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Stash Invest vs. Stash Retire, Which Account is Right For You?

July 05, 2018
retirement accounts

Both accounts could help you; they’re for different time horizons.

3 min read

Helping you to save money and invest are two core goals at Stash.

We think they’re both are essential to becoming financially smart and financially independent.

As part of our mission to help you grow your cash, we currently offer our customers two ways to save and invest. One is called Stash Invest. The other is Stash Retire.

You may wonder which one is right for you.

Here’s what they have in common

Both invest and retire accounts will let you choose from more than 50 low-cost ETFs and dozens of single stocks. The funds range from ones that track things like the S&P 500 index, or cool new sectors such as alternative energy and technology. The stocks are some of the biggest blue chip, consumer, or tech-focused companies around.

Both allow you to buy what’s known as fractional shares.

What’s a fractional share?

Often the share price of a stock or fund can be high—hundreds or even thousands of dollars. We let you buy a portion of these shares, based on a budget you can afford. Your investment still works the same way as if you were buying full share amounts.

Here’s a breakdown of Stash invest vs. Stash retire:

Stash Invest

Get your feet wet in the investment world with Stash Invest. It’s an account that lets you invest in Exchange Traded Funds (ETFs), or individual stocks of some of the most prominent publicly traded companies around.

You can fund your account with as little as $5.

Stash Invest account is for medium to long-term savings goals. Since you’ll be investing the money, it shouldn’t be for short-term needs. (An emergency fund, or cash that you keep in a bank account for a rainy day, is probably best for that.)

Here are some other things to keep in mind about Stash Invest:

Stash Retire

Retirement will be here before you know it. And the best time to start preparing for it is by saving now. It may be 20, 30, even 40 years away. Stash Retire could help you meet this long-term goal.

Stash lets you start saving for retirement with $5.

Once you’ve funded your account, you’ll have access to the same funds and stocks as a Stash Invest account.

Here’s what’s different:

Stash InvestStash Retire
Minimum deposit $5$5
Saving for... Medium to long term goals Retirement
Withdrawal Withdraw any timePossible penalties for early withdrawl
TaxesInvestment income taxed as capital gainsInvestment income taxed as income tax
Fees $1/month; 0.25% annually for accounts over $5,000$2/month; 0.25% annually for accounts over $5k

Keep reading: Learn more about retirement and the different kinds of retirement accounts here in our learning retirement learning guide.

Investing vs keeping money in your savings account

Think of your invest and your retire accounts as places where you can put your savings to work. If your money just sits in a typical bank account, it’s not going to earn much interest. In contrast, investment and retirement accounts can benefit from something called compounding.

Compounding is when the interest your account earns also earns interest, which can dramatically increase your rate of savings.

All investing carries risk, and it’s important to know that you can also lose money with your investments.

Get started saving and investing today, with Stash Invest and Stash Retire accounts.

You can start here.

Investing, simplified

Start today with as little as $5

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By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

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This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

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