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This content is for informational purposes only and is not intended to provide financial advice.
M1 Finance is one of the top hybrid services out there of robo-advisor and stockbroker. It’s low cost, has template portfolios you can customize, and there is even easy pie investing with simple and straightforward portfolio management. There are many of these platforms, so why pick M1 Finance? Let’s break it down.
M1 Finance Review – The Breakdown
M1 Finance may not work the traditional way, which is asking users to fill out a questionnaire with questions that help the platform figure out what it is they want. Instead, M1 Finance lets you do the picking (that’s the brokerage part) and M1 Finance will handle the rest with automatic buys and sells, which takes a lot of the time off of your hands.
There are template portfolios ready, over 80 of them, ripe for the picking called pies. They are diverse with stocks that are considered high-risk and very conservative. Once you have your portfolio ready, you can enjoy the other features of M1 Finance by picking from the M1 Plus or M1 Basic plans.
Features of M1 Finance
M1 Basic, Plus, Borrow, Spend
The M1 Plus is the upgraded plan that will cost you $125 a year, but don’t worry because we have a discount link for that at the end. The basic plan is what everyone starts with, and it’s very attractive because it’s free.
How does the upgraded plan compare to the Basic and other affordable platforms like Betterment? You get access to features such as both morning and afternoon trade windows, Smart Transfers, margin loans with discount rates, lower interest on debit card cashback purchases and your cash management account, and more.
If the margin loans caught your eye, then you’ll be happy to know that the interest rate is very low at 3.5% for the Basic plan and just a mere 2% with the M1 Plus. Our M1 Finance review showed us that we only need $5,000 to access a margin loan – unlike some other platforms.
M1 Spend is what encompasses the cashback feature. With M1 Spend, users get a debit card with a 1% cashback rate, and monthly ATM fee reimbursements.
Automated Investing
M1 Finance allows its users to engage in automated investing in a customized way. As we mentioned, M1 Finance does things a bit differently and they let you have control over what’s picked. Once you set up your investment portfolio exactly the way you want it, you can sit back and let the platform do its magic.
Each portfolio is a pie, and you can create multiple ones that adhere to different financial targets and purposes. Of course, if you don’t have as much experience or you like what M1 Finance has already put together, then you can go with one that’s already created.
One-Click Rebalancing
Most platforms boast about automatic rebalancing, but M1 Finance focuses on giving you the control, so it implements one-click rebalancing. It’s basically the same as automatic rebalancing in terms of function, but the difference is you can choose when to do it.
Smart Transfers
Smart Transfers was a feature we mentioned as an M1 Plus plan perk, and it is significant enough to warrant its own category. We like this feature because it automates things – making your life easier. You have the control and set up everything you want your account to do, and it will do it automatically. One such command is to never have less than a certain amount in your account.
Portfolio Management
Portfolio management with M1 Finance is made easy with access to a variety of assets. This M1 Finance review breaks down what the service offers.
General Investing
This is the general portfolio type that resembles what you would get with other robo-advisors. Each one is tailored to the user’s risk tolerance.
Retirement
The retirement portfolio is centered around ETFs. The goal isn’t so much the amount, but the retirement year – in 5-year increments. You can also choose the level of aggressiveness.
Stocks and Bonds
The stocks and bonds portfolio is one that includes what’s available on the global markets.
Socially Responsible Investing
With much of the population being more socially aware, banks and banking institutions now include socially responsible options. You can choose from a US or international socially responsible investing portfolio.
Hedge Fund Copies
Not sure what to go for? Go for the hedge fund copies, which are portfolios that mirror ones from the big hedge funds but without you having to pay exorbitant prices. M1 Finance gives you options to choose from the big hitters such as Berkshire Hathaway.
Conclusion
M1 Finance has a basic plan that is free of charge. It’s a great service because you can take the platform out for a test drive. If you like it, you can consider upgrading to M1 Plus because you do get a lot of benefits and valuable tools with it. If $125 is a bit steep, use our discount link to get a good deal.
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