Change used to have a multitude of uses. You lost it, annoyed someone with it, stuffed the couch with it, filled your car with it or if you were all organized; you put it in your piggybank to be smashed open when you need a little more for the delivery guy. Not anymore. Now you have a lot less change (and you pay the delivery guy with your card), but with Stash, you can use your digital change to start investing.
You need $5 to start investing and fill in a questionnaire allowing the app to make decisions on your risk profile When you shop your totals will be rounded up and if you have any change from transactions this will be automatically invested. You can also make manual investments. You can manually request pay-outs or if you think the time has come to smash your piggybank, or delete your account permanently, you’ll need to email stash and request this. In the age of “Oops! My phone went for a swim and I lost all my apps and info” this is a safety net.
Stash will let you invest in something you’re passionate about. This means a win-win situation for you. You get into investing, maybe make a nice little profit and you get to invest in something you care about. You have a choice of more than 30 ETF’s. What is an ETF you ask? The acronym stands for “exchange-traded fund” and is like an index to the value of the assets included in the ETF. Stash is not going to invest them for you but will teach you how to invest them yourself. This has drawbacks. You’ll need to manually track the expense ratios. Expense ratios are basically what it costs to own an ETF. You’ll sometimes need to weigh up your passion to higher expense ratios. The app itself costs $1/month for funds under $5000 and 0.25% for funds over $5000. Remember to add to that the expense ratio costs.
The app is easy to use and there is both an in-app Question and answer page as well as a human to help you via email. The sign-up process is easy and tracking your portfolio can be done at a glance. Unfortunately, money made from stash is taxable, and there is no retirement plan option.
If you’re new to investing and picky about where to invest your money this is a good option.