Planning for Your Future
Planning for your future can be a daunting task. Most people don’t know how to invest and depending on a person’s age, investing might be the farthest thing from your mind. I am not a money guru… I am in no way a money adviser… but I have found an awesome tool that I think people can utilize for their future and wanted to share it with others.
Maybe you’ve heard of Acorns… it is a site (they have an app too) that offers a few things for those wanting to invest but who may not know where to start. My husband actually has a 401K with his job and his company does some matching. My husband will also get a pension at retirement, but I am always looking for ways to save for later… well when I’m not trying to spend it on some vacation or getaway! Anyway, I just stumbled across Acorns and wasn’t sure about it but after looking into it, I became super excited to use it. Acorns offers 3 different “products”, they have an Acorns account, an Acorns Later account, and a Spend account. Each account offers something different.
This account is what got me excited… you link a debit card to your account (you can even link you PayPal account), Acorns rounds up your change to an account and invests it moderately* in the following…
Large Co. Stocks 29%
Small Company Stocks 10%
Emerging Market Stocks 3%
Real Estate Stocks 6%
Government Bonds 20%
Corporate Bonds 20%
International Large Co. Stocks 12%
*You have the ability to change moderate to conservative or aggressive, but that will change the percentages above.
I loved this idea because it was simple and more than likely a person wouldn’t even know it was happening. Every latte or gas fill up would be rounded up and put into an account that will be invested for you by a company whose portfolios have been structured by Vanguard and BlackRock. You also have the ability to set up a recurring monthly amount, as well as one time deposits here and there. I actually wanted to set this account up for my kids. Most of my readers know that I homeschool and I assign them books to read each week. I was paying the kids $5 to complete each book, and was having them save $3 of that… giving them $2 to spend. I wanted to actually do something with that $3 but didn’t know what… that is until I found Acorns. Now I take the kid’s $5 for reading their books and invest it into the Acorns account, which means I have a $60 recurring amount going into the account monthly. The $60 is the full $5 for 3 children weekly… my husband and I just decided to do the full amount. The kids think they are still saving $3 but now we give them the option to get the other $2 in cash or to “buy” 15 minutes of screen time in $1 intervals… so the kids could get $7 a book but they always choose the $2 in time and we arent’ paying anymore than we were.
Acorns also has something called Found Money. Companies will invest a certain percentage into your account for buying things from them. I just bought something on Etsy the other day and they invested 1% into my account. You can also download a Google extension to help you as you shop online. As you see, we aren’t using this account for our retirement. We are using this as an account to give our kids a little something later and feel this method is better than just putting money in a savings account and easier than hiring a money manager.
Some feel that this type of investing won’t help people because just investing spare change isn’t a retirement plan, I can see that point, however, if an 18 year old started putting $100 a month into this account and rounded up their change for 42 years… I think they would be sitting on something bigger than they would expect. Again, I am no financial adviser but so many young people today have no clue how to invest, companies are offering few investing options, so this might be something to look into, even for long term planning.
This account is more of a traditional retirement plan. After answering a few questions Acorns will let you know which IRA is right for you. I signed up for this a month after the above account, even though my husband has a 401K and I am not putting a ton of money into this account, it is just a little extra for retirement… I’m thinking it will be just enough to take an AMAZING trip right when we retire, which is in 21 years.
This account, along with a regular Acorns account, costs $2 a month, which some would argue defeats the purpose, but I think $24 a year is little to have your retirement account maintained, among other options. Using an account like this is still a risk and will need to have recurring money deposited into it.
This is an account I do not have but basically it is a checking account with a linked debit card that will invest by rounding up for you and keep track of any Found Money that is being offered. If you add this account to the above the monthly cost would be $3, but this might be a great option for those whose banks aren’t supported in the rounding up feature above (there are literally thousands of banks but there are some aren’t on their list).
Signing up for an account is easy and until you link a debit card or financial institution, you will not be charged anything. I can’t guarantee how much this service would help you, however, it is an easy way to save some extra cash and help people who may not know how to invest, get started down the road to proper investing. Because I have an account I am able to extend a free $5 to anyone who wants to sign up… yes, this will also give my kiddos $5 BUT you’ll get free money, I will too, and we all will be happy! Click any of the graphics to go to the page or click here.
I hope this little bit of information is helpful to you! Happy investing!
Bet + Fam 🙂