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In today’s Stash Invest App review, I’m going to talk more about an app that has made it easy for beginners to get started in the world of investing. In the past this was intimidating and it still is for many people.
But nowadays with the internet and so many amazing apps, it’s only a matter of time before there’s a workaround for just about anything imaginable. But is Stash a scam? There are also a boatload of not so good apps out there.
Having said that, in this article I’m going to tell you more about this app. The pros. The cons. And everything in between, so that you can figure out if it’s worth a try.
Let’s get into it.
What is the Stash Invest App?
Stash is an app that is designed to help people make financial investments. It was created by founder Brandon Krieg. The company was founded back in 2015 and is headquartered in New York City.
Stash was founded on the notion that most Americans do not make financial investments because they are intimidated by the concept or because they believe it to be too expensive.
Krieg understood that the average American could get started investing with as little as $5. So he joined forces with other like-minded people to create a program that would guide users through the process of creating a portfolio, making investments, and managing their earnings.
Stash is designed to help beginners with investing. The kind of individual who doesn’t even know how to start making investments. Joining Stash is very easy. The collects personal and professional information of its users and then determines their financial standing.
The app will then create a customized portfolio to help users get started. Stash doesn’t necessarily do your investing for you. But, it tells you everything you need to know about the industry.
Think of it as a guide that will hold your hand throughout the process and help you become a successful financial investor.
How Does The Stash App Work?
Stash has over 40 exchange-traded funds (ETFs) and individual stocks. Before you can make any selections, you must answer a series of questions relating to your income, assets, and net worth. The app will also require your banking information and social security number.
Once Stash has all this information, it will make a few ETF recommendations before creating your investor profile. You don’t have to take the app’s recommendations.
Stash will allow you to select whatever portfolios you like. But if you are new to this field, you are better off following the app’s lead.
You only need $5 to begin. So you can start using Stash right away. You don’t have to wait until you have saved up significant amounts of money. This matters because, when it comes to the financial market, the sooner you can get in the game, the sooner you can expect to see your investments grow.
Platform Interface
On the Stash platform you can view your balance, the investments you have made, the sort of growth you can expect in the future, and the alterations you can make to improve your earnings.
Stash is constantly educating you on what you can financially expect to see in the next five to ten years. All the guidance they provide is designed to help you plan for the long term.
When it comes to actual investing, you have to choose from themed investments. Making purchases is easy. The ‘Add to Portfolio’ button does all the work. You just have to enter the amounts you wish to spend.
Online Magazine
You don’t have to make any of these decisions alone. The app, which encourages patience, has graphs and calculators that will help you plan. An interesting bonus is the Online Magazine that accompanies the app.
The content it provides is perfect for new investors who want to grow.
Account Types
The company says that their goal is to set you up with long-term success. Here are the 4 account types that they offer:
1) Debit
Set up a debit account for your banking needs. This is an FDIC-insured debit account that helps drive your investment porfolio while also earning you stock-back rewards on purchases.
2) Personal Investment
This platform offers a simple and flexible investing brokerage account.
3) Retirement
Save for your future and enjoy the tax benefits with retirement accounts such as Roth IRAs, and traditional IRAs.
4) Custodial
Invest in your child’s future with custodial accounts.
How to Sign Up For Stash Invest App?
You can join by visiting the Stash website. You can also download the app on your mobile device to sign up or via the computer platform. The app is available for both iOS and Android mobile devices.
The cos is $1 to join and $5 to start investing. You can also select one of 3 plans which I will talk more about below.
To sign up you’ll be asked basic information including:
- Your personal info.
- Options to fund your account.
- Choose an investment from the options provided.
- Link your bank account.
It can take up to three days for money transfers to complete. You’ll also be required to verify your identity.
Stash has three plans to choose from.
- The Beginner plan costs $1 each month.
- The Growth plan costs $3 each month.
- The Stash+ plan costs $9 each month.
The Beginner plan is the most basic. And the Stash+ plan is the most robust plan of the three.
How Does Stash Compare To Others Apps?
There are plenty of Robo Advisors on the internet. However, they are primarily designed to help users make wise investments.
Stash is different because it is specifically designed to simplify the investment process. If you’re looking for investment tips you will also find these types of resources with the app.
But Stash’s target audience is users who are overwhelmed with the idea of making investments. And those who simply need help getting off the sidelines, and getting started.
It’s common for investors to start out Stash only to transition to a professional financial advisor once they have found their footing.
Stash has that personal touch that automated Robo Advisors lack.
Pros and Cons of Stash App
Pros
- The app is so simple that even new investors can navigate it with ease.
- The app is cheap. You only need $1 to join and $5 to start investing.
- You get over 40 ETFs to choose from. Stash will also make recommendations and includes automatic investing.
- The app is very educational. It will teach you about investing.
Cons
- Stash guides you through the investment process. It doesn’t manage your portfolio for you. If you require management, this app would be outside of the scope of your investment needs.
- Even though the $1 monthly fee is low, there are plenty of rival investment management companies that offer similar services for free.
- Do not expect real-time executions.
- You probably don’t need Stash if you already have plenty of assets on-hand.
- No accreditation with the BBB and an F rating. This might scare off some people.
Is The Stash Invest App a Scam?
The idea of kick-starting your investment career with only $5 might sound too good to be true. But as every Stash Invest App Review will tell you, this program is not a scam.
They have FINRA Membership and they fall under the regulations of the SEC. And the company claims to have over 3.5 million members who invest, save and bank with Stash.
Better Business Bureau
Stash does not have BBB accreditation and currently has an F rating. This is concerning as an F rating means that the company has failed to respond to complaints filed against the business. According to the BBB there were 62 complaints filed at the time of this review.
Web Security
They use 256-bit encryption to make sure that all user data is adequately protected. If that wasn’t enough, they have also chosen to not store their users’ bank login information. So you need not worry about potential data breaches.
Some people have raised questions about the $1 sign-up fee. While there are other competitors who are free, $1 isn’t bad.
All in all, one could argue that options like Acorns might be better. But Stash Invest definitely serves a purpose. Especially with so many newbies looking to get started with financial investments.
Conclusion
If you’re new to the world of investing, you might find the Stash app to be a breath of fresh air. Not only is is inexpensive to get started, but it helps guide you along the way.
It is definitely training wheels for the new investor. As I mentioned, it might not be a long-term solution once you get to a certain point and want to take things to the next level.
However, if you let you’ve found yourself sitting on the sidelines and too intimidated to play, now you have a coach. With the Stash Invest App, they’ve taken the guesswork out of the equation and make it really easy for you succeed. And at a price that won’t hurt your wallet.