{"id":2483,"date":"2023-03-15T07:33:00","date_gmt":"2023-03-15T14:33:00","guid":{"rendered":"http:\/\/financegourmet.com\/blog\/?p=2483"},"modified":"2023-07-04T15:34:56","modified_gmt":"2023-07-04T22:34:56","slug":"acorns-investment-portfolio-review","status":"publish","type":"post","link":"https:\/\/financegourmet.com\/blog\/investing\/acorns-investment-portfolio-review\/","title":{"rendered":"Acorns Investment Portfolio Review"},"content":{"rendered":"\n

Recently, I did a review of the Acorns app<\/a>. If you are not already familiar with the Acorns savings and investing app, you should read that for an introduction how to use Acorns first. It also covers questions like Is Acorns safe, What are Acorns fees, and If Acorns is legit. Essentially everything you would expect in an honest Acorns review. Now, let’s take a look at Acorns funds and how they invest your change.<\/p>\n\n\n\n

Are Acorns Investments Good Portfolios?<\/h3>\n\n\n\n

The idea of the Acorns automatic money savings app is that it rounds up all of your transactions and automatically invests that money for you. There are some nuances about how Acorns works<\/a> you should understand first. Money is only transferred once the minimum round-up amount is $5, and it only happens once per day, unless you use the Acorns debit card or Acorns checking account.<\/p>\n\n\n\n

Before we get too in-depth here, it is important to remember a few things. First, when you get started with Acorns, we are talking about a very small amount of money. That means that as far as real dollar amounts go, the difference in percentages won’t be big. For example, if you have $100 in your Acorns account the difference between 10 percent and 8 percent (whether up or down) is just $2 for a year. In other words, this not something to wring your hands over, especially in the beginning.<\/p>\n\n\n\n

However, you can make lump sum, or recurring, investments with Acorns now, which may make your investment balance bigger faster. So, let’s dive into this Acorns investing review.<\/p>\n\n\n

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Where Does Acorns Invest Money?<\/h4>\n\n\n\n

Of course, the whole point is for your automatic savings to add up and grow over time, so it is necessary to understand where Acorns is investing our money. So, let’s take a look.<\/p>\n\n\n\n

Acorns has five different investment portfolios that it uses and automatically re-balances for all users. This is a typical robo-advisor<\/a> setup.<\/p>\n\n\n\n

The Acorns app helps you pick which Acorns investing portfolio to use based on your age and various risk tolerance questions, or you can pick for yourself. The five portfolio types are very traditional, even if what is in them is not. <\/p>\n\n\n\n

The five types of Acorns investment portfolios are Conservative, Moderately Conservative, Moderate, Moderately Aggressive, and Aggressive. So, the Acorns aggressive portfolio has all stocks, while the Acorns moderate portfolio makes use of the traditional 60\/40 portfolio. The Acorns moderately aggressive portfolio splits the difference, the Acorns moderately conservative preview reverses the 60\/40 to be a 40\/60 portfolio, and of course, the Acorns conservative portfolio is all bonds.<\/p>\n\n\n\n

The Acorn portfolios have changed a bit from the beginning, but are still pretty typical as far as the stock to bond ratio is concerned.<\/p>\n\n\n\n