Stash Invest Review: There is more to investing with $5 than meets the eye
Getting into the investment market is a tough game, especially when you don’t have the needed cash to begin with. That is one of the most significant barriers many people encounter that stops them from making investments. However, there is a new story in the market, and that’s the one been told by Stash Invest. Stash Invest is here to show and prove to you that it is possible to invest with as low as $5. Yes! You heard right, and we bring you all you need to know about Stash Invest as well as how you can go about it.
Stash Invest App makes it possible for you to invest in the right allocations and investments by providing you with the necessary guide. It portrays all you need to know about investment in a straightforward and relatable manner to beginners. It helps you become an investor by showing you the way instead of investing for you. Everything about Stash Invest is as simple as it can get and if it is not, they are ready to offer further assistance.
Why don’t you keep reading to see if the investment is for you? After all Stash Invest is here to help.
What is Stash Invest?
Stash Invest is not just another investment mobile app. It is an investment solution that provides you with access to vital tools. These tools and resources aim to help you make informed decisions necessary to become a successful investor. Stash gives you the opportunity to invest in what matters to you. Stash invest have various investment themes that are approachable and straightforward. They offer you all the help you need every step of the way; with a Stash coach, you are never alone.
Unlike other similar online investment services, Stash gives you the investment foundation required to build your investment portfolio. Stash puts the investment power in your hands, and you have total control and freedom over what you invest. With Stash Invest, you get to choose the investments that will make up your portfolio. Although you might think this is a daunting task, with all the help provided as mentioned earlier, you have nothing to worry about.
Stash Invest also have an intuitive calculator designed to help you view the potential of your budget with just a slide.
How Does Stash Invest Works?
To start investing with Stash Invest, you only need a phone, $5 and a couple of minutes and you are done. Stash Invest offers you 30 different investment types to choose from, each themed to fit your risk tolerance level and personal preference. Also, you can make an additional investment and track your progress. Below are five straightforward steps to get started.
- Step One – download the Stash Invest App from the app store: although you can create an account online, you need the app to make investments and track your progress. The Stash Invest App is compatible with many devices both on iOS and Android.
- Step Two – Fill out your profile: once you have downloaded the App, you proceed to fill out all the essential information your profile need. You will also be required to answer some questions which will enable Stash Invest to guide you correctly. You have to be honest when answering the questions as they are a significant pointer towards determining your risk tolerance level.
- Step Three – Select an investment: based on the answers you provided to the questions asked, specially themed investment options will be offered to you. These investment options are in line with your risk tolerance level. To gain more insight, you can click on each one to display the information. As mentioned earlier, it is all in layman’s terms, so you don’t have to worry about comprehension.
- Step Four – Link your bank account to the Stash Invest account: the reason for this is that you need money to invest. Also, it takes a couple of days for the transferred funds to reflect in your Stash Invest account. Although, you don’t have to worry about spending money when you are not sure about the outcome. Why? Because Stash Invest gives you a one-month free trial.
- Step Five – Confirm your identity: once you have completed all the steps as mentioned above, the only thing left is to confirm your identity. You will also need to create a four-digit pin, and you are set to start investing using the Stash Invest App.
Stash Invest is most suitable for beginners with no investment knowledge or investments with limited money. Due to its simplicity in presenting valuable information to investors, it is an excellent way for beginners to start investing. Also, for investors with a limited amount of money, Stash Invest have a $5 required minimum to begin investing.
Stash Investments Options
Stash Invest have a wide array of investment options for potential investors to choose from and below are the options.
- The Activist: this is an investment option for people with a cause or trying to help a particular purpose. The available options under this category include investing in companies that produce renewable energy solutions such as solar and wind among others.
- The Techie: this option is for people who want to make a positive impact on the world. It allows you to invest in tech company specialized in developing solutions to solve both local and international problems facing the world.
- The Globetrotter: this plan enables you to invest in global industries that deals in travel and leisure, among many others.
- The Trendsetter: this category allows you to invest in companies that deal in the communication and entertainment industries.
Other Stash Investment features include:
- Stash Retire: this feature is a Stash invest retirement options for investors and offers both the traditional and Roth IRAs investment choices. However, Stash Retire is more expensive than the Stash Invest and is a bit tricky to maintain. Although, it still requires a minimum of $5 to start your investment. It needs $15 as minimum balance and $2 as the monthly fee for $5000 accounts compared to Stash Invest.
- Stash Banking: this is another Stash Invest feature that allows you to join their banking program. The banking program offers you zero monthly fees, minimum checking and free access to some ATMs. Stash banking is mainly designed to help you spend wisely and secure a great financial future.
- Stash Learn: helps you to make a sound financial investment decision, you need to know how to go about it. Stash Invest designed Stash learn for you, and it contains varieties of articles where you can learn about invest. To further make it easier for you to access what you need, Stash learn divided into four parts:
- a. Teach me
- a. Money news
- a. Money talk
- a. Stash
More Stash Invest Features
- Smart-save: this feature is more suitable for people who are keen on saving investments instead. Stash Smart-save allows you to build your savings while earning a little interest over time.
- Real estate: Stash invest offer investments in real estate investment trust (REITs) using a small amount of money. As with everything with Stash Invest, investing in real estate is also very simple and effortless to execute.
Stash Invest Fees
The standard charges for investors with less than $5000 monthly are $1. Although this is not much, however, compared to the percentage of your assets, it can be large. However, if your initial investment is above $5000, the charges becomes just 0.25%. Stash Invest doesn’t charge any extra fee for transfer and early withdrawal (zero add-ons). Also, there are no charges on your account if you decide to close the account. However, there is a $30 overdraft fees in case of insufficient funds during the closure, so ensure you have enough funds.
You only need a minimum of $5 to start investing as mentioned above. Stash Invest primarily deals in exchange-traded funds (ETFs) which are tradable popular, inexpensive funds that are easy to invest in. ETFs annual fees usually range from 0.07% to 0.95% with an average of 0.39%, and this compared to other competitors is a bit high. For the retirement account, the minimum balance required is high and so is the monthly fee.
Why Choose Stash Invest
There are many benefits to choosing Stash over other investment platforms, and it includes:
- SIPC Protection: all investment funds with Stash are covered by the SIPC protection which is the Securities Investor Protection Corporation through a clearing agency.
- Fractional Shares: Stash invest also allows you to invest in fractional shares. These are the share that can be split between several investors.
- Third-party Clearing Agency: Apex Clearing Corporation is the third-party clearing agency responsible for reporting and trade confirmation. Also, they are responsible for the handling of settlement, custody of assets and delivery in Stash Invest.
- Security: Stash Invest is regulated by the Securities and Exchange Commission and a registered investment advisor. The Stash Invest App is encrypted using a 256-bit bank-grade to secure all your information. Also, it uses secure sockets layer (SSL) to protect all information shared between them and the servers. Taking your security a bit further, Stash ensures that your bank login information is not stored.
- Education: Stash Invest offers in-user access to in-app education center where they can learn more about investments and how to make better decisions.
- Stash coach: this is a program designed by the company to help you build your portfolio the right way. It helps the company to provide investments and asset allocation suitable for you based on your risk level.
Advantages of Stash Invest
Apart from the benefits, there are many other advantages of making your investment through Stash and below they are.
- No minimum balance required: with Stash, you don’t need any balance, although you need the $5 to invest. However, no charges will be placed on your account if it is below that.
- Custodial account: be it your children or your grandchildren, it is easy to open an account for people younger than 18 years old.
- Stash ETFs are named based on their themes which makes it easy for beginners to understand.
- Easy to track your portfolio potential from the Stash Invest App.
- Stash setup milestones which enable you to track your progress and will even help you celebrate them.
- Stash help you transfer extra funds to your Stash accounts automatically with their smart-save option.
- You can withdraw your money anytime you want without any additional charges.
- Stash invest is not suitable for small investors due to their high fees especially if the amount invested is less than $5000.
- The expense ratio of the ETF which is 0.34% is high.
- There is no much opportunity for research.
On a final note
Is Stash Invest the right choice for you? Well, the correct answer depends on the category you fall in. Are you a beginner in the investment field with a small amount of cash to spare or a seasoned investor with substantial money to invest? If you fall in the first category, then Stash Invest is not the best choice for you for many of the reasons as listed above. However, if you are looking for a platform that offers excellent opportunity to learn trading, then Stash is the right place to start.
Thanks to their various investment options, you can build your portfolio based on the goals you have set for yourself. However, despite all their shortcomings, it is a promising investment solution that is sure to help you grow your portfolio.