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This website is not an advisor in any way, shape, or form. Results can greatly vary and are not guaranteed. Financial advice that could be right for me or someone else may not work or be right for you. Consult your financial advisor before making any decisions. The smart money says do not invest any more than you can afford to lose. That being said… let us dive in!
M1 Finance is a hybrid type of Robo-Advisor. This one is a little more hands-on to set up but runs automatically once you do.
M1 Finance
M1 Finance has become my go-to for Robo-Advisors. Some of the other companies have been around longer and I have had accounts with them for longer. M1 Finance has come through with a ton of great features. The feature I like the most is they sell partial shares. Instead of being forced to buy a full share of $450 dollars, you are able to purchase a smaller percentage.
M1 Features
Automation
Setting up recurring payments or deposits will be automatically invested as you have specified. Your investments will be used to rebalance your portfolio to give you optimized exposure levels.
All Experience Levels Welcome
When setting up your account, you are asked to set up a portfolio, called a pie. This pie is your balanced portfolio. You may create your own pie or choose from a premade selection that is already established. This is great for new investors that need some assistance and great for established investors that know their way around.
M1 Borrow
Once you reach a balance of $10,000 in a taxable account, you can receive a variable rate, low-interest line of credit based on 35% of your
Minimize Tax Liability
M1 Finance does not automatically take advantage of tax-loss harvesting. If this is something you are interested in, you would have to do so manually, if that is even possible. M1 Finance uses a different strategy to minimize your tax liability. By selling off assets first that have zero capital gain, you avoid taxes here. Once those are sold off, your long-term assets, followed by your short-term assets.
Fees
M1 Finance is typically free of commissions or fees. There are some underlying hidden fees that can be triggered when not careful. To obtain paper copies of confirmations, tax statements, or account statements there is an understandable fee. An outgoing transfer to another brokerage will also demand a fee. Also, any regulatory fees when you sell a stock are passed onto the user. More details about their fees can be found on the M1 Finance Website: Fee Disclosure Page.
Conclusion
M1 Finance Pros
- No fees or commissions
- Automated rebalancing, if you want it
- Invest in fractional shares
- Custom and expert pies to choose from
- Digital bank account and debit card options
- IRA: Roth and Traditional Accounts
- Checking APY and Cash Back for M1-Plus Members
M1 Finance Cons
- $100 minimum initial deposit
- Only stocks and ETFs traded on NYSE and NASDAQ
- SIPC insured up to $500,000
- No tax-loss harvesting
- Cannot view or manage external investments
- Trades Only Once Per Day (Two for M1-Plus Members)
- Not For Active Traders
See More Free Stock Trading Here!
Links
Links
Links