By Charlie Mascia
The opaque, confusing, and sometimes downright impossible world of investment and markets is now clear and simple for the average American. Stash, a Silicon Valley startup now based in New York City, aims to make investment as simple as the push of a button.
Stash allows clients to start investing with as little as five dollars. This freedom allows people who couldn’t afford the average buy in to other brokerage firms to grow their money.
David Ronick, a co-founder of Stash, described the concept in a recent interview with CNNMoney: “The idea for Stash came from the weight-loss industry – make it easy to take a small step,” said Ronick.
Stash allows users to buy Exchange Traded Funds or, ETFs, which are bundles of shares in corporations, bonds, and commodity futures. Stash presents these ETFs in a minimalistic, and clean interface which color coordinates different indexes and commodities to simplify the process. Stash is startlingly simple, one push of a button allows clients to buy partial shares of curated, safe funds.
Stash’s key feature is “Auto-Stash” which allows customers to deposit their money and set intervals to automatically invest partial shares into a certain fund at a consistent time every day, week, or month. This strategy is called “Dollar Cost Averaging” and allows investors to decrease their risk exposure in a specific holding.
“our goal is to break down the barriers that prevent nearly three quarters of millennials from investing.” Described Ronick in a recent interview with Business Wire.
Ronick cited the main inspiration for constructing the app was the lack of investment among millennials. “Ironically they are the people who need the most help ensuring they have a secure financial future,” he says.
Ronick is correct, according to a Harris poll reported by CNBC, 80 percent of millennials in America are not invested in anything. A poll of East students revealed that nine out of 10 students would be interested in investing if they had the means.
Stash is an opportunity for young Americans like students at East to begin securing their financial future and to learn about the markets. Stash provides the means to ensure a prosperous future. Many students remain less educated about financials than they could be, see Mr. Heimstra’s Investment Club during club week to grow your knowledge, and eventually your cash.
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