馃攳
M1 Finance Tutorial | How To Use M1 Finance For Beginners! - YouTube
Channel: unknown
[0]
so in this video today we are going to
[1]
be doing a tutorial of the m1 finance
[4]
investing app I'm gonna be showing you
[6]
guys around the app and talking about
[8]
some of the basic functions that you
[10]
need to be familiar with as somebody who
[12]
is investing with this platform now that
[14]
being said if you decide at the end of
[16]
this video that you want to open up an
[18]
account with m1 finance I have a link
[20]
for that down in the description below
[22]
it is an affiliate link so if you do use
[24]
it I will earn a small commission in the
[26]
process but that's a no additional cost
[29]
to you
[30]
so if you decide you want to give back
[32]
to me for putting this video together
[33]
that is an option for you and one other
[36]
thing I want to mention real quick I
[38]
have been getting a lot of questions
[39]
from people about how to use m1 finance
[42]
how to open a brokerage account all
[44]
these different questions so I actually
[46]
put together a completely free 30-minute
[48]
video training showing you everything
[51]
you need to know to get started with m1
[52]
finance and that is also going to be
[54]
linked up down in the description below
[56]
if you want to check out that free
[58]
30-minute training on how to use m1
[61]
finance but we're gonna cover most of
[63]
the basics right here in this video
[65]
today okay so here we are inside of my
[68]
m1 finance portfolio this was originally
[70]
a $100 investment I made mostly just for
[74]
demonstration purposes to show people
[75]
what this app actually looks like so my
[78]
original investment here was 50% on my
[81]
portfolio into the band guard S&P 500
[84]
ETF under the symbol vo o 30% into
[88]
Amazon stock and then I had 10% in Apple
[92]
stock and then I also put 10% of my
[96]
money into Microsoft stock now obviously
[99]
this portfolio was actually done pretty
[100]
well here over the last I believe eight
[103]
or nine months it's up about 17% closer
[105]
to 18 actually and this is the first
[108]
thing you have to understand about m1
[110]
finance is that everything comes back to
[112]
this pie here or portfolio so with m1
[116]
finance you are doing portfolio based
[118]
investing and that's where it's
[121]
different than apps like Robin Hood for
[122]
example where you're just buying whole
[124]
shares of stocks and then you know
[126]
having those stocks within your
[128]
portfolio well with m1 finance you
[130]
designed a portfolio yourself or you use
[133]
one of the expert portfolios and then as
[136]
you add more money to that portfolio
[138]
it's going to be spread evenly across
[140]
those allocations so in my case here
[143]
when I initially invested that $100
[146]
fifty percent of that money went into
[148]
the Vanguard 500 ETF 30 percent went
[152]
into Amazon ten percent went into Apple
[154]
and then ten percent went into Microsoft
[157]
now I've already have my portfolio or my
[160]
pie in here built but when you actually
[162]
get started with them on Finance it
[164]
walks you through the process of
[165]
building your own portfolio but I'll
[168]
show you guys what that looks like now
[169]
by building a new portfolio from scratch
[172]
so you see what this looks like
[174]
step-by-step so now we're gonna go
[175]
through the process of building a
[177]
completely new m1 finance pie from
[179]
scratch and like I said when you start
[182]
off using the app it's gonna walk you
[183]
through this process of how to build
[185]
your first m1 finance pie so we'll go
[188]
ahead and hit the plus icon here and
[190]
then we're going to begin adding slices
[192]
to our m1 finance pie so your total pie
[195]
is going to be one hundred percent and
[197]
each of these stocks and ETFs that you
[200]
can select can make up as little as one
[203]
percent of your portfolio so if you
[205]
wanted to put a hundred different stocks
[207]
in your portfolio I don't know why you
[209]
would but m1 finance allows you to do
[211]
that so we're just gonna make a random
[213]
portfolio here just so I can show you
[215]
guys what it looks like we're gonna
[217]
start off with three M stock that's just
[220]
one that's coming to my mind here so 3 M
[222]
is a pretty popular company I think that
[225]
symbol is mmm 3m company so we're gonna
[228]
add that to this pie we're gonna also go
[231]
with Procter and Gamble will add Procter
[234]
& Gamble to this portfolio and then
[235]
let's say you also want to add an ETF to
[238]
this portfolio for some passive
[239]
investing you can move over to the ETF
[241]
or funds column and select one or I know
[244]
the one that I want actually it's right
[246]
here Bo oh the Vanguard 500 fund so
[248]
we'll add that to the portfolio as well
[250]
and then let's say we also want to have
[252]
a tech stock in here so let's say you're
[255]
like Tesla for example so we'll go ahead
[256]
and type in Tesla and let's say these
[259]
are the four components of this
[261]
portfolio that you're building or PI
[263]
whatever word you want to use there in
[265]
terms of m1 finance it always comes back
[267]
the pie and each stock represents a
[270]
slice so let's say that is the pie that
[273]
you want to build basically investing in
[275]
Tesla 3m Procter & Gamble as well as the
[279]
Vanguard 500 fund then you would go
[281]
ahead and hit done and this is the point
[283]
where you're going to decide how much of
[285]
your money is going to go into each one
[287]
of these stocks or ETFs now the reason
[290]
you're able to do this is because M one
[292]
finance allows you to invest using
[294]
fractional shares so all of these
[296]
different funds and stocks are trading
[298]
at a different share price but M one
[300]
finance allows you to buy as little as
[302]
one ten-thousandth of a share of each
[305]
one of these stocks so you don't have to
[307]
worry about that share price and you can
[309]
create you know a well diversified
[311]
portfolio with the minimum to get
[314]
started with investing which is just
[316]
$100 so let's say for example you want
[319]
to put thirty percent of your money in
[321]
the Vanguard 500 fund and then you want
[324]
to put fifteen or your 15 percent in
[326]
Tesla you drop that down to fifteen and
[327]
then you want to put you know twenty
[330]
percent in 3m and you want to put the
[332]
remaining thirty five percent in Procter
[334]
and Gamble well now you have created
[336]
this pie here and when you add money to
[339]
this portfolio twenty percent is going
[342]
to go to 3m thirty five percent is going
[344]
to go to Procter & Gamble fifteen
[346]
percent goes to Tesla and thirty percent
[348]
is going to go to Vanguard so we'll go
[351]
ahead and save this portfolio here I'm
[353]
not going to personally use it and we'll
[355]
just go ahead and name this the demo
[356]
portfolio I just so you guys can see the
[360]
functionality and how this works setting
[361]
it up and the other thing that's really
[363]
great about M one finance is you can
[365]
create multiple different portfolios and
[368]
even track that progress so if you
[370]
wanted to make like a dividend oriented
[373]
portfolio or a growth oriented portfolio
[376]
you could invest in both of them or you
[378]
could just use it to benchmark these
[380]
stocks or this portfolio and see what
[382]
the performance is like now that being
[385]
said let's say you're somebody who
[387]
doesn't want to build a portfolio from
[389]
scratch
[389]
while another great option that you have
[391]
is the expert PI's offered by m1 finance
[395]
they have over 30 different portfolios
[397]
that are pre-built that are completely
[399]
free to invest
[401]
for example you have general investing
[403]
here which is just a spread of ultra
[405]
aggressive to ultra conservative
[407]
portfolios and each one of these you can
[409]
click on and read about them and what is
[411]
actually held within that portfolio and
[413]
it'll show you what is actually in here
[416]
it's usually Vanguard and I share is
[418]
type ETFs because those are very low fee
[421]
index funds so you have a general
[423]
investing category you have plans
[425]
specifically for retirement which is
[427]
great for people who invest using a Roth
[430]
IRA which is available through m1
[432]
finance you also have responsible
[434]
investing for people who are looking for
[437]
environmentally-friendly companies to
[438]
invest in income earners hedge fund
[441]
followers basic stock and bond
[444]
allocations which is just going to be a
[446]
two ETF fund for example this one that's
[448]
a 90/10 split it's just going to be 90%
[451]
into the total world stock market and
[453]
10% into the total bond market which is
[457]
as simple as it gets in terms of your
[459]
basic stock and bond allocations so m1
[462]
finance really does have something for
[463]
everyone here they have the ability to
[465]
build your own portfolio from scratch
[467]
with whatever stocks or ETFs you want to
[470]
invest in or if you don't want to do all
[473]
that yourself you simply pick an expert
[475]
pie that's pre-built to automatically
[478]
invest your money in now the last thing
[480]
I want to cover in this tutorial here is
[483]
the rebalancing of the portfolio which
[485]
is something that a lot of people get a
[487]
little bit confused on so we're gonna
[489]
cover what that actually means here so
[492]
as you can see here on the Left we have
[493]
two percentages under each one of these
[495]
pieces of my pie under the Vanguard 500
[499]
ETF we have 48 percent and 50 percent
[502]
and that means that my target allocation
[505]
for the Vanguard 500 ETF is 50 percent
[508]
but I'm currently at 48 for Amazon it
[511]
says twenty seven point six percent even
[514]
though my target allocation is thirty
[516]
apple it's twelve point three percent
[518]
even though my target allocation is ten
[520]
and then finally Microsoft eleven point
[523]
nine percent even though my target
[525]
allocation is ten and this is because of
[527]
something called portfolio drift and the
[530]
reason behind that is as soon as you
[532]
invest money in the stock
[534]
market well things are gonna be doing
[536]
different things at different times
[537]
that's the best way to explain it
[539]
so some stocks are gonna go up some are
[541]
gonna go down I happen to pick for that
[544]
all went up if you look on the
[546]
right-hand side I'm up 40% in Microsoft
[549]
45% in Apple which is crazy I wish I
[552]
bought a lot more I'm up 7% in Amazon
[555]
and 13% closer to 14 in the Vanguard 500
[558]
fund the issue being this portfolio is
[562]
no longer in line with what my target
[565]
allocations were so what would happen as
[567]
I add more money to this portfolio is
[569]
more money would flow into the ETFs and
[573]
stocks that I'm underweight in so right
[576]
now I'm underweight in Amazon and the
[578]
Vanguard 500 ETF because my target
[580]
allocation for Amazon is 30 and I'm at
[583]
twenty seven point six and my target
[585]
allocation for the Vanguard 500 fund is
[588]
50 and I'm at forty eight so I have more
[592]
money than I want in Microsoft and Apple
[594]
and less money in Vanguard and Amazon so
[598]
if I were to add more money to this
[599]
portfolio slightly more would flow into
[603]
Vanguard and Amazon to bring me back to
[605]
my target allocations and this is a
[607]
really important feature for maintaining
[610]
the portfolio that you're looking for
[612]
because a lot of people they may say hey
[615]
I want to have 25 percent in these four
[617]
stocks you know an equal amount in each
[619]
and then a year later your your
[621]
portfolio could be totally out of whack
[623]
because of portfolio drift but m1
[626]
finance takes all of that out of the
[628]
equation here because as long as you're
[630]
contributing regularly to this account
[633]
they're going to keep your portfolio in
[635]
line with what your allocations are that
[638]
you set at the beginning but that being
[640]
said guys that is the basics here of
[642]
investing with m1 finance like I said
[645]
you can either build your own portfolio
[646]
from scratch or you can use the expert
[649]
portfolios available to you for free or
[651]
you can do a mixture of both and invest
[654]
in both with this platform and compare
[656]
the performance of both as I'm sure you
[658]
guys know m1 finance is 100% free they
[662]
are making money but they are doing so
[664]
on the back end with a couple of
[665]
different methods for example they make
[667]
money by direct
[668]
order flow and they also make money from
[671]
their m1 borrow which is going to be
[673]
margin not really stuff that most people
[675]
are using so I didn't cover in this
[677]
tutorial so they're not a charity they
[679]
are making money but they're just doing
[681]
it in a couple of different ways than
[683]
the traditional method of charging fees
[685]
and commissions to customers but anyways
[688]
guys that's gonna wrap up this video I
[690]
hope you enjoyed it if you're looking to
[691]
learn more about how to use m1 finance I
[694]
literally walk you guys step-by-step
[695]
through the entire process in that free
[698]
30 minute training that's gonna be
[699]
linked up down in the description below
[701]
but thank you guys so much for watching
[703]
this video I hope you enjoyed it and I
[705]
will see you in the next one
Most Recent Videos:
You can go back to the homepage right here: Homepage