Acorns is Overpriced and Underpowered

I have been hearing a lot lately about Acorns. It’s a savings app which automatically rounds your card purchases up to the nearest dollar and invests that spare change into a diversified set of ETFs. It’s a fun concept and an interesting way to get early-stage investors accustomed to saving for retirement. And it’s nice that it’s a lightweight app so the barrier to entry is very low.

The problem is that Acorns cannot possibly help you save any useful amount. The system of rounding up is totally inadequate for retirement savings. And even more importantly, Acorns is extremely expensive.

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