馃攳
M1 Finance - No Taxable Event When Selling & Reinvesting Dividends In April. - YouTube
Channel: BrentInvesting
[5]
hello everyone and things for two
minutes the financial investor channel
[10]
my name is breads and today we're gonna
be taking a look at a video I made back
[14]
in April 2019 titled m1 finance for
dividend investing how I reinvested
[20]
dividends without ten dollars now I
wanted to cover and create a new video
[25]
going over the steep statement that I
had the activity also want m1 finance to
[31]
show that I was able to perform this
specific action without receiving a
[36]
taxable event I did not have any sort of
a sale but we're going to be going over
[41]
some of the comments that I received in
that video I will have a link to that
[44]
video in the comment section below if
you guys would like to watch that video
[47]
that goes over the whole process of what
I did in order to basically reinvest my
[53]
two dollars and some change paid out
from ticker symbol vu back into itself
[57]
without needed C had that ten dollar
threshold so with that out of the way if
[62]
you are brand new to the channel head
that subscribe button below I cover the
[66]
stock market dividends real estate
personal finance if you do enjoy this
[69]
video find it helpful hit the thumbs up
and if you have any comments yourself
[73]
want to ask a question I just want to
say hello drop it into that comment
[76]
section I always do read and reply to
all your comments and let's go ahead and
[80]
get into the video so I'm gonna go ahead
and flip my screen around here and we
[85]
are going to go ahead and the video
title of course m1 finance for dividend
[89]
investing how I reinvested dividends
without ten bucks it's about a 12-minute
[93]
video just kind of going over how I
reinvested my dividends now if we jump
[97]
all the way down to the comments here we
had Dex rod actually leave me a really
[102]
good comment saying that you can
actually make a buy of the share for $10
[106]
even though you don't actually have ten
ten dollars in the account it'll just
[110]
use the two dollars and 67 cents that I
had at the time now after reading this
[115]
comment I said interesting I have one
cent sitting on my account what I'm
[120]
gonna go ahead and see what happens I'm
gonna go ahead and try and perform this
[123]
and I actually did it and we're gonna
see that here on the statement and in
[127]
the activity tab that I was able to buy
using one cent here on m1 finance that
[132]
was really interesting but
interesting really helpful comment Greg
[135]
had asked a question here interesting
technique for dividend reinvesting on m1
[139]
finance any dangers of triggering a wash
sale when selling and buying the same
[144]
stock and again in the activity time
we're gonna see that activity tab it
[149]
does not actually show any sells even
though in the video we specifically
[154]
performed a sell and then we're a bought
back into that's the same stock and on
[160]
the statement it does not show a sell it
just shows the to prize so we're gonna
[165]
be covering that here in just a minute
of course had my comment in that case so
[168]
Erik hereby in that case you will have a
short-term capital gain which will you
[173]
will end up paying a higher tax rate
compared to the long-term capital gain I
[177]
don't think this is worth doing to
reinvest the manipulation and I said of
[182]
course it's true if you actually perform
the sale you would have a taxable event
[186]
whenever you sell in a stock in a
taxable count you trigger a taxable
[192]
event meaning that you either captured
capital gains or you have to have some
[197]
sort of reduction you you've taken the
loss and you're able to write that off
[201]
towards the end of the year when you
were with your CPA but in this case
[204]
again I did not perform this sell which
we're gonna be taking a look here in
[207]
just a second I believe that was the
last question so this individual had
[212]
asked mister silver stacker one has a
said that that's a lot of work wouldn't
[216]
it make more sense to just skip your
morning coffee that posit that seven
[220]
dollars and 33 cents into your account
and not have to sell to trigger that tax
[226]
event why not just put the money into
that specific fun using seven dollars
[230]
and 33 cents now my current goal for
2019 is to not invest into taxable
[236]
accounts currently my investment plan
for 2019 is I want to max out the Roth
[242]
IRA over on m1 finance $6,000 goes into
there and then I'm investing five
[247]
percent of my salary into my Roth 401k
my wife's doing her own plan I believe
[252]
she has the 457 or the Roth 401k she is
one of the two plans and outside of that
[258]
investing in there we're not actually
investing any more equity into her
[262]
accounts now all of our other remaining
equity is going towards my fur
[267]
priority which is real estate investing
I built a business for my real estate
[271]
business I bought two properties last
year in 2018 and this year 2019 I'm
[276]
continuing looking to buy two more
properties so that is my main focus of
[280]
investing real estate investing comes
first and then stock market investing
[284]
and then other miscellaneous investments
out there so that is the reason why I'm
[290]
just not adding more equity into my
specific account and that was pretty
[295]
much it here we had a few other comments
in here going over just saying hello so
[300]
Calvin over at Calvin Rabb personal
finance that just had great video and
[305]
said thanks they're so jumping over to
the n1 finance platform the individual
[311]
account finally hit over 500 dollars so
what we're gonna actually see here in
[315]
the statement that back in April we had
almost hit 500 dollars but May was a
[320]
very rough month but you can see here
that the portfolio has recovered and
[325]
what we want to do here now is go into
the activity tab and scroll down towards
[331]
April so here are my two events here
that took place in April when I made
[335]
this video let's go ahead and scroll
back up to the top I made this video
[341]
here around April 3rd and I publish it
on April 2 April 12th so here is my buy
[348]
two dollars and 66 cents so I click on
the activity tab I can see I had cash of
[353]
two dollars and 67 cents that was
because ticker symbol vu which tracks
[358]
the S&P 500 index paid out two dollars
and 67 cents I in the video perform the
[365]
sell of seven dollars and 34 cents I
believe right there it looks like 34 yep
[372]
34 cents seven dollars and 34 cents is
what I sold of ticker symbol vu and that
[378]
made $10 m1 fast took that $10 but did
not actually perform my sell you can see
[384]
here I have nothing in my cells and I
reinvested two dollars and 66 cents back
[391]
into ticker symbol vu for point zero one
zero zero seven shares at 264 now again
[398]
remember that other comment that I had
where the individual
[400]
said hey you can actually just say you
want to buy $10 worth of a stock and
[405]
it'll actually perform it so what did I
do
[407]
I had one cent sitting in this account I
went out there and made a single buy I
[413]
said m1 financed by ticker symbol vu
with one cent what an m1 financed - it
[419]
went out there with one cent and bought
point zero zero zero zero three shares
[426]
at two hundred and sixty-five dollars
and sixty-two cents so that was actually
[431]
it worked I didn't think it would work
I'm gonna try it again here at the end
[436]
of well what are we in now June ticker
symbol vu will pay out again here in
[443]
June it pays out every three six nine
and twelve month here we can see that
[449]
the last one was in December the other
one was in June from a January February
[455]
March and then the next one here will be
in June so I should get that one here
[461]
towards the end of June right around
that 20th of June so it actually here
[465]
hit pretty soon now in order to get your
statements inside m1 Finance you have to
[470]
click on your name click on your
settings and then move over to your
[473]
documents tab inside of your documents
tab you're going to be able to download
[477]
your specific account information so you
might see like a Roth IRA or an
[482]
individual account a taxable account
here whichever of those download the
[486]
statement and once you have the
statement and open it up I've gone ahead
[489]
and just kind of blacked out some of the
areas but it's gonna show something
[492]
along the lines of this back in April
2019
[497]
I had two dollars and 67 cents on
opening balance when I closed in April I
[503]
had zero dollars that is because I had
reinvested that two dollars and 66 cents
[508]
plus I had reinvested that one cent into
ticker symbol Vuh and my securities at
[514]
that time were four hundred and ninety
nine dollars and two cents May was a
[518]
rough month we had lost a little bit of
equity now scrolling down into the next
[522]
page here here is the actual portfolio
summary so here this shows my total
[528]
shares my quality of shares here that I
had at the very end of April that should
[534]
be
still the same if I click here I haven't
[536]
bought anything I did buy I did have
some activity I did have a referral here
[542]
on the account now it's gonna act up a
little bit here I'm gonna let that load
[546]
but I did have a $10 referral here on
the accounts of my actual quality will
[551]
be slightly higher now here in our
account activity this little blower
[555]
portion right here this is what's gonna
show the buys and sells now here is my
[560]
first buy that I've performed on April
5th 2019 I bought the sp500 ETF I
[568]
purchased point zero one zero zero seven
shares at two hundred and sixty four
[573]
dollars and three cents and my my debit
it took two dollars sixty six two
[579]
dollars and sixty six cents from my
account I had that one cent left over
[584]
and after reading that comment from the
individual I went out there and said hey
[589]
I want to go ahead and try and reinvest
this penny I went ahead and made that
[593]
and I purchased point zero zero zero
zero three shares up ticker symbol vote
[599]
I have never seen that low you know one
ten thousandth of a share actually it
[604]
purchased by m1 finance and I did that
with one cent you don't see any sells
[609]
here on the statement so I did not
actually do a taxable event m1 Finance
[614]
allowed me to say that I sold it in
order to get that ten dollars of equity
[619]
and then it just bought using the equity
that I had in the account it looks like
[625]
maybe possibly here in towards the end
of June I'm gonna go ahead and not do
[629]
the sell I'm just gonna see if I'm able
to reinvest that two dollars and some
[633]
change of dividends that I should be
receiving without having to sell and
[637]
then do the ten dollar reinvestment
method so that is what I'm going to be
[642]
trying here in the upcoming weeks looks
like m1 finance is not cooperating
[647]
currently so I believe I shall end the
video there so that is pretty much all I
[652]
wanted to cover in today's video we went
over some of the comments in the
[656]
previous video from back in April we
went over the activity tab on m1 finance
[661]
showing that I performed two buys in
April one for 266 and then what
[668]
I had read that comment and made it for
one cent we took a look at the
[671]
statements for April for that specific
you that specific time period and in the
[676]
statement there were no cells there were
only buy so when my finances pacifically
[681]
said that I did not buy I did not have a
wash sale I did not trigger a taxable
[685]
event I just simply reinvested those
dividends 100 percent free without
[691]
having to create a taxable event without
having to create any sort of tax issue
[695]
there so that is it for today's video if
you guys did enjoy this video hit that
[699]
thumbs up if you have not yet subscribed
I would HIGHLY appreciate it if you do
[703]
subscribe I really appreciate all the
new subscribers that we've been getting
[706]
if you do have a comment or question
leave it in the comment section below I
[710]
always do read and reply to your
comments if you want to send me a
[713]
message go to Facebook go to Instagram I
reply back to all of you guys that are
[717]
sending me messages lately I've been
getting a whole lot of them which is
[720]
just fun to interact with other
investors out there so that is it for
[724]
today's video thank you all for tuning
in I will see you next time
[729]
have a great day bye
Most Recent Videos:
You can go back to the homepage right here: Homepage