# Acorns (Investment App) **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [October 10, 2014, 10:16am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800 "2014-10-10T10:16:38Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 13, 2014, 7:57am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/21 "2014-10-13T07:57:03Z")
I thought that IRA and 401k are taxed exactly the same (also roths in both). The key benefit of the IRA = you pick who manages (lower fees, more options) The key benefit of the 401k = company match and high contribution limits. My theory on order to invest: 1. match your company’s HSA match fully (if they match) 2. match your company’s match in your 401k fully 3. put money into a ROTH IRA (external to your company) until you max that out 4. go back to your 401k until you’ve maxed out for the year 5. go back to your HSA until you’ve maxed that out for the year 6. there is no 6 for me so I haven’t thought to this step. ---
**Author:** ![Mankthetank19](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/mankthetank19/32/5295_2.png) [@Mankthetank19](https://forums.speedlife.net/u/Mankthetank19)\ **Post date:** [October 13, 2014, 8:41am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/22 "2014-10-13T08:41:17Z")
> [@TradersBASE](#): > > It would take an insane level of discount for me to consider buying stock & investing in the company I draw a paycheck from…double jeopardy. > [Please, DON’T Buy Company Stock in Your 401(k) | Darwin's Money](http://www.darwinsmoney.com/dont-buy-company-stock-in-401k/) I took a risk on this. I always knew the Yahoo stock was undervalued since I started working here, which allowed me to triple my profit. I will be using this money to purchase a single family home and make my double into a full investment property. I don’t recommend my decision unless the individual can clearly prove the stock was undervalued. I have my wife contribute to a 403b and is in TRS (Teacher Tier 4) which she only needs to contribute for 10 years (I think) - - - Updated - - - > [@TradersBASE](#): > > Your theory about the lower tax bracket/401k thing is something I’d like to hear more about. 401K is not taxed until you take out. When an individual retires, in most cases, they won’t be making the same w2 gross which will most likely place them in a lower tax bracket. Plus I prefer to keep my money not taxed until I start withdrawing it over paying tax as I go (IRA). ---
**Author:** ![TradersBASE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tradersbase/32/5321_2.png) [@TradersBASE](https://forums.speedlife.net/u/TradersBASE)\ **Post date:** [October 13, 2014, 8:46am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/23 "2014-10-13T08:46:48Z")
> [@Mankthetank19](#): > > I took a risk on this. I always knew the Yahoo stock was undervalued since I started working here, which allowed me to triple my profit. I will be using this money to purchase a single family home and make my double into a full investment property. I don’t recommend my decision unless the individual can clearly prove the stock was undervalued. > > I have my wife contribute to a 403b and is in TRS (Teacher Tier 4) which she only needs to contribute for 10 years (I think) > > - > - > - Updated - - - > > 401K is not taxed until you take out. When an individual retires, in most cases, they won’t be making the same w2 gross which will most likely place them in a lower tax bracket. Plus I prefer to keep my money not taxed until I start withdrawing it over paying tax as I go (IRA). I get your concept on the 401k…it’s actually quite logical. 🙂 And I fully understand your approach on that stock purchase, I just imagine the majority to be incapable of knowing what “undervalued” means in reality. ---
**Author:** ![Mankthetank19](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/mankthetank19/32/5295_2.png) [@Mankthetank19](https://forums.speedlife.net/u/Mankthetank19)\ **Post date:** [October 13, 2014, 9:10am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/24 "2014-10-13T09:10:41Z")
> [@TradersBASE](#): > > I get your concept on the 401k…it’s actually quite logical. 🙂 And I fully understand your approach on that stock purchase, I just imagine the majority to be incapable of knowing what “undervalued” means in reality. Thanks! Your right, what I considered the undervalue was the stake in Alibaba, SoftBank, Partnerships, Core Business, Balance Sheet, Close to no debt, cash on hand, minimal gains every year, media view, company direction. - - - Updated - - - > [@theblue](#): > > I thought that IRA and 401k are taxed exactly the same (also roths in both). > > The key benefit of the IRA = you pick who manages (lower fees, more options) > The key benefit of the 401k = company match and high contribution limits. > > My theory on order to invest: > > 1. match your company’s HSA match fully (if they match) > 2. match your company’s match in your 401k fully > 3. put money into a ROTH IRA (external to your company) until you max that out > 4. go back to your 401k until you’ve maxed out for the year > 5. go back to your HSA until you’ve maxed that out for the year > 6. there is no 6 for me so I haven’t thought to this step. I am not to keen on doing a HSA. Its kind of like receiving a gift card for a place you never shop at and at the end of the year you are buying stuff so you don’t lose the money. It all depends on your personal or family needs/requirements. I don’t consider it a top form of investment. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 13, 2014, 9:20am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/25 "2014-10-13T09:20:04Z")
HSAs never expire and you can play a number of tax games with them. you’re thinking of FSA - - - Updated - - - > [@Mankthetank19](#): > > 401K is not taxed until you take out. When an individual retires, in most cases, they won’t be making the same w2 gross which will most likely place them in a lower tax bracket. Plus I prefer to keep my money not taxed until I start withdrawing it over paying tax as I go (IRA). this is incorrect. you are comparing a 401k vs. a ROTH IRA. A traditional IRA is pretax. I like ROTH IRAs because you can withdrawl from them anytime tax free (except for any gains) so I can use it as a secondary emergency fund. I have plenty pre-tax in my 401k. The contribution limits are also the same in an IRA regardless of pre-tax or post-tax so you can put more in if you go post tax. ---
**Author:** ![ProgRocker](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/progrocker/32/5434_2.png) [@ProgRocker](https://forums.speedlife.net/u/ProgRocker)\ **Post date:** [October 13, 2014, 9:42am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/26 "2014-10-13T09:42:47Z")
> [@theblue](#): > > HSAs never expire and you can play a number of tax games with them. > > you’re thinking of FSA > > - > - > - Updated - - - > > this is incorrect. you are comparing a 401k vs. a ROTH IRA. A traditional IRA is pretax. > > I like ROTH IRAs because you can withdrawl from them anytime tax free (except for any gains) so I can use it as a secondary emergency fund. I have plenty pre-tax in my 401k. The contribution limits are also the same in an IRA regardless of pre-tax or post-tax so you can put more in if you go post tax. This…I’m looking for the best place to open a Roth. Any suggestions? ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [October 13, 2014, 9:50am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/27 "2014-10-13T09:50:45Z")
Roth IRA yearly max is only 5k ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 13, 2014, 9:58am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/28 "2014-10-13T09:58:49Z")
> [@ProgRocker](#): > > This…I’m looking for the best place to open a Roth. Any suggestions? Vanguard all day. check out the Admiral shares where offered (only some funds), you have buy in at a decent level, but the fees are insanely low. check out VFIAX, it only costs 0.05% and that’s not a typo. and yeah, all IRAs are 5.5k/year. ---
**Author:** ![Mankthetank19](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/mankthetank19/32/5295_2.png) [@Mankthetank19](https://forums.speedlife.net/u/Mankthetank19)\ **Post date:** [October 13, 2014, 10:07am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/29 "2014-10-13T10:07:15Z")
> [@theblue](#): > > HSAs never expire and you can play a number of tax games with them. > > you’re thinking of FSA Your right, FSA expires but HSA can only be used for qualified medical expenses. I don’t see the gains of opening this up. Your limit to your options but if you hold out, you can do this (which I am sure you are doing) - Withdrawals for non-medical expenses are treated very similarly to those in an [individual retirement account](http://en.wikipedia.org/wiki/Individual_retirement_account) (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of [consumer-driven health care](http://en.wikipedia.org/wiki/Consumer-driven_health_care). Withdrawing money from 401k, IRA, or roth (regardless of penalty or not) is not a smart option because they should never be used as an emergency fund in x scenario. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 13, 2014, 10:25am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/30 "2014-10-13T10:25:51Z")
HSA is super fun to use for investing / tax avoidance. here is just one article, you can google for others [http://blogs.reuters.com/shaneferro/2013/07/18/hsas-when-your-health-insurance-becomes-a-retirement-account/](http://blogs.reuters.com/shaneferro/2013/07/18/hsas-when-your-health-insurance-becomes-a-retirement-account/) ![http://blogs.reuters.com/shaneferro/files/2013/07/hsa-graphic-wp.jpg](http://blogs.reuters.com/shaneferro/files/2013/07/hsa-graphic-wp.jpg) **“Plus, once you reach age 65, all nonmedical withdrawals are taxed at your current tax rate, just like a traditional IRA”** ---
**Author:** ![Mankthetank19](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/mankthetank19/32/5295_2.png) [@Mankthetank19](https://forums.speedlife.net/u/Mankthetank19)\ **Post date:** [October 14, 2014, 5:25am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/31 "2014-10-14T05:25:25Z")
Thanks for the info, I have some thing to do when re-enrollment opens. ---
**Author:** ![ProgRocker](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/progrocker/32/5434_2.png) [@ProgRocker](https://forums.speedlife.net/u/ProgRocker)\ **Post date:** [October 14, 2014, 6:09am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/32 "2014-10-14T06:09:52Z")
Vanguard requires $1,000 deposit to start. I might check out Scott trade, since they do have an office on Main St. Keep in mind I suck with investing and the terminology that goes with it. ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [October 14, 2014, 6:19am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/33 "2014-10-14T06:19:12Z")
All of those places are going to require a minimum deposit and if by chance they don’t you get hit with fees till you do… Which again is why this Acorn thing isn’t a horrible idea :lol: ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 14, 2014, 6:48am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/34 "2014-10-14T06:48:20Z")
if you can’t put $1000 in to start then you should be using a high interest savings account to build an emergency fund until you can comfortably. The $1 month + other fees of Acorn are also going to kill any gains and probably cost you money when you have less than $1k in there. ---
**Author:** ![ProgRocker](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/progrocker/32/5434_2.png) [@ProgRocker](https://forums.speedlife.net/u/ProgRocker)\ **Post date:** [October 14, 2014, 6:59am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/35 "2014-10-14T06:59:30Z")
I have $1,000+ right now in a Capital One Savings account (formerly ING). It’s our emergency fund so to speak right now. I just wanted to start off with $500 to kick things off. This would be more of my wife’s retirement. I have a 401k where I put in 5% and my company matches + 2% (7% total). So my retirement is “covered”. ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [October 14, 2014, 7:08am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/36 "2014-10-14T07:08:14Z")
I would max out 401k before screwing around with this but thats just me. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 14, 2014, 7:11am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/37 "2014-10-14T07:11:00Z")
> [@ProgRocker](#): > > I have $1,000+ right now in a Capital One Savings account (formerly ING). It’s our emergency fund so to speak right now. think in months… how many can you go if you lost your main source of income today. If it’s not 3 you’re in critical danger, and investing should not come into play yet. ---
**Author:** ![ProgRocker](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/progrocker/32/5434_2.png) [@ProgRocker](https://forums.speedlife.net/u/ProgRocker)\ **Post date:** [October 14, 2014, 7:19am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/38 "2014-10-14T07:19:39Z")
> [@LZ](#): > > I would max out 401k before screwing around with this but thats just me. Currently 5% is the max that they match at. So if I put in 5% they match+2 equaling 7%. If I put in 20%, they still put in 7%. > [@theblue](#): > > think in months… how many can you go if you lost your main source of income today. If it’s not 3 you’re in critical danger, and investing should not come into play yet. I was going to use the Roth Account like a savings account as well as a retirement account. Is that not a smart option? The understanding is the Roth account would be a set it and forget it account, treated like a 401k but with the ability to take out the money (aside from the earned money) if there was an absolute emergency like job loss or medical emergency. Like I said, I’m not a financial person and I won’t claim to be. As of right now my credit rating is over 800 as is my wifes. We’re working on paying off credit cards, mine is because of dental work I had to have done. Xmas bonus and Tax return will be used to pay any an all debt. ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [October 14, 2014, 7:37am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/39 "2014-10-14T07:37:17Z")
> [@ProgRocker](#): > > Currently 5% is the max that they match at. So if I put in 5% they match+2 equaling 7%. If I put in 20%, they still put in 7%. > > I was going to use the Roth Account like a savings account as well as a retirement account. Is that not a smart option? The understanding is the Roth account would be a set it and forget it account, treated like a 401k but with the ability to take out the money (aside from the earned money) if there was an absolute emergency like job loss or medical emergency. > > Like I said, I’m not a financial person and I won’t claim to be. As of right now my credit rating is over 800 as is my wifes. We’re working on paying off credit cards, mine is because of dental work I had to have done. Xmas bonus and Tax return will be used to pay any an all debt. Normally people do something like this Max 401 to Match Max Roth IRA(5500) Put more money into 401k upto the 17k a year mark. However you should have 3 months of emergency money somewhere that is accessible and also pay down your CC debt first. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [October 14, 2014, 7:48am UTC](https://forums.speedlife.net/t/acorns-investment-app/270800/40 "2014-10-14T07:48:07Z")
> [@ProgRocker](#): > > I was going to use the Roth Account like a savings account as well as a retirement account. Is that not a smart option? The understanding is the Roth account would be a set it and forget it account, treated like a 401k but with the ability to take out the money (aside from the earned money) if there was an absolute emergency like job loss or medical emergency. I would (I do) put a few thousand into the high interest and then play using the ROTH with conservative funds beyond that. One thing to remember is that you can only put 5500 into it once. You can’t put in 5k, take out 3k and put it back in during the same year because you’ll be over 5500. [Previous page](https://forums.speedlife.net/t/acorns-investment-app/270800.md?page=1) [Next page](https://forums.speedlife.net/t/acorns-investment-app/270800.md?page=3)