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Stash App Review - How To Make Money On The Stash Invest App - YouTube
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- In today's video, we're
reviewing the Stash Invest app.
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I'll be covering all the
new features that have come
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to Stash, sharing my experience
with the app after using it
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for two years, and I'll
also briefly touch on how
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the Stash app compares to other popular
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investing apps out there today.
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(upbeat music)
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Hey, welcome back guys.
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This is Erik of Everyday
Investing and on this channel,
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I'm all about helping
the everyday investor
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like you and I get started
saving and investing.
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So if you're new here
today, definitely feel free
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to subscribe and hit that bell
notification to catch future
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investing and personal finance
videos just like this one.
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Also, if you would like
to jump ahead or jump back
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to any part today's review,
I'll be sure to include
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timestamps in the description box below,
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as well as my referral
link where you can get
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a free signup bonus when
first joining Stash.
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Now one of the reasons I'm
really passionate about
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the Stash Invest app is
because, Stash was actually
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one of the first investing apps
that I started using myself
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when I first got into
saving and investing.
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I've been using Stash
now for about two years
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and if I had to pick one word
to describe my experience
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with Stash over these past
two years, I would have to say
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that word would have to be consistent.
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Now don't get me wrong, no
investing app is perfect.
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But I would have to say
that Stash is by far been
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the most consistent and
implementing new features
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and bringing those to the
platform and introducing new
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features to us Stash
users and because of all
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the new features they continue to bring
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to their platform,
that's one of the reasons
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why they're still one of my
favorite investing apps today.
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So what exactly is the Stash app?
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Well, the Stash app is an
investing app that makes it easy
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for new investors to get
started investing in different
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areas of the stock market,
in real estate, in bonds,
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and even into some
alternative investments.
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Now, while they do have a desktop version,
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the Stash app is a mobile
based app, and is available on
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both iOS and Android devices.
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So how exactly does the stash app work?
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Well, first of all, what you
need to know is the Stash app
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is a very versatile app, it
goes far beyond just investing
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because they also have a
mobile banking feature.
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They also have a cashback
portal, and you can even opt
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to open a Custodial account
or a Retirement account
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if you so choose, now,
if you're a new investor,
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you're really going to love the Stash app
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because it has a really clean
and easy to use interface
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and also because they use
really easy terminology
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when it comes to their investment funds.
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That's what got me interested in stash
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when I first started investing.
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Another great advantage
for new investors is that
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with the Stash app, you
can get started investing
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with as little as $5, now the reason this
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is a great advantage is
because many larger brokerages
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such as Etrade, and Charles
Schwab, you may need hundreds
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of dollars just to get started
investing in single stocks.
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But with the Stash app,
you can actually buy
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what's called fractional
shares, and what this means
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is you can buy fractional
shares as low as $5,
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so you can buy a fraction or
a percentage of a full share
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of a stock that may cost
hundreds of dollars,
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you can put $5, $10 into
that, whatever amount
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is comfortable for you and you can buy
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a fractional piece of that share,
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a fractional piece of that stock.
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And because of this low
minimum requirement,
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it makes investing very accessible
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to the everyday new investor.
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Like I said, you can get
started with just investing $5.
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And you can continue to contribute
small consistent amounts
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over time, so whatever
amount is comfortable for you
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to contribute on a
weekly or monthly basis,
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no matter how small that
amount, as long as you're
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consistent, those contributions
will add up over time.
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Now that is actually one
of the biggest indicators
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to growing your investments
and wealth over time,
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consistent contributions,
so Stash actually helps you
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do this through three
different methods they have
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that help you automate your
contributions consistently
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without having to really worry
about it or think about it.
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I'm going to show you those
right now inside the app.
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So the first one is called Set Schedule,
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now with set schedule, this
was formerly called Auto Stash.
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And basically what this
does is it allows you
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to automate your contributions
by setting up a schedule
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to deposit and contribute
to your Stash account,
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you can set up to
deposit weekly, biweekly,
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or even monthly, and you
can set the perfect amount
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that's comfortable for you.
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Now, the great thing about
this is you can pause
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and resume this feature at
any time, so you don't have
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to worry about that and
it also helps reduce
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your risk in investing,
because you're never entering
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a giant lump sum of money at
one time into the stock market,
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when it may be at a particular
high in the stock market
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and there might be a
pullback on the horizon.
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By contributing consistently
even smaller amounts,
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you reduce your risk in investing.
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The next approach they have
is what's called Round-Ups
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and this one here, let's
you invest your spare change
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from your everyday purchases straight into
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your Stash account, so the
way this works is you link
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a debit card to your Stash account,
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you can link up to three
different debit cards,
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or you can use the
actual Stash debit card,
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and I'll show you that in just a second
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and when you use this for
your everyday purchases,
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it'll round up the purchase
to the nearest dollar,
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and that change will be pulled to invest
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into your Stash account, so essentially,
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let's say you're buying
something for 3.75,
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it'll take the extra 25 cents
and put that towards your
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Round-Up, Once you have $5
worth of roundup change,
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It'll then invest that $5
into your Stash investments.
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And just like the set schedule
feature, the Round-Up feature
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can also be paused and
resumed at any time.
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The last one is what's called Smart-Stash
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and with Smart-Stash
here as you could see,
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what it does is it has
Stash analyze your spending
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and earning patterns and
only on days when you have
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extra cash to spare, It'll
transfer a small amount
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of cash for you into
your Stash investments
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to help you save, now you
can set a max transfer limit
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on this feature and you can also pause
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and resume it at anytime.
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All right, so now I'm going
to actually talk about
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the investments offered on the Stash app.
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So they actually have over 250
investments you can invest in
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on the Stash app, and this is comprised
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of both single stocks and
ETFs and if you're wondering
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what ETFs are ETF basically
stands for Exchange Traded Fund.
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And that is essentially a
basket of stocks a theme
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of related stocks that are
grouped together to help reduce
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your risk instead of investing
in individual stocks.
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Now, what the Stash app
doesn't have every single
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individual stock, they have continued
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to add more individual stocks over time,
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so their library of stocks
has continued to grow.
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Now all of the investment
funds on Stash are actually
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well established ETFs from well
established investment firms
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such as Vanguard and iShares,
Stash just simplifies
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their terminology and makes
it a lot easier to understand
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for the everyday user.
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Now, Stash does have
several pre selected ETFs
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such as more conservative
investments, more moderate
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investments, and even more
aggressive investments.
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They also break it down by
several different sectors
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and niches in the stock
market to really help you take
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the guesswork out of
what you're investing in,
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it really simplifies, it
makes it easier to understand.
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And with each investment option on Stash,
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whether it be single stocks or
ETFs, you can click on them,
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read their overview, see your
performance, and really invest
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in the stocks and ETFs
that you believe in.
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And again, guys, whether you're
investing in single stocks
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or ETFs, on Stash, you can
invest with as low as $5,
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because you could buy fractional shares.
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So if you want to invest in a
piece of Amazon, but the piece
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of share of Amazon right now
cost $1800, that is daunting,
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that is a lot, but if you
don't have $1800 dollars,
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you just want to invest
$5, $10, $20, whatever
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to buy your piece of
Amazon, you can do that
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on the Stash app, so
let's now briefly touch on
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the different types of accounts
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you can open inside the Stash app.
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The first one is just that,
the Stash Invest account.
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This is the one that started
it all, this is your core
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investment account inside
your Stash app, this is where
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you can invest in ETFs,
single stocks and because this
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is not a retirement account,
you can deposit to it
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and withdraw from it,
any or all of your funds
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at any time without restriction.
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The next account type stash
offers is what's called
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Stash Retire, now, this is
actually a retirement account.
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They offer several different
kinds, they offer both
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traditional IRAs and Roth IRAs, so stands
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for Individual Retirement
Account, and Stash does offer
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that as well and again, much like
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the regular Stash Invest
account, you can start your Stash
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Retirement account with as low as $5.
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Now I personally already have
my retirement account set up
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somewhere else I had it
set up there for years
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before Stash had this option available.
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But if I didn't already
have a retirement account
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set up somewhere else, I would
definitely consider Stash
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because the earlier you can
start saving for retirement
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guys, the better, trust
me, that is definitely key
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when it comes to saving
and retiring early.
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The third type of account
you can open with Stash
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is actually called a Custodial account.
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Now this is account for those
under 18, so if you have a son
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or a daughter, and you want
to start saving for them,
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whether it be for their
education or for a car while
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they're still young, now they
can't open up a Stash account
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because you have to be at
least 18, but you can open up
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a Stash account on their
behalf as the custodian
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you can manage it,
contribute to it for them
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and when they turn 18, that
money those investments
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will then transfer and belong to them.
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So this is a great option,
like I said, if you have anyone
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in your life that's under 18,
and you want to start saving
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for them, you want to
start investing for them,
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the Custodial account offer
from Stash is a great option
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for that, I also forgot to
mention guys that this is not
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just a feature for parents,
as long as you're an adult,
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you can open this account for anyone that
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you want to save for and
the last account type inside
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the Stash app is what's
called Stash Banking.
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Now, this is not an
investment account, this is
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a mobile banking checking
account and the cool thing
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with this checking account
through Stash is that there
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are no monthly fees, no
maintenance fees, and there's also
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no minimum balance requirement.
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The Stash Checking account also comes with
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a Stash debit card, which
allows you to easily transfer
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funds between your investment account
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and your checking account and vice versa.
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And speaking of the Stash
debit card, Stash has actually
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recently integrated the
ability to earn cash back
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from your Stash app, and they
allow you to earn cash back
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in two different ways, so
the first way you can earn
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cashback with a Stash app
is actually through earning
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up to 10% cashback at local
restaurants and merchants,
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you can use either your Stash debit card,
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or a link debit card, you
link to your Stash account
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and you can earn cashback
from your local purchases
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up to 10%, that's a
crazy high amount guys.
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The next method is actually
through what they have called
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Stash stock back, now
this one's also cool.
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Now this one you do have to
use your Stash debit card
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and if you make your purchases
with Stash debit card
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at major retailers, you can
actually earn stock back
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in a percentage of stock
back in those companies
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that you bought from, so let's
say you buy from McDonald's,
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or Starbucks or Netflix or
Walmart, or gas or groceries,
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any of those places that Stash
offers individual stocks from
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Chevron, you can actually earn
a percentage of stock back
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into your Stash account
for your purchases.
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So it's a pretty epic
combination, you can earn
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both cashback and stock
back with the Stash app.
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So definitely one of my favorite
new features with Stash.
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So let's now talk a about the
pricing and fees when it comes
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to the Stash app, well,
first of all, there
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are no commissions to buy
or sell your investments
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whether those be single
stocks or ETFs, but there is
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a fixed monthly fee to use the app.
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Now if you're just using the
Stash Investment account,
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the fee is a fixed $1 per
month on balances up to $5,000.
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For balances over $5,000, it
is a 0.25% of your balance.
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Now, I did have some
confusion in past videos,
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people said 0.25% of $5,000 is $1250,
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let me show you with the calculator here,
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it is actually $12.50 'cause you multiply
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the 5000 by 0.25% not by 0.25.
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So that's what the fee
is for Investment account
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$1 per month on balances up to 5000
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or 0.25% on balances over 5000.
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Now if you want to open
up a Custodial account
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for someone else, that is
$1 per month fee separately.
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Also the Stash retirement
account if you want to
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open up a Retirement
account, that is a fixed
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$2 per month fee and for
the Stash banking, there
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are no fees, there's no monthly fee.
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So another question I get a lot is,
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is investing on Stash safe?
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Well guys, I will say the
Stash is registered with
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the SEC and FINRA, and
they are SIPC insured
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for up to $500,000, so
what does this mean?
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Well, the SIPC is actually the
equivalent of FDIC insurance
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for a checking account, it's
just that SIPC insurance
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is for investment brokerages,
and pretty much all major
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investment brokerages, all
registered and legitimate ones
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have this insurance and are
also registered with the SEC.
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So what this means is, if
anything would ever happen
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to Stash, if they were ever to go bankrupt
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or go out of business, you
wouldn't lose your money,
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because the SIPC would step
in and liquidate your account
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and give you that money, or
they would transfer those shares
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of stocks you had to
another brokerage account.
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So either way you are protected
with that SIPC insurance.
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So who would I recommend
the Stash app for?
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Firstly, I would recommend
it for new investors
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because the fact that you can
get started with investing
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with just $5 really
does make it accessible.
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Secondly, the fact they use
easy terminology really does
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help new investors because
it's not as overwhelming
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if the terminology were more complex,
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so that really helps, and
thirdly, inside the app,
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I didn't show you guys
but they do have an area
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called Stash Learn, that
does have plenty of helpful
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educational resources to learn about
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saving and investing for beginners.
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The second type of investor I
would recommend the Stash app
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for, is actually for even
more experienced investors
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who simply want to
invest more efficiently.
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With their built in automation
tools, it does help encourage
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you to invest consistently,
and this really does help
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take the guesswork out of it,
also, the fact that they have
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no trading fees or surprise
commissions, just that fixed
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monthly fee, which is
as low as $1 for just
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the investment account,
that really does help
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you save on commissions as well.
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And thirdly, the fact that
you can invest in fractional
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shares does help you invest
in more expensive stocks
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that may cost hundreds of
dollars if you had to buy
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the full share at
another larger brokerage.
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And the last type of person I
would recommend the Stash app
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for is simply an investor
who wants to get a lot
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out of their app, again,
the Stash app is extremely
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versatile, because you don't
only get an investment account,
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you can also get a check in
account for mobile banking,
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you can open up a retirement
account with them.
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You can even have access
to a cashback portal
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with your Stash debit card,
so there really is a lot
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of value packed into the Stash app.
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Now who would I not
recommend the Stash app for?
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Well, firstly, I would say
the Stash app is not as ideal
[796]
for short term traders, the
Stash app is more designed
[799]
and built to be a long
term investment platform.
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But if you want to do short
term trading, you want to look
[804]
at probably a different
app than the Stash app.
[806]
Maybe check out my review of
the Robinhood trading app.
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That one is more designed
for short term trading.
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The Stash Invest app is more geared
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towards long term investing and growth.
[816]
The second type of person I would not
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recommend the Stash app for,
is someone who's looking
[820]
to invest in very specific
stocks, because again,
[822]
Stash doesn't have hundreds
of individual stocks available
[825]
at this moment, they currently
have over 200 and they
[828]
have many major companies like
Amazon, Walmart, Starbucks,
[832]
Netflix, Google, Facebook,
all the major retailers
[834]
that you want to invest
in, but if you're looking
[836]
for a more obscure individual
stock, it may not be offered
[839]
on Stash, but it's something to consider.
[841]
Again, you may want to
consider an app like Robinhood
[844]
that does offer maybe
thousands of individual stocks,
[847]
but again, the downside
with a app like Robinhood,
[850]
is that you do have to
invest in the full share,
[852]
whereas on Stash you can
invest in fractional shares
[855]
for as low as $5, but with
that being said, I do still
[857]
have faith in the Stash app
because they have continued
[860]
to add more single stocks over time.
[862]
Like I said, when they first
introduced individual stocks
[864]
to their platform, they only had about 50.
[866]
Now they have about 200, so
they are growing over time.
[869]
And the third type of investor
I would say the Stash app
[872]
is not as ideal for, would
be those who are looking
[874]
to invest directly into
Bitcoin or Cryptocurrency.
[877]
Now, Stash does have a Blockchain
ETF into their platform.
[881]
They also do have several
companies that are related
[884]
to Blockchain, in
Cryptocurrency such as AMD,
[887]
IBM companies like that, but
if you want to invest directly
[891]
into Bitcoin, Litecoin
or other Cryptocurrency,
[894]
you can't do that on the Stash app.
[896]
If you want to do that, I would
definitely recommend checking
[898]
out my Coinbase app review,
that is an app that you can
[900]
invest directly into Bitcoin
and other Cryptocurrencies.
[904]
And again, if you're new to
the Stash app and would like
[905]
to try it out, definitely
feel free to join through
[907]
my referral link in the
description box below,
[909]
where you can get a free signup
bonus when you join Stash
[911]
and invest your first $5,
so let me know your favorite
[914]
feature with the Stash Invest
app, again, guys, your likes
[917]
and comments are always
appreciated because they help give
[919]
me some feedback into what
types of videos you'd like me
[921]
to make more of, if you'd
like to see how the Stash app
[923]
compares with some of my
other favorite investing apps,
[925]
definitely feel free to
check out my playlist
[927]
of those videos, right
over there to the right.
[928]
And if you're new to the Stash
app, and would like to learn
[930]
more on how to use it,
feel free to check out some
[932]
of my other Stash app tutorial
videos right above there
[935]
as well, and of course,
if you have any questions
[937]
on the Stash app, feel free
to leave your questions
[939]
down below as well.
[940]
Thanks again for watching guys
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and I'll catch you in the next episode
[942]
of Everyday Investing.
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