I recently started investing using the Acorns app. I transfer $20 a week from my checking account to Acorns and have it invested in a moderately aggressive portfolio of 80% stocks and 20% bonds. I have yet to make any gains but it hasn't been very long. I was also considering using their round-up feature so any purchases made are rounded up and the change is invested. I am mainly doing this for my 17-year-old son because as morbid as it may sound, I won't likely make it to retirement in 18 years due to health issues. I'm trying to leave him with as much as I can with 401k, other investments, and any other assets I have.

Just curious how others feel about using an app like this. It does cost $5/mo but I am an investing novice and just need things done for me. I have a lot in 401k by just contributing my whole career but that takes no thought.

 

No experience with Acorn but any saving is better than none. Hopefully you're maxing out the opportunity with your 401k first as this is pre-tax. If your employer has any match, you need to be contributing as much as possible to your 401k to get 100% of that match or as much of it as you can afford before considering post-tax. It's literally free money.

If you believe your 401k will likely go to your child prior to your retirement, make sure you have him/her set up as the beneficiary. I know this is a silly and basic detail but it's shocking how often it's overlooked.

 

Thanks for the advice. My employer does match and I am contributing 6% to 401k. I do have my son as a beneficiary on everything and it all goes to a managed trust that is given out in stages at 18, 21, and 25 years of age. It is also clearly defined in my will that he gets it all. It is VERY likely it will all go to him, so what was for my retirement will be for his future.

 

I've been using Acorns for over a year. I contribute $25 a month and use the round-up feature. I totally recommend it because I barely notice the money leaving my account and I've been able to save over $1,000 so far without actively contributing much. I think I'll probably increase it to $20 a week like the OP, though.