Friday, May 04, 2018

Why I closed my Acorns account

When we started our financial journey to save for remodeling, I looked into a bunch of apps that were popular on many different financial blogs.  Sometimes I think things are promoted because the blogger gets a kick-back so it's hard to know what is worth while.  I kept seeing rave reviews for Acorns and tried it for one year.  Here are the reasons I finally decided to close my account.

In one year I saved $271.32.  I chose the Aggressive portfolio and Acorns charged $1.00 per month to manage my account.  After one year, my cash out value was $270.39.

Recently I got an email saying they were changing the account fee to $2.00 per month until accounts reach one million.  Considering my first year progress, I think I’d lose more money so I’ve decided to close the account and consolidate my savings in another investment account with Vanguard that will earn potentially more when combined with other funds.  To date I haven’t lost money with Vanguard.

Acorns might be a nice way to spur beginning investors, but you’d probably do better with automatic monthly deposits to a savings account that’s guaranteed a tiny amount of interest.  I’d rather have money saved then lost so the Acorns app just doesn’t work out for me.  I don’t know how many years I’d have to save to come out on top with this app.

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