Yes, you read that correctly, it is a new addition to My Compounding Money Strategy. The funny thing is when I first set out on my investing journey I had strongly considered using Acorns then. While I did give it a lot of thought, at the time I decided against investing with Acorns mainly because of the expense ratio of the funds that you had to invest in and the monthly charge that was incurred for having the account.
Fast forward a little bit and I have some investing experience under my belt. I feel as though I am pretty good at saving money but I am also a huge fan of having money taken off the top before I ever even receive the money. This should be very apparent by the fact that I employ a 401K, HSA and an ESPP. All of these vehicles take money out of my weekly paycheck before I ever see the money and then I save money on top of that to invest as well.
Lately, I had reconsidered the idea of using Acorns because of its ability to essentially take the round ups out of my account before I get a chance to spend them. So I decided to sign up for an account and try it out for awhile. I only linked 2 of my accounts to Acorns but one of them is the primary account that I spend money out of. Despite the high volume of transactions that are incurred in this account I knew that I still needed to help fund it a little bit.
So I made the decision to add an extra $10 every week on top of the round ups. Now I know that $10 doesn’t seem like a lot but I am happy to report that after 1 month the account has already already amassed $100. Since I am not a fan of all the fees that come along with this account my plan is to just use this account to save money in. Once the account gets up to a decent size and I have decided on my next investment idea, I intend to liquidate the holdings in the account and transfer the money to another brokerage account.
Once the money is in a different brokerage account, then I will be able to make a purchase of some dividend growth stocks that I can own and not have to pay fees for every month.
I know that I could leave the money in my Acorns account and just receive dividends there but I just don’t think that the dividends received would be more than the expenses. I am not sure of how this will affect my taxes next year but I don’t think it will make a huge difference on the capital gains.
I intend to go forward with this plan and see how it works out and then re-evaluate sometime in the future and see if it is worth continuing.
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As always I look forward to reading all of your comments and questions, until then….. happy investing!