Stash Invest Review
What is Stash Invest?
Stash Invest is a micro-investing app that is currently available for Android and iOS.
According to the Stash website, the mission of their company is to make investing
simple and accessible. And what is more simple and accessible than an app on a smartphone? Investing in ETFs (exchange-traded funds) which are simply a collection of stocks and bonds allows a user to start investing in companies, products, and industries they like and support without having the money to purchase whole shares. For example one ETF offered by Stash is "Roll with Buffet. Roll with Buffet is Berkshire Hathaway Inc. Class B. Ticker: BRK.B
Currently there are more than 30 ETFs available but be aware what you see is based on the profile you set up. My current risk profile is Aggressive but that may change. Aggressive risk profiles see all ETFs available on Stash.
Answering the following questions will put you into the category of a Conservative, Moderate, or Aggressive Investor.
- What's Your Investing Style?
- What's Your Employment Status?
- How much do you make in a year?
- What's the value of everything you down, minus any debt?
- When do you plan on using the money your invest?
Why Use Stash Invest?
Two months ago, I took a small amount of money from a savings account where it was making 1.25% interest to see if I could make a better return with micro-investing.
I was familiar with buying small percentages of stocks at a time. I’ve been investing in stocks starting with Sharebuilder (Now Capital One Investing) for more than 10 years when I set up my IRA accounts. And I tried Betterment but have since closed my account. Other micro-investing apps include Acorns and Robinhood. Robinhood is a commission free stock buying app.
Pros & Cons of Micro-Investing
- Easy for the beginning investor
- No account minimums
- $5.00 minimum trades
- Higher returns than savings accounts
- Dividends can often cover monthly fees
- $1.00 a month (accounts under $5000) doesn't sound like much but it adds up
- Some financial experts are leery of the micro-investing trend
- Small investments = small returns
This is not a get-rich-quick scheme investors should be in it for their future. You have to be willing to ride through the highs and lows of the stock market. Although it is simple to sell; the app will advise you not to. The business model is for buy and holding ETFs.
“If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.”
— Warren Buffett
I was gifted this book by a friend in the financial field and found it to be a great overview in Investing for beginners.
Are you ready to start investing with $5.00?
Are you ready to start investing?
“Don't save what is left after spending; spend what is left after saving.”— Warren Buffett
My Experience with Stash Invest
As of today's date 10/24/2017 my portfolio account Total Return is 5.22%. Potential in the next ten years, if I continue to use Stash, is good if the last ten years are an indication.
The Stash Facebook group (which you can access on the Home tab of the app) is an independent helpful and supportive group of other micro-investors that want to help you succeed for the long term.
Don't put all your eggs in one basket. Along with Stash Invest I also have a company sponsored 401(k) account, higher interest savings accounts, CD's, and retirement IRA's. This is not an endorsement of Stash Invest, just my personal experience for users that want to dip their toe in micro-investing.
Need more info?
- Exchange-Traded Fund (ETF)
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
- Micro Investing Explained
Micro investing involves saving very small amounts of money regularly. This article explains the easy way you can invest your loose change.
- Micro Investing Apps: What You Need to Know | DaveRamsey.com
Micro investing apps help people regularly save small sums of money and are a new trend in investing. Find out if Dave Ramsey recommends micro investing!
- What Is a 401(k)? - Personal Finance - WSJ.com
A 401(k) is a employer-sponsored way to save and invest for retirement.
© 2017 Writing Nag