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gigatexal

This is great! Now I wish they would open up trading for IRAs

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For IRAs just use vanguard S&P 500.

I am confident that everyone’s IRA would be better kept by Acorns.

Robinhood encourages getting in and out of positions to frequently.

I'm confident that everyone's IRA would be better kept in a low-cost mutual fund that tracks a popular index.

That’s exactly what Acorns does. Only uses Vangaurd popular indexes.

but they charge a fee on top :) it's small, but it basically abstracts away the underlying investment vehicles. it causes Acorns to be a blackbox.

"welp, I don't know where my money is going, it's just going into the Acorns! They handle it all for me!"

I don’t mind it. Personally I find that it gives an incredible amount of dollar cost averaging, since as little as $5 gets invested at a time. All transaction fees are included with the $1-$2 a month.

Additionally it’s not a black box because you get to select from 5 options that explicitly show the exact allocation and which ETF it goes to.

To each his own, but I find that it takes away a lot of the psychological thought of investing in a cost effective way. But the $1-2 a month can end up being a large fee if you don’t have more than $10 or $20k invested.

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