Author Topic: Acorns App?  (Read 4281 times)

Handlebar Harry

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Acorns App?
« on: August 27, 2014, 12:48:53 PM »
Hey guys,

First time poster! Like most people on here, I started with one short read on the blog and then completely devoured the entire site within a few weeks. I'm definitely a huge fan of MMM and am really happy he's changed my perspective of savings.

With that being said, does anyone have any thoughts on the new Acorns app? I think it's not ideal for me because I'm much more hands on with my investments, but I can totally see why people would use it.

??

-HH

GGNoob

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Re: Acorns App?
« Reply #1 on: August 27, 2014, 12:57:43 PM »
I can see it being useful for people who otherwise wouldn't save or for those who have a hard time saving.

I signed up for the beta and wanted to try it out. I got an invite and while I was going through the sign-up process, I noticed the fees. It's something like $1 a month plus 0.25%-.5% of your account value per month. Not worth it considering my wife and I are saving enough just fine on our own. The amount of money that would invest every month is pretty small anyhow.
« Last Edit: September 04, 2014, 08:00:39 AM by Logan T »

arebelspy

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Re: Acorns App?
« Reply #2 on: September 03, 2014, 09:38:59 PM »
Had to Google it.

http://time.com/money/3209096/app-help-you-save-spare-change/

Yeah, those fees are ridiculous.

It'd be nice if people could just save on their own, without gimmicky crap.
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wealthviahealth

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Re: Acorns App?
« Reply #3 on: September 24, 2014, 06:48:46 AM »
I love the idea and downloaded the ap but hit the breaks when I saw the fees.
If this could be down sans the fees or with much lower fees this would be incredible.

skyrefuge

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Re: Acorns App?
« Reply #4 on: September 24, 2014, 10:10:53 AM »
Seems pretty close to being a target for the Antimustachian Wall of Shame and Comedy, at least if we take their headline "round up" feature as the primary attraction.

First, at an average of $0.50 "saved" for each transaction, that works out to a measly 5% savings rate assuming your average credit card transaction is $10, and 100% of your expenses are paid via credit card. Since I bet the average credit card transaction is greater than $10, and people don't actually pay 100% of their expenses via credit card, 5% is the best-case scenario; for most people using this method, the rate would be much lower.

Worse, the "round up" feature psychologically links the concept of "saving" with "spending". Rather than "savings" being something that happens when you DON'T SPEND, Acorns sets up the opposite dynamic: in order to save, you MUST spend. Not only is this a horrible way to understand saving, I bet it can actually induce more spending: "well, I probably don't really need my 3rd cup of Starbuck's today, but hey, it'll add to my investments, so that's a good thing!"

And then there's this:

Quote
Cruttenden [Acorns co-founder] says he is a typical user and through rounding up his card purchases has added $521.63 to his account over three months.

HOLY FUCKING SHIT! $521.63 in three months means that he is making over 11 credit-card transactions PER DAY! I don't even average 1 CC transaction per day. And despite that insane ability to be buying shit all day long, it still equates to only a measly $2k saved per year.