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Investing is a tricky subject. It’s difficult to know which stocks to buy, and there’s always a chance you could lose your money. Furthermore, it often takes a large amount of money to get started. Stash Invest is a new service that helps guide you toward your investing goals.
There’s absolutely no commission fees, and you only need $5 to get started. In fact, it’s only 1 dollar per month for accounts under $5000k and your first three months are free. When you sign-up using our referral link, you will also get a $5 bonus to make your first investment.
What Is Stash Invest?
Stash Invest is a registered investment advisor. Instead of just leaving you to fend for yourself and choose your own investments, they’ll help guide you based on your financial goals.
Once you complete a questionnaire covering your investment objectives, risk tolerance and financial situation, Stash Invest will use that information to help guide the investing process. Through Stash, you are able to invest in 30+ETF offered by professional money managers.
The great thing about Stash Invest is that you only need $5 to start. This is because their service allows you to buy fractional shares. Otherwise, investing with smaller dollar amounts would be nearly impossible as whole share stock prices, particularly of well known Companies, are significant higher, and often you have to buy shares in 100 share increments!
This means that you don’t necessarily have to set aside large dollar amounts in order to start thinking about your future. This makes investing less intimidating, less stressful and helps you to start saving and make smarter financial decisions sooner.
How Much Should I Invest?
Stash empowers you to invest what you can afford. They encourage you to add to your investments on a regular basis, but this is by all means not required. They realize that you have to pay the rent, buy groceries, pay down credit cards, etc.
Yet at the same time they want you to start saving and investing for the longer term. There’s a lot of extra cash that you might have sitting around that you don’t need to spend. Instead of buying that extra beer at the bar for $5, why not put another $5 in your account and invest it toward your future?
If you’re just starting out, this could be as little as $5 to $10 per week. You don’t have to invest your entire paycheck. Since there aren’t any commission fees and Stash’s advisory fee is only $1 per month (after the first 3 months), it’s not difficult to get started with such a small amount. In fact, all you need is $5.
The key is to start think about investing early. The sooner you start, the better positioned you could be for the future. Also, since withdrawing and depositing money is completely free, you can make withdrawals if you need to.
How Should I Invest?
The majority of investments on Stash Invest consist of ‘baskets’ of stocks and bonds called Exchange Traded Funds, or ETFs for short. Stash has curated these investments and selected broad based diversified ETFs and more sector specific investments, which typically have fees much lower than most mutual funds.
Stash Invest recommends that you shouldn’t put all of your eggs in one basket. That’s called diversification. And with fractional shares, you can invest in various different funds at the same time or add to your investment over time. All you need to start is that $5 minimum investment for each fund.
There are over 1,800 ETFs available. This makes it a little bit difficult to decide which ones you should invest in. In order to skip the frustration, Stash Invest has compiled a list of about 30 ETFs, and they’ve given them nicknames to help you understand them better. For example, they’ve nicknamed the PIMCO Enhanced Short Maturity Active ETF, the “Park My Cash” investing option. It is a conservative investment in short term cash like instruments, but you may not have know that from its name alone.
When you first start out, maybe with a small initial deposit, you’re most likely only going to be able to buy one or two ETFs. However, over time, they recommend that you expand your portfolio of investments as soon as you start depositing more cash.
Once you build your foundation, start adding a few more ETFs to your portfolio based on your personal beliefs. This can include social media, green energy, gender equality and a lot of other options. All of these can be found in the “Discover” tab on the Stash Invest app.
The entire purpose of Stash Invest is to make investing in your future as easy as possible without needing a large amount of money in order to get started.
What Are The Fees Involved?
We mentioned above in the intro that there are no commission fees involved in trading and registration is completely free. Each time you buy or sell a stock with a typical brokerage account, fees can reach upwards of $10 per transaction.
However, there are still fees involved if you decide to choose Stash Invest. The first 3 months are completely free in order to give you a chance to try out their service. After that, they charge $1 per month.
When your account reaches a balance of $5,000 or more, they charge .025% of your account balance per year. With $5,000 in your account, this comes out to $12.50 per year, which is basically the same as the $1 per month fee.
How Do I Get Started With Stash Invest?
Stash Invest makes it incredibly simple to start investing right away. However, in order to ensure that you don’t get lost, we’ll break it down for you in just 5 simple steps.
1. Register. You can register for a new Stash Invest account by clicking this link here. If you are on desktop, type in your phone number and you’ll be sent a link to download the app via SMS. It’s available for both iOS and Android devices.
2. Create account. You’ll need to enter in some personal information such as your name and email address. You will also choose your investing level based on the amount of risk you want to take.
3. Select an investment. Stash Invest will completely guide you through the investment process. Based on your current financial situation, you’ll be given a list of investment choices. All you need is $5 to get started.
4. Link your bank account. Once you have your first investment chosen, link your bank account.
5. Verify identity. As with all investing accounts, you’ll need to verify your identity as required by law. You need to have a US social security number to sign-up for Stash Invest.
Stash Invest makes it easy to not be intimidated about investing. With as little as $5, you can get started in securing your future. You’ll be guided every step of the way based on your personal investing style and current financial status. Register through us and get your first $5 for free.
If you’ve started with Stash Invest, we’d love to hear about your current portfolio. Let us know about it in the comments below. Thanks for reading and happy investing!
My name is Jason Wuerch and I'm currently located in Madrid, Spain running a personal finance blog called Frugal For Less. My goal is to help everyone and anyone willing to make and save money through easy and simple ways that don't require much effort. Just because you're frugal doesn't mean you have to give up life's luxuries.