Looking for an easy way to automate your investments using your smartphone? Stash Invest is a very useful app for investors and I had the pleasure of opening an account and using the app for several hours.
In this review, you’re going to learn about Stash Invest and why I think it’s a very useful tool for automating your investments and doing lots of research in a short amount of time.
What is Stash Invest?
Stash is a cool, innovative saving & investing app geared towards millennials who want to automate their investments by purchasing stocks or sector mutual funds using frequent small dollar amounts.
You can purchase fractional shares in major companies like Amazon without paying a single dime in trading commissions. This allows you to slowly build up an investment portfolio with a smaller amount of money and avoid those costly trade commission fees.
How Does It Work?
Create an account and Stash asks you a series of questions to personalize your investment strategy based on your answers.
Once you create your account, you need to select an investment plan and connect your banking account with your Stash account. The minimum deposit is only $5.
Once successful, you can invest in a wide variety of stocks, bonds and ETFs using your balance.
I signed up for Stash and the entire process took only 10 minutes to set everything up.
How to Use Stash
There are several different ways to use Stash effectively. If you want to maximize your investment returns, then buying shares in individual stocks should be your main focus.
Stash makes it easy to build the habit of investing with just small amounts. I love this approach because so many people avoid investing in stocks like Apple because they feel it’s too expensive.
While you may not have enough money to buy 1 share, you can put some money away each week/month and eventually get a share of stock.
Good habits make you wealthy and one of the most important wealth building habits is consistently doing the right things over and over again.
If you want a more hands free approach, then put your money in an ETF or mutual fund to balance your risk. Stash offers several good mutual funds that invest based on your risk tolerance and overall investing goals.
This is a pure set it and forget it approach to investing that works well for some people who don’t want to worry about the ups and downs of individual stocks. Why not own the entire stock market?
What to Invest in Using Stash
Let’s breakdown the different investment options so you can choose which is best for you:
These investments are low risk, low return investments with stable returns to preserve your money. Bonds are basically loans that pay you interest depending on the investment grade. If you are near retirement or don’t want to risk your money, then bond ETFs are perfect for you.
These are balanced mutual funds where you earn a higher return than bonds but spread your risk across a lot of different stocks. What I like about these funds is that they offer sector funds like Corporate Cannabis so you can invest in massive future growth industries.
My favorite balance funds are:
- Corporate Cannabis
- Delicious Dividends
- In Transit
This is where you can really build a strong portfolio by investing individual stocks. You can buy partial shares in literally hundreds of companies although every publicly traded company isn’t listed.
There are a total of 198 individual stocks listed on the app. Here are some of best stocks you can buy on Stash Invest:
Life offers 3 basic ETFs but my favorite is the Young Money ETF called Global X Millennials Thematic ETF. This ETF invests in high growth companies like Paypal, Amazon and Starbucks.
If you want to invest in one of Stash Invest’s ETFs, I think this is a great choice for investors.
How Much Does it Cost to Sign Up for Stash?
Here’s a visual breakdown of the Stash Invest App pricing and fees:
Stash Invest offers 3 basic pricing plans:
- Beginner: $1 per month for individual accounts under $5,000
- Growth: $3 per month for retirement accounts under $5,000 (Free for customers under 25 years of age)
- Stash+: $9 per month for individual & retirement accounts under $5,000
If your account is more than $5,000, you pay 0.25% annual fee to use Stash Invest.
Stash Invest App is one of my favorite new investing apps for easily automating my investments and analyzing tons of different stocks and ETFs on my smartphone.
Sign up for Stash Invest Using This Link. We both get $5 for free.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.