
Therefore, if people didn’t buy from you on the first day, there is a possibility they will buy later with your future email marketing campaigns.
So, how to attract people to these pages in the first place? That’s where Bing ads come in.
You will have to sign up for Bing ads and create ads targeting specific keywords that your target audience type in to search for information.
For example, if you are promoting a Paleo diet book, you should probably target: “paleo recipes,” “how to start a paleo diet,” etc.
Incomely consists of 13 core modules that will explain in detail how to set up these campaigns. Plus, you also get 3 bonus videos that will teach you how to promote CPA offers.
For just over $10, I think Incomely does a decent job in teaching you this method. The videos are easy to follow, and you can start implementing the strategy with easy.
However, making money with it is another story.
The Challenge With Incomely
Affiliate marketers have been using Bing ads for years to promote their offer. So, Incomely doesn’t show you something new.
The big challenge with this method to earn more commissions than what you spend on advertising and extra services such as autoresponder and hosting.
It’s challenging to find a winning campaign because you can pay over $0.50 per click to advertise on Bing, and so you will need a lot of testing.
This means you should expect to spend a lot of money to find what works.
There are no guarantees.
You can spend over $30 for an ad campaign and don’t make a single sale. Ideally, you would also need a tracking software to understand where your clicks are coming from and your conversion rates. But that means you will spend more money.
After you pay for the front end product, you will come across 4 upsells.
- 1 ($27) – More Case Studies + Advanced Training.
- 2 ($37) – Done for you Pack + Advanced Training.
- 3 ($67) – Reseller’s Licence.
- 4 ($197) – Coaching with Pallab (6 Live Calls).
Conclusion – Is Incomely Scam?
Not, it isn’t. Incomely is a legit product because you are actually getting the training to build passive income streams.
However, the method they teach is not something I wouldn’t recommend, especially for a beginner. You can lose a lot of money with ads and give up before finding a winning campaign.
I am not saying it doesn’t work. Many people run successful campaigns like the ones you will learn. What I am saying here is that there is a risk involved and most people can’t afford constant trial and error for too long.
How I Prefer to Make Money Online
Personally, I prefer building affiliate sites that get free traffic from Google. I do this by writing helpful articles that get high rankings in Google’s search results.
Then, I just promote high-quality products that will truly benefit my readers.
I also recommend getting traffic from Youtube, and social media. But in my opinion, it’s essential to have a website to build trust and establish a brand.
Anyone can get started without spending any money on advertising.
For a complete training on getting FREE traffic from Google, I highly suggest you take a look at My #1 Recommended Program.
It’s totally newbie friendly and gives you incredible value for money when it comes to education, support, and tools to build your business.
I can personally attest the efficacy of their training because it helped me build a site from scratch which is now generating over $900 / month in affiliate commissions.
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Hey, thanks for checking out my honest Incomely review. If you have any questions, please drop me a message below, and I’ll be more than glad to help you out.
Perfect Choice For Beginners!
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