The idea behind it is very simple. I'm going to assume that you need to connect the service with your checking account and credit card. Every time you make a purchase, it'll round up to the next dollar, and the amount rounded up will automatically be invested in a diversified fund. I'm also going to assume that it makes money by charging a fee to manage your portfolio like any other investment out there.
The good thing about this is you'll be constantly investing without even knowing it or even feeling the pinch of having to come up with upfront capital.
I'm a huge fan of the set it and forget it method of building wealth and this is exactly what it does.
Interesting! I would be curious if there is an upfront deposit that needs to be made, and what the fees are. But most people would probably end up investing at least a few dollars a day.
ReplyDeleteFew dollars a day over the next 20-30 years? That will surely add up.
DeleteJust in our purchases for today (gas, and something at the grocery store my husband needed to bring to work), we are up to 87 cents!
DeleteGuessing it would be fractional purchase of shares? I don't know, I think I would be better off just sending 50 to my broker every month and buying something with it.
ReplyDeleteHS
True, or automating your ROTH IRA to max out yearly contributions. This is just icing on the cake. When they invite me to try it out, I'll definitely keep you guys posted and write my experience about it.
DeleteIt's an interesting idea, if you buy things often enough. I only make a few purchases every 2 weeks (maybe 3-5?), so it'd be small. I had BOA do that once, to round up and transfer the difference, but it rarely amounted to anything.
ReplyDelete