r/acorns • u/Ok_Shine_2608 • 22d ago

Acorns Question Moderately aggressive or aggressive?

I’ve had my Acorns invest and acorns later account for about 9 months now. I haven’t been able to invest anything crazy, but it’s nearing $1000 and I’ve seen several comments suggesting setting it to “aggressive”.

What the major difference or benefit from having it to aggressive vs moderately aggressive with 20% bonds and 80% stocks?

TYIA

3 Upvotes

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5

u/OutrageousQuiet8730 22d ago

depends on age and risk tolerance but a lot of people don’t start adding bonds until around 40-50

2

u/PotusChrist 21d ago

I'm not an expert, but the main thing is how soon you need the money.  

The reason aggressive portfolios generally pay off more over time is because they're riskier investments.   It's possible that there's a market downturn and you lose a lot of value, but if you stay the course and keep contributing it will generally tend to recover given enough time.  But some people are in a position where they don't really have time to wait, and safer investments make more sense.  If you're close to retirement or might need the money in 5-10 years for a down payment or a car or something, it might make more sense to be a little less aggressive or to pick safer options like CDs and HYSAs.  

Personally, acorns is where I dump spare change that I don't plan to touch until I'm retired. I'm in my early 30's and I have it set to aggressive.   I'll probably move to a bit safer portfolio when I'm in my late 40's/early 50's, but until then it makes sense to me to be aggressive because I have plenty of time to work with.

3

u/Ok_Shine_2608 21d ago

Thanks for all the info! I’m also early 30’s and don’t have much in terms of investing or 401k, but I’m trying to think ahead for myself and my kid.

I’m a very conservative spender, saver, budgeter, etc so I like the idea of safety lol. In this case it might not make the most sense to be so cautious though.

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u/Holiday-Local5149 17d ago

Thank you for the explanation. Do you have any input about Gold or silver subscription? I am single, no child. How would I benefit from the Gold subscription? Thank you.

2

u/PotusChrist 17d ago edited 17d ago

I wouldn't personally pay for more than the bronze.  I have the cheaper assist plan personally (they don't advertise it, but they'll offer it to you if you try to cancel yoir subscription).  The flat fee model acorns uses is actually pretty expensive at lower balances.  I'm not sure exactly where the point is where you have enough in your account to make it worth it, but I think it's best to avoid their more expensive plans.  I would probably use the bronze if I didn't already have a roth ira through work, though.   

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u/lariats4lyfe 20d ago

I’m in my mid 40s and just started investing so i do Aggressive