Does Stash Automatically Invest For You?

Stash is an investing platform that aims to make selecting investments — especially stocks and exchange-traded funds — simple and straightforward for beginners.

So does Stash automatically invest for you? Yes, Stash automatically invest for you through Auto-Stash. Auto-Stash is a suite of money saving apps to help users instantly invest and save. Investors are most likely to save more money if they invest smaller amounts of money on a regular basis for a long period of time.

A personal portfolio with Stash has no minimum balance, and since Stash supports fractional investment, you can purchase fractions of a company’s stock or a fund share for pennies.

Set Schedule and Round-Ups are two aspects of Auto-Stash.

What Is The Set Schedule Option?

Set Schedule helps you to move funds into your individual Stash accounts on a regular basis. You choose the sum you want to invest, where and how long you want to save it, and whether you want Stash to put it into your desired ETFs & stocks for you or only put it in your individual cash account.

It’s a simple way to save and spend on a regular basis, according to your own schedule.

How The Set Schedule Option Works

Set Schedule automatically moves funds from your connected bank account to all of your Stash accounts, including cash balance, savings, custodial, and investment assets.

Stash will automatically transfer funds from your own bank account and deposit them into your specified accounts after you enable Set Schedule.

Users may use the app or the web to start or stop Set Schedule, and the settings can be found in the Auto-Stash menu part on the Account tab. Set Schedule may be paused and continued at any time.

Is Stash The Best Option For You?

Beginner investors who want guidance investing more per month should use Stash.

If you can’t find funds in your monthly budget to spend, your investment opportunities are pointless. Stash has features including Set Schedule, Round-Ups, and Smart-Stash that will help you find and invest extra money. 

Stash also has a number of options to help you figure out your risk profile, open a retirement investment or custodial account, and invest in fractional stocks or exchange-traded funds (more on these features below). Stash provides beginner investors with guidance but does not handle their investments.

Some individuals might have the discipline to set aside money for investments each month, but they need assistance determining how to spend certain funds. If this describes you, an automatic planner like Betterment or Wealthfront could be more beneficial. Although they don’t provide the same automated investing mechanisms as Stash, they do have asset management services, such as automatic rebalancing and tax-loss harvesting.

Finally, if fractional share trading is your primary target, it’s worth noting that many online brokerages, such as Robinhood, Charles Schwab, and TD Ameritrade, provide this service for free. Each of these brokers also has a comprehensive trading network that is well suited to active traders.

Automatic investing tools

It’s fantastic that you can start saving with as little as $1. However, you’ll always need to find a way to make room in your budget for the $1, $50, or whatever amount you want to put aside per month. Thankfully, Stash will assist you with this as well.

Auto-Stash is a series of automated saving and spending tools available to all Stash subscribers. Here’s what Auto-Stash has to offer:

  • Set a Recurring Schedule: Save and spend money on a regular basis.
  • Round-Ups: Connect a debit card to your account to save and spend your spare change from each purchase.
  • Smart-Stash: Enable Stash to monitor your spending patterns and automatically pass “extra” funds.

Each of these strategies was aimed to help you save more money every day and month. These funds will be moved to your cash reserve before you’re able to spend them. Alternatively, you can spend your money right away in a fund that you already own in your account.

How Much Does It Cost To Invest With Stash?

Stash has three different plans (Beginner, Growth, and Stash+), each with a fixed monthly fee. Beginner subscribers pay a fee of $1 per month. At $3 a month, the Growth plan is three times more costly. And with Stash+, the price jumps to $9 a month.

The most significant distinction between these plans is that you must be a growth subscriber to create a savings account. Custodial profiles are only accessible to Stash+ subscribers. Subscribers of Stash+ often get a metal debit card with double Stock-Back incentives, although this is only for those who invest with Stash.

Investors of limited accounts would spend more as a proportion of overall invested funds due to Stash’s flat-fee pricing model. Beginner customers, for example, spend $12 a year or $1 a month. On a $500 account, that equates to a hefty 2.4% advisory fee.

Many robo-advisors, on the other hand, begin charging annual advisory fees at about 0.25%. You could also avoid advisory charges entirely by starting an account with a discount broker and buying your own stocks, ETFs, or mutual funds.

Stash’s flat pricing approach, on the other hand, becomes more appealing as account size increases. The advisory fee for Beginner subscribers, for example, reduces to 0.12% per $10,000 invested.

Final Thoughts

Stash might be a good match if you need a little help putting together a portfolio of ETFs and individual stocks. This type of educational assistance might save you money in the long run by preventing expensive errors and teaching you how to handle your own portfolio.

Stash also allows you to buy fractional shares, which helps you diversify your portfolio without giving away a lot of your capital.

Overall, Stash has sufficiently good qualities to make it a viable choice. Stash is a great place to get started if you need some assistance getting acquainted with investing.