Investing is confusing for first timers. TV channels are dedicated to 24/7 coverage of stock markets. Commercials telling you to hire financial advisers or use this or that platform. All of them cost fees (trade fees, advising fees, etc.).
As a new investor, or someone who is interested, this can be overwhelming. Which eventually leads to shut down and then 30 years of regret of not investing sooner. 😥
But, NO WORRIES! 🙂
M1 Finance investing is easy and free. Not only for first timers, but advanced traders trying complex strategies.
About M1 Finance
Founded in 2015 and based in Dallas, Texas. M1 Finance is a unique robo-advisor, auto-investing platform allowing direct control over your investments. You choose the investments in your portfolio individually or based on predetermined investment sectors. These portfolios are referred to as “pies” but not the kind you eat.
How it works
As an investor, you set your ideal portfolio structure. This can include individual stocks, ETFs, bonds and more. Anything sold on the New York Stock Exchange, NASDAQ, or the BATS system, can be put it in your portfolio.
Then, every time you add money to your portfolio, M1 Finance automatically buys the most underweight asset. Every time you sell, they automatically sell the most overweight asset.
The M1 Finance investing platform allows you to set up your ideal portfolio, and automate contributions to the portfolio. Once your default is set, you don’t have to think about it again. Set-it and forget-it. The best kind of investing!
Want to add a new stock to your pie? Edit your pie. Add a slice of any stock, bond, or ETF. Adjust the percent you wish the new slice should hold in your pie. Click Save. Boom. Done.
I want a little more “Pie”
You can either make your own “pie” or pick already generated expert pies. M1 Finance provides users with a variety of pre-built generated pies. They offer pies for high, medium or low risk investors with asset allocation and diversification. Even showing historical performance.
M1 Finance gives an example of a portfolio invested in the so-called FAANG stocks (Facebook, Apple, Amazon, Netflix and Google). If you choose this pie you can go with an even allocation between each of the five stocks at 20% each. Or, can change the allocation within the pie.
For example, if you want 35% each in Google and Amazon, you’ll have 10% each in Facebook, Netflix, and Apple. You can also create pies based on market sectors like healthcare, utilities, and even foreign countries.
Heard of Warren Buffet? They have a pie of all his holdings within Berkshire Hathaway already generated and allocated. Pretty neat, right?
Besides being FREE, fractional shares are the #1 feature that sets it apart from all the other investment platforms. What are fractional shares?
Imagine that Amazon’s stock $AMZN is $800, but you only want to own $200 worth of stock. Traditionally, you could buy no less than 1 full share of stock. Fractional shares allow you to own just $200 worth of $AMZN or .25 shares. Low cost brokerages have allowed investors to employ fractional shares for years. But M1 Finance is the first among automated, robo-advisor investment platforms.
This is essential to passive investing. Why? Let’s say you set up weekly contributions of $10 from your bank account to auto-invest in Amazon at $800 a share. On a normal platform, that $10 would sit un-invested in a cash account and keep accumulating each week until it reached $800 – 80 weeks later!
With M1 Finance, each week that $10 would buy you .0125% of Amazon. Instead of waiting 80 weeks to accumulate $800! This is important for dividends, compounding interest and growth.
Try it today and get $10 Free to Invest
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You must make an initial deposit of $100 for taxable accounts and $500 for IRAs, within 90 days of signup and not withdraw that initial deposit for 90 days to qualify.
M1 Finance Investing Features
M1 Finance offers users several notable features:
- Advisory fee: M1 Finance does not charge fees. The absence of fees can add up to tens of thousands of dollars over many years of investing activity.
- Accounts available: Individual and joint taxable accounts; traditional, Roth, rollover and SEP IRAs.
- Minimum initial investment: $0. However, they require at least $100 to begin investing, or $500 for IRA accounts.
- Automatic dividend reinvestment: Once dividends received in your account reach $10 they’re automatically reinvested.
- Mobile Access: M1 Finance is available for iOS and Android apps, and can be downloaded at Google Play or The App Store.
- Tax information exporting: M1 Finance can export investment results to TurboTax and H&R Block.
- Customer service: Available by either phone or email, Monday through Friday, 9:00 AM to 5:00 PM, Central time.
- M1 Finance retirement accounts: You can open traditional, Roth, SEP and rollover IRAs with M1 Finance. If you need to do a SEP account, M1 Finance can accommodate the account only for you as the business owner, but not any employees you may have. If you need to do a rollover from an employer-sponsored plan, M1 Finance offers a concierge service that will help you handle the transfer.
- Account protection: Funds held with M1 Finance are covered by SIPC for up to $500,000 in cash and securities, including up to $250,000 in cash. This coverage protects against broker failure, but it doesn’t cover losses resulting from declines in market value.
- M1 Finance Referral Program: You can get $10 to invest each time you refer a friend who signs up for M1 Finance, and so will your friend. You’ll be given a unique link on the M1 Mobile App that you can share with friends by email, text, or social post.