Stash is a popular finance app that can be used to simply invest. It is a user-friendly app that is available on Android and iOS. They don’t only offer investment options, but savings tools, the stock-Back card, and a $5 intro offer. In the course of this article, we will take you through a guide on investing In stash, and whether the platform is legit and safe.
What is Stash?
Stash is a micro-investment platform that removes that cost barrier for beginner investors. It is a simple finance app that gives users tools, guidance, and confidence to invest and grow their wealth. Rather than create an investment portfolio for a user, Stash creates a foundation for you to build your own.
It is not like a conventional Robo-advisor that chooses investments for its users; rather it empowers its users to invest on their own accord through various tools and education. With the Stash app, a user can start a micro-investment plan for as little as $5.
A Guide On How Stash Works
As we have already established, Stash is a platform that aims at making investment easy for beginners. To open a personal investment portfolio, all that is needed is a $0 minimum balance. The stash app makes it easy for investors to choose stocks and exchange-traded funds. With just a $1 to $9 monthly fee, a user can gain access to a brokerage account, and a debit card with a rewards program.
If you want to spend more on Stash, they offer investors a retirement account, either a Roth or a conventional IRA account with just $3 per month. However, with a $9 per month subscription, they offer two custodial accounts for minors, a monthly investment advisory, and other interesting perks. The Stash app features more than 3,000 ETFs and individual stocks.
What Stash Is Best For?
The Stash app is perfectly tailored for individuals that want to learn how to invest. They have lots of educational materials. And these materials are tailored for you based on the information you provide upon signing up with them. The learning sources of Stash are categorized as follows:
- Money News
- Teach Me
- Money Talk
They have a way of simplifying complex marketing concepts so that anyone will find it easy to kickstart investments. Another interesting perk is that they have question mark symbols littered throughout their user interfaces so that you can launch quick definitions and explanations.
Stash is also well tailored for beginner investors that want to own their own investments and have automated portfolios.
Is Stash Good for Investing?
If you are in search of a platform that offers a brokerage account and a managed portfolio where you get to choose your own investments, then Stash is legit for you. They give beginner investors access to fractional shares allowing you to diversify your income portfolio with very little money.
The two barriers Stash removes for beginner investors are the high cost of investing and the complication of financial information. They are a ready-made solution for people who do not know how to invest or do not have money to invest. If you are a young investor, they offer a no-fee retirement account for users that are under the age of 25.
Another reason why the Stash app is the best choice for young investors is the “Unique ETF categorization” that they offer. Most of the time, sorting ETFs can be confusing. The Stash platform simplifies this by giving them unique names. For instance, instead of using SPDR for the popular biotech ETF, they called it “Modern Meds”.
The Major Downsides Of the Stash Platform
The major downside of the Stash platform is its fee model, which raises rates for smaller investors. In their platform, they offer a service for easy stock and ETF picking at a fee. If a small investor decides to make use of the Stash rebalancing options and other interesting perks, they will not get their full value. On the flip side, if a small investor wants to simply buy ETFs and stocks, then they can find commission-free options.
How To Get Started With Stash In 6 Steps
- Download the Stash App for Free from the Andriod or iOS store
- Answer a few automated questions. These questions will be used to obtain your financial goals, investment horizons, and other budgeting and investment habits.
- Pick a Stash plan. They offer a $1, $3, and $9 per month subscription option.
- Fund Your Stash account manually or automatically. You can use a few minutes to set up a direct deposit with Stash.
- Budget, bank and create investment goals with Stash.
- Invest the way you want with the Stash platform. You can buy fractional shares, buy over 3,000 stocks and ETFs, etc. You can also make purchases with your stock-back card while getting some rewards with Stash.