Acorns vs Betterment (Update 4) with a Splash of Lending Club

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The year is coming to an end and Im pretty optimistic about next year and the gains I will be making financially in the stock market. I opened up an Acorns and Betterment account in the middle of August and went straight to work with both of those accounts trying to create a portfolio of some sort through both of the new mobile platforms. Since I opened both of them at pretty much the same time I was able to track the performance of both of them. I always noticed that while I put less money into Acorns it always had a higher return than Betterment. And it has held true since the beginning with me. The reasoning behind this can be because of a couple things. One of them being that the platform is based more on micro investing while Betterment is based on larger sums of money being deposited in. So with Acorns I am buying on micro tiny dips on a daily bases where as Betterment I am buying only once or twice a month typically. But the biggest difference I have noticed is that Acorns offers a REIT ETF and Betterment does not. I currently have $543.30 in my Acorns account including Dividend Payments that will process tomorrow. With $23.82 in GAINS including tomorrows Dividends that have not processed yet. Thats pretty dam impressive for only having around $550 in my Acorns account. Which is why I like having 2 portfolios currently because on Betterment I have double that amount of money invested into my account and my GAINS are HALF of that. Betterment I am currently posting $1028.32 including Dividends Payments that will process tomorrow also. My Dividend Payments were 33% higher than what they were on Acorns. My GAINS were half of what Acorns were and I have double invested in Betterment. Im showing a $13.32 Gain. None of this is anything for me to startle over though. I noticed that Betterment is a little less volatile than Acorns and offers better Dividends than Acorns which in the long run is what matters the most. But if you really had to select between the two and were really tight on funds Acorns is the way to go currently. Acorns just launched a better monthly fee platform which is only $1 a month until you hit $5000 then it is only .25% a year. So you are ponying up $12 a year to watch your money grow. As opposed to Betterment which offers smaller returns but is less volatile you are charged $3 a month if you do not deposit at least $100 a month or .50% if you do deposit that. Overall the young ride has been pretty fun so far. Long Term Investing is easy once you start seeing Dividends arrive into your account. 2015 will be my first official year in the stock market where I actually know what is going on and Im pretty excited for it. The early winter/spring will be pretty light for me but ill pump up my deposits during the summer. If I deposit $100 a month into Betterment I will be tucking $1200 into my account. Which that is a Guaranteed amount for me even if I have to find a way to make it happen I will make sure my monthly deposit goes in because it is extremely crucial to my growth as a young millennial getting into the Emerging Market. Being a Millennial I am getting an opportunity to buy into the Emerging Markets of India,China,Brazil, and Russia. (BRIC) And yes I do know that Russia is collapsing hard right now but you can’t really suspect their economy to crash for another 15-20 years. I am a big believer in the Chinese Economy and keep an eye on the companies growing there. Im not a fan of the Indian Economy though while it will most likely grow I don’t see much trust or gain in what they will bring when you compare them to China. Everything is virtually outsourced to China and nothing is sourced to India…… What will India offer than China can not?

I recently just deposited my first $100 into Lending Club to play with that and see what I could expect from the platform. I only had 4 Notes to purchase with the $100 so I went through and selected 4 loans I felt pretty comfortable with. I managed to find a A,B and two D loans. None of them have processed yet so I still have to wait for them to be fully funded. Again I only put $100 in because I really have know idea what I am getting into even though I understand what I am doing.The moment I saw they were going to have an IPO I went straight to my bank account and moved money into my Sharebuilder account right away to have it ready for the IPO. I knew the IPO was going to be ginormous and it rightfully was. The platform and tools they offer for investors and people looking for loans is simply amazing. Being on the secondary market is true crap though. I got stuck buying in at $23.74 I believe, I still bought though because I didn’t think I would see the shares drop much lower than that ever again.They closed today at $25.83 but its been really volatile. I am a firm believer in the company and think that the growth in this company will be huge in the upcoming future. P2P Lending is going to be huge and I expect P2P to have its own sector in five to ten years. This should be a massive growth field. As far as me investing in them through P2P Lending Im pretty optimistic about the 4 loans I selected and hope to see a profit. If this ends up working out properly for the first 3 or 4 months where all 4 people pay out properly, I will happily put another $250-$500 to start pushing for more growth. My Lending Club Journey has begun and I hope to see it prosper!

Capital One Quicksilver vs Discover IT vs American Express Blue Cash Everyday

GenerationYFinance

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Why would anyone in todays society pay full price for anything? Why would anyone sign up for a credit card with out a 1% cash back bonus? Why would anyone carry only one credit card in our world today?  How many cards do you own? Why do you need to have more than one? The simple answer is REWARDS. Last night I decided I wanted to cash in my rewards for the first time in quite awhile. I logged into my Discover account and found that cashing out my cash back rewards was really simple. I simply logged in went to live chat support told them I wanted to withdraw and then the withdraw occurred and will arrive in my BOA account in 3 business days. Really easy and really satisfied with how easy it was. I then proceeded to log into my Capital One account and noticed I could transfer cash back rewards from one card to another card so I did that and put all my rewards onto my Quicksilver card. I then proceeded to find a way to cash out my rewards and saw that the only option I had to receive my money was through a check which will arrive in 2-3 weeks. I wasn’t really that impressed with what Capital One offered since I expected the money to arrive in my checking account just like Discover. After that I logged into my AMEX account and had a harder time finding a way to cash out. I could clearly see my reward dollars in front of me, but needed to connect to live online chat support. I shortly found out that Amex forces you to credit the rewards back to your account. Which is a bunch of bullshit. I was under the impression that I would at least receive a check in the mail. It is my money so I should be able to do what I want with the money instead of being forced to redeem it on their stupid store or for credit. So I lost a lot of respect for American Express.

My American Express Blue Cash Everyday card is easily one of the best cards on the market for someone not willing to pay an annual fee. American Express has done two things recently that need to be fixed though. While they may offer the best rewards card on the market they need to fix their online platform. They spend a lot of time revamping it all the time but they don’t show you your transactions for cash back earned and now they don’t even allow you to request a check for your own money apparently. This card is strictly used for groceries though because it offers me 3% cash back on groceries. 2% back at gas stations and department stores and 1% back on everything else. But you only use this card for groceries that is the only purpose of this card.

My Discover IT card is a solid card to have in your portfolio of credit cards because it offers 5% back on revolving categories. While I will admit most of the 5% categories can be a bit stupid and pointless the card shines during the holiday season which is right now while I am writing this. You receive 5% back on all online purchases and at department stores. Their online platform is beautiful and extremely crisp. Discover easily has the most proficient and user friendly platform. And I was able to actually have MY money put into my bank account instead of being forced to credit to my credit card.

Capital One Quicksilver card is a tank. Everyone knows that getting a Capital One card is extremely easy to do. I was transferred onto the new Quicksilver card when they cancelled my old card to phase in the Quicksilvers. This is easily my favorite card even though it doesn’t offer the same value as my AMEX. Whats great about this card is it offers you a 1.5% cash back bonus on EVERY purchase. That is pretty significant. 1.5% may not seem like a lot but it adds up fast if you use credit cards daily. The only card that competes with this card is the Citi Double Cash card which is brand new. Im holding off on applying for that card, but you will need a higher credit score to apply for this one if you have a low credit score. The Quicksilver should be instant approval for most people.

Credit Card companies are fighting for millennials to sign up with them because our generation is the least educated when it comes to credit and credit scores. We are basically free walking money for these banks to walk all over and gather interest on us. So you need to make sure you receive at least 1% cash back on all purchases and pay off your card in full every month to receive maximum value. A card without incentive in todays society is useless. It is smart to carry multiple cards around because every card holds a certain value for you. Whether it be for groceries, gas, online shopping, movies, or just a regular purchase it’s smart to have a weapon for every round.

The best all around rewards card I currently own is my Capital One Quicksilver card, followed by AMEX Blue Cash Everyday, and then Discover IT. This does not include the new Citi Bank Double Cash Card though. Which probably will replace the Quicksilver for best rewards card, but I don’t need another card right now.

Capital One Quicksilver……………………………. 9.5 out of 10

American Express Blue Cash Every Day…….8.0 out of 10

Discover IT……………………………………………..7.5 out of 10

My next objective is to deposit the money I earned into my Betterment Investment account and start putting the money to work.

Why I Dont Drink Alcohol

GenerationYFinance

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Drinking Alcohol is like pissing nickels and dimes down the drain with every single sip of what ever you are drinking. Especially if you are a millennial with little to anything to your name. I classify a millennial as a kid that was born between 1980 and 1995. A lot of people keep going until the early 2000’s but seriously when does the Z Generation actually start? Just today I received the first of my monthly dividend payments from five of the index funds I own shares in. I don’t expect much of anything from these payments right now because I don’t even have $1000 invested in the market yet. I wont see much of anything until I start getting a lot more in the market, but thats not the point. The point behind this is if Im going to piss away my loose change on something useless. Im going be putting my hard earned money in a washer and dryer if anything. Not a bartenders hand who doesn’t deserve any of the money I make because they already get over tipped. That is literally the only place I will put my loose change and I don’t even consider quarters loose change. A quarter is a lot of money. Even now none of my loose change gets dumped or wasted uselessly. Since I have Acorns linked to every single debit and credit card I own all of that loose change gets deposited into my Acorns portfolio instead of wasting time in my bank account doing literally nothing. Everyone does this when they have a few dollars in their wallet or when they wanna buy a drink or a small snack. They instantly round up and call it a loss. A bag of chips or a can of pop for $2.99. No one thinks its actually $3 it’s $4 and 80% of the time you are going to pull out a $5 bill and just place it in your head that you spent $5 and forget about that extra $1.50 you have. Well instead of forgetting about it do something productive with it since you already forgot you have it left and put it into a portfolio to get some dollar cost averaging going! I never pay face value for anything thats just stupid. I make sure I get some sort of cash back bonus on my credit card and I make sure I have extra incentive by investing the rest. I am more interested in the idea of trying to create something for myself at a young age so I can watch it grown and prosper while I am still in my 20s. I already know my next plan of attack, and the next plan of attack after that, and so on and so on. I have so many places I want to get my money in but all of these things take time and patience. But knowing these things at a young age is going to give me a huge advantage over people my age and even people in their late 30s and 40s. My money will grow faster than theirs. That is a given. Compounding interest is the most powerful tool someone can grab on to. It doesn’t matter how much you have, it matters how much you want it. And if you want it bad enough it will happen. And I want and have huge goals. But it all started with a $20 investment into Acorns. I really get sick of reading articles on how dumb millennials are, but truthfully we are a really uneducated generation when it comes to making money. We are the intrapreneur generation, which isn’t our fault, we just got stuck with watching and witnessing literally every bad thing that could happen…. happen. Im extremely optimistic about things. If their is one thing I take a lot of pride on its being optimistic about a situation, but I am a realist. I talk about money with a small group of friends right now but more about educating ourselves and trying to create better situations for us. All I am trying to do is help people that I see with lots of potential and need for more knowledge. I really don’t know that much about money, but what I do no I like to share with other people I talk to because they to deserve to know what I no. I don’t talk about winning the lottery. I don’t talk about all of the wonderful things I will have when I win the lottery, and I don’t talk about inheriting a shit ton of money. All of those things just piss me off because people that talk about winning the fucking lottery have literally know principle. Its a huge fucking pipe dream and a waste of time and talking. And the people that do win the lottery have no idea where to put any of the money they have. Its a huge joke and a scam. Thankfully I went through my spending phase at a pretty young age. But even my spending phase where I literally bought everything was just a small microcosm of what people in my generation spend. The difference being I already had a solid credit score so I did’t have to worry about getting hit with astronomical interest rates. And none of my payments were due instantly that month. My Citi Simplicity card I own is almost entirely paid off and will be paid off entirely on my next paycheck, but I still have a huge Chase Slate to tackle… But my Simplicity card isn’t due until August 5th 2015. It’s the only card on the market with an 18 month 0% APR. So what I had was TIME. Something I take full advantage of when given to me. All I try to do with myself is better myself. I have executed more sunken costs than I even want to. Im trying as hard as I can to put so many things off until early next year.

I talked a lot about Acorns in this article and wanted to point out that my Acorns portfolio is growing at a faster rate than my Betterment Portfolio, but Im pretty sure it’s only because my first month of Acorns I was depositing $6.25 every single day for 30 days into it so I was getting some hardcore micro dollar cost averaging put into play. With Betterment I only make 2 deposits a month in it. The plan is to get both of them to $1000 a piece somehow. Ill be pretty happy with even $500 in my Acorns profile but Ill be reaching that pretty soon. I really need to keep moving on with both though until I see which platform offers the better value for my time and money. In all seriousness though If you have a smartphone and are around my age you really need to open up an Acorns account and get your feet wet in the stock market. I wish I was getting paid by these companies to promote them because I am going to literally talk about these two platforms every single time Im writing. Acorns is just micro investing, you only need to deposit $5 a month and that it! You don’t have to put hundreds or thousands of dollars into it. It was designed specifically for millennials. And you will almost for certain see Acorns Commercials on Nationally Televised Television in the future. It literally took me 5 minutes to sign up for Acorns and Betterment. I am a huge advocate for futures and don’t believe anything that happens now plays a significant value on what will happen in the future.

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