Stash Review – Investing with an Impact

Are you looking for an app that lets you maximize your investments?

Maybe you want an app that helps you invest in options that match your interests?

Then you might consider trying Stash.

Let’s explore what Stash offers to see whether it’s the best solution for your investment needs.

Stash App Overview

Launched in 2015, Stash was developed to make finding and choosing investments easy for beginning investors.

It lets you invest in exchange-traded funds (ETFs) and individual stocks, but it isn’t a robo-advisor.

Stash doesn’t manage your account directly. Instead, it guides you through building your investment portfolio.

Stash can recommend investment options based on your goals, tolerance to risk, and personal values, but it’s up to you to make the final decision on what to invest in.

With Stash, you can start investing with $5. The subscription fee is $3 or $12 per month depending on the plan you choose.

Who Should Use Stash?

If you fall into any of the following groups, then Stash would be your ideal investing app:

• Passive investors: Stash handles the day-to-day investing, freeing you from having to play too active a role in trading.
• Beginning investors: If you’re a novice, you can benefit from Stash’s simple platform, tools, and informational resources.
• Investors with limited funds: Stash allows a $5 minimum initial investment, opening the door to investing for people with limited funds.
• Impact investors: With Stash, you can choose where to invest based on themes or issues that interest you.

How Stash Works

Requirements

You can use this micro-investing platform mainly through a smartphone app for Android and iOS. You only need $5 to start investing.

You must be at least 18 years old and a U.S. resident to open a Stash account.

Opening a Stash account is quite easy. In fact, it should take you only a few minutes to get started.

Types of Accounts

Once you get a Stash account, you’ll need to open a taxable investment account or one of the two tax-advantaged retirement accounts, namely:

• Traditional individual retirement account (IRA).
• Roth IRA

Stash will help you invest the cash you deposit into these accounts. Remember that Stash won’t invest your funds for you.

It also won’t rebalance your portfolio. But it will help you build your portfolio by making it easier to choose what to invest in.

Investing Options

Some of the investing options Stash gives you include:

• Selecting from at least 90 handpicked ETFs. ETFs give you exposure to a wide range of assets, which can come in handy when you want to diversify your portfolio.
• Investing in fractional shares of corporations such as Amazon and Apple. Currently, Stash lets you buy stock in a limited number of companies.
• Smart-Save is one of Stash’s most notable features. This feature monitors your spending and automatically transfers any excess cash to your account.

This functionality is optional. It lets you stop transfers when your bank balance drops to a specific level.

You can also set Smart-Save’s aggressiveness, which determines how much it transfers from your account.

Start investing with Stash>>

Stash Management Fees and Minimums

You need to have at least $5 to have a Stash account. You also need at least $5 to start investing with Stash—making it accessible to virtually everyone.

Stash management fees are also pretty affordable. After that, you’ll pay a monthly subscription fee between $3 and $12. You won’t be paying any commissions or other hidden charges.

Advantages and Disadvantages of Stash

The Pros:

• Ease of use: It is ideal for beginner investors, making the investing process easy and straightforward
• Low minimum: You don’t need to raise tons of money to start investing. There’s no minimum to open an account, and you need just $5 to start investing.
• Recommendations: Stash recommends investment options based on your income and goals, helping you achieve easy, personalized outcomes.
• Options: Stash gives you plenty of options to start with, with 90 ETFs to choose from.
• Impact: The app has tools to help you see the impact your investments and savings might have on your future, so you can adjust your habits accordingly.
• Resources: Stash offers plenty of educational materials tailored to your income, questionnaire responses, and investments. You’ll find these materials valuable if you are a beginner. It also saves you time because you don’t need to leave the app to find important information.
• Impact: Stash lets you invest in what you care about most. It helps you choose investments that match your passions and values. If you want to invest in companies that promote gender diversity, for example, Stash will make it easy to find those companies.

The Cons:

• Self-managed: Stash does not manage your funds for you. That means you may need to acquire a real robo-advisor or hire a financial expert as your portfolio grows.
• Fees: The $3 or $12 subscription fee may sound cheap, but it is actually higher than many robo-advisors. This is especially true if your account balance is consistently low.
• Limitations: While Stash offers a wider selection of ETFs than some competitors, its options are still limited because it doesn’t offer other investment options like mutual funds, futures, or options. Moreover, you can research most of these ETFs yourself and buy them commission-free.
• Commitment: You will need to enter your personal details simply to get a result. To see any recommendations from Stash, you will need to link your bank account and agree to make repeat contributions every month.

You can opt out of the agreement after you finish signing up. However, it’s usually not a pleasant experience to have to provide bank information before you even complete registration.

Bottom Line

If you are new to investing and want a guided, easy-to-understand process, Stash could be your ideal investment app.

With as little as $5, you can start investing. The best part is that Stash lets you choose funds that match your interests.

However, as your investments grow, Stash may not help much because it doesn’t manage your funds.

So, you may need to invest with a more sophisticated robo-advisor or a professional financial advisor later.

Learn more about Stash>>

Meet the Author

Ryan Guina

Ryan Guina is The Military Wallet's founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air...

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