Twine App Review 2019
Investing Simple is an affiliate of Twine. This relationship does not influence our opinion of this platform.
We have countless choices for saving and investing platforms. It seems like every day there is a new investing platform being released. We created this blog, Investing Simple, to provide clarity when trying to understand all of these different investing platforms. In this review, we’re going to outline the features of a new platform called Twine, an app that makes saving with another person seamless.
What Is Twine?
The Twine investment platform is a saving and investing platform for those who want to plan their financial future. Twine allows you to set monthly savings goals for specific events or large purchases and track your progress along the way. The most useful part is that you and your partner can see each other’s progress and how well the other is doing. Twine creates joint investment and savings accounts making it easy to contribute and track your savings. Twine has partnered with us to offer readers a $5 investing credit to get started with.
How Does Twine Work?
You can begin using the Twine investment platform by creating an account here. You can set up your savings goals as soon as you have created your account. The savings feature is completely free to use. You can also invest your savings using the Twine platform with a 0.60% annual fee. Twine gives you the option to invest in a variety of portfolios based on your risk. Twine uses algorithms to adjust your portfolio as you get closer to your goal.
Save With Twine
You can create a Twine account on one platform with another person or you can send them an invitation to join you on Twine. After you create your account you will be able to set savings goals and contribution amounts. You and your partner can set up recurring payments into Twine for each specific savings goal. Both of you can link your bank accounts to your Twine account and automatically start saving for your goals.
Twine savings accounts currently yield 1.05% variable interest. This is much higher than most traditional bank accounts. With no fees to use the savings platform, you can start with as little as $5.
Invest With Twine
You can upgrade to start investing some of your savings at any time. The investing feature allows you to increase your growth potential for certain longer-term goals. Twine portfolios are built to adjust as you get closer to your investment goal.
Twine investment accounts offer multiple portfolios based on your risk and goals. You can get started investing with as little as $100. Fees are just $0.25 per month for each $500 invested (or 0.60% annually).
You can choose from a variety of investment portfolios on the Twine platform. Twine creates these portfolios using a mix of Exchange Traded Funds (ETFs). Most of the ETFs are offered by well-known fund companies such as Vanguard and Blackrock. Twine’s goal is to have an appropriate risk-adjusted return for each of their portfolios.
Twine Investment Portfolios
The conservative portfolio is for savings goals that are within 5 years away. This portfolio contains 94% money market and bond securities, the other 6% is invested in stock ETFs. As you get closer to your savings goal, the 6% stocks may decrease to 5% or 4%. This portfolio is for risk-averse investors who would like more stability and less volatility in their portfolio. Though this portfolio may generate lower returns, it is less risky compared to the other Twine portfolios.
The moderate portfolio aims to offer slightly higher returns than the conservative portfolio but carries additional risk in doing so. If your time horizon is 5 years or less then your portfolio will consist of 90% money market and bond funds, and 10% or less in stocks. For those with 10-15 years until their goal, their moderate portfolio will consist of 55% to 70% stocks. If you have a longer time horizon your stock allocation will lean towards 70%.
The aggressive portfolio is for investors who would like to take on higher risk with the goal of earning higher potential returns. For investors with less than 5 years until their goal, the aggressive portfolio will allocate 70% to money market and bond funds, stocks will consist of 30% or less of the portfolio. If you have a longer time horizon (10 to 15 years) the aggressive portfolio will allocate as much as 80% of your portfolio to stocks. This allocation will be greater as your savings target time horizon increases.
Twine will deposit all of your dividends earned on your investments into your cash savings account. Once your cash account exceeds its predetermined allocation, it will be reinvested into your Twine portfolio. This will allow you to earn compound interest.
Twine offers protection of its accounts under SIPC and FDIC. The Federal Deposit Insurance Corporation protects your cash up to $250,000 per account. The Securities Investor Protection Corporation (SIPC) is a non-profit that protects against brokerage firm failure. SIPC will insure the securities in your account up to $500,000, and $250,000 for cash.
It is completely free to open a Twine savings account. There are no ongoing fees for these types of accounts. Twine investment accounts have a minimum of $100 to get started. Fees are just $0.25 per month for each $500 invested (or 0.60% annually).
- Ease of use for joint goals, not many other platforms that offer joint savings programs.
- User-friendly interface and experience.
- Relatively low cost investing (0.60% annually) vs industry average.
- Use of well-known, low-cost fund companies such as Vanguard and Blackrock.
- Set multiple individual and/or joint savings and investing goals.
- There are other platforms that offer no fee investing.
- No retirement accounts.
- No financial advice from investment professionals.
Twine: The Verdict
Twine is a great platform for those who want to set savings goals and get ahead of their finances. With a simple user interface and the ability to set both individual and joint savings goals, Twine is one of the top apps in its category. Twine may not be ideal for the more advanced investor looking for more features, but the savings function alone may be useful. If you are looking for a dynamic saving and investing platform then Twine may be a perfect fit for you.