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Investing In Roth IRA With M1 Finance - Vanguard Index Funds - YouTube
Channel: Jarrad Morrow
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in this video I'm going to walk you
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through exactly how I invest in my Roth
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IRA with my own money using my favorite
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investing platform m1 finance so this
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video is a lot more tactical so I'm
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gonna get you into kind of my brain and
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explain to you why am i picking these
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certain investments for my retirement
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why am I not picking these investments
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how am I thinking about it when I go to
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invest my money and the whole thought
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process and philosophy that I have when
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it comes to investing for retirement so
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I hope you check out this whole video
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because it is jam-packed with so much
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value that I think is gonna help you and
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I think it's it's always helpful to get
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an idea of what someone else is doing
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what are they doing with their own money
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okay they're talking about it on all
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these videos but I want to see what
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they're actually doing well I'm going to
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show you what I am doing with my money
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just a little disclaimer I am not
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telling you what to do with your money
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this is just what I'm doing with my
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money if you need some help please talk
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to your professional or do your own
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research
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make sure to Hulk smash that thumbs up
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button and if you figure that you liked
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m1 finance and you want to use that
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investing platform with you were at with
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your Roth IRA then please use the link
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down in the description to sign up it is
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an affiliate link it helps support
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myself in this channel it is no extra
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cost to you but if you like me I'd
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appreciate it if not not a big deal I'm
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still gonna make these videos just for
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you cuz you're awesome
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first one to mention if you haven't
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checked out my m1 finance review video I
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highly recommend checking that out if
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you have any questions when it comes to
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how to start thinking through or start
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investing in a Roth IRA just the initial
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thought process you need to go through I
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also have another video out about that
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as well
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so let's go ahead and get started on
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showing you the more tactical thing so
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how I actually look for the funds and
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invest in my Roth IRA with my favorite
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investing platform m1 finance so here's
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the initial screen and I have to create
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a pie for my Roth IRA so I do have
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something in there a slice it's the
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Vanguard real estate fund vnq ignore
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that right now it's just a placeholder
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because I had to put something in there
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I am NOT going to invest in the NQ
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within my Roth IRA one of the things I
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like about my Roth IRA or when one
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finance is that you can toggle back and
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forth between the different investment
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accounts that you have with m1 finance
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so in this case
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I have a Roth IRA account which I'm in
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right now and then I also have two
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individual taxable accounts also so if I
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really wanted to go check out those
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other accounts I can hop into those
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really fast it's a really cool feature
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that is I just wanted to mention real
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quick I need to fill up my pie with the
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investments that I want to go in with it
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go within my Roth IRA so what I'm gonna
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do is I'm going to go to research now
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under research you've got these tabs up
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top here you've got stocks you got funds
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you've got expert PI's and then a
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watchlist now stocks all you do is click
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on it and you've got a list of all kinds
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of stocks they but they offer over 6,000
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stocks that you can invest in if you
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can't find what you're looking for on
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this list initially you can always
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search for the symbol whatever you want
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we'll say Textron it's a stock that I
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know off top of my head you can go in
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there find it and you can add it to your
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portfolio or you can add it to your
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watch list which we'll talk about watch
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lists here in a minute
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okay so the next they have funds so
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these are all the ETF's that they offer
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for you to invest in right here once
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again you can click through these pages
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and look for for whatever you're looking
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for or you can go ahead and search for
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whatever symbol it is or name they also
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have the expert PI's which if you
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watched my review video then you know
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about these it's one of my favorite
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features of M on Finance I have a lot of
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favorite features when it comes to any
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one finance cuz they do a lot of things
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right for people like us the average
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investor but they do have these expert
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PI's and I highly recommend if you open
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up open up 8 an account with m1 finance
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please go into the expert PI's and just
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dig around kind of get a feel for what
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are they offering these expert PI's are
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all based on a higher level goal that
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you want your money to be invested in
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and they will pick they will
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automatically pick the kinds of
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investments that you will go in based on
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the higher level goal that you have so
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definitely go in here and poke around a
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little bit let's go ahead and get in to
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actually picking my investments for my
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Roth IRA so let me go pick out my funds
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now before I get in to show you what I
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invest in these are my thoughts my
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opinions I'm not advising you what to
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invest in
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just what I do let me first say that I
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don't need any of this retirement money
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for 30 years so I am a buy-and-hold
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investor when it comes to my retirement
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accounts I want to invest in low-cost
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index funds
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now there's two that I personally like
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the ETF versions
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I like vo oh and I like vti
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but in this case I am investing my Roth
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IRA money into vti so in this case I'm
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gonna go to vti and instead of adding to
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my portfolio right now I'm gonna add it
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to a watchlist okay so I haven't
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actually added it to my portfolio at
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this point at the point in time I'm
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gonna go back to funds and I still want
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to add vo because I like them I still
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want to watch them so I'm going to add
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them to my watch list
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now I'm gonna also look for a bond so
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I've already done my research and I'm
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going to and I know what bond I want to
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add in there it's BND the Vanguard total
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bond market so I'm gonna click on that
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and I'm going to go to watch okay so now
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I'm gonna go to my watchlist and I am
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going to start adding these investments
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to my pies no let me stop right here and
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show you as you're kind of looking for
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the different possible index funds that
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you want to add to your retirement
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account what you can do with m1 finance
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that's cool is that you click on the
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symbol so in the watchlist I clicked on
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vti and it gives you all the lists all
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the things that you need to know about
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vti so for example it's $150 per share
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point zero three expense ratio gives you
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the dividend yield it kind of gives you
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the performance over the past couple
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months years and it also tells you what
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the payout was for the individual
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dividends it also shows you how many
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holding is that a vti has so it's over
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thirty five hundred so it's trying to
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mimic the total stock market it's trying
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to give you the same performance as the
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S&P 500 and then some because the SMP
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500 is only 500 stocks now they will
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also tell you what the allocation is so
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as you can see there's not really
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anything in bonds here so if you want to
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invest in bonds as well then you got to
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do that on your own and that's why you
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saw that I added that that bond index
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fund to to my watch list and we'll get
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into to that here in a minute and how
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much I want to put in there but one
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thing I want to show you
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is so within vti it shows you the top
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holdings here now they my finance only
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shows you the two biggest holdings but
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if you want to get an idea of what is
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actually in vti this is what I recommend
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doing I highlight vti here just do a
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right-click and search a Google for vti
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now when this pops up I highly recommend
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since this is a Vanguard fund highly
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recommend just looking at the Vanguard
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website for vti so we can click on that
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and then we can get an idea of what are
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all the companies that are within the
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vti index fund we can click on the
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portfolio and management and this is
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going to show us it's going to give us
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more detail than m1 finances on this vti
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total stock market index fund right so
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it gives you the different equity sector
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and diversification so it gives you the
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amount or how it's broken down when it
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comes to tech you know health care
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financials so it gives you that idea but
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if you want to go one level deeper and
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say hey what are all the companies that
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vti has what has within within it so
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we'll go down here sorry I'm scrolling
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really fast you click portfolio holdings
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as you can see they hold over 3500
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stocks within vti which that's a lot and
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it lists the different holdings from the
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largest amount to smallest so as you can
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see but they're holding the largest
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amount in vti is is Microsoft and Apple
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that Amazon a lot of companies that you
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recognize because they're they're larger
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companies they're they're very stable
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companies but you can literally go
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through the list of all 3,500 of these
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which as you keep going further and
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further you might start to see names of
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companies that you don't recognize like
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Willis Towers Watson I don't know what
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that is but they own some money in it
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and you can always look that company up
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if you really want to okay so that's if
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you want to get an idea of what all is
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in vti so let's go back to m1 finance
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and let's go ahead and add the vitia add
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vti to my portfolio so I'm going to add
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it to
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my Roth IRA okay so it starts to build
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my PI if you will like I said I had the
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vanguard real estate fund in there that
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was just a placeholder so I'm gonna
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delete that out right now now I'm not
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going to choose my allocation at this
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point yet I'm going to next add a bond
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in there so I'm gonna add it and if you
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remember I did add it to my watch list
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so I can find it really quickly so I
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click on BMD I add it to my basket now
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here's the allocation that I'm doing I'm
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doing a 95/5 allocation so as I said I
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don't need this money for 30 years I
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want to have my money exposed in the
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stock market because that's gonna give
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it the most potential to grow if it is
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so that's why I'm going very heavy
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within vti 95% of my money because I'm
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okay to handle the ups and downs in the
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short term now I know some people who
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are gonna retire for another 30 years or
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need their retirement money for another
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30 years who are actually a hundred
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percent in one thing right whether it's
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vti or vo Oh personally I just want to
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throw a 5% in a bond just because I
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don't know it makes me feel safer it's
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gonna be personally up to you and that
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is one thing that I talk about in my
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Roth IRA video that I help you think and
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I hope you think through the allocation
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I might even change this who knows in a
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year I might change it to a hundred
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percent and VTI I don't know we'll see
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what happens so this is my pie for my
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Roth IRA at this point in time so I'm
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gonna save this pie get firm okay there
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it is now as you can see I already have
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a thousand dollars in cash in my Roth
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IRA account here but I'm not going to
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invest all thousand dollars so I
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personally use dollar cost averaging to
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invest my money so six thousand dollars
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per year from my Roth IRA is the max six
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thousand divided by 12 is five hundred
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dollars per month the first couple
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months of the year I did invest directly
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through the Vanguard website until I
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found m1 financed and tested them out
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now I'm going to start putting all of my
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Roth IRA money I'm going to invest it
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through m1 finance because I love them
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that much so I threw in initial thousand
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dollars but
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I'm going to actually always only invest
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500 of that $1,000 so I already have my
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my PI my portfolio created here so I'm
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gonna go ahead and buy this is where I
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get to choose how much I'm going to
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invest so available for orders the
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$1,000 I invest $500 at a time continue
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and then they will fulfill my order
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tomorrow so if you want to learn more
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about how often they fulfill orders that
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you place or it's trades if you will
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then you can always read about it a
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little bit more I do touch about touch
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on it within that m1 finance review if
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you want to want to see me talk about
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that so I'm going to confirm okay
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now what's cool is now I basically set
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up a trade to be placed tomorrow so you
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want to know when it's going to be
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placed
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I can go to here here to your portfolio
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has estimated traits so I click on that
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and it tells me the next trading window
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is in 13 hours exactly it's kind of cool
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and it has a breakdown of that five
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hundred dollars four hundred seventy
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five is going to be vti and $25.00 is
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going to be put towards BND once again
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and one Finance has fractional shares so
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I don't have to buy full shares they're
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gonna buy the exact amount on e2 for
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this four hundred and seventy five
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dollars which is amazing I love it now
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one thing I'm not going to show you are
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so I'm basically set up it's going to
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auto invest it tomorrow while I'm at
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work I don't have to worry about it
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now one thing I want to mention is some
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people will say the stock market is
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really high right now Jarrod you
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shouldn't be investing I don't care the
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reason I don't care is as I said I'm a
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long-term investor I don't need this
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money for 30 years and because I don't
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need it for 30 years I don't care what
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the price of vti is or BND within a 24
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hour period I don't care how it changes
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now now would I invest huge amounts of
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money right now probably not because the
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stock market is at an all-time high
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I don't know what it's going to do with
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$500 in is an
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to make him break me make or break me
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remember time in the market is more
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important than timing the market so one
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thing I'm not gonna show you is that
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from here on out I am going to set up an
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auto investment into m1 finance so it
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automatically invests 500 dollars for me
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every single month so will automatically
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withdraw it from my bank account put
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into my m1 finance account my m1 finance
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Roth IRA account and it's going to
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automatically invest it for me because I
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don't trust myself I will look at the
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stock market and based on if it's up or
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down I'm afraid that that's going to
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determine whether I buy buy shares
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within my Roth IRA I don't like that I'm
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a human I know that I just want to get
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the perfect price but I know how bad of
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a thought process that is so I would
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rather have m1 Finance automatically do
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it for me because time in the market is
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better than timing the market you don't
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try to time the market just forget about
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it if it's your retirement money and you
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don't need it for 20 or 30 years just
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forget what the prices put your money in
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consistently consistency is the key
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because if you sit there and wait around
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for the perfect price they're gonna be
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waiting around forever because it can it
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can always go lower and it's just like
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gambling right you keep playing when
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you're up because you're up why not and
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the next thing you know you lose all
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your money and like you're like oh why
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didn't I quit when I was up well because
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you were feeling really high in this
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case you're gonna be trying to play the
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stock market and wait until okay it's at
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$150 per share it now let me wait till
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get still to 140 and then it hits that
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hundred and $40 per share and you're
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like you know what it's gotten out in
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140 it could probably go a little bit
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lower
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see you wait to buy and next thing you
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know it goes from 140 back up to 150 and
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you're like okay I'm still gonna stay
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out because it won't went up above my
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140 eventually you're never going to
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invest so I highly recommend opening up
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opening up and m1 finance count set up
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the auto invest let them take care
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before you that's it
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