First we simplified investing. Now we’re taking saving to the next level with Stash Retire.
This isn’t your parents’ retirement account. It’s created just for you, aligned with the way you live your life, the way you want to plan it. Our ethos: Saving for retirement doesn’t have to be expensive and complicated.
Until recently, investing for retirement was something that required a lot of cash up front. The barriers to entry were high, and the minimum you needed to open an account with most investment advisors usually had to have a K written after it — and more than two zeros.
At Stash, we know that not everyone has the luxury of waiting until they have $5-$10K saved up to start saving for retirement. You should be able to start right now.
Now you can.
We’re starting with Roth IRAs, and we’re starting on Android.
Why the Roth IRA?
IRA stands for Individual Retirement Account. It’s a tax-advantaged investment tool that people can utilize to save for retirement. IRAs come in two varieties: Traditional and Roth.
Stash has decided to begin by offering Roth IRAs because we believe they’re of most value to our existing customers.
All IRAs have various restrictions, how much you can put in each year, when taxes are paid on those contributions, when you can withdraw the money without suffering a penalty.
The 411 on Roth IRAs
- $5,500 – The maximum amount you can contribute each year if you’re under 50.*
- 59 ½ – The age when you can generally get access to the money without penalty.
- $118,000 and $186,000 – The maximum amount you can make (adjusted gross income) when filing singly or jointly to qualify for a Stash Roth IRA to contribute the full $5,500.
- Post-tax – How a Roth IRA is taxed. This means you’re investing with money which you’ve already paid income tax on. In turn, you don’t pay taxes on your contributions or the earnings when you withdraw the money if you withdraw it after you turn 59 ½.**
FYI: With Stash Retire, we have built in functionality to prevent you from over-contributing to your Stash Roth IRA. (We’ve got you covered.)
Recommended reading: IRA vs. 401(k): Both? Either? Neither? Help!
What will I be investing in?
When you’re setting up your Stash Retire account you’ll be presented with two investment choices: Your recommended investment Mix (Conservative, Moderate or Aggressive) and Park My Cash.
Your Mix is a diversified fund tailored to your risk level. Each Mix is a highly balanced mix of stocks, bonds and cash that can serve as the foundation for your portfolio over the long term. Park My Cash is a bond fund that generates monthly dividends with a focus on preserving your initial investment.
Both of these were selected as the ideal bedrocks for formulating your Stash Retire portfolio.
After establishing these foundations for your Stash Retire portfolio, you’ll have access to all your current Stash favorites. The same ETFs (exchange-traded funds) that are available to you in your Stash Invest account will also be available in your Stash Retire account, carefully curated to fit your risk profile and investment goals.
How much money do I need to get started saving with Stash Retire?
With Stash Retire you can open a retirement account with as little as $50.
The subscription fee is $2/month for accounts up to $5,000, and 0.25% for accounts with a balance higher than $5K.
How do I get Stash Retire?
Right now, Stash Retire is a service offered to existing Stash Invest customers. You have to have a Stash Invest account first. One app, two accounts.
Want Stash Retire but don’t yet see it available to you in your app? Sign up here and we’ll let you know the moment it becomes available to you.
Keep learning: All the Reasons Why You Should Start Saving for Retirement
*If you’re over 50, that yearly contribution max goes up to $6,500.
**However, there can be penalties on earnings if you withdraw before you turn 59 ½ years old.