Why I’ll never use Stash investing

Lets review Stash Investing, how it works, and the reasons why I won’t be investing with them - enjoy! Add me on Instagram: GPStephan

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Stash is an investing platform that helps automate your investing, but they have a few distinctive twists that make them a little more unique than others:
First, they do what’s called micro investing - which means you can invest with as little as $5 Into fractional shares, where you own a small percentage of a stock without needing to buy the whole thing.

Secondly, they have a wide range of investment options you can chose from, depending on your goals, how you want to invest, and the time frame you want to hold that investment. 
Third, what’s very unique to Stash…they offer what’s called Stock Back, which is a feature that allows you to earn stocks as a reward anytime you use your debit card for purchases within certain companies.
Fourth, Stash also offers a Roth IRA.

Now when it comes to the $1 per month fee, here’s where it starts getting a little iffy, from my perspective:

First, the $1 per month fee is up to your first $5000 invested…and to ME…that’s just absurdly high. Like if you have $4000 with Stash, you’re paying $12 per year just as a fee for investing. If you invest more than $5000, their management fee lowers $1 per month to 0.25%.

Again, it might not SEEM like a lot…but when you consider Vanguard charges 0.04%, Fidelity charges NOTHING, and even Acorns just charges a flat $1 per month up to a million dollars invested…stash is very, very expensive at 0.25%. So from THAT perspective alone, I’m absolutely not a fan of it. 
They offer what’s called Stock Back - this is a feature where they will give you BACK a fraction of a stock on what you purchase, as a reward for using the debit card. According to them: “Upon a qualifying debit card purchase, you will earn a fractional share of Stock.  Stock reward amounts will be a dollar amount equal to 0.125% of the aggregate amount of the qualifying purchase, or, if greater, a fixed dollar amount of $0.01 per qualifying purchase.“

So if you spend $100 with Amazon…you’re getting back a whopping 12.5 CENTS in stock. 12.5 CENTS!! Just get a 2% Citi Double Cash Card…and when you spend $100, you’ll get $2 back!! That’s $1.87 cents MORE for the same purchase, than with Stash. 

As usual, I should just say this: it’s better to do SOMETHING than nothing…so if Stash gets you investing, even if it costs you a higher amount every month…it’s BETTER than not doing anything at all, and not investing.

But…for EVERYONE ELSE with even a moderate amount of self control and don’t mind spending an extra 5 minutes doing their own research…there are many, many, MANY cheaper options for what you get. 
It’s great that people are getting excited about investing, but there are sooooo many cheaper alternatives out there that it just isn’t worth it from that perspective. And I hope they can improve their reward and pricing tiers so I can review it again and give it something a little better. 

[GrahamStephan]

UPDATE - Stash reached out with a few changes:
1. Beginning August 1st, their pricing is lowered to a flat fee of $1 per month, that still includes zero trading fees. It'll go into effect for all customers.
2. The Stock Back program runs promotions that will increase the 0.125% reward depending on the time and the merchant.
3. Even though I'm still not a huge fan of stock back, the $1 flat fee certainly makes it a LOT more appealing than it was previously

[Harlequinicole]

Can we just take a moment to appreciate the fact he actually read the terms and conditions!!!

[CarlosGarcia-funw]

Can you make a video about life insurance, how it works, pros and cons, whole vs term, I’m 18 and I’m researching it and would like to know more and you have the best videos explaining things like this, thanks

[DanielIles]

*Graham is the internet’s destroyer of fees*

No fee charging company is truly safe.

[dunamisa]

I’m a proud Stasher but I appreciate your point of view. It’s important not to be sensitive when someone has a difference of opinion because you might learn something!

[ricardodevera]

I love stash. I have been in stash almost 2 years. I earned good dividends. I always get 10$ free from stash debit card since I have direct deposit 100$ every paycheck. You already covered your $1 fee. I also have acorns account but you don’t have freedom to choose investment you like. Stash is good for low income maker to begin investing. I just started 10$ last year Jan 2018 now I have 1000. Good for beginners.

[FernFinance]

I started using Stash and honestly it was pretty lackluster really, but it was what got me into investing altogether so I have to give it props for that at least

[LivesinAustin]

I was upset knowing I could have used compound interest years ago and never even knew about it. Just helped a friend 6 years younger find out and start a Roth IRA. Because of this channel.

[barrysmith]

This is the most honest review about stash. Thanks for the review.

[hammabachrra]

Love your someone who just started using Youtube for business, I'd like to say thank you for keeping it real especially when it comes to Real Estate (as well as the other topics you cover)

[JamesWhiteside]

Every reason Graham points out is exactly why I left them and even Acorns after learning about better options like M1 and then Fidelity. Great work man!

[arielacosta]

Graham, Stash changed their management fee. Starting on August 1st, it’s going to be 1 dollar per month for every amount. It’s not going to be up to 5k anymore

[ThomasCarvo]

Good stuff Graham! I haven't used Stash myself, but this is good to know!

[samuelv]

This channel has inspired me to start a career in real estate. I start working for a real estate company tomorrow and I plan on buying my first apartment to rent out as a investment. THANKS GRAHAM!!

[HumansOfVR]

*_Thanks for listening to your viewers!_*

[albertogarza]

I closed my Stash account and will be opening a Roth IRA with Fidelity ...thanks for the advice

[ElJAIII]

I like the videos, because
A) I like them and
B) how uniquely you ask each time.. grabs my attention.. keep it up graham, and thanks for EVERYTHING

[babakbabak]

Thank you for your review. " Liked" and "Subscribed". You earned it.

[ChrisComstock]

I ALWYAS smash that like button way before you ask

[mattwanders]

Great review Graham - I've never used Stash (or Acorn for that matter). I must just be old and set in my ways but it seems like just putting money month by month into a no-fee/low expense index fund makes a lot more sense. I feel like all the time people spend trying out new apps to invest their money would be better spent opening an account at a place like Vanguard, doing some research on investing, and making some money to invest over time. . . but maybe I'm just no fun 😅