When you think of investing, you probably imagine some hotshot banker in a suit on Wall Street. Thanks to the power of the Internet, it is so much more than that now. Currently I am sitting in my pajamas with wet hair eating Cheetos while investing my money. Yep. Sounds crazy, right?
I have a retirement account and an IRA, but normal investment accounts usually require a MINIMUM of a thousand bucks just to roll the dice. Enter STASH. A mobile investment app that requires a minimum investment of just $5. And if someone refers you, they give you that five dollars free. (Enter some shameless self promotion. Click HERE to use my referral link…they are literally paying you $5 to do it.)
I won’t lie, as with most things I was totally skeptical at first so I didn’t invest much. But over the course of an entire year with a total investment of $700, I have made a return of $85 (That’s over 15%). Compare that to my returns on a ROTH IRA with $2000 in and a 4% return, I say them is some perty good apples. Compare that to the interest rate on a regular bank savings account and them is some might fine apples.
Here’s is how it works. Instead of spending hours and more boring hours studying individual stocks to invest in and constantly stressing over market changes, or even worse, lumping your money in some safe mutual fund, STASH does the hard work for you and provides a variety of investment portfolios for you to choose from. Say you want to invest in clean energy. They have a stock option called “Go Green” with a variety of stocks from companies they project to grow. It’s that easy. They have a nice but manageable number of portfolios to choose from that vary from low to high risk. I chose mostly moderate and high risk stocks since I wasn’t investing a lot and it worked out well for me.
I am primarily using this as a savings account. I use the auto-stash feature to automatically invest money into the funds of my choosing once a month, but they also have weekly and bi-weekly options. I don’t even miss the money doing it this way. In the rare event I have some extra, it’s also easy to invest additional amounts above your automatic transfer. Transferring the cash back to your bank is simple too if you need some money, but it will take a couple of days.
I would not in any way recommend this as an alternative to a traditional retirement plan because after $10,000 or so the monthly fees start to eat away at your returns, but as a savings account this beats the socks off any bank out there. The fee is only $1 a month for accounts under $5,000, but above that it is .025% annually. You do the math because I’m too lazy. But anyway, you can always pull out your newly grown money and re-invest into an IRA or similar account once you hit a ceiling and start all over at zero with Stash!
I am still stashing and have also opened up two custodial accounts for my kids. It’s an easy way to put a little money up for their future that I can’t access…Yea, I’m talking to you…the person who “saved” $300 last month, and then had to transfer it into checking this month to pay the light bill because you overdid it on Wendy’s again. (I’m totally talking about myself here.)
Ready to turn all that loose change in your car into gold? Learn more HERE.