Wed. Oct 27th, 2021

Stash Invest Review

  • Commissions and fees
  • Ease of use
  • Investment options
  • Yield
  • Reliability

Summary

Traders around the world have been concerned about Stash Invest. Stash Invest, a microinvestment platform, specifies beginners and helps them create and manage their investment portfolios. So does Stash Invest have the right things for you? Read on and learn more.

About Stash Invest

Stash Invest is a microinvestment platform that allows beginners to create and manage their investment portfolios consisting of selective stocks and exchange traded funds (ETFs). The application was developed to simplify and introduce beginners to the world of investing in stock markets through fractional ETF shares based on topics with only $ 5.

Users can schedule and automate deposits and investment purchases to maintain consistency and optimize composition. Stash also provides personalized recommendations and guidance for users to learn while earning. Keep reading our Stash Invest review to see if this is the right investment platform for you.

Stash Invest Review: Key Data
📈 Characteristics Robo-advice, banking, portfolio management
💰 Prices $ 1 to $ 9 a month
Offers $ 5 bonus for new users
Best for New investors
🔁 Alternative a Robinhood, Betterment, Glans

History

Stash was launched in 2015, outside of New York, by CEO Brandon Krieg. The goal was to create a simple gateway application to educate and incorporate new investors into financial markets. With a streamlined dashboard and easy-to-use menu options that guide users through the process of signing up for their first investment portfolio with small investments of up to $ 5. Stash allows for a low barrier to entry into the world of stock investing. The app has grown to over a million accounts, with an average account size of around $ 316.

StashInvest control panel

How it works

Beginners and small investors can select from over 40 themed ETFs and individual stocks for their portfolios. The incorporation is relatively simple, as the Stash platform guides you step by step. Users answer a series of financial questions related to income, equity, type of investor and banking information, as well as authentication processes. Stash creates an investor profile based on user responses and suggests predefined portfolios that best suit risk profiles (conservative, moderate, or aggressive).

At any time, users can decide to give up recommendations and select more or less aggressive portfolios or even create their own portfolios consisting of stocks and ETFs supplied. Fractional shares allow microinvestment in any ETF and stocks. Users can track performance and adjust their wallets easily and conveniently using the mobile app.

Account requirements

The minimum starting balance is $ 5. Still, it’s prudent to start with at least $ 500, as the $ 1 monthly fee will cost $ 12 a year. That would mean paying 12 percent in commissions for a balance of $ 100 compared to 0.024 percent in a balance of $ 500, especially when you consider a hypothetical annual gain of 5 percent. Stash is available to residents of the United States with a minimum age of 18 years. However, Stash Custodial allows parents and guardians to maintain and manage an account for children under 18 years of age.

Stash Invest prices and commissions

Stash Invest offers three different pricing plans. Unlike other comparable services, Stash does not charge a management fee based on the size of a portfolio. Instead, the company offers three fixed-price plans that have unique functions.

Stash Beginner costs $ 1 a month and covers the basics. This account provides access to Stash investment tools such as portfolios and fractional stocks. This account level also includes access to a debit account.

Stash’s growth is $ 3 a month and includes the added benefit of investing in retirement. The main difference here is the type of account. While Stash Beginner only offers recordable brokerage accounts, Stash Growth offers IRAs.

Stash + costs € 9 per month and offers all the advantages of the two previous plans and some other unique features. Stash + customers can add custody investment accounts for up to 2 children. These customers will also have access to Stash’s metal debit card that offers 2x Stock-Back ™ rewards.

Stash Invest prices

Indirect rates

There are indirect commissions associated with the underlying asset classes. Because most investments are made in ETFs, investors pay annual installments of those ranging from 0.07% to 0.95%. The average share of ETFs is around 0.39%.

StashInvest Monthly Balance

Stash Invest platform and applications

Stash works across desktops and mobile devices via iOS and Android. The dashboard has been designed to be as self-explanatory and intuitive as possible to ensure frictionless integration and transactional experience. The features are designed to emphasize education with a long-term mindset. Transactions are made through the application.

StashInvest calculator

Investment tools

While most theft advisors are reluctant to invest in tools, Stash has more in-depth education for beginners and small accounts with hands-on learning as you earn. Much emphasis is placed on the exercise of patience with a long-term perspective built into the tools. For example, Stash illustrates the account balance in monthly charts instead of daily or even intra-day to reinforce long-term planning. Auto-Stash allows you to automate purchases on ETFs, purchase quantities and when. The Stash calculator allows you to view the returns on the composition you would expect with an annual return of 5% based on the amounts of the investment.

Coach Stash

As an educational tool, this program allows users to complete investment challenges to earn points and rankings as users gain more experience and knowledge. Asset allocation, risk, and portfolio management are some of the skill sets that users will improve with continued interaction.

Stash Learn

Stash has an exclusive online magazine which provides entertaining and educational content and news for investors. I like how each article is accompanied by a total reading time (IE: “3 min reading”) annotation to help users schedule reading sessions.

StashInvest ModMix

Wallets

Stash has three general types of portfolio-based risk profiles (conservative, moderate, and aggressive) composed of more than 30 thematic ETFs. While Stash labels ETFs in a colorful way and provides clear descriptions, most are existing ETFs or Vanguard shares. For example, the “Roll with Buffet” investment is a fractional share in Class B shares of Berkshire Hathaway Inc. (NYSE: BRK.B).

Performance of American innovators StashInvest

Stash also has a feature called “Smart Wallet” that creates a custom wallet based on some key factors. This portfolio is managed automatically and offers rebalancing and fractional actions.

Yield

Because all investments are long-term positions, they tend to yield with U.S. macro benchmarks such as the S&P 500. Naturally, selection, allocation, timing of entry, and average stock cost is the factor. differential that differs by investor. There are no direct hedging options other than increasing allocations in fixed income or cash ETFs.

Yield will vary depending on the type of portfolio you have and when you start investing. The market has been strong over the last ten years, so most portfolios performed well.

How does Stash compare?

Like competitor Acorns, Stash recently launched Stash-Save, which automatically assigns replacement changes to your account. Stock-Back Rewards is a program where Stash debit card purchases receive rewards in the form of split shares. Stash provides users with more control and flexibility in managing their accounts than regular robo-advisor applications, which tend to be more automated and structured in a smaller way.

StashInvest recommendations

Here are some detailed guides comparing Stash with other popular robbery brokers and advisors:

Key differentiators of Stash Invest

Stash offers users a more hands-on experience compared to other theft advisors. Offering a wider selection of investments that include more than 40 themed ETFs and individual stocks, this flexibility also poses more risk and responsibility for the investor. Unlike traditional theft advisors, Stash does not offer automatic portfolio rebalancing or tax loss collection functions. The emphasis on educational content in apps and online makes it the best choice for beginners.

Reliability

Stash is a registered investment advisor regulated by the SEC and a member of FINRA. Investor accounts are protected by SIPC. Stash implements 256-bit encryption and does not store banking login information.

Who is Stash Invest for?

Stash is designed specifically for beginner level investors with small accounts as a gateway provider in the investment world. Millennials with technical knowledge eager to learn while earning are best suited for this application. Because trades are not executed in real time, traders will not find this platform useful for anything other than long-term passive investment.

Stash is ideal for investors who want to take a “set and forget” approach to investing (and are willing to pay a small subscription fee for it). With Stash, you can create a custom wallet, make money, and leave the rest to Stash.

If you want to have more control over your portfolio (or want to avoid a monthly fee), theft advisors like M1 Finance may be more suitable for you.

Pros

  • Flexible practical investment structure for users
  • Focused on the educational approach to earning learning
  • More than 40 thematic ETFs and selective individual stocks for fractional equity investments
  • Fast boarding application and easy to use for beginners
  • Automated financing and investment planner for users
  • Stock-Back Rewards applies fractional discounts on shares with the purchase of debit cards

Cons

  • There are no automatic portfolio rebalancing or tax collection features
  • There are no real-time executions

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