Stash Invest new account offers: incentives for opening new brokerage or retirement accounts, promo codes for $5 cash BONUS

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Stash Invest Overview with Promotion

Do you want to start investing but don’t think you have a large enough pile of cash stashed away to afford enough stocks to create a diversified portfolio? Or maybe you do but the commissions from buying dozens of different securities eat up too much of your cash. Either way, Stash Invest has a solution for you. Their mission is to make diversified investing easier and cost effective for people with smaller savings by allowing you to invest in fractional shares. This article will offer an overview of Stash’s unique platform.

What is Stash?

Stash has carved out a niche for itself in the large brokerage industry by making diversified investing achievable and cost-effective regardless of the size of your nest egg through fractional share investing. For example, let’s say you’ve worked hard to stash away $1,000 to start a portfolio. You know that you need at least a dozen different stocks in your portfolio to mitigate a lot of the company-specific risks, which means you have roughly $83 to invest in each stock.

If you wanted to invest in companies like Apple or Tesla, whose stock prices are approaching $200 a share, you’d be out of luck… and forget about buying a share of Amazon stock, which is currently approaching $2,000. Stash solves this dilemma by allowing you to invest in a fractional amount of these companies’ shares, so you can invest $83 in each of these three stocks. In fact, Stash will let you buy in as little as $5 increments if you want.

Investment Choices

On the downside, because Stash is so accommodating to smaller investments it wouldn’t be practical for them to offer every public stock on their platform. For example, if you decided to buy 0.2% of a share of a stock most people have never heard of, Stash might have a hard time finding others to buy the rest of the share. As such, Stash currently only allows you to invest in roughly 100 different U.S. stocks and ETFs, which is a very limited universe.

What Are the Costs?

Remember our earlier example of the $1,000 portfolio? If this diversified investor wanted to divide their money up evenly across 12 different stocks, and we assume their broker is charging $6 per trade, it would cost them $72 just to setup their portfolio. Already they’ve lost 7.2% of their account to trading fees, not to mention they will lose another $72 when they actually sell these stocks. The point is that if you are a smaller investor, the commissions charged by most brokers make setting up a diversified portfolio cost-prohibitive.

With Stash, you will not pay any commissions. If your account value is less than $5,000, all you will pay is a flat monthly fee of $1, or $12 per year. For balances over $5,000, you will pay an annual fee equal to 0.25% of your account balance (in monthly installments). For retirement accounts at Stash the fees are a bit higher at $2/month for accounts under $10,000 and 0.25% of assets for larger accounts. Whether you have a regular or retirement account with Stash, their pricing is very competitive.


Stash Portfolio


Personalized Stash Portfolios

Stash recognizes that everyone has a different approach to investing, which is why they give you the option of investing on your own, where you do your own research and choose investments, or you can use their free personalized portfolio tool to help you build your ideal portfolio. This tool will ask you a series of questions about your financial situation, goals, and risk appetite, and then recommend a portfolio of stocks and ETFs that fit your needs. The tool is also fun to play around with to see how changing your answers impacts Stash’s recommended portfolio.

Educational Tools

Stash is also good for beginners because they have their own learning center, called “Stash Learn”, which has self-help style articles that are easy for even the newest beginners to follow. They also offer more in depth articles and discussions on financial topics to provide continued engagement and learning after you’ve mastered the basics of investing.

Stash Account Types

Stash doesn’t offer the full suite of different account types that you’ll find with the larger brokers, like Ameritrade, but they do offer the most popular accounts. These include your standard taxable account, Traditional and Roth IRAs, and custodial accounts.

Summary

Stash’s investment options are very limited in scope, and as such we wouldn’t recommend their account to professional investors that are looking for a wide range of investment choices and security types to include in their portfolios. On the flip side, if you are part of Stash’s target market - you want to build a diversified portfolio with a small amount of cash without breaking the bank - then we would recommend you give Stash a try.

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Stash Invest Promotion reviewed by TopRatedFirms.com. Rating: 3