M1 Finance Review

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M1 Finance Improves Intelligent Investing

M1 Finance was founded in 2015, a few years after Betterment, but they are already leaps and bounds ahead of other robo advisors in intelligent investing.

Built in Chicago, M1 Finance is an online investing platform that offers the best features of both robo-advising and a brokerage platform. M1 Finance provides automatic rebalancing, recurring deposits, algorithmic tax efficiency, and in depth market research. You can build your own portfolio, copy a portfolio designed by Wall Street experts, or set-it-and-forget-it with their robo-advised model portfolio. You can even combine these strategies by taking slices from expert "pies," adding self-selected stocks and ETFs, and then putting everything on auto pilot.

Best features from M1 Finance

Dividends — Dividend income can be automatically reinvested in your portfolio once it reaches at least $10. If you want to control your dividend investments and treat it as income then you can turn this feature off under settings.

Trading times — M1 Finance makes all trades at 9 AM Central Time each day that the New York Stock Exchange is open. No trading can take place outside the trading window.

Tax reporting advantages — M1 Finance does not include Tax loss harvesting but they built in a tax-efficient investing algortihm that uses lot allocation strategies. When you sell securities the algorithm reduces the amount owed on taxes for every trade. The M1 Finance platform also integrates directly with TurboTax + H&R Block.

Using margin accounts — Since M1 Finance doesn’t hold any of your portfolios in cash, your account is established as a margin account if it has a balance of over $2,000. The margin account status enables you to withdraw money quickly from your account without having to liquidate asset positions.

Free expert trading advice — You can schedule a free consultation with a product specialist who will show you around the platform and discuss how it will benefit you.

ETFs available for trading> — M1 Finance has nearly 2,000 ETFs available for you to choose from, as well as any individual stocks that are available on either the New York Stock Exchange or the Nasdaq. (Preferred stocks are excluded.)

Investment protection — The SIPC covers up to $500,000, including $250,000 in cash, against broker failure.

Lending through M1 Borrow — M1 Finance now offers an instantly accessible portfolio line of credit with an APR of 3.75%. To qualify, you must maintain a margin brokerage account with a balance of at least $25,000.

High Yield Portfolios To Use

Income Dividend Pie

I designed this portfolio to collect passive income. Set M1 Finance to reinvest your dividends, increasing your future payouts, or pull them out whenever you want. Either way the funds in this portfolio pay out 1.93%, 2.34%, and 3.33% respectively.

Techology Growth Pie

My technology portfolio is focused on a long term growth strategy. This portfolio contains a diverse set of companies with both long term growth potential and those with an established market share + dividend yield to reinvest.

Warren Buffet Strategy Pie

Warren Buffet, legendary value investor, invests in companies that hold higher intrinsic value than they are trading on the current market. This portfolio is an exact match to Warren Buffet's quarterly 13F filing.

Recession Proof Pie

When a recession happens it's tough to keep your money in the market. This portfolio is designed to invest in companies and ETFs that would benefit or historically have out performed the market during a recesssion.