![]() It also has affordable starting plans and lets anyone begin investing regardless of how much money they have, Betterment vs. With over 9 million customers, Acorns helps millions of people save and invest on autopilot. About Acornsįounded in 2012, Acorns is the most popular micro investing app on the market. And with a $0 funding requirement, it's an excellent way to invest with a small amount of money. ![]() It currently has over 730,000 investors and $33 billion in assets under management. That value-added to their own investments leads individual investors to feel increasingly compelled to switch to M1 over other platforms.Betterment is a leading robo-advisor that was founded in 2008. For better or worse, not everyone has a family and not everyone teaches their kids about investing early on though. That said, M1 still needs to do more work to get competitive with the Family plan of Acorns. High Yield Savings, Low-Cost Margin soon: Credit Cards, Loans.Īt this point, I think it's hard to justify Acorn's fees over M1's ability to provide something similar at no cost and something more complete at higher costs. M1 is specifically on a roadmap to provide that in every way possible. Finally, a lot of people find a sense of trust and security in having all their money under one roof. Additionally, with M1 Plus ($125 with 1% Yield on Savings that can potentially help the $125 pay for itself right there alone) you can still have the formula of M1 detect free funds from your account that's just waiting to be deposited. You can calculate the average amount you deposited per month over the past year through Acorns and simply automate that amount through M1 for the rest of your deposits.įor the highest quality investor: M1 allows you to pick and choose the portfolio that's right for you (Like if Subway didn't skimp on the olives) - free of charge. You don't have to worry about paying a fee beyond the expense ratio of any ETFs themselves. If we look at M1 as an Acorns replacement purely:įor the lowest cost investor: M1 allows you to auto-deposit monthly for free. ![]() Regarding why someone might prefer M1 over Acorns: Minimum $0.01 in each stock in order to receive cashback while shopping at that particular store (assuming you are approved for the card). If anyone wants to use the same funds as in Acorns, here are the M1 Pies for the following Acorns portfolios:Īnd here is a pie for the M1 Owners' Rewards Card broken down by the percentage of cashback. Welcome to the subreddit! As others mentioned, I would go for M1 over Acorns. On top of that, you choose when you rebalance. Just set up a $10 automatic transfer on the first day of every month and you are performing the equivalent of what acorns does without getting your money stolen.Įven better, you can custom Tailor your portfolio and beat the performance of all the acorns portfolios. $90 in 3 months comes out to $10 a month. You could set up the exact same portfolio on M1 for free, and simply set up an automatic transfer. Not only are you going to break even on your account, but when tax season comes around and all of your games have been realized by their endless rebalancing, you're going to pay taxes on everything. $280 in the market and at 13% CAGR per year all you get to do is break even. Once you have $280 in your acorns account, your market gains minus your monthly fees comes out to net zero. In an average year using their most aggressive portfolio, if your account balance is below $280 total you are losing money. Just for the sake of argument i'll still put out the disclaimer that liking a company is way different than liking a company's fundamentals and that buying a company you like is based on "feel-good" analysis rather than technical analysis. And if I am willing to make that kind of commitment (even if its just $1) it would likely only be for a company I believe in that gives a product or service I value and like. I like M1's approach with the owner's card in the sense that I would have to have the conviction to "own" a piece of the company (even if it's just $1) to get the cash back rewards for that company with the card. Arguably, you may find that the Found Money / Earn program actually drives you to spend more thinking you're getting a value in return (investable "cash back") when in actuality you may end up "impulse" buying just because you see a "reward". You lose out on the Found Money and Offers but M1 is dipping their toes into a similar concept with the Owner's Card. The monthly fee even when it was $1 for the type and amount of investing at Acorns alone is a good reason not to use Acorns since you can replicate the same portfolio (for "free") in M1.
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