Stash Review: Best for Beginners
A stash is a great option for new investors who would like to learn about investing while having the flexibility to create their own portfolios. From budgeting to saving for retirement, Stash unites banking, investing, and advice all in one app that helps over 6 million reach their financial goals–all for one low monthly price.
How does Stash work?
Stash is an app that allows you to easily invest in the stock market. In this section, we’ll talk more about how Stash works, so you can get a better idea of what it’s like to use the app and decide if it’s right for you.
Hot: Sign up Stash and get $20 Welcome bonus
How much does Stash cost per month?
You can sign up for the basic plan for $1 per month for the first three months, but after that, it rises to $2 a month. The premium plan costs $3 per month, while the premium plus plan runs at $9 per month. The service is currently only available in the U.S. and U.K., though Stash plans to expand to other countries soon.
Stash clarifies that you should not invest more than 10% of your net worth into cryptocurrencies or any other digital asset classes such as currencies and stocks through its platform. However, if you’re not sure how much to invest with your money right now and want something safe until then (or if you don’t have much money), then Stash might be a good option for long-term storage rather than short-term trading opportunities like those provided by Robinhood Crypto.
What is a stock?
A stock is a security representing partial ownership of a corporation. It can be bought or sold on the open market, and is considered to have a distinct value from its unit price. For example, if you own 100 shares of Apple Inc. at $200 each, your total value would be $20,000 (100 x $200).
When you purchase a stock, it represents an ownership stake in that company’s future profits — or losses — and entitles you to vote on major company decisions such as board members and mergers. If the company does well financially and becomes more valuable over time (a process called capital appreciation), your stock will increase in value with it. Stock can also be used as collateral for loans; if your stocks fall below certain levels during tough economic times, they may even become worthless altogether!
What is a bond (Stocks)?
A bond is a loan from an investor to a company or government. Bonds are also known as stocks, but they are pretty different in terms of how they work.
A bond is when you lend money to someone for a specific amount of time, and you will receive interest for that amount of time. When the bonds mature, the borrower pays back their loan with interest. This can be paid in cash or stock whose value equals the amount owed on it.
What is a fund?
A fund is a collection of stocks, bonds, or other securities. Funds are available in various ways and can be tailored to your specific investment needs.
Funds are a great way to diversify your portfolio. For example, suppose you have $10k to invest and want to take advantage of the current market conditions while still keeping some cash on hand for an emergency fund. In that case, you could invest in a broad-based index fund that includes many different types of investments, such as stocks and bonds. This would give you exposure to most asset classes with minimal risk because it’s diversified across many other companies rather than just one company like Facebook or Amazon (which may make up only 5%–10% of the S&P 500 Index).
Here are some examples of popular exchange-traded funds (ETFs):
- Vanguard Total Stock Market ETF (VTI) — tracks all U.S.-listed domestic equities except ADRs (American depository receipts) and closed-end funds; VTI invests about 30% into small-cap stocks, 20% medium caps, and 50% large caps by market capitalization; expense ratio 0.04%.
- iShares Core S&P Total U.S., TIP — tracks S&P Composite 1500 index but excludes financial sector; expense ratio 0.02%.
Stash vs. Robinhood?
No matter which option you choose, Stash or Robinhood, the critical thing to remember is that both platforms offer an easy way to invest in various stocks and funds. If you’re interested in learning how to invest but don’t want to spend any money upfront, consider checking out our list of free stock trading apps.
It would be nice to have more information on bonds.
A stash is a great option for new investors who would like to learn about investing while having the flexibility to create their own portfolio or utilize an advisor-managed one. If you’re thinking of getting started, here are some things you should know:
- Bonds are safer than stocks. If you have a lower risk tolerance, bonds can be a great investment option for the long term because they generally have a lower risk factor than stocks.
- Bonds can generate income from dividends and interest payments that are then reinvested into your account. This can help generate extra income on top of what your Stash account makes in interest, which could potentially increase overall returns for your portfolio over time as well as provide portfolio diversification by adding another asset class (bonds) besides just stocks and ETFs (which represent different sectors within an economy).
- Investors can also use Bonds to manage risk by allocating more money towards lower volatility assets (like government bonds) when markets are volatile or experiencing downturns; this helps spread out their investments, so they’re not concentrated solely on one specific type of asset class such as equities but instead spread across several different styles (stocks vs. bonds).
The Stash App
A stash is a great option for new investors who would like to learn about investing while having the flexibility to create their own portfolio or utilize an automated portfolio.
What Stash is best for
Stash is best for investors who want to learn about investing, but don’t want to spend a lot of time researching individual companies. This can be especially beneficial if you do not have a background in finance or economics. Stash creates a broad portfolio of index funds so that each investor has exposure to different types of stocks, bonds, and cash. You can then choose your ideal allocation between those investments based on your risk tolerance and investment goals.
Stash also provides educational information about investing through its website and app, including videos featuring industry experts like Tim Ferriss and Seth Godin.
Stash at a glance
A stash is an excellent option for new investors who would like to learn about investing while having the flexibility to create their own portfolio or utilize an expert-built portfolio.
There are two Stash plans: Stash Beginner and Stash+. The beginner plan comes with $5 in free premium investments, where you can choose from four options: stocks, bonds, mutual funds, and ETFs. A $5 deposit will get you one share of a company’s stock. For example, if you invest $100 into Apple stock, it will give you 100 shares (1/100th) of Apple Corp. If the price goes up 10%, your return would be $10 profit ($110 — $100). If it goes down 10%, your loss would be $10 ($110 -$120). The max amount that can be invested per month is $250, so if an investor wanted to invest more than this amount, they would have to wait until next month before making another investment. Sticking with just one company may limit their diversification. However, most experts recommend holding at least 20 different companies within any given sector regardless of whether they are large or small-cap companies within the said sector.”
Stash Beginner and Stash+
Stash offers two subscription levels: Beginner and Stash+. In addition to the above benefits, Stash+ includes tax-loss harvesting and an optional retirement account.
Using fractional shares is a big plus for those who are investing with small amounts of money. If you’re just getting started or want to test the waters, setting up regular monthly contributions will help you build up your portfolio gradually over time. You can always cancel at any time if things don’t go as planned.
A stash is an excellent option for new investors who would like to learn about investing while having the flexibility to create their own portfolio or utilize an existing one. A low minimum balance and a $5 monthly fee make it easy for you to get started. I’m confident that you will achieve financial independence if you take advantage of their free retirement advice!