There are many ways to invest your money like the banks or big companies. The question is that are all these ways are secured? Of course not. Many people lost all their money in the big investments by using the risky ways. Today by the extension of the technology, there are many financial application which help you to manage your money like Mint, Wally and You need a budget(YNAB) and some other apps for investing money like Acorns. All of these applications provide a secure way to grow our wealth even by the minimum amount of money. In this article, we want to introduce another investment application named Stash application.
What is Stash application?
Investment app Stash aims to make the process of finding and selecting investments. Specifically exchange-traded funds and individual stocks. It is completely easy and approachable for beginners. The service repackages existing funds into easy-to-understand themes which are based on risk tolerance, goals, interests and values, plus offers access to a small number of individual stocks. Stash doesn’t manage investor accounts directly. It rather helps guide investors through the process of building an ETF portfolio.
The service has a $5 minimum account balance and charges $1 a month for account balances under $5,000 ($2 per month for retirement accounts under $5,000) and a 0.25% annual fee for accounts with $5,000 or more. Stash waives its fee on retirement accounts for anyone under age 25. Stash also recently started offering custodial accounts which allows parents to set up investment accounts for their children.
What does Stash application do?
Stash’s goal is to help beginners learn how to invest. The application asks new accounts holders a few questions to determine risk tolerance and goals. It serves up a list of suggested ETFs, narrowing the options to those that make sense for the user’s financial situation. The app notes which investments should serve as the foundation of the portfolio which is the largest slice of the users asset allocation.
The user is responsible for building a portfolio out of the suggestions, but Stash Coach feature will nudge back or serve up educational content if it notices a lack of diversification. Stash now offers individual stocks, too. There are 65 available on the app, including Amazon, Apple, Facebook and General Electric. Stash offers fractional shares which means that even with just $5, you can own a piece of a company that has a much higher share price.
Features of Stash application
There are many features of this application which make the app unique and useful for all the age ranges. We mention some of the most important features in the following.
Stash also recently launched a banking feature on it’s app. They offer a wait list to join their banking program, which offers no minimum checking, zero monthly fees, and access to some ATMs fee free. Of course, the banking aspect connects seamlessly to Stash Invest, to allow you to manage all your money in one place.
The application has a feature called Stash Retire, which is a retirement account option for investors. Stash Retire offers both Traditional and Roth IRAs – and offers the same investment choices you’d find in Stash. You can contribute up to the IRA Contribution Limit in a Stash Retire account. Stash Retire is slightly more expensive than Stash Invest – it costs $2 per month in fees up to $5,000, then it’s 0.25% of the value of your account. You can still start investing with just $5, but that could be quickly eroded by fees if you don’t invest more and see investment gains.
Stash announced that it would waive the fees for any Stash members under age 25. This is a great incentive to get people to start investing early without the fees. We appreciate the change, and hope it encourages younger Americans to start investing. However, once you cross age 25, you should probably look for alternative investment providers to avoid the fees.
How to get started in Stash application?
If you want to get started with Stash Invest, the sign-up process is extremely simple. Go through the App store then you can download the app to your phone. At the next level, you have to fill all your basic information and answer some questions. These questions will help Stash guide you on making investment decisions. So it is better to be honest because they help determine your risk tolerance. Base on your answers the application will show you investment options. You can also click on different investments to learn more about them. It is time to link up the bank account which you want to make investments base on that. It takes about two or three days for the money to transfer into Stash. At the last level, verify your identity and create a four digit pin number and you are all secured.
If you have found this article useful, it is better to star investing right now. You can also recommend it to the friends. If you are worried about the future of your children, Download the app on their phone and invest with just $5.