M1 Finance Pies Tutorial (Creating & Moving)

what's going on guys David Kara wanna hear in today's video we're gonna talk about m1 finance PI's this is gonna be kind of a tutorial about m1 finance PI's they can be kind of confusing to new users kind of overwhelming I'm gonna try to simplify it but even for more advanced users sometimes we have some questions like I just recently wanted to move a stock from one PI to another PI without having to sell it and then rebuy it we don't want to do that because it will create a taxable event there is a way to do that so that you don't have a taxable event and I'm gonna show that to you here towards the end of the video okay the first thing I'd like to do is give you a brief explanation of what a PI is then we're going to how it's used and then we're gonna go into how to create PI's okay and then lastly we'll talk about moving stuff within the PI's all right on your screen I have a individual m1 finance portfolio this is an inactive account so it might look kind of incomplete and and that is because it is incomplete it's still doing fairly well it's one month that it's up eight point one five percent so I'm glad even though that it's incomplete it's doing pretty well but to the point on the left side here you can see an m1 finance pie that's just right here this circle and what I'd like to do is create a visual for you okay think of a pizza pie a pizza pie has slices and what m1 finance allows you to do is tell the system how big you want different slices to be okay and what I mean by a slice a slice is gonna be different Holdings within your portfolio so let's just say you own Johnson & Johnson maybe you want Johnson & Johnson to be a big slice well you can tell the system hey I want Johnson & Johnson to be 25% of the pizza okay and that's what this pie is it's just literally a pie and these slices that I'm highlighting here are just different percentages of different holdings that you have within this pizza okay that's all it is now this is a bad looking pizza someone eat the middle I apologize for that but you the point okay now I went a little bit further with this PI system that they have okay I actually use it I use sub PI so you'll see that I have a main PI here called dividend growth and then I actually created sub PI's you can create PI's within PI's within PI's and within PI's okay and it can keep on going you can create as many pies as you want I just made some sub pies here and I did him four sectors so I have a PI for each sector so you don't have to do this you can have just your holdings here so you can have just your individual stocks listed here and you don't have to create extra pies if you don't want to I have 60 holdings so I didn't want to do that I wanted a way to organize my holdings by sector so I'm using these these sub pies to do that okay and it's the same thing if you click on like if I click on healthcare here you'll see I just get a healthcare pie and within the healthcare pie I have all my healthcare stocks right and then I allocated these percentages on the right-hand side there's two numbers here the top number is actual 95 percent the bottom is target so you set your target number so IV I wanted it to be 15 percent of my portfolio but I saw it was at a really really good value and I bought a lot of it right so I actually have 95 percent of this healthcare pie is a V right so now what does that mean that means I'm over allocated okay if I only owned let's look at Merck here Merck I want 10 percent I'm only at point 4 percent so this is under allocated okay and the reason the reason that these allocations and these percentages are used is because of this this feature that they have here called auto invest now I currently have it off but if you have it on it basically when you deposit money into your portfolio the system will automatically buy the shares the different stocks and holdings that you have automatically based on the percentages that you have already set okay so it's really nice once you set it it's just beautiful you just you deposit your money in the system builds your portfolio for you and that's it it's really really nice it's a nice system okay now you can edit these percentages anytime you like you can click the edit button here on the left under the pie and you can just change your percentages here so let's just say I wanted you know if I wanted to change UnitedHealthcare to 4% one thing you need to note is that the total at the bottom here that I'm highlighting needs to say a hundred percent so if you try to save it by clicking the top right button here this is total it'll tell you here your pie is under allocate about one percent it cannot be over by a percent it cannot be under by a percent it has to equal hundred percent and remember that a pie is a hundred percent so if I wanted to do this I would have to add a percent somewhere so I can say okay CBS you'll go up to six percent okay same thing maybe I wanted UnitedHealthcare to be six percent and then I'm gonna need to lower it somewhere else to make that a hundred percent okay very simple so let me go ahead and exit out of that and we will go back so is that I hope you can wrap your head around pies and then sub pies another way to visualize it is the picture your My Documents folder on your computer your my document it right if you open your my documents folder you probably have pictures you probably have a pictures folder you probably have a videos folder you probably have a music folder and a Documents folder right there's called subfolders well this is the same concept when you use a pie within a pie these are just kind of like subfolders they're just pies right they're just I can I can allocate percentages within those holdings okay now if you don't have a lot of holdings and you don't want to organize stuff this is more of a way to a better way to micro manage your holdings by sector that's all this is okay if you don't want to do that you can just list your stocks right here under one pie okay and I'll show you how to do that I'm gonna show you how to do both I'll show you how to do how to create a pie with no sub sub pies and I'll show you how to make a pie with some pies okay so let's go ahead and get in that okay so to make a pie at the top here oh I should really cover one other thing here when we talked about the allocation here the target and the actual the pie when you look at it on the left here you'll see a little dotted gray line going around it okay this dotted line represents your perfect allocation you want your different holdings or sectors like I have it you want them to be exactly up to that dotted line so if we look at right here this one consumer discretionary it's perfectly at the dotted line that means it is perfectly allocated based on what I set it to okay so the system right now if I had auto investing on and I put money in would not allocate anything to consumer discretionary because it's perfect right now if we look at a holding right here like this little purple one utilities it is way under allocated you see that big white space in between the dotted line it's got a long way to go so if that auto investing is on it is gone it's gonna likely put money into utilities to bring it up to where the dotted line is which is where I wanted allocate it up to okay and then likewise if you're over allocated it would be outside the dotted line like here we see industrials there was a lot of good values i over bought you know based on percentages I manually bought and I'm over allocated it's outside of the dotted line so if we had auto investing on it would not but it wouldn't it wouldn't allocate any money into industrials because it's over allocated okay now it wouldn't sell either so you don't have to worry not gonna auto sell unless you hit rebalance and I recommend that you never hit rebalance don't ever do that because it will create a taxable event okay so I would avoid doing that what will happen if you're over allocated it'll just bring up your other other areas up to this so that it is evenly allocated okay so just remember the rebalance button you don't want to click that unless you're you understand is gonna create a taxable event all right so now we have an understanding of what PI's are what sub PI's are and how to set our percentages and auto investing is okay now let's talk about how to make pies we're gonna click on this research button at the top here and then we're gonna get a little submenu underneath that right under research it says my pie is we're gonna click that and you'll see here that I have some pies made now I'm gonna delete this growth growth portfolio pie and we're gonna actually remake that so you can see here that I have two pies that are being used one for my individual account and one for my Roth IRA account okay and then under unused pies I have none okay so we're gonna go ahead and click on create new pie button here in a second but I'd like to ask you to please go ahead and just smash that like button from you guys it is I don't know if you can see that time down down here it's Saturday night at Saturday morning at 5:30 9 a.m. and I'm here making videos for you guys so show me some love and smash that like button I really appreciate you guys okay with that said alright let's continue let's click this create new pie button and on the screen you can see different stocks and ETFs that you can buy ok and bonds and so on so you can scroll through them here and you can click the next button at the bottom or if you know exactly the name of the one that you're looking for the symbol you can type it in the search bar bar box at the top right and and pull it up that way ok now quickly I'm gonna make that growth portfolio that I just deleted to do that I'm gonna select some of these we're going to go with Google Amazon Facebook Alibaba this is not financial advice guys I'm just putting this together quickly and for you Tesla fans let's do some Tesla okay now at the bottom you'll notice that all this the ones I just selected are all below here in the aqua blue I'm gonna click the Add button to the right of them and that is gonna create this new pie ok new pie screen created now when you create a new pie its name is actually going to be a new pie and the date that's pretty ugly so we can edit that to click the edit button underneath the pie here and then you see under the pie the pie image here it says pie name you can highlight that hit the back button and we're gonna call this growth portfolio or you can name it growth pie you can name it whatever you want okay underneath that you have pie description I usually don't put anything there but you're welcome to put whatever you want it doesn't it's just for your it's just for you for whatever you want okay then you have the option here to change your allocations okay so let's say we want Tesla to be 30% now you're over allocated by one well you're over allocated by 10% remember this has to be on a hundred percent so let's just say we lower Alibaba down to 10% okay then I can click Save and boom there you go you got your first new pie now don't you wish you invested in this pie you know five years ago you'd be up a hundred and seventy six point five zero percent so here it is now this is uh this pie has not been added to your portfolio this is sitting in your my pies section in order to add it to your portfolio all you had to do is click this add to portfolio button and then one to fund your account and you have Auto investing on the the system will automatically contribute or start buying these stocks based on the percentages you have allocated very simple okay now if you're not sure about the pie but you want to keep it you don't have to click the add to portfolio button it'll be saved in your my pies right here you can see it right here this is unused and you can delete it or you can add to portfolio okay now what if you want to do the sub pies like I did all right how do you do that well what you're gonna want to do is you're gonna want to create a pie for different sections so I'm gonna say okay let's I'm going to create a finance pie okay so we're gonna look for some finance companies here we're gonna say we're gonna say visa John um visa okay it's five thirty guys I'm sorry he's barely functioning okay we're gonna say visa JPMorgan Chase I love Bank of America MasterCard there you go okay so we have four nine finance stocks we're gonna click add okay and we're gonna call this now remember it says new PI we're gonna want to change a name we're going to call this we're gonna name the PI number this is gonna be a sub PI so we're gonna name this five finance right and then I'm gonna change the percentages here as I'd like them okay I'm not gonna change them you guys know how to do that by now and then we're gonna cave okay now we have another PI okay so now we're gonna go back to my pies and what you're gonna do here is you're going to create a pot I'm sorry you're gonna you're gonna click on yeah there it is okay I'm sorry had to refresh my memory so you're gonna credit create new PI and then basically what you do is you're gonna click on my pies at the top and then it'll give you an option here to check off the different pies you want in this new pie okay so let's just say okay I want finance and growth in there right and then I'm gonna click add it's gonna add it's gonna say the pie has been created right so now we have those sub pies look you have finance and growth in there at 50% each and you can name this whatever you want because we don't want to keep that ugly new pie name so i'm gonna click Edit and i'm gonna name this my portfolio how about that okay I'm gonna name my portfolio 3 because I think I use that name already and I'm gonna click Save and you can change the percentages on that ok now you're done you click Add to portfolio and boom it's your active that's your active portfolio now you can also go back to my pies and you can actually see your your big pie right and if you click on it you can see your sub pies there they are and then you can click within those sub pi xand then you can see the stocks within them okay there you go guys pretty simple you know how to create a pie with direct holdings underneath it and now you oughta go how to create a pie with sub pies as well okay fairly easy okay last but not least and and some of you probably might have fast forwarded to this this part because I you might have been looking for this like I was how to move a stock from one pie to another okay let's talk about that I'm gonna go back here to my portfolio and I actually saved a real example because I'm gonna actually do this because I I wanted to save it and record it for you guys as I did it the way to do this is I'm going to show you my my problem is under finance I have United Healthcare United Healthcare I thought it when I put this portfolio together I said hey it's it's an insurance company it's finance you know but it's really not it's a health care company if you look up on Yahoo Finance you'll see under profiles if you look up United Healthcare it says right here sector health care and I'm pretty anal that that bugs me so it bugs me that I have it on the wrong place so I want to move it okay so what do you want to do okay I'll tell you what you don't want to do first you don't want to click Edit do not do this okay if you click Edit and then you select United Healthcare and you click remove well it's gonna happen there is it is going to remove them the United Health Care from your portfolio it's gonna sell it and it's gonna it's gonna rebuy within this healthcare pie it's gonna rebuy these that you still hold okay so that's all its gonna do it's gonna sell and then rebuy these other holdings it's gonna take the money and rebuy what you're already what's already in this pie okay so you don't want to do that that's a taxable event so we're gonna go back now if you did just want to sell I should probably go over that if you did just want to sell United Health Care and you didn't want it to get reinvested back into the same pie you just wanted to go back up to the top here and your cash the way to properly do that is click on the actual holding click the buy sell button and then click cell and type in the amount that you want to sell so in this case would be nineteen sixty-seven cents and I would hit continue okay and that's it the next trading window comes around it'll sell and then the money will go into your cash and obviously you should have your auto investing off if you don't want it to auto allocate okay now that's how you would sell without having it auto invest back into the same pie now to move it what we're gonna want to do is we're gonna wanna create UnitedHealthcare in the pie that you want to move it to so i want to move it to healthcare so prior to making this video I went to healthcare and I added it there okay and right now it's just a placeholder I don't have any money in it just like CVS and Cardinal I want to buy these I'm looking for a entry point and UnitedHealth same boat it's just a placeholder there's no money in it okay we're holding we're putting a placeholder and we're gonna basically move the money from the finance PI over to the healthcare okay so now once we have created the holding within the PI we want it to go to we're gonna come here we're gonna click on United Healthcare or whatever you're trying to move you're gonna and you're gonna put a sell order in for it okay so and you're gonna sell it to the exact amount has to be the same exact amount okay I'm sorry before you do that I recommend creating a buy order first I hope that doesn't confuse you confuse you guys too much go go to healthcare okay which is or wherever you're moving it to and create a buy order for the exact amount that you're moving okay so for me it's nineteen point sixty-seven okay so I'm gonna do that and I'm gonna click confirm so now I have a buy order for $19.67 you see it says pending buy don't don't worry it's not gonna actually buy anything you're gonna go back to finance or the PI you want to remove it from and you're gonna sell it for the exact amount okay so we're gonna sell UnitedHealthcare and we're gonna sell all of it 1967 okay we're gonna click sell and that's it okay and you're gonna see here when we do that it'll say here pending sale for 1967 now you're gonna notice here there is no upcoming trades you see that if if we go back to finance and I'll give an example here we're gonna sell let's just say I want to sell let's sell Wells Fargo so if I come here and I click sell on Wells Fargo let's just say I sell 10 dollars ok you'll see on the sells I now have one sell order so if I click view details you'll notice here that Wells Fargo was actually really gonna sell right but what happens here is UnitedHealthcare really is just a transfer it's going from one pie to another there will be no sell for that it see how it only says sell one so don't worry it will not create a taxable event ok now I'm gonna actually cancel that sell order for Wells Fargo because I don't want to sell it and then you'll notice when I do that it says sell order 0 say so you're good it'll just transfer it so you basically create a buy order for the exact amount that you want to transfer from one pie to another and then create a sell order for where wherever you're removing it from that's it nice and simple guys that's it I hope that helps and that might have been a little bit confusing it was hard to find information on it and it seemed confusing but just remember you put a sell order a buy order in for where you want it to go a sell order in from what do where you want to transfer it from in terms of pies that's it alright guys that's it for me it's 550 550 a.m. smash that like button guys give me some love please make sure to subscribe also turn on the notification bell and I will see you guys in the next video thank you

Channel: David Caruana - Investing

Views: 56,113

Rating: 4.9437909 out of 5

Keywords: m1 finance pies, m1 finance, m1 finance pie, dividend stocks, dividend, how to create m1 finance pies, m1 finance pies tutorial, m1 finance pie tutorial, how to move stocks between pies, m1 finance tutorial, m1 finance review, what are m1 finance pies, how to use m1 finance pies, tutorial m1 finance, m1 finance dividend stocks, m1 finance create pies, investing platform, m1 finance investing platform, how to create pies in m1 finance, dividend portfolio, david caruana

Id: r4X5QHTMOdU

Length: 21min 55sec (1315 seconds)

Published: Tue Nov 12 2019

Reddit Comments

[u/consintrait]

Thanks.

[u/letsgoback2the80s]

How long does a move usually take?

[u/MaxPowers5]

Thank you for this. An hour before I saw this video, I did it another way.

I created a subpie and called it dividends. Within this subpie I had VNQ and other stocks. I had VNQ as a holding within my main pie, and I deleted it. (I did not sell, I removed from pie) The value of VNQ in my main pie was 13.04. Well, if I look at my upcoming trades, it shows that it will sell $11.11 of VNQ, because VNQ is already in the new pie. VNQ also does not show up as a buy. Meaning it is transferring $2.29.