M1 Finance What Happens When You Change %

so today i'm going to show you what changing your percentages on your m1 finance portfolio actually does to you does it sell it does it do nothing or does it actually have an effect on everything that's going on so today's episode is brought to you by ernest the student loan refinance company so if you are needing to refinance your student loans and save some money on your interest check out my link down below to learn how you can refinance entirely for free and save some money on your student loans now what we're going to do is hop over here onto the computer so you can see in real time what changing percentages actually does to your m1 finance portfolio because it might seem daunting to change any percentages because you don't want to mess anything up and that's okay we want to always make sure we're taking precautions so let's go ahead and jump on here and we can take a look this is my actual m1 finance portfolio so this is what i personally use on a regular basis so if we scroll down here we can see i have a bunch of different slices for different sectors that i have here on the portfolio so i have one overall account and then all these sectors which if you are curious on how to set this all up i'll have a link down below to learn how to do this if you have everything all in one but prefer all these different slices but nonetheless what we're going to do is click on this growth portfolio sector here and we're going to take a look and so what you're going to see here in this slice is four different stocks we've got tesla google amazon and facebook as well now when we take a look at these companies you can see that the actual percentage over here let me actually get my little marker here so the actual is at 40 and the target is at 25 so what happens is of course we want to potentially change this up based off of our needs for this portfolio but then when we take a look at these other stocks here we can see google's at 21 actual and our target goal is 25 so if we go ahead and clear this out we're going to click on this edit button right over here now if we go ahead and click on here it is going to bring up our options to change the percentages now we can do a couple things for example let's say we do want to bring this up to 40 to match up where we currently are because maybe we want to keep on investing with tesla and let's go ahead and say that you know 15 percent uh we're gonna go ahead and lower it onto google and we're gonna click on save now sometimes people might fear that because they move the google stock down to 10 percent that it is going to force a sale on on where they're currently at and that's actually not going to be the case google is not going to be sold right over here just because the target is 10 and its actual is at 21 what's going to actually happen is every time money gets deposited and money gets into our growth slice then when that money gets trickled down in here it's going to go into the different stocks that are technically under on their targets and tesla's gonna be one of them and it's not gonna go into our google account here or google stock i should say until this percentage is closer matched so as an example right now of course because there's about eighteen hundred dollars in this account if we put in a thousand dollars into this account there's a good chance that the amazon stock the facebook stock and the tesla stock are going to get 99 of that if not all of it and what's going to happen is that this percentage for that 20 is going to drop very close down to that 10 percent because google's not getting almost any of that money that's getting deposited now if that sounds a little confusing another thing to keep in mind is you can actually change all your percentages and then have the option to rebalance right over here now rebalancing does possibly cause a taxable event if you are in a taxable account if you're a retirement account that's a little different but in a taxable account rebalancing what that means is it's going to sell off 21 or 11 of the google stock and utilize that money mostly towards the amazon and the facebook account so those are only going to happen if you actually click on the rebalance button itself but if you don't do anything else it's practically going to just stay where it's at until money flows into this account and fills up the amazon and it fills up the facebook to their target percentages so if you do that it's not gonna hurt you whatsoever you're gonna get this funky looking graph for just a little while over here you see uh this right over here this is google and then the rest of these are uh facebook and amazon and then this is the tesla stock so you can actually hover over them and it'll say google well it says alphabet but tesla facebook and amazon so you'll get this funky looking graph for a little while until money pours into this account and funnels into these other stocks uh the nice thing is if you really wanted to let's go ahead and revert this back to where we were originally just to kind of give you one other example so we're gonna go ahead and save here so if we go back to our original example here what's gonna happen is tesla is gonna go back to looking well overstocked here because they are way over the percentage and then these are going to go back to their regular percentages for their target so what that means is when we deposit money into this account then these are going to be the three that actually get the money put in there and tesla is going to be the one that receives nothing because they are well over their target now another thing you can also do too is if you are still wanting to buy into tesla you can actually do manual purchases so that way you can still be buying into them even if they are well over your target percentage so you can see this little dot right over here and that means i'm actually doing a manual purchase onto tesla and if you want to learn how to actually do a manual purchase into an individual stock or even a sector i want you to check out my video right over here to learn exactly how to do that my name is dennis and i will see you in that next video

Channel: TruFinancials

Views: 3,462

Rating: 5 out of 5

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Id: g-0hHs_FvWw

Length: 5min 45sec (345 seconds)

Published: Mon Nov 02 2020