Dream Big - "Aspiration"

"Do Well, Do Good"

These are good words to live by.

I believe we all want to "Do Well"; as in doing well financially.

I also think that for the most part the majority of people want to "Do Good". i.e. helping others.

So when I came across a relatively new company claiming something that I consider relatively "new"in the investment world, I had to take a look.

Aspiration is the company's name. They have one mutual fund which they refer to as the "Flagship Fund".

One reason to classify them as "new" is that they've been around since September 2014.

Another reason I used the term "new" in my description above is that they allow the investor to choose what they receive in compensation. They believe that if they do well for you then you will pay them a reasonable rate.

In comparison to other mutual funds I hold in my 401k,  the expense ratio can range from 0.1% for a Vanguard managed fund all the way up to 1.07% for a Blackrock manged fund.

Fees will eat into your earnings, over a long period of time they can result in thousands of dollars that end up in someone else's pocket.

So let's take a closer look at both portions of their motto:

Do Well

"....built on trust, focused on the middle class instead of millionaires, and founded on the idea that we can do well and do good at the same time." 

They advertise that they can provide access to investments once only available to those that have quite a bit of money to invest. While the premise is not really new: they pool everyone's money in order to get a discount on fees.It's basically like buying bulk; if you buy more then you get a price break. The same idea applies to mutual funds.

Minimum investment is $500. As of Friday the price per share was $10.28. Listed as ASPFX on the NASDAQ.

I decided to try it out; with my $500 I was able to purchase approximately 49 shares at $10.20 per share.

I currently have set my compensation rate to 0.0% of my holdings. Yes that is correct, they do allow you to choose 0.0%. If I end up doing well then I'll increase their compensation rate.

Do Good: Pay it Forward

Something else peeked my interest. They are interested in not only making money but giving some of it back.

They pledge to give 10% of their earnings to charity. Through a program they call "Dimes Worth of Difference" they strive to make a difference.

An excerpt from their site:

"Working with respected partners such as the Accion U.S. Network, America’s largest provider of micro-loans, we help struggling Americans transform their own lives – not a hand out, but a hand up."

It's by invitation only right now and I have three invitations I can pass out because I invested. Let me know if you're interested and I can send you one.

Disclaimer:

**Please be advised that this is in no way an endorsement of Aspiration's product. I have not and will not be compensated. This is a review only. As with any investment it may lose value. If you choose to invest, be sure the research and make a decision based on your level of financial flexibility. First and foremost take car of your necessities and bills. If you have some leftover, I say invest!