Stash Invest: How does it work?
Stash Invest is an investing app that has the objective of simplifying trading and stock-picking. It does this successfully in several ways including tapering the universe of investments to around 450 stocks and exchange-traded funds (ETFs). It can provide these options via a user-friendly interface that is easy to the eyes which makes high-priced stocks such as Apple and Amazon through fractional shares.
Stash Invest Main Features:
- Hands-on investing and trading experience that is very beneficial for beginner investors.
- It offers analytical recommendations and tips and allows you full control over the rest.
- The Stock-Back rewards program is a program where Stash Invest offers 0.125% rewards to people who subscribe to the Beginner (1$ per month) and Growth (3$ per month) account options. That rewards are fractional shares in the companies where you make buys. Subscribers with the Stash+ package ($9 per month) get twice the reward.
- Zero account minimum allows people to start investing without needing large capitals.
- Automated features are convenient for those who like to invest without too many efforts on their part.
- Stash Invest offers Stash Debit. The feature couples a user’s Stash debit card along with a zero-hidden-fee bank account. This account is also FDIC-insured with no minimum balance requirement.
How to start saving with Stash Invest?
Individuals interested in Stash Invest’s service can start using Stash by signing up. They can do so by either downloading the app for iOS or Android or simply visit the official website as seen below.
Applicants must set up an account by sharing their email first, followed by setting up a password. After this step, Share Invest asks applicants to share some basic information about themselves. This step may feel time-consuming but takes only a few minutes. The requested information includes the applicant’s legal name as well as data of birth. Applicants must be a minimum of 18 years old to sign up with Stash Invest. Additionally, Slash Invest only works for US citizens so the applicant must prove their residence by producing their social security number.
After Stash completes the verification, users answer a mandatory questionnaire for Stash Invest to determine the applicant’s risk tolerance for their future investments. There are three risk levels available: conservative, moderate, and aggressive. Applicants receive a selection of investments recommended by Stash Invest after they place the applicants in a suitable category. This depends on their financial situation and preferences.
Stash Invest provides applicants with a multitude of stocks and ETFs (1800) and several bonds as options through their accounts. The stocks provided by Stash Invest come from virtually all parts of the US economy, including smaller manufacturers as well as household brands.
What is Stash Invest investment strategy?
Investing with Stash Invest means you are in control. The company believes that his clients must invest in what they believe. With approx. 450 different stocks and ETFs to choose from, you are spoilt for choice when it comes to finding an investment fund that you care about. There is no minimum amount to commence investing with Stash Invest.
Stash Invest mainly works through fictional shares, which is the reason for the low initial costs. It involves the app’s purchasing a full share & splitting it up to form smaller shares. So, if it splits up a $100 share’s ownership, you get to own a portion of it for any amount of money. Fractional shares let you invest in several distinct funds. This increases your financial flexibility and portfolio diversification. It also effortlessly transitions you into the investment world without having to push you into buying one high-priced share.
Stash Invest has a retirement account option as well called Stash Retire. It has a similar investment model like Stash Invest. In Stash Retire, you can invest money in a tax-advantaged account. That means you will not need to pay taxes until you withdraw the money if it is a traditional IRA. To steer clear of a penalty you will have to wait until you are 59 ½ to touch the money.
Do not forget you will require both Stash Invest & Stash Retire in case you want to invest with a brokerage & a retirement account.
What About the Fees & Commissions?
To enjoy Stash Investment services, you are required to pay a monthly subscription fee. The subscriptions are divided into 3 levels. They are as follows-
- Beginner: This option costs $1 per month. Unlocks access to a personal investment account and debit card account. You can also earn Stock-Back®.
- Growth: This option costs $3 per month. Unlocks access to beginner subscription features plus tax benefits for retirement benefits.
- Stash+: This option costs $9 per month. Unlocks access to all standard features along with the choice to open investment accounts for two kids and a metal debit card with 2x Stock-Back®. You also enjoy monthly market insight reports.
Stash Invest Pros, Cons and who is it for?
- Automated building of account after setup with your preference.
- Low minimum initial investment.
- Stock-Back® rewards
- Built-in guidance for building a portfolio from scratch.
- Expensive funds that can cut into your long term returns.
- High monthly charges
After analyzing the pros and cons one can understand that Stash Invest is ideal for new investors that cannot start off with large capitals. This can be a route to building a solid portfolio for the beginners. One can also not ignore the quality walk-through Stash Invest provides for everything a new investor may need help with.
The bottom line
Stash Invest offers control over your investments. It also allows you to build your own investment portfolio for a lower cost while putting your money towards your personal interests. Beyond all these benefits it gives the essential knowledge to beginners that helps them to become long term investors. Therefore, if you desire to invest and learn as you go, Stash Invest you the ideal solution.