It’s official: Acorns entered the $28.21 trillion with Acorns Later, which offers Roth, traditional and SEP IRA accounts under the Acorns investing model. The launch, which came at the end of April, follows Acorn’s acquisition of Portland-based retirement fintech firm Vault in November 2017. Acorns Later follows the formula of a standard Acorns account, where users invest on a one-time or recurring basis or through the firm’s hallmark Round-Ups system. Round-Ups allows users to link a checking or credit card account to the app and round each purchase up to the nearest dollar, investing the rounded-up change in $5 increments in the Acorns portfolio. Access to Acorns Later requires a standard Acorns account and is available for an additional $1 per month, making the total cost of Acorns and Acorns Later $2 per month (for accounts with less than $1 million invested).
This spare-change approach has proven popular with Millennials—Investopedia —who are the clear target of Acorns’ social media marketing . In fact, the firm that Acorns Later has hit 100,000 accounts in just over a month since its launch. Whether these are brand-new users or current users simply adding a retirement account is another question entirely, though.
Recent Acorns Later Tweet
The firm promotes Acorns Later heavily on social media as well as on a public site landing page that highlights features of the account, including funding options and fees; short videos discussing the differences between Roth, traditional and SEP IRAs; and a brief FAQ section. . The application process automatically funnels them into the appropriate IRA based on criteria like