NEWPORT BEACH, CA--(Marketwired - Aug 26, 2014) - Acorns, the first-ever micro investing platform, today announced the launch of its mobile app which helps anyone open an investment account with the spare change from every day purchases. The Acorns app allows people to harvest, save, and invest small amounts of money on the fly with no commissions, no minimum account balances, and no penalties on withdrawals. The app links to any credit or debit card and automatically rounds up purchases to the nearest dollar, investing the sub-dollar roundup amounts into a diversified portfolio of index funds offered by the world's largest fund managers: Blackrock, Vanguard, and PIMCO. Portfolios are constructed using Modern Portfolio Theory (MPT) with guidance from Nobel prize-winning economist and Acorns advisor, Dr. Harry Markowitz.
This year's UBS Investor Watch Report found that 39% of millennials worry about not having enough money to retire when they want to. Additionally, the survey revealed a resounding majority of millennials hold more than half of their assets in cash. This conservative approach has stunted wealth creation for many in this age group. Designed to find and invest tiny amounts of money frequently and automatically, the Acorns app helps customers get started investing earlier and enjoy the benefits of compounding from a young age. Otherwise known as micro investing, the approach was historically not considered economically feasible due to the steep cost and complexity associated with transferring funds, and buying or selling securities. Aided by the growth of ETFs and declining fees, together with the power of the smartphone, micro investing is emerging as a viable option to help jumpstart investing for millennials, a generation traditionally left out of the investing equation.
Different from other financial tech startups, Acorns built a proprietary advisory and self-clearing brokerage platform that not only enables micro investing, but also offers an end-to-end investment management experience via a mobile app. Contrary to traditional investing, which tends to require some industry knowledge, large minimum account size and commissions on every trade, Acorns has no minimums or commissions; there's no need to enter stock symbols or know investment jargon. The app allows unlimited investing and withdrawals of any amount, at any time for $1 per month. On any funds kept in the account there is a maximum 0.5% annual management fee. This fee drops to .25% for assets over $5,000.
"In today's financial markets, there are many investing programs that require people to change their behavior and save large amounts they would otherwise spend," said Jeff Cruttenden, Cofounder and COO of Acorns. "Our goal with Acorns was to build an app that complements a customer's spending habits and makes saving second nature. Rather than waiting to invest until they have a large lump sum, we want to encourage people to invest while they build wealth. To some, micro investing may seem insignificant but the compounding effect coupled with automatic dividend reinvestment can make a big difference if started early and held for the long term."
To get started, customers simply connect their credit cards and bank accounts. They are then prompted to input their financial profile and investment goals to receive one of five portfolio recommendations (from conservative to aggressive). They can take this recommendation, or select another risk level, which they find more appealing. From there, Acorns automatically builds and maintains a portfolio tailored to the customer's needs through a uniquely designed and completely dynamic app.
Cofounder and Acorns CEO, Walter Cruttenden added, "People have long known the power of compounding just a dollar a day. In fact, Paul Merriman's recent article in MarketWatch points out this very fact. But the question has been how to do it. We believe Acorns is the vehicle. It is the easiest way to gather and turn small dollars into something big. Fortunately, many people agree. We are opening accounts as fast as we can!"
To download and install Acorns, visit the iTunes App Store or visit www.acorns.com
About Acorns Grow Inc.
Acorns is the first true micro investing company, allowing people to round up purchases and automatically invest the change®. The Acorns app and financial engine is built to help people micro invest commission-free into a diversified portfolio of index funds offered by the world's largest asset managers: Vanguard, Blackrock, and PIMCO. Customers purchase fractional shares, automatically saving and investing small amounts of money frequently. The app can also help identify and gather found money, such as rebates and rewards, which can be automatically swept into the customer's investment account. Like the alarm app that helps you wake, and the calendar app that helps you keep appointments, Acorns works behind the scenes, saving and investing pennies at a time, so you don't have to. From Acorns mighty oaks do grow!
Acorns Grow Inc. (d/b/a/Acorns) is the parent of Acorns Securities LLC, a member of FINRA and SIPC, and Acorns Advisers LLC, an SEC registered investment adviser.
This is not an offer or a solicitation to buy or sell securities. Investing involves risk. Investments are not FDIC or NCUA insured. Projections are hypothetical in nature. Brokerage services are provided to Acorns Advisers LLC by Acorns Securities LLC, member of FINRA/SIPC.