馃攳
M1 FINANCE REVIEW 2022 馃搱 Best Investing App For Beginner's! - YouTube
Channel: unknown
[0]
there has never been a better time to
[1]
invest in the stock market than right
[3]
now and no this is not because of
[6]
perfect market conditions or anything
[8]
like that the reason is because new
[10]
investors now have an array of free
[13]
investing platforms available to them
[15]
that allow them to trade stocks
[17]
commission-free and even just a few
[19]
years ago it was common to pay as much
[21]
as $7 to $10 per trade I know when I
[25]
started investing in the stock market I
[27]
traded through Scottrade and I was
[29]
paying $7 per trade now there are a lot
[32]
of free investing apps out there I've
[34]
reviewed most of them here on my channel
[36]
but one of the most popular free
[38]
investing apps out there today is called
[40]
m1 finance and we're going to be
[42]
focusing on this app in this review
[44]
today now I'm going to keep this review
[46]
short and highlight some of the basics
[47]
here of why people like m1 finance and
[50]
areas where they may fall short but if
[52]
you want a more comprehensive review and
[54]
a tutorial of how to use this app and
[57]
get started with it go ahead and click
[59]
the link in the description below
[60]
because I put together a completely free
[63]
30 minute long video training on how to
[66]
use and get started with the m1 finance
[68]
investing app now one last thing I want
[70]
to mention before I get into the review
[72]
I am affiliated with m1 finance so if
[75]
you do use my link I earn a commission
[77]
in the process and I do thank you for
[79]
your support as that allows me to put
[81]
videos like this together but that being
[83]
said let's go ahead and get into the
[86]
review of the m1 finance investing app
[90]
alright guys so the first area where m1
[93]
finance really shines and provides one
[95]
of the most useful features for
[96]
investors is something called fractional
[99]
shares now if you're not familiar with
[101]
this this is the ability to buy less
[104]
than one share of a given stock in fact
[107]
with m1 finance you can buy as little as
[109]
one ten-thousandth of any share of stock
[112]
or ETF that trades on that platform now
[116]
you may not understand how powerful this
[118]
actually is until you consider stocks
[121]
out there like Amazon for example that
[123]
trade close to $2,000 per share if you
[127]
were to go out there and purchase a
[129]
share of Amazon on a free investing app
[132]
like
[132]
Robin Hood you would have to buy one
[134]
entire share of Amazon and that would
[137]
cost you as you can imagine as much as
[140]
one share close to $2,000 now I don't
[143]
know about you guys but when I first
[145]
started investing I certainly did not
[147]
have $2,000 sitting aside that I could
[150]
put into one share of a stock like
[152]
Amazon so they take the share price
[155]
right out of the equation by offering
[157]
these fractional shares so if you want
[159]
to go out there and buy $25 worth of
[163]
Amazon stock you can do that through m1
[165]
finance so I want to go ahead and open
[167]
up the app now show you guys my
[169]
portfolio and show you what these
[171]
fractional shares actually look like so
[173]
here we have my small m1 finance
[175]
portfolio that I use for basically
[177]
demonstration purposes within the app I
[179]
started out with a $100 investment and
[182]
it's actually done extremely well I'm up
[185]
21.5%
[186]
in this portfolio but as you can see
[189]
here this portfolio holds Vanguard the
[192]
S&P 500 index fund it holds Amazon stock
[196]
it holds Apple and Microsoft and as I'm
[199]
sure you guys can imagine every single
[201]
one of these stocks and ETFs trades for
[204]
over $100 per share so if we click on
[207]
one of these for example like Amazon as
[210]
you can see my position here is 0.01 8 1
[214]
7 of a share at a cost of $29.99 and I
[218]
paid about 1650 as my cost basis for
[222]
Amazon so I didn't have to spend 1650
[226]
dollars on a whole share of Amazon I
[228]
could buy just a fraction of a share
[230]
allowing me to own whatever stocks I
[232]
want and to build a diversified
[235]
portfolio with a much smaller amount of
[238]
money now another area where m1 finance
[240]
shines is by offering retirement
[243]
accounts completely free now as I'm sure
[245]
you guys know one of the most powerful
[247]
investing tools out there is something
[249]
called the Roth IRA if you're not
[251]
familiar with this I'm gonna go ahead
[253]
and link up to a video in the corner
[254]
that talks about how you can become a
[257]
tax-free millionaire with a retirement
[260]
account particularly the Roth IRA
[262]
but most brokerages out there that offer
[265]
retirement
[266]
have commissions and different fees
[268]
associated with these accounts m1
[271]
finance offers 100% fee free retirement
[274]
accounts and the real kicker here is
[277]
that it's just a $500 minimum to open
[280]
one of these accounts so if you have
[282]
interest in following that tax-free
[284]
retirement strategy of the Roth IRA you
[288]
can open that up with m1 finance and the
[291]
process is extremely easy they also
[293]
offer something called rollover
[295]
concierge service so if you want to
[297]
rollover an old IRA or an old 401k from
[302]
a previous employer they will help you
[304]
out with the entire process all right
[306]
now the third area where m1 finance
[308]
shines and the reason why dividend
[310]
investors are flocking to this app is
[312]
because they offer something called
[314]
portfolio level drip or dividend
[317]
reinvestment now if you guys know this
[320]
or not one of the best ways out there of
[322]
earning compound interest is by buying
[325]
dividend stocks because when you take
[327]
those dividends and reinvest them you're
[329]
earning more dividends and then you're
[332]
able to earn dividends from your
[333]
dividends which allows your money to
[335]
grow exponentially now a lot of
[337]
brokerages out there either don't offer
[340]
dividend reinvestment or they charge
[343]
Commission's on those trades or the
[345]
other issue you often run into is that
[347]
when you have a dividend reinvestment
[348]
you're only able to buy whole shares so
[351]
for example if you invest with Robin
[353]
Hood and you earn a dividend from a
[355]
stock you're investing in well you would
[358]
need to have enough money to buy a whole
[359]
share of that stock because they do not
[362]
offer fractional shares so here's what
[364]
happens on m1 finance when you earn a
[366]
dividend a couple of these investments
[368]
in my portfolio have dividends and if I
[371]
go over here to the activity tab you can
[373]
see where I earn those dividends in fact
[375]
just recently on November 14th
[377]
I earned a five cent dividend from Apple
[380]
October 1st I earn 26 cents from the
[383]
Vanguard S&P 500 ETF and so on and so on
[387]
so when those dividends are paid to you
[389]
they are going to go over here and
[391]
they're going to be in the cash balance
[393]
held within your account as you can see
[396]
right here I have a dollar 15 in my cash
[400]
and I have this feature called m1 auto
[403]
invest turned on so what's going to
[405]
happen here is that once that cash
[408]
balance exceeds ten dollars they're
[410]
going to invest that ten dollars across
[412]
the entire portfolio effectively
[415]
reinvesting those dividends across my
[418]
whole portfolio and again because you're
[420]
able to reinvest those dividends and
[422]
purchase fractional shares you're
[424]
keeping the maximum amount of money
[426]
invested here and you are earning that
[429]
compound interest the fourth reason
[431]
people really enjoy this app is because
[433]
of a feature called automatic
[435]
rebalancing so a lot of people are not
[437]
even familiar with the concept of
[439]
rebalancing but essentially what it is
[441]
is when you have a portfolio you're
[444]
going to experience something called
[446]
portfolio drift it sounds confusing but
[449]
it's really not as you can see here I
[451]
have four different stocks and they've
[453]
all performed very differently the
[456]
Vanguard S&P 500 ETF is up seventeen
[459]
point two nine percent Amazon stock
[462]
surprisingly is the worst one here up
[464]
only seven point one four percent Apple
[466]
is up fifty nine point six three percent
[469]
which is crazy and Microsoft is up forty
[472]
seven point six six percent so all
[474]
investments are going to behave
[475]
differently within your portfolio so you
[478]
may set target allocations or how much
[482]
of that stock you want to own but
[484]
because they all do different things at
[486]
different times those allocations are
[488]
going to drift so on the left hand side
[491]
you can see what my allocations were for
[494]
the Vanguard S&P 500 ETF it was 50% for
[498]
Amazon it was 30 for Apple it was 10 and
[500]
for Microsoft it was 10 as well but
[503]
because of the performance of these
[505]
stocks and portfolio drift my
[507]
allocations have now skewed so Microsoft
[510]
is now 12.1 percent of my portfolio
[512]
Apple is 13% Amazon is 26.7% and
[517]
Vanguard is 48 so I am effectively
[520]
overweight in Apple and Microsoft and
[523]
underweight in Amazon and Vanguard
[526]
so what m1 Finance does here is as I add
[530]
money to this portfolio or take money
[532]
out there
[533]
going to buy more of whatever I'm low in
[536]
and buy less of whatever I have too much
[538]
of or if I'm selling from this portfolio
[541]
they're gonna sell more of what I have
[544]
too much of and sell less of what I
[546]
don't have enough of effectively
[548]
rebalancing that portfolio and bringing
[551]
me back to my target allocations now
[553]
there are literally so many reasons why
[555]
people love m1 finance but I want to
[557]
just focus on one more to keep this
[559]
video short and that is something called
[561]
expert PI's and it's something I have
[563]
not seen any other brokerage offer and
[566]
it's a really useful feature so this
[568]
right here is called a custom PI because
[570]
I built it myself I chose these four
[573]
investments
[574]
chose my allocations and invested my
[576]
money but let's say for example you
[578]
don't want to do this for yourself you
[580]
don't want to build a portfolio from
[582]
scratch and you want some help as far as
[584]
what you should be investing in well if
[586]
you go over here to the research tab we
[588]
can take a look at what m1 Finance has
[590]
called expert PI's and these are expert
[593]
built portfolios you can invest in
[596]
completely free m1 finance does not
[598]
collect any fees to invest in these
[601]
portfolios and there's over 30 different
[603]
ones this includes general investing
[606]
portfolios that range from ultra
[609]
aggressive to ultra conservative this
[611]
also includes target date retirement
[613]
funds income portfolios and even hedge
[616]
fund followers if you wanted to follow
[618]
some of your favorite billionaire
[620]
investors out there like Carl I can for
[622]
example you could replicate his
[624]
portfolio or there's the basic just
[626]
stock and bond allocations that you can
[628]
invest in and if you want to learn more
[630]
about each one of these portfolios all
[632]
you do is click on it and it gives you a
[634]
description and you can click on targets
[636]
and it shows you exactly what that
[638]
portfolio is invested in so these expert
[642]
PI's really take the guesswork out of
[643]
investing and give you that hand-holding
[646]
completely free so overall for the
[649]
reasons mentioned in this video
[651]
m1 finance is my favorite investing
[653]
platform out there for long-term
[655]
investors and on top of that m1 finance
[658]
also has great features for dividend
[660]
investors as well as target date funds
[663]
specifically meant for retirement invest
[666]
now that being said m-1 finance is not
[668]
an ideal platform for active traders but
[671]
that is simply not what the app was
[673]
designed for now m1 finance can be a
[675]
little bit complicated to get started
[677]
with and navigate the platform but
[679]
that's exactly why I put together that
[681]
free 30-minute video training on m1
[683]
finance that is linked up down in the
[686]
description below so if you're ready to
[688]
start that free training guys go ahead
[690]
and click that link down in the
[691]
description below and I will see you
[693]
there but thanks so much for watching
[694]
this video I hope this was helpful to
[696]
you and I will see you in the next one
Most Recent Videos:
You can go back to the homepage right here: Homepage