M1 Finance – Why It’s The Best Investing App – Free Trades, No Fees, Partial Shares, IRA & Roth IRA

Updated : Aug 31, 2019 in Articles

M1 Finance – Why It’s The Best Investing App – Free Trades, No Fees, Partial Shares, IRA & Roth IRA

hello everyone and thanks for tuning
into the financial investor channel my name is Brent and today we’re gonna be
covering the topic of signing up for m1 finance so I was looking for a platform
that my wife could begin using to create her Roth IRA I had I wanted to create a
retirement account for her so I had looked at Fidelity vanguard TD
Ameritrade Charles Schwab that looked at my Merrill edge but a lot of them had
minimum deposit or they had there were commissions and you know I was trying to
look for the best platform you could buy ETF say on Vanguard you could buy some
Vanguard ETFs free but they do have expense ratios TD Ameritrade had a
variety of like I shares and different different ETFs
but a lot of them had minimum balances and some of them had fees or expense
ratios so I wanted to kind of look around a little bit further and I waited
until M ones finance recently removed their fee so we will be covering the m1
finance up the add the sign up process and why I believe m1 finance could be
the very best app for new investors so here we are we’re gonna be signing up
for our m1 finance now I’m going ahead and continuing to use the chalkboard
background I kind of like this format if you guys have a preference whether going
in the PowerPoint with the white chalkboard or the power or the
whiteboard or going over an article on my website go ahead and let me know on
the comments below so I’m gonna lift off six reasons or you
know this is all information that’s on their website I pulled off the most
relevant information to kind of let you guys take a look at so number one it’s a
very powerful solution ym1 Finance gives you the ability to buy partial shares
whether you’re investing with $100 $500 or $1,000 your hundred dollars could be
put towards Amazon Google and say Boeing all of these companies are priced out
over $200 but with a hundred dollars you could buy partial shares of all three
inside your portfolio number two are still owned number one it’s free of
commissions and fees that it’s you know similar to Robin Hood Robin Hood has no
Commission and when Finance has no Commission they just got rid of their
fees their fees were like 0.25 for the year if you had less than five thousand
dollars invested so 0.25 of a thousand would be two dollars and fifty cents per
year for that thousand or if per quarter or per month it was like 20 cents per
month which would add up to two dollars and fifty cents over the year they got
rid of all that so this means it’s a great platform for new investors
beginning with $50 $100 thousand dollars it doesn’t matter because it’s
completely commission free and you can buy partial shares number two you can
create retirement accounts again I wanted to create my wife a Roth IRA to
begin her investment journey because I want to tax shelter her capital gains
her dividends her interest I don’t want to worry about having to pay taxes on it
you know in the following years I don’t want to have to babysit the fund you
know I’m gonna try and buy some blue chip companies that don’t have
she can buy and hold them for the long term reinvest money monthly it’ll by
partial shares it automatically does rebalancing if we take a look at number
five so I wanted to create her Roth IRA inside a retirement account and when
Finance lets me do that number three hey lets you grow your savings over time
because you’ve created your Roth IRA this allows you to grow your retirement
a lot faster because you’re you don’t having to pay taxes on your capital
capital gains you’re not having to pay taxes on your dividends you’re not
having to pay taxes on your interest all that money is being reinvested back into
your Roth IRA and we’ve never covered IRAs or Roth IRAs we have covered 401ks
and Roth 401 k’s i will be making some videos covering IRAs and Roth IRAs I
believe that’s a good very good video so look forward to that number four if
you’re buying partial shares if you have a hundred dollars and you are buying
three stock with it say you bought Amazon Google those are both both of
those stocks are over $1000 and you bought Boeing you would buy 33% of
Amazon 33% of Google and 34% of Boeing for a total percentage of a hundred and
your hundred dollars would go towards that money so you don’t like thirty
three dollars of amazon thirty three dollars of Google and thirty four
dollars of Boeing as you add money into your portfolio it would automatically
rebalance to how you want this specific account to be
balance so if you want 30% of your money to be in the stock when you put more
money into there or if the dividends are deposited into the em1 account those
deposits here go directly they fund the ax prop under weighted slices so if
you’re sitting at 34% on Boeing 33 and 33 on Amazon and Google it’ll split up
between Google and Amazon and then all three of them will have 34% now and then
as you continue to funnel money and/or if you get any pay dividends that’ll
continue to kind of increase those PI levels at the root at the needed levels
and it looks like they do some sort of tax minimization so it uses a long a
location strategy when selling securities to help reduce the amount
owed on taxes automatically but I’m gonna be creating a Roth IRA in an
upcoming video and you’re gonna see that whole process and I’m not gonna have to
worry about paying taxes on my wife’s account because all of those capital
gains all of those dividends and interest will be taxed sheltered and
tell she’s 15 and a half or if she wants to withdraw her contributions that she’s
made to the Roth IRA she can do that with no penalties you know it’s that no
fault to her so broth I arrays you can always withdraw the money that you’ve
deposited into it that you’ve contributed towards it but you cannot
pull your capital gains or dividends or the interest until fifteen and a half
without receiving a 10% penalty and you have to have the account the Roth IRA
active at least five years before you’re able to withdraw the capital gains he
dividends in the interest that means if you made it at say fifty six you would
have to wait until 60 the minute at fifty six so you’d have to wait until
your 56 you’d have to wait till you’re 61 and
a half to begin withdrawing those contributions tax-free or you would have
that penalty penalty so that’s a very quick snippet of whatsit you know a Roth
IRA and some of the you can always withdraw your contributions so I think
Roth IRAs are amazing so now we’re going to be going over the signup process so I
went over to the m1 finance comm website click on invest now you can see I
selected them both the little red icon there you then enter your email address
that whatever your extension is at gmail.com you then enter your password I
use used everyone’s fenneis yes this isn’t my real password and then you
click sign up once you’ve done that you’re gonna go through a few screens
you’re gonna go over what’s next you’re gonna start here you’re gonna hit
continue it’s gonna tell you about building your portfolio it’s gonna show
you how you can design your portfolio you can either buy like an ETF that’s
moderately aggressive so you can buy like multiple ETFs so this one has
moderately aggressive and tech buyers at number two with Amazon and Facebook and
then it kind of continues to you can choose to slice your m1 expertise
designed for specific goals like retirement or general investing or you
can also add any stocks or ET as for the New York Stock Exchange or the Nasdaq as
a slice of your portfolio and in the end here number five you would end up with
your very own personalized portfolio however you want and you can even add
custom pies to it now let’s go ahead and begin building
your very own and one portfolio so I’ve used them excuse me I’ve used a platform
like this in the past that offered partial shares it was motive investing
but it was super expensive I was paying $10 a month I mean it’s not super
expensive it was $10 a month I could have unlimited trades after our
show for $10 a month I could put in if I wanted to buy
partial shares that’s how I got started in the stock market back at 2015 I
bought an e-commerce merchant motive which had a bunch of e-commerce stocks
such as Amazon Alibaba and a whole bunch of other ones so that’s how I got
started on motive and then I recently switched over to Robin Hood in 2017 and
then over to Merrill edge I’m opening up and once financed because I think
partial shares are great for new investors because that gives you the
ability to invest your full amount that you’re willing to invest into something
you know it’s not money sitting your account that you’re not able to invest
if you have five dollars you can’t buy Ford or Facebook or Amazon because those
are way out of your league but with partial shares you can own a piece of
that company and you’re not having money just sitting on the sidelines so next we
would hit get started once you’ve done that it’s gonna go ahead and start you
off at your expert PI’s now these are PI’s that you can select you can do your
general investing which it kind of gives you a breakdown of what these are
considered these are just PI’s for the ideals of who want a broad market
exposure at a low cost so this might be like the S&P 500 ETF sicles / earner
income earners we have just stocks and bonds plan for retirement the hedge fund
followers the other strategies they’re responsible investing and we have
industries and sectors so you can start off by using some of their expert PI’s
or you can take a look at your own PI’s you can go to build your own PI so if
you click on your own PI’s you can see that you haven’t built any PI’s yet but
if you click over on funds you can begin to add different funds your PI so here
we have a whole bunch of funds here you can sort so what it by the minimum or
the maximum of the total asset so if you’re looking for an ETF with a very
high market cap you could definitely look for the market cap there and the
billions billions would be very nice for brand new investors you can look for
dividend yields so look for dividend yield ETFs with say a minimum of 2 to 5%
to kind of keep it somewhat safe and then you could look for an expense ratio
so a lot of the Vanguard ones they offer expense ratios a point zero two percent
whereas some of the the specific ones to a specific sector may have higher
expense ratios and the point four zeros or somewhere in that in that range so
you can put in a max expense ratio that you’d like to look for you can also
select categories of alternatives asset allocations bonds commodities currencies
equity arab yes equities and in this industries so you can look for a whole
ton of funds on here and that’s why i think it’s great you’re not just stuck
you know it’s similar to robin hood you can buy funds or stocks again but being
commission free and being able to buy partial shares that means that you can
put in a hundred dollars and you’re gonna get a hundred dollars of a fund or
a hundred dollars of a stock now you can do the exact same thing over here if you
click on stocks you can go over the exact same thing on the right hand side
you can put in your market capitalization you can put in your p/e
ratio your dividend yield so you can look for a p/e ratio of less than say 20
you can look for a market capitalization of in the billions you know you want the
minimum say 1 billion look for what you know whatever your preference is
in yields again between two and five to kind of keep it safe and then you could
begin to look through each sector and find stocks that you believe in in each
of the sectors that way you’re diversified there’s there’s so many
opinions out there about what’s what level of diversification you should be
working with you know some investors out there they don’t believe you know they
believe that five to nine Sox is a good investment no matter how many how much
money you have invested whereas others will say if you have $50,000 or more you
know fifteen stocks is good and they keep them out of 6.6% ratio you know
every other investor is like two to four stalks per ten thousand dollars so it’s
really up to you as a brand new investor with any less than say if you’re
investing fifty five hundred dollars in your very first year I wouldn’t go more
than say three to five stocks just to kind of keep it simple you’re getting
some diversification I would select different sectors or better yet you can
choose yourself an ETF funds such as the SPDR which follows the S&P 500
so you know do your research as to what specific funds you’re gonna go with that
is up to you guys and of course if you want to do some research on there they
do offer the ability to type in a ticker symbol they give you the graph view so
you can look at the one day five day one month three months six month one year
three year and five year graphs and kind of show them there’s other websites that
provide a little bit more information you can see here the market cap is that
two hundred and twenty nine billion this is Procter & Gamble this is one I don’t
currently own but I think for my wife I think it would be a good stock for the
long term she’s probably gonna be starting off her Roth IRA just maxing it
out earlier this year and getting it started that way she can begin to get
dividends built into the year and reinvest those dividends that partial
shares which would be fully invested in the stock market and here we can see
that they recently took a debt towards the end of the day so this could be a
good opportunity to buy but p/e ratio shown at the top here dividend yield
shows up top we can see that the number of employees that this company currently
has the shares outstanding and their current earnings per share
you can also see the news here I like this I like that they provide their news
hold on once I got the call for is my okay there we go ahead a coffee stoking
over mic off and sinuses so let’s see here so it’s pretty reasonable here to
do your own kind of research of course you know I would always recommend doing
research on multiple websites and they do have a pretty decent amount of
information such as the p/e ratio the market cap the dividend yield the
52-week range here so their bottom for 52 weeks is 83 24 they’re 52 week high
as 94 67 they have the end one year increase so far like 2017 they went up
over 10 percent their three-year annualized their five-year annualized
and a little bit about their company here and then the news and you can kind
of expand this more you can click down here and see more and you can see a
bunch of information you can see that there recently on the news so I think
that’s great this is some good information this is much more
information than what prophethood provides this is more information than
what my other investment brokers used to do with much of investing so this one is
definitely one of the better applications that I’ve seen that’s free
commission free and offers you partial shares it offers you retirement account
so I will definitely be signing up for this account I will be having a video
coming up with them and then I will begin to get it and that’s it so I’ll be
making some videos on that and that’ll be primarily set up for my wife and that
is it for this video if you guys found that entertaining if you also believe
that everyone’s finance could be one of the best apps for new investors due to
the commission-free the partial shares the no fees the retirement accounts such
as the IRA the Roth IRA and the ability to begin funding and having all of your
money that you’re willing to invest right now 100% invested then go ahead
and hit the like button below leave me a comment if you are brand new to my
channel or RIA cream you were remember to subscribe that really helps me out
and I really appreciate it thank you guys for watching and if you like the
video again hit the like button below if you have any questions or want to say
hello please leave them I can’t please leave them in the comments and I will
always reply back to you thank you guys for tuning in and I will see you next
time have a great day bye


  • Thanks For Watching M1 Finance Referral: http://mbsy.co/llCjP
    M1 Finance is looking to be #1 Investment App for Long Term Investors 2018.
    I'll be using it and will be making videos of it going forward, if you have any questions – Leave them below.
    Thanks – Brent!

  • I have a Roth IRA account on M1 too. I have 18 holdings. I’m a freak with numbers so I want to add 2 more holdings to be nice number lol it’s in my head … anyway, how many holdings is too much? I love fractional shares!!! No feescommissions!

  • Just opened a new M1 Finance account. Created a pie and am waiting for some funds to transfer. Seems like a great platform. Great way to get at some stocks that I wouldn't be able to afford at full price. Do you receive partial dividends off of the partial shares?

  • I have more than enough to make the minimum balance (for no buy/sell fees) with Merrill Edge and I still prefer M1..lol. We'll see how long that lasts.

  • Brent. Keep doing what you are doing. It is great watching your channel continue to grow. In a way it has inspired me to start my channel.

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