Stash app: Thinking about investing? Now how you have no more excuses

Stash app: Thinking about investing? Now how you have no more excuses.

Ever dreamed of investing in the stock market? Ever told yourself that one day, you are going to invest? Is the lack of funds the only thing that’s holding you back from taking that leap and making that investment?

Well, hold back no more — because the guys over at Collective Returns, Inc. knew exactly why would-be investors like you were holding back, and they knew exactly what to do to stop you from doing that.

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They came up with the Stash app — an app that lets users invest in ETFs and stocks, for as little as $5. Now people no longer have a valid excuse to evade investments.

The idea of Stash, however, isn’t entirely unique.

Speaking to CNN, Stash co-founder David Ronick explains how the weight loss industry has something to do with how they eventually came up with the innovative investment platform. He said:

“The idea for Stash came from the weight-loss industry — make it easy to take a small step.”

Taking a cue from the weight loss industry, the app’s developers made it a point to make everything as simple as possible — using plain English and simplified terms to explain to its users what it is exactly that they are getting themselves into.

How it works

What the founders behind this interesting app basically did was break down possible investments into fractions to make it affordable for everyone.

To try to simplify things, let’s think of the stock market as a buffet table with different types of food on it. Let’s say that the type of investment that Stash, in its entirety, represents — is a pie. It’s a whole, untouched pie.

In essence, this entire pie (representing a share in the investment world) is sliced up into smaller pieces to make it easier for others to afford. For example, a user who couldn’t normally afford an entire $10 pie can now buy a slice of it for just $1.

Stash may not work exactly the same way, but this example should give at least a vague idea of what’s going on in the app.

In reality, all of the funds available in the app are actual ETFs being run by reputable investment firms like BlackRock, Charles Schwab, and Vanguard — and the beauty of it is that users don’t have to wait until they have $1,000 in their pockets to start making investments.

Fees

The only catch about this entire affordable investment scheme is that users whose balances are below $5,000 will be charged $1 per month by the app. But it’s a fee still small enough for ordinary people to afford.

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People who have over $5,000 in investments, on the other hand, are charged a fee of 0.25 percent annually.

The app not only functions as an investment tool, it also doubles as a financial advisor. Upon signing up, users are asked a series of questions designed to determine whether or not they fall under the conservative, moderate or aggressive type of investors — and are given recommendations by the app accordingly.

Stash is free to download on iOS and Android devices.