Selecting the right investment platform can make or break your financial condition.
Over a lifetime, fees and other costs can add up to tens of thousands of dollars. So, you’re undoubtedly interested to learn about a company like M1 Finance that says it can create an investment portfolio at no cost.
Which is unlocked?
Does a catch exist?
Comparing M1 Finance to other free brokerage services, how does it fare?
This review will examine M1 Finance to determine whether it is the top investment instrument.
You’ll discover if stock trading is your ideal web venture.
You may discover answers to some of the most frequently asked questions about M1 Finance and stock investment at the end of the article.
However, the most significant thing is that you’ll discover the precise strategy many others have employed to grow their internet marketing businesses to over $40,000 a month in primarily passive income.
Because it uses some of the same talents in a far more effective and profitable way, this approach made them swear off stock investing forever!
You probably discovered M1 Finance for the same reason you might have come across any other financial newsletter, stock trading service, or investment program:
Because you want more money in less time.
And chances are, you want to quickly multiply the money you do have (as opposed to waiting months or even years to see a decent ROI).
This is a really exciting promise, and it’s probably why the financial publishing and training industry is worth billions of dollars.
The problem is, because the idea of doubling, tripling, or 10X-ing your money in a few minutes to a few days is so enticing, there are a ton of shady characters in this space.
But, putting that aside, let’s say every investing guru and “trading expert” on the internet had the best of intentions.
Even with proprietary algorithms, a room full of supercomputers, and a team of rocket scientists, most of these experts would be lucky to get it right 20% of the time.
Now sure, we’re talking about asymmetric bets here, so theoretically the winners should more than make up for the losers.
But in order to make that happen, you can NEVER miss a trade. With a 20% success rate (speaking optimistically), one missed winner could turn a profitable month into a loser.
That’s a lot of pressure and a lot of stress (not to mention a lot of losing) with not much certainty.
But what if there was a way you could build a passive income stream that’s actually passive?
An income stream that doesn’t require:
- Constantly monitoring your phone for buy/sell alerts
- Obsessively watching charts and movement
- The emotional roller coaster and angst of hoping one winner can cover the last 8 losses
- Gambler’s odds (20% chance of success is worse than the odds of winning at Blackjack)
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day monitoring charts, trades, and alerts?
If that sounds like something you’d be interested in, check out Digital Real Estate.
However, if you’d still like to know more about M1 Finance, keep reading.
What Is M1 Finance?
M1 Finance is a financial platform and Robo-advisor that combines features from other already-available investing providers.
The business is based in Chicago, Illinois, and found in 2015. Its parent organization is M1 Holdings Inc.
M1’s assets under management now exceed $3 billion.
Brian Barnes, the company’s CEO, founded M1 because the financial services industry had lacked substantial innovation for far too long, and he decided it was time for a change.
Barnes then did just that: he built a one-of-a-kind, revolutionary product. M1 is an excellent place to start if you’re unsure how to purchase stocks.
M1 Finance automates your investing, so you don’t have to. However, it also allows you to hand-pick your investments, which is something that most other Robo-advisors do not provide.
It is similar to other Robo-advisors in that it refers users to a questionnaire that assists in risk assessment.
Other Robo-advisors may merely use this questionnaire to establish your stock/bond allocation, while M1 uses it to recommend multiple portfolios.
Those with a lower risk tolerance will hold more bonds, while those with a higher risk tolerance will hold more stocks & exchange-traded funds (ETFs).
However, these are merely recommendations. You can still build your bespoke portfolio from the bottom up.
M1 Finance is a FINRA member. The SIPC ensures that each investment portfolio is up to $500,000 in value.
Furthermore, the FDIC will protect up to $250,000 in cash in M1 Spend. In addition, unlike other popular apps like Robinhood, there is no trading commission.
How Does M1 Finance Work?
M1 Finance offers you the best of both worlds. A traditional online brokerage where you may invest in individual stocks and ETFs with no trading fees and a free Robo-advisor that assists you in determining the right asset mix depending on your goals and risk tolerance.
M1 Finance doesn’t charge asset management fees, which sets it apart from other Robo-advisors.
For comparison, many Robo-advisors charge .25 percent. Financial advisors typically charge around 1% each year.
M1 Finance provides brokerage services since you can invest in individual stocks & ETFs (but not crypto). When trading equities or exchange-traded funds, there are no costs.
Aside from selecting which stocks and ETFs to invest in, M1 allows you to design a “Custom Pie” or choose from an “Expert Pie.”
M1’s “pie” investment technique is similar to funds in that it helps you diversify your portfolio by allocating portions.
You can create unique pies, select curated “expert” pies, or allocate your investments to a combination of both (for example, a pie of pies).
When your cash balance reaches $10 or more, M1 Finance will invest new funds.
Account Types & Services
You can open taxable, joint, and Roth IRA accounts with M1 Invest. Additionally, you can fund a Traditional IRA, a Rollover IRA, or a SEP-IRA.
Pie templates are available for many investment categories on the M1 Invest platform from M1 Finance.
It encompasses all types of investing, such as general, retirement, income portfolios, and hedge funds. As a bonus, M1 provides tools for socially responsible investing, allowing you to invest while making a good impact.
M1’s new service, Smart Transfers, was launched in October 2020.
As previously stated, M1 Finance offers the standard taxable and joint account options and Roth, Traditional, and Rollover IRAs.
A minimum deposit of $500 is required to start a retirement account. Each retirement account enables you to select your investments.
We enjoy how the program incorporates pie portfolios for impact investors. Fortunately, socially responsible investing is not a fad or a trend; it is here to stay.
Other leading Robo-advisors also incorporate socially responsible investing choices into their portfolios.
What are the disadvantages of M1?
We discovered two: there is no provision for the tax-loss harvesting, and there is no possibility of investing in mutual funds. Investors can invest in a wide range of ETFs and purchase fractional shares of stock, so your options aren’t precisely limited.
M1 Invest: Building Your Portfolio
The primary feature that sets M1 apart from other investing platforms is its investment pies.
Pie investing enables you to build a unique, simple-to-manage portfolio. Additionally, buying fractional shares makes investing profitable and entertaining.
What Exactly Are Investment Pies?
Investors can create “pies” with each asset representing a single slice using investment pies. Bonds, stocks, or exchange-traded funds may make up these segments (ETFs).
Every time you invest, M1 automatically balances each component to fit your objective allocation.
These pies are what they sound like: individual “slices” of specific stocks, bonds, or low-cost ETFs. They can also put to any level of risk tolerance.
When you initially sign up, you’ll receive a question to choose three stocks, funds, or expert pies. You can also conduct your search if you prefer.
M1 Finance’s site contains thousands of different equities, stocks, and ETFs, so you should have no trouble choosing the ones you want to buy.
M1 Finance, however, does not provide mutual funds.
Funding Your Account
You won’t be required to make the first deposit when you go through the setup process. However, you must make a minimum deposit of $100 before you can start investing on the platform.
For retirement accounts, a $500 initial minimum investment is a necessity.
It’s also worth noting that there’s a $10 minimum for each deposit if you wish to enable automated deposits.
You’ll be asked to add your bank account via Plaid during the setup procedure. You’ll see a list of popular banks, or you can search for your bank if it isn’t listed.
You can also manually add your bank by entering your routing and account details.
On the other hand, M1 Borrow is a low-cost credit line that allows you to borrow money against your M1 Invest balance.
If your total account balance is $5,000 or more, you are eligible to borrow up to 35% of the value of your portfolio account at a base interest rate of 3.5%.
This line of credit can be used as an emergency fund, for a significant purchase, or to consolidate higher-interest obligations. Members of M1 Plus can borrow at a base rate of 2.0 percent.
Borrow can also be viewed as a Margin Account, implying that you can use and reinvest the money you borrow.
Please consider that there are certain additional risks associated with margin accounts, but the idea is that by investing it, you can make more than the borrowing rate (2.0 percent – 3.5 percent ).
A free checking account with direct access to your other M1 services, the M1 Spend account was made available by M1 Finance in the middle of 2019.
There is no minimum balance requirement for this checking account, no monthly or annual fees, and it is FDIC-insured up to $250,000 in value.
If you like to keep track of your finances in one location, M1 Spend is an excellent alternative.
You’ll be able to transfer funds between M1 Spend, Invest, and Borrow accounts. M1 will also send you a Visa debit card at stores and ATMs.
An M1 Plus account adds additional perks to this account.
The premium membership package made available by M1 Finance is called M1 Plus. For the $125 annual charge, you receive many benefits:
- Your M1 Spend checking account balance will earn 1.0 percent APY.
- 1% back on all transactions made with your M1 Spend card
- The M1 Spend metal tungsten debit card
- Your M1 Invest account now has more trading choices.
- 1.5 percent off the M1 Borrow line of credit’s interest rate
Is M1 Finance Trustworthy?
M1 is a safe and dependable organization, yes. Your cash deposits are FDIC-insured, and M1 is a FINRA member. Investments are also SIPC-insured.
As a result, you can trust M1 Finance and not worry that your money is protected.
Even though M1 Finance is pretty new, there is little cause to have worries about the company. Moreover, M1 is an American corporation in downtown Chicago, IL—not some distant foreign country.
Is M1 Finance Good For Beginners?
For those just getting started with investing and for those who like to set it and forget it, M1 Finance is a fantastic, free Robo-advisor.
Excellent features that simplify investing on the site include free transactions, fractional shares, and simple asset allocation.
If you’re only getting started or want to eliminate friction in your periodic investment, I highly recommend M1 Finance.
Can You Lose Money In M1 Finance?
Risks associated with investing include the potential loss of your initial investment. Future success can’t predict based on past performance.
Before borrowing, customers should know the risks associated with using M1 Borrow’s margin account. It’s critical to seek professional guidance when managing your finances and cash flow.
What Is The Minimum Deposit For M1 Finance?
The minimal initial deposits are listed below:
Individual accounts: $100 as a minimum.
Retirement accounts: Minimum of $500.
After the initial deposit, you can deposit any amount greater than $10.
Is M1 Finance FDIC Insured?
SIPC (Securities Investor Protection Corporation) protects a client’s stocks and cash.
Up to $500,000 is covered by SIPC protection, with a $250,000 cash cap.
SIPC does not protect you against any drop in the value of your securities. The company’s clearing company, Apex Clearing, has also obtained extra insurance if SIPC limitations are exhausted.
M1 Spend & M1 Plus accounts are FDIC insured up to $250,000 and further covered by Lincoln Savings Bank.
Is M1 Finance A Scam?
So, is M1 Finance a scam? Not technically. You can make money with it, but it’s definitely not as easy as the company makes it sound.
Again, with any kind of financial product (especially trading), you’re taking on a lot of risk.
Sure, you could hit it big and retire in Italy, but chances are you need the stomach and financial cushion to weather tons of losses before you get there…and it may never happen.
Most of the big gains numbers these companies use in their marketing (“xyz grew by 4,112% in 3 months” or “this option made 324% in just 2 days”) are cherry-picked.
They don’t tell you about the 10 100% losers that came before.
In other words, if you invested $100 into 11 recommendations, you’d lose $1,000, and make back $324…so you’d still be out almost $700.
Most people don’t have the fortitude to stick it out through 3 straight months of losers in the hopes of landing one big winner.
What if, instead, you took those same 3 months, invested just a couple hours a day (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To M1 Finance?
Yes, there are plenty of other business models to choose from if you want to pursue making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1. It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2. You Own & Control EVERYTHING: With anything in the financial markets, you own and control NOTHING. You have no say in price fluctuations, demand, or what the market will do.
Trying to beat the market is fighting against the tide. There’s just too much working against you, no matter how many supercomputers or rocket scientists are on your side.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.
3. Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
1. Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with any kind of trading or investing, you’d have to double your initial capital OR double the average order size of your existing trades. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
2. Make Money Helping Real People: This part is what makes it all worth it. In the financial markets, you might be helping your family, but the impact never goes beyond you and maybe a few others.
But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like M1 Finance which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.