Introduction to M1 Finance

hi there and welcome to this short introduction to m1 finance in this video we'll be going over how m1 works including m1 invest transfers research m1 borrow m1 spend and lastly m1 plus stick around at the end of the video to get some extra tips and pointers on how m1 works let's get started what accounts can you open at m1 we'll start on the portfolio page of m1 invest here you can see i have four accounts an individual taxable brokerage account a joint taxable brokerage account an ira and a roth ira you can have up to five accounts under your login each account that you have has a root pie which is made up of slices the slices can be individual stocks or etfs that you choose or they can have other pies including custom pies that you create or expert pies that are curated by our team we'll show you how to create and edit pies later in the video what's auto invest under this deposit button you can see there is an auto invest function that you can flip on and off this is what makes m1 different from any other brokerage you can set your portfolio targets and invest maintains the balance as you deposit money or receive dividends deposits and dividends collect in your cash balance and once it reaches 25 or more that cash will be automatically invested into your entire portfolio as long as you have auto invest on m1's trading algorithm will send more money to slices that are underweight in your pie in an effort to keep your portfolio in balance how do you make trades at m1 trading happens for all m1 finance accounts during our trade windows every client in m1 is eligible for our morning trade window which starts at 9 30 a.m eastern time when the market opens people who subscribe to the m1 plus membership also have the option to use an afternoon trade window which starts at 3 pm eastern time but we'll talk more about m1 plus later trades are queued up before the window and all trades execute at the same time there are a few ways to trade with m1 your account will trade automatically if your auto invest is on and you earn dividends or make a cash deposit please note your dividends will be invested in your entire portfolio based on your target percentages and not directly back into the stock that distributed the dividend you can also place trades manually by turning auto invest off clicking into a slice and clicking on this buy sell button auto invest will attempt to keep your portfolio in balance but you can always rebalance manually by clicking the rebalance button here when you rebalance your portfolio m1 will sell from your overweight slices and buy your underweight slices to bring everything back to your targets if you withdraw money from your invest account and you don't have available cash in your cash balance m1 will automatically sell from your portfolio starting with the most overweight slices if you remove a slice from your portfolio m1 will liquidate that slice and the proceeds will be reinvested into your entire portfolio you can view returns over time by changing the time frame below the deposit button if you go into the activities tab you can see any activity that you've done in your account including specific stocks or activity types under the holdings tab you can view your current unrealized gains and losses at a glance how can you make transfers in and out of your m1 account the transfers tab at the top of the screen is where you set up and see all of your money movements into and out of m1 when you click on the move money button you can see all of these options you can set up a one-time transfer or recurring transfer you can for example deposit from a linked bank account every month on the first or every monday whenever you deposit money into m1 invest you have access to your money the same day just make sure you have the funds available in your bank account before you deposit if you want to transfer a brokerage account from another institution you can click the transfer a brokerage account option and fill out a ticket you will need a copy of your most recent statement from the other brokerage firm and a similar account type open at m1 finance to transfer into for example you will need a roth ira opened at m1 to transfer a roth ira from somewhere else how can you find new investments and make new pies on the research tab you can view stocks etfs or exchange trade funds your custom pies and our expert pies for stocks and etfs we offer most stocks that are traded on major u.s stock exchanges we do not offer mutual funds if you want to know if we list a specific symbol you can search it up here if it shows up it's on our platform under the my pie section you can see any custom pies you have created both used and unused you can see that there are pies with a star in the middle these are the root pies for each account you have if you want to create a custom pie to use as a slice in one of your accounts you can click create new pie here you can search for stocks that you want to add and add them by selecting the box next to the stocks you want they will show up at the bottom of your screen and you can click add when you you're ready to create your new pie you can then add it to one of your accounts by clicking the add to portfolio button and you can specify the target weight of this pie in relation to your entire portfolio here under the expert pies section we offer different expert pies as templates to add to your account as a portfolio slice for example someone who is new to investing may want to add a general investing pie to their account as a slice we don't charge any fees for this service these are just to help provide people with a starting place if they want to use them we also don't provide any recommendations to customers as to which pie to use what other features does m1 offer besides investing m1 finance is not only about investing we also have m1 spend and m1 borrow m1 spend is our checking account that comes with a debit card you're also able to direct deposit a portion or all of your paycheck because it has a routing and an account number in one borrow is a flexible portfolio line of credit that gives you the ability to borrow against your taxable brokerage account when you have at least ten thousand dollars of investments it's usually referred to as margin at other brokerages with m1 borrow you get a line of credit that you can draw from and you can use your borrowed funds to invest more in your m1 pie or you can direct the funds to m1 spend or another externally linked bank account to use for any other purpose like refinancing higher interest debt or for emergencies m1 borrow is here to give you more flexibility with your investments the interest rate on m1 borrow is variable and it tracks the market interest rates set by the federal reserve as the date of this recording the interest rate is 3.5 apr or 2 apr for customers who are m1 plus members if you do borrow any amount you'll see the projected interest bill for the following month here as well as how well you are maintaining your margin balance if your account investments drop below a certain amount you will have to deposit more funds pay off some of your borrow balance or we may liquidate some of your investments to cover the maintenance requirement we'll show you how close you are to this happening though and how much your account would need to drop by so you can be proactive in one borrow does have additional risk and you should learn more about it on our website before using it what's in one plus at m1 we offer a premium membership called m1 plus that unlocks extra perks across your m1 account you can join in oneplus for 125 dollars per year and you'll get extra perks like an afternoon trade window a lower m1 borrow interest rate one percent interest on your m1 spin checking balance one percent cash back on qualifying debit card purchases and reimbursements for foreign transaction fees and four monthly atm fees what are other tips and pointers to using m1 you can set a minimum cash balance on your invest account so you can keep a cash reserve to do this make sure auto invest is on and specify the dollar amount you want to keep uninvested now any dividends you receive or deposits you make will collect in your cash balance up to your specified amount without being automatically invested someone who is retired and wants to live on income from their portfolio may find this useful since the cash can build up without being reinvested into their portfolio another tip is to keep this rebalance button in mind with auto invest any deposited funds or dividends will rebalance your portfolio as you go but if you have a million dollar portfolio and only deposit 100 per month that may not be enough to keep your portfolio balanced with your targets if your allocations drift away from their target percentages you can click the manual rebalance button to force buys and cells that will bring your portfolio back to your targets keep in mind clicking a manual rebalance will sell shares of your stock that are above your target percentages and buy shares of stocks that are below your targeted percentages one thing to note is that m1 uses a tax efficient lot allocation strategy when selling securities to help reduce the amount owed on taxes anytime we sell positions in your account we prioritize capital loss first and then long-term gains and then short-term gains a powerful feature we have is the stock and fund filters on the research tab when you're picking what stocks to put in your portfolio you can filter by stock or fund type and if you want to set parameters like price to earnings ratio you can do so from there as well if you're interested in using m1 borrow you can look into your holdings tab to see what is called a maintenance requirement this affects how much you can borrow from your portfolio volatile stocks or smaller stocks usually have larger maintenance requirements which means you may not be able to borrow as much against those positions another thing to keep in mind for m1 borrow is that any interest that is due will be deducted automatically from your invest cash balance if there is no invest cash available to pay the interest it will be rolled into your available credit balance if you ever need any help you can find our support center by clicking your name on the top right of the screen and then support if you don't find what you're looking for there you can always submit a support ticket thanks for sticking around and watching our introduction to m1

Channel: M1 Finance

Views: 39,684

Rating: 4.8618307 out of 5

Keywords: finance, m1 finance, m1, invest, investing

Id: ykkD30at7M4

Length: 12min 31sec (751 seconds)

Published: Tue Oct 20 2020