App Review: Top Up Your SavingsApp Review: Top Up Your Savings
October 14, 2014
We’ve all heard the adage: You’re one cup of coffee away from a comfortable retirement. Well, now that cup of coffee may actually help you—or your clients—save faster.
A new app, Acorns, takes advantage of the micro-investing wave by rounding up purchases on debit or credit cards and sending the difference to an SIPC-insured investment account (For the first $500,000.)
Not meant to replace a formal retirement plan, Acorns can however supplement your clients’ current efforts—and in a fairly painless way. For the first $5,000, service fees are $1 plus a .5 percent annual charge, .25 percent for accounts larger than that. All funds are put into ETFs. Dividends are automatically re-invested—and investors can withdrawal funds at any time. No, some dimes, nickels and pennies are not going to get you to a dream retirement in Tuscany. But they may be a painless (and invisible) way to put some fun back into savings. And really, who is going to say no to that.
