Content of the material
- So how does your money actually make money?
- Disclosure: This is not a prediction or projection of performance of an investment or investment strategy. Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections are hypothetical in nature and may not reflect actual future performance. The rate of return on investments can vary widely over time, especially for long term investments including the potential loss of principal. For example, the S&P 500® for the 10 years ending 1/1/2014, had an annual compounded rate of return of 8.06%, including reinvestment of dividends (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). The S&P 500® is an index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe, made up of companies selected by economists. The S&P 500 is a market value weighted index and one of the common benchmarks for the U.S. stock market. Source: Yahoo Finance. Source: Yahoo Finance.
- Success Story of Stash
- Distinguishing Features
- What Type of Investor Are You?
- How to make money with Stash
- What Are The Fees?
- What is Stash?
- Pros of Stash:
- Stash Company History
- How does Stash work?
- Stash debit card
- Stash investments
- Stash Benefits
- How Do I Open An Account?
- # 1 – Click Here To Get Started
- # 2 – Fill Out Your Profile
- # 3 – Choose An Investment
- 4 – Link Your Bank Account
- # 5 – Confirm Your Identity
- Popular case studies
So how does your money actually make money?
While almost everyone invests their money with the goal of turning a profit, investing involves risk.
That said, over the long run, though, markets (and returns) trend up:
Disclosure: This is not a prediction or projection of performance of an investment or investment strategy. Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections are hypothetical in nature and may not reflect actual future performance. The rate of return on investments can vary widely over time, especially for long term investments including the potential loss of principal. For example, the S&P 500® for the 10 years ending 1/1/2014, had an annual compounded rate of return of 8.06%, including reinvestment of dividends (source: ). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). The S&P 500® is an index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe, made up of companies selected by economists. The S&P 500 is a market value weighted index and one of the common benchmarks for the U.S. stock market. Source: Yahoo Finance. Source: Yahoo Finance
The Dow Jones Industrial Average, for example, saw big gains over the past two or three decades. After the market bottomed-out during the financial crisis in 2009, the Dow more than doubled, briefly topping out above 29,000 points in early 2020.
Here are the three primary ways that companies pay back their shareholders, or, by which investments can earn you money.
Success Story of Stash
Stash was launched in 2015 in New York by Brandon Krieg (CEO), Ed Robinson, and David Ronick.
All three founders of Stash had extensive experience in entrepreneurship and finance before founding the company.
An electronic trading company called EdgeTrade hired a young Krieg as its second employee in 1998.
He aided the business’s growth throughout the next decade, culminating in a successful exit. EdgeTrade was acquired by Knight Capital for a total of $59.5 million in 2007.
Krieg remained with Knight for the next five years, assisting with the integration of EdgeTrade.
A few years later, he joined Macquarie, where he helped set up their computerized trading desk.
He met Robinson at Macquarie, where he began his career as a trader in 2005.
Robinson lived for a time in Sydney and London until he relocated to New York in 2013, where he met (and made friends with) Krieg.
They decided to form a partnership and start their firm after two years of working together.
David Ronick, who had years of experience starting and exiting his firms, joined them as the third co-founder.
The crew spent the first few months simply talking to strangers on the street, inquiring about money management, investing, and saving.
The prevailing impression was that the average person was interested in investing their money but was intimidated by the perceived complexity.
The trio began developing an iOS application in February 2015 (Android was released in early 2016). Stash attracted more than 50,000 users before its debut.
The team skillfully generated buzz by doing interviews with numerous business and finance magazines, resulting in early exposure.
The team raised $1.5 million in angel funding from friends, family, personal savings, and a few investors.
Ronick was the CEO of Stash, but he left the company within a year (and moved into an advisory role).
Today, he manages Minded, a stress-relief medicine delivery service.
Stash still enjoys high interest despite the setback. The business raised $37.3 million in three rounds of funding in 2016.
There were then more than 300,000 subscribers (and 10,000 more signed up every week).
The startup’s growth was fueled by a few major strategic changes. To begin, Stash was fully aware of their customer demography.
These were frequently millennials (on average, 29 years old) with a yearly income of around $50,000.
Stash enabled consumers to invest as little as $5 (through fractional shares), in contrast to the hundreds or thousands required by established internet brokers such as E*Trade or Charles Schwab.
Stash also prioritized teaching its consumers (through videos, an onboarding guide, and individualized recommendations) and personalizing their investment products (in this case, ETFs).
For example, ETFs could be named The Techie (for a portfolio focusing on technology) or Clean & Green (stocks focused on renewable energy).
Stash added new features aimed at meeting the needs of its customers to its product offering.
One such tool is the firm’s savings feature, which automatically sets aside money each month and invests it in equities or exchange-traded funds. Even weight loss regimens served as motivation for the team.
This in-depth information of their clients enabled them to continue onboarding new customers while also raising money.
Stash (along with other investment applications such as Acorns or Robinhood) developed its business due to the coronavirus outbreak massively.
Customers began investing an excessive amount of money from their government checks inequities, which supported the firm’s expansion.
Today, Stash manages close to $2 billion in assets (AUM). The firm’s platform today has over 5 million registered users in the United States.
Additionally, the company employs approximately 300 workers across three offices in the United States and the United Kingdom.
Another perk of using Stash is the Stash Stock-Back program, which rewards users as they spend money. All qualifying purchases made with your Stash debit card earn a percentage back in stock. If you make purchases at retailers within Stash’s investing platform, you’ll automatically earn a percentage back of that company’s stock. For other purchases, you’ll get a percentage back in a Stash-approved ETF.
What Type of Investor Are You?
In building your investment profile in Stash, the system will ask you questions to determine what kind of investor you are. These questions are based on what risks you may want to take and the gain you want to attain. The first question covers most of this by asking the expectations you have for investing. Are you a conservative investor? An aggressive one? Or are you somewhere in the middle? A moderate investor, perhaps? For beginners, you should evaluate your options and weigh them smartly.
Other questions include your employment status and the money you make. It also asks you when you will spend the money you save and invest. These questions may seem personal, but these are information that can help determine what type of investor you are and can be. This is also linked to Stash creating personalized guidance for you.
How to make money with Stash
Maximizing your earnings with Stash is easy. You can earn more if:
- You use your debit card more to get more Stock-BackⓇ — especially if you frequently shop at merchants offering a bonus 5% back.
- You make smart investments. The performance of stocks and mutual funds is never guaranteed, and there’s always a risk of loss. But if you invest in companies or ETFs6 that perform well, you can maximize your gains.
- You invest more money — and leave it invested. The more you put into the market, the more you have the potential to earn (or lose). If you set up frequent automated transfers to Stash, build a large portfolio, and leave your investments to grow, you may be able to build a huge nest egg over time if your investments perform well.
Using tools such as Stash Learn to help you become smarter about picking investments and building a diversified portfolio can also allow you to maximize your earnings while minimizing your risk level.
What Are The Fees?
Stash currently has three pricing options – all flat-fee offerings.
- Beginner — $1/mo: This plan offers a basic personal brokerage account and Stash Banking² account. It also offers financial guidance and provides access to up to $1k of life insurance through Avibra⁷.
- Growth — $3/mo: This plan adds retirement investing and unlocks Smart Portfolios.
- Stash+ — $9/mo: This is their most robust option and is for families who want to save and invest. You’ll get up to two custodial investment accounts for your children (note: these are not 529 plans). You’ll also earn 2x stock with the Stock-Back® Card⁸ and the life insurance access increases to $10k.
Stash’s first two subscription tiers are identically-priced to Acorns at $1/mo and $3/mo. But only Stash includes banking with its $1/mo plan. It should also be noted that Acorns’ highest-priced plan is less expensive at $5 per month.
What is Stash?
Stash is a mobile app and web platform developed in 2015. It was made after its developers observed how difficult it was for most Americans to invest their money. To make investing easier for the ordinary American, Stash was born.
Stash allows you to invest in thousands of stocks and funds with unlimited trading and no add-on trading commission.1 One of Stash’s main features allows its users to learn as they start investing. Learn, earn, and save – these are the pillars of Stash when it comes to helping people reach their financial goals.
Pros of Stash:
- You can ease some of the worries associated with investing with Stash if you are new to it.
- Stash offers a low-cost plan: $1 per month will buy you shares and exchange-traded funds.
- Stash does not require a minimum investment: you can start investing with as little as one dollar.
- When you have Growth, Stash +, or Stash Portfolio, you get access to Stash Smart Portfolio, a Robo-advisor.
Stash Company History
Stash, headquartered in New York, was founded in 2015 by Brandon Krieg (CEO), Ed Robinson, and David Ronick.
All 3 founders brought with them extensive experience in the areas of entrepreneurship and finance before launching Stash.
In 1998, a young Krieg joined an electronic trading company called EdgeTrade as their second hire. Over the next decade, he helped the business to grow, which ultimately led to a successful exit. In 2007, EdgeTrade was acquired by Knight Capital for a combined $59.5 million.
Krieg spent the next 5 years at Knight to help with the integration of EdgeTrade. Afterwards, he joined Macquarie where he was tasked with building up the firm’s electronic trading desk function.
At Macquarie, he met Robinson, who joined the company back in 2005 as a trader. After stints in Sidney and London, Robinson moved to New York in 2013 where he became acquainted (and ultimately friends) with Krieg.
Two years into their working relationship, the pair decided to team up and launch a business of their own. David Ronick, who possessed years of experience in launching his own businesses (and even exited a few) joined them as the third co-founder.
The team spent the first few months just talking to people on the streets, asking them about anything related to money management, investing, or saving. The general sentiment was that the average person had an interest in investing their money but was simply overwhelmed with the supposed complexity that it entailed.
In February 2015, the trio started working on an iOS app that launched just 8 months later (a version on Android was released in early 2016). Over 50,000 people signed up for Stash prior to the launch.
The team cleverly built up hype by conducting interviews in various business- and finance-related publications which allowed them to gain early exposure.
To get a head start, the team raised a $1.5 million angel round from friends, family, their own savings, and a few investors.
At the time, Ronick was acting as the CEO of Stash but would end up leaving the firm within one year of the launch (and move to an advisory role). Today, he runs Minded, a delivery service for stress-relieving medications.
Despite the hiccup, interest in Stash remained unfazed. In 2016 alone, the startup was able to raise 3 different rounds of funding, netting them another $37.3 million. By that time, more than 300,000 had already subscribed to the service (with 10,000 more people joining every week).
Growth was based on a few key strategic twists the startup employed. First and foremost, Stash knew exactly how their customer demographic looked like. These were often millennials (with an average age of 29) that had an annual income of about $50,000.
Stash allowed its users to invest with as little as $5 (i.e. via fractional shares), a stark contrast to the hundreds or thousands that were needed when investing with traditional online brokers such as E*Trade or Charles Schwab.
Furthermore, Stash put an emphasis on educating its users (via tutorials, a guided onboarding process, as well as personalized advice) and making its investment products (here: ETFs) sound personal. For instance, ETFs would be called The Techie (for a tech-focused portfolio) or Clean & Green (stocks focused on renewable energy).
Lastly, Stash continued to expand its product offering by launching features tailored to its customer’s needs. One example is the firm’s savings feature which automatically puts money aside every month and invests that into stocks or ETFs. The team even drew inspiration from weight loss programs, as Krieg recalled in an interview with Forbes:
That deep-level customer understanding allowed them to continue onboarding customers as well as raising money.
As a result of the coronavirus pandemic, Stash (along with other investment apps like Acorns or Robinhood) was able to exponentially grow its business. Customers would start using their government checks to invest excessive money into stocks, which fueled the firm’s growth.
Today, Stash has close to $2 billion in assets under management (AUM). Over 5 million Americans are now registered on the firm’s platform.
The company, furthermore, employs over 300 people in 3 offices across the United States and United Kingdom.
How does Stash work?
Stash offers users a wide variety of different ways to make money, including opening a taxable account so you can begin investing your cash in the market. You can also use a debit card that offers rewards in the form of stocks or funds. Various programs have different features and fees, so it’s important to understand all the ways you could grow your wealth by using Stash products.
Stash debit card
The Stash debit card is available to you if you open a banking account with Stash.3 This account charges no monthly maintenance fees, charges no overdraft fees, has no minimum balance requirements, and charges no fees for direct deposits, ACH transfers from other banks, or obtaining your debit card. You can also make withdrawals from more than 19,000 ATMs without paying any fees — although you do have to pay $2.50 if you use your card at a non-participating ATM or if you withdraw funds from a teller.
Your Stash debit card helps you make money because you earn Stock-BackⓇ rewards at more than 11 million places.3 When you spend on gas, groceries, dining, or purchases of any type at participating merchants, you qualify for at least 0.125% Stock-BackⓇ. You can also qualify for Stock-BackⓇ bonuses that provide as much as 5% back at some stores.
These Stock-BackⓇ rewards actually give you shares of stocks at the companies you shop at. For example, if you shop with your Stash debit card at any store listed on Stash’s platform — including popular places such as Walmart, Starbucks, and Amazon — your rewards are used to buy stock in that company. And for purchases made at other stores not on Stash’s platform, such as local shops, you get your Stock-BackⓇ invested in a diversified investment fund.
You do have to participate in a Stash subscription plan to get Stock-BackⓇ when you use your debit card. There are three different Stash subscription plans that start at $1 per month (we’ll talk more about those below). If you’re going to invest in a Stash plan anyway, adding the Stash debit card can help you to grow your investment account balances quickly and effortlessly.
Stash offers a simple investing app that allows you to start with just a $1 investment and build a portfolio of individual stocks, bonds, and exchange-traded funds (ETFs). You can choose from three different Stash investment account options:
- Stash Beginner: This plan costs $1 per month4 and includes a personal investment account. It also comes with financial education for new investors and a debit account, which enables you to earn Stock-BackⓇ.
- Growth: This $3-per-month4 intermediate account comes with a personal investment account as well as a retirement investment account. You’ll have your choice of a traditional or Roth IRA (Individual Retirement Account)1 , and Stash will help you pick the best account type for your situation. You can also earn Stock-BackⓇ from the debit account and get financial education, just as you do with Stash’s cheaper option.
- Stash+: This account offers you a personal investment account, plus a retirement investment account and a custodial investment account for up to two children.2 It costs $9 per month4 and comes with financial education as well as monthly market insight reports. You can earn Stock-BackⓇ with this plan as well — you actually get double Stock-BackⓇ compared with the Beginner account — and you get a metal debit card rather than a typical plastic card.
Each of these plans enables the purchase of fractional stock shares and gives you a choice of how to fund your investment accounts:
- Investing on a set schedule: You can set recurring transfers5 from your bank account so you save automatically.
- Round-ups: Purchases you make with your debit card are rounded up to the nearest dollar, and the “spare change” from every purchase is invested for you.
- Smart Portfolios: Investors who choose either the Growth or Stash+ tiers will also have the option to invest in Stash’s Smart Portfolios. These carefully designed portfolios make it so you don’t have to make all your individual investing decisions. Stash will also rebalance your portfolio for you, as well as reinvest your dividends.
When your money is transferred into your Stash investment account, you can build your own portfolio and invest in any stocks, bonds, or ETFs6 you want within Stash’s vast list of companies and funds. Stash makes choosing investment options easy by asking you a few questions when you set up your account, after which you receive personalized recommendations that fit your financial goals. You have the freedom to accept as much of that guidance as you want, so you can take every recommendation or none, depending on what you prefer.
Visit Stash Stash Benefits Get $10 to make your first investment Invest in stocks, bonds, and ETFs Fractional shares available Start investing with just $1 Visit Stash
How Do I Open An Account?
If you want to get started with Stash, the sign-up process is extremely simple. (After you sign up check the bottom of the post for ways to quickly grow that balance.)
# 1 – Click Here To Get Started
Click here to check out Stash online and get started on your desktop.
Click here to get Stash on the App Store, you’ll be directed to the app store and you can download the app to your phone.
# 2 – Fill Out Your Profile
Next, you’ll fill out your basic information and answer a couple of questions.
These questions will help Stash guide you on making investment decisions. It’s important that you’re honest with these survey questions because they help determine your risk tolerance.
This should only take a couple of minutes.
# 3 – Choose An Investment
Based on the answers you provided, Stash will show you investment options that line up with your risk tolerance (conservative, moderate, or aggressive.) You can click on the different investments to learn more about them. (Don’t worry they’re explained in layman’s terms!)
The great thing about Stash is that they make investing relatable. Instead of crazy names of ETFs and ticker symbols, you invest in “themes” that are based on your wants, beliefs, or likes. We’ll talk more about that below.
Right now, there are thousands of investment options (stocks and funds) available on the platform.
You can invest in these for as little as $0.01¹.
4 – Link Your Bank Account
Link up the bank account you want to have money withdrawn from to make your investments.
It takes about 2-3 days for the money to transfer into Stash.
# 5 – Confirm Your Identity
Verify your identity, create a four digit pin number and you’re all done.