Billed as an automated investment manager for the people, Acorns has opened 100,000 new retirement accounts in its first month.The company’s initial “spare change” investment service cost $1 per month and its new retirement-focused account costs $2.
The average age of an Acorns customer is 32 years old with a median income falling somewhere between $50,000 and $60,000, Kerner said. And the accounts are coming from all over the country, rather than concentrated on the coasts like other automated investment managers, he says. “The types of problems we’re trying to solve is that 70 percent of Americans don’t have a $1,000 emergency fund set up and 66 percent don’t have a dollar saved for retirement. Another 66 percent can’t pass a basic financial literacy test,” Kerner says.