I’ve been dipping my toe in and out of mico-investing over the last year now. My first thought, “can it really be worth the time and effort when working with such low balances?” My thoughts recently changed when I noticed, while logged in to my Robinhood account, that 100% of the Robinhood experts recommended “buy” on Amazon stock. It was trading for around $1,800 USD per share. I thought, “I’d really like to own about $500 USD worth of the stock, but how can I achieve this?”
This dilemma changed my mind about mico-investment applications. These applications enable the user to buy fractional percentages of single shares. I researched both Acorns and Stash and decided to go with the latter, since Mint offered a $10 USD sign-up bonus. I made my first bank transfer ($5 USD) to my new Stash account – the $10 USD bonus isn’t provided for 2-3 business days – and bought $5 USD worth of Amazon.
I plan to transfer small amounts to Stash and to use the app solely for its’ micro-investment feature. If I grow my fraction-share amount to exceed one full share, I will sell the partial and invest the amount in a more-long term retirement account – 401k or IRA.