Acorns

Hi all,

Just signed up to this app after reading a few reviews, just wondering what your thoughts are on this? Benefits? Any growth you've seen in your respective portfolios?

Thanks

 

I'd say, it's not too useful, though its a start to shares the problem is, you have no control over them! I used Acorns for 6 months but it was only play money and saw bugger all growth. I'd invest directly via LICs if you want to be serious about making money in shares.

 

Acorns are a pain underfoot.

I've got the whole oak tree in my back yard.

 

The rise of fin tech. Most are charging around the 2% mark for their fees/MER. Index funds (ETF) and LICs charge less than that and have been around much longer. Check out the beginners thread for LIC, there is also a beginners document that @austing has kindly compiled.

 

High fees erode very little profits. Also a tax nightmare if you only sell some of your Acorns.

Tax nightmare

 

I put this on the other thread, but I'll post it here too as it is probably more relevant here.

IMO the idea of acorns is to get someone saving and investing and developing the frame of mind to do so. It isn't a retirement or long term solution.

Vanguard charges 0.9% p.a. for their diversified retail products (higher than Acorns), which are superior IMO, however they require a $5k minimum; most people will never save $5k to get started, most people live paycheck to paycheck. Those people certainly aren't going to read a book on investing and then follow through on it, especially with what the media keeps pumping out.

You could argue about the portfolio constructions, at least they are broad and cheap ETFs, a DYI investor could do far worse. We speak about Boglehead vs Dividend investing all day, there are plenty of pros and cons of each (though only one is correct ).

Acorn fees are never that high, 0.275% + the higher of $1.25/month or your strategy fee .254%-0.342% (the underlying fees of the ETFs)

If it was day one here as a novice I would be happy (looking back from where I am) to sit in an Acorn until I read the beginners guide/thread to LICs and Boglehead thread and came to the correct decision on my long term strategy.

* I have no idea of the tax implications, I find it difficult to believe that Acorns hasn't addressed this to some extent but dumb things happen all the time.

 

It was all very easy last year, Acorns sends you a spreadsheet and away you go.

 

I just signed up too, thought I would try it for a while until I make a decision on my next IP. It's also been helpful teaching my 10yo about investing in the share market and the effects of compounding interest

 

Hi Pat! We have a special event on this weekend if you are interested... no pressure to attend at all but it really could be quite interesting for you if you want to do anything about shares... look in my signature. The same course is also run via Sydney uni continuing education but it costs $410 there....
I did the course in February and it blew me away....

 

i would love to attend but i will be interstate this weekend. i'll check out the sydney uni event.

 

Good stuff! Here's that link for Sydney uni. It's not on until August though.

Understanding Investing for Long-Term Gain Course