First, if you have a credit union account, you can link it to Acorns and invest your spare change. ***********************************************************************Michelle Morris, CFP®, EA is a fee-only financial planner in Quincy, MA specializing in helping single women make sense of their money and their taxes. She adheres to a fiduciary standard, keeping YOUR interests top priority. You can learn more at works with credit unions in a few different ways. *I do not have any affiliation with Acorns. It’s a glorious age we live in when a mere $5 gets you a diversified stake in the wealth creating power of the global capital markets! This certainly was not the case in the 70’s when I was counting egg money on the shag carpet at my grandmother’s house. I don’t have a plan for this money yet. Maybe I will wait until it reaches a certain dollar amount and cash it in to do something really “splurgy”. This will incur some capital gains tax, assuming I sell in the future at a gain.įor now I’m content to keep rounding up and auto investing. In addition to “round-ups” you have the option of setting up a recurring investment amount (minimum $5) on a daily, weekly or monthly basis. I have not done this.ĭown years are not pleasant, however they are an inherent part of investing. Now obviously I’m not going to get wealthy doing this. But I love the idea of automatically saving and investing amounts so small that I don’t even notice. Acorns says the average user invests over $30 a month through Round-ups.
INVEST YOUR SPARE CHANGE WITH ACORNS UPDATE
I rarely look at it, except to write this update every October!Īutomaticity is one of the keys to successful saving and investing. Beyond the initial set up and adjustment of the whole dollar round ups, I’ve done absolutely nothing. The stock ETFs hold 11,000+ different stocks from across the globe! Acorns rebalances regularly.Īcorns is simple and automatic. The portfolios are well diversified across several asset classes. I chose Moderate which is 60% stocks and 40% bonds. There are five ETF portfolios to choose from ranging from Conservative to Aggressive. Much of the gains I had previously have disappeared. But I will hold and continue to buy shares at bargain prices.ĭown markets recover eventually and I love buying anything ‘on sale’ including stocks and bonds! So far 2022 has been a lousy year for both the stock and bond markets. *Note these numbers do not take into account the $3/month fee. This amount is just barely more than I have put in. This is deducted from my checking account. It does not reduce the balance in my Acorns portfolio.įour years later, this is my Acorns account balance history as of 10/18/22: I changed the whole dollar transactions to round up just 10 cents.
If I have an even dollar transaction, for example $40.00, the Acorns default is to round up a whole dollar. This didn’t make any sense to me - a dollar is not spare change! But this amount is adjustable. When the round-up total gets to $5.00 it is withdrawn from the funding source account and invested in a low-cost ETF (Exchange Traded Fund) portfolio of my choice at Acorns. Then I linked my credit card. You can link more than one card including debit cards.įor every transaction on the linked card, Acorns “rounds up”.įor example, yesterday I used my linked credit card to fill up my car with gas. The total was $63.16. The picture above is the spare change stash in my office today.īut here in the 21st century, I don’t have too many cash transactions, and therefore not a lot of physical spare change.Įnter the micro investing app Acorns* which invests your digital spare change.įour years ago, I signed up for Acorns and linked my checking account. The checking account is my “funding source”. This dates back to counting the spare change and “egg money” in my grandmother’s chipped gravy boat in the 70’s. Four years ago, I wrote about my lifelong passion (some would say obsession) for spare change.
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