Acorns Review: Why It’s One of My Favorite Investment Tools

How to Actually Make Money Using the Acorns Investing App | Moneywise

I am always on the lookout for new financial tools to help us achieve our goals, including early retirement. We already have two different investment accounts aimed at helping us retire early, but I’m always seeking new ways to diversify our portfolio. Recently, I discovered an investing app called Acorns, which piqued my interest.


When you sign up for Acorns, you choose an initial monthly plan. I opted for the lowest plan, which costs only $1 per month. The Lite plan offers a taxable investment account, which suited us since we already have Roth IRA accounts that we max out.

The next plan is the Personal account at $3 per month, adding a checking account and an IRA option. The highest plan, Family, costs $5 per month and includes the ability to open investment accounts for your kids along with the other features.

Since we already have various other accounts, we went with the cheapest option to diversify our investments.

After setting up your account, you can decide how much and how often to contribute. We started with a modest amount to test the platform’s performance before increasing our contributions.


After the initial setup, you can enable Acorns’ rounding-up feature by linking a checking account and a credit card. Each time you make a purchase, Acorns rounds up the amount to the next whole dollar and transfers the spare change to your investment account once it reaches $5.

You can also amplify your round-ups by 2x, 3x, or 10x. We chose a 3x multiplier, so each round-up is tripled before being transferred to our Acorns account. Additionally, for whole dollar purchases, you can choose to invest an extra $1 (or $3 with the 3x multiplier).


Acorns offers five different portfolio options based on your risk tolerance and time horizon:

  1. Conservative: 20% each in five different Government and Corporate Bond ETFs.
  2. Moderately Conservative: A mix including 24% Large Company Stocks and 42% US Aggregate Bonds.
  3. Moderate: A diversified portfolio with a higher percentage in Large Company Stocks.
  4. Moderately Aggressive: Includes stocks and various bonds, plus specific ETFs like Vanguard Emerging Markets and REIT ETFs.
  5. Aggressive: A focus on stocks with 55% in Large Company Stocks and 30% in International Company Stocks.

You don’t select individual funds; instead, Acorns recommends a portfolio based on your profile. You can easily switch portfolios with the click of a button.


Our experience with Acorns has been positive. The platform is easy to set up and use, with helpful articles guiding you through the investing process. Although we can’t pick individual investments, we’ve been satisfied with the performance and appreciate the diversification it adds to our retirement portfolio.

The round-up feature is convenient, automatically transferring money with each purchase. Acorns is great for those new to investing or who struggle to remember to fund their accounts. If you prefer a hands-off approach, Acorns might be a good fit. However, if you want a more active role in managing your investments, there are other options better suited to that style.

Ultimately, choose an investment platform that fits your needs and lifestyle to ensure you use it effectively. If it doesn’t work for you, it won’t be maximally beneficial, defeating the purpose.

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