reports

Acorns | June’s Report

It’s time for another Acorns Report!

The Acorns Experiment

I am running a 12 month experiment with Acorns where I will be investing $100 a month as a regular investment and also allowing it to do ’round-ups’ to invest the spare change from my spendings. Acorns has a standard monthly fee of $1.25 ¬†for account values under $5000 and my personal view is that it is an exorbitant fee that makes any investments under that threshold be better off done in a high-interest bank account.

However, instead of just pulling numbers out of thin air, let’s actually play with a live stock market and real cash.

You can read May’s Report here.

June wasn’t a great time for Acorns this month. I don’t know that much about patterns within the stock market currently as I am very young in my journey, but I wondered if the end of financial year had anything to do with it?

acorns june report

 

Hooray, I’ve made my first ever dividend income! 1 cent, I’m rich!

I’ve also realised that I really like the monthly statements that Acorns generates. It makes it very easy to see everything at a glance. That maintenance fee of $1.25 is still mocking me though, I cannot shake the niggling feeling that it’s absurdly high. I know it will get better as I put more and more money into Acorns but right now…

 

acorns june report

And just as a reminder, the portfolio I have opted for is the aggressive portfolio.

Which at this point seems to be aggressively dropping in value. Hah.

And that’s it for this month’s report. There’s not much I can add to it beyond the figures above. At this point, I wouldn’t be actively recommending Acorns as a micro-investing tool because I feel that it is folks like me with tiny bits of money in it that’s actually funding the company. However, it is still early days. If you feel like signing up for Acorns, here’s my referral link.

I guess that brings a big question to the forefront – is micro-investing actually worth it?

8 thoughts on “Acorns | June’s Report”

  1. Y’know, after almost 9months with Acorns I JUST found the statements. Through the web app they’re tucked away under ‘settings’, that’s super confusing.

    Just twiddling my thumbs waiting for my tax statement to come through. Really interested to get a 9month snapshot on one piece of paper.

    1. Oh my gosh, yes. Why they put it under settings I don’t know. It’s silly! And not having them available on the mobile app is extra silly.
      I was wondering if I should be waiting for my tax statement from Acorns but I had barely started (and was making a loss) through the month before EOFY so not sure if I should wait till the end of this month…

  2. Hey! Interesting to read your perspective on Acorns (and your blog is really beautifully written and designed!). I agree that the fees are higher than optimum – for me the remaining value is that it “creates” new small investment that I otherwise wouldn’t organise to make. If you’re disciplined and have a little more to invest, there are better choices. I hope as the model matures, the fees start falling.

    1. Ah thank you for your compliment! I am with you, I do think it’s a great foot in the door and a great window into this world-that-could-be for many non-investors. I just wonder whether its really wanting to help its target market, or exploit its target market… hm…

  3. I also have been wondering about Acorns. I’ve seen it in other places and hear good things, but like you I wonder if micro-investing is worth it. And the $1.25 fee does seem high, but if the balance is high I guess it scales down.

    1. Yes, definitely if your balance is high, then the fee becomes an easier pill to swallow. But I keep wondering, with these apps aimed at people who are trying to break into the market, who may not have anything beyond the loose change to invest – will their balance really get high enough anywhere fast to make it worthwhile? More worthwhile than a high interest savings account? Big question mark.

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