M1 Finance Review
By: Heather Hanks Feb. 03, 2020
M1 Finance is a smart money management tool that can help you take control of your money. The app is designed for the intelligent investor. It offers personalized advice for your finance needs. You can use it to invest, borrow, spend, and more. Most of the features are free. However, you can upgrade to a higher tier version of the app for even more investing power.
M1 Finance allows you to benefit from more efficient transfers, free investments, fractional shares, and lower cost loans. It offers a three-in-one platform for you to do all of your financial work. You’ll also earn money for each friend you refer to the app. Check out our M1 Finance review below to see if this app is right for you.
What is M1 Finance?
M1 Finance is a money management app brought to you by a team of experienced, investment-driven people. The company was founded by Brian, who was always serious about investing money but didn’t like doing it with the tools currently available. The company believes that the financial industry is outdated and that there is a better way to manage personal finances. The team’s goal is to benefit their customers by permanently changing the financial industry.
The app offers personalized features and tools that are easy to use so that you can get control of your financial future. You’ll enjoy an automated and integrated platform that allows you to invest, borrow, and bank all in one space. This platform allows you to put your money to optimal use so that it can reach its full potential. M1 Finance partners with trustworthy partners. They ensure that your personal information is always secure. They promise to operate through transparency, openness, and honesty when it comes to their services and policies.
What does M1 Finance offer?
You can download the M1 Finance app for free. However, there is an upgraded version of M1 Finance called M1 Plus that offers even more benefits, but it will cost you $125 per year. Both services offer an M1 Finance investment account. You’ll get features such as unlimited free trades, dynamic rebuilding, custom portfolios, and fractional shares. Other features that are free with both accounts include expert portfolios, investing schedules, and built-in tax efficiency.
M1 Plus allows you to take advantage of two trade windows per day while the free account only allows for one. Both accounts offer a flexible line of trade for you to borrow from. There is a minimum portfolio requirement of $10,000 to qualify for this feature. The base rate for the free version of the app is 3.5% while the M1 Plus rate is 3.25%. Both versions offer flexible payback options and no impact on credit. Checking accounts are also included in both versions. You’ll get a debit card with both versions.
Here is a breakdown of the three primary services M1 Finance offers:
How does M1 Finance Work?
M1 Finance works by combining all of your investing, banking, and borrowing needs into one platform. The app allows you to build an investment portfolio for free. It tracks your activity and uses this information to take action. You can schedule weekly, bi-weekly, or monthly deposits to make sure you’re always invested in a manner that works for you. Pick the ETFs and stocks you want to invest in and set target amounts for each one. The app uses intelligent automation and fractional shares to invest your money.
Fractional shares refer to the equity in a security less than one full share. The app will split each of your shares into 1/100,000th of a share. This allows you to trade exact amounts based on your portfolio targets. Intelligent automation is designed to maintain your custom investment portfolio. It uses a proprietary trading system that is based on your Pie-based portfolio to align all of your trading activity. This means you will never have to make any trades manually.
This information is determined according to your target allocations. It’s designed to help you earn the most from your money. You can also use the app to access a flexible portfolio line of credit as soon as your value reaches $10,000. You can use this money however you want. You’ll get a M1 Spend checking account that allows you to pay back your loan on your own schedule. Use it to make direct deposits and automatically invest on your terms.
Here’s are some important features about M1 Borrow:
Other Notable Features of M1 Finance: The Pie
M1 Finance offers personalized accounts to fit your needs. Choose from individual, joint, IRA, or trust accounts. Individual accounts are ideal for basic investing needs. Opt for a joint account if you want to include your spouse, relative, or partner. IRA accounts are available so that you can invest with SEP, traditional, and roth IRAs. You can also use a M1 Finance trust account to manage your trust investments. The app offers a pie-based interface to view your entire portfolio known as “the Pie”.
You can pick from the following pies:
Basic investing pies
this includes a diversified portfolio based on your risk tolerance
Hedge fund professionals
this pie lets you mimic investment methods from some of the world’s top hedge fund managers and experts
Responsible investing
this pie is ideal for those interested in social responsible investing
Specialized industries and sectors
this piece allows you to invest in specific areas
Planning for retirement pies
use this pie to help plan for your retirement date
Income-based pies
these pies are based on your income returns and dividends
Stocks and bonds
invest in a portfolio that includes two EFTs that are centered on stocks and bonds
Others
you can find additional pies based on your financial goals
To build your pie, you’ll need to follow a few easy steps. Here’s how it works:
1
Pick an investment and add it to your chart.
Each pie “slice” represents one investment.
2
Select the target weight for each one of your slices. This number will be represented as a percentage. It indicates how much of that particular slice corresponds with the rest of your portfolio.
3
Add funds to your pie. Money will automatically be added to your investments. These are set to align with your target asset allocation.
4
View your portfolio performance anytime! Each slice will grow or shrink depending on how well it’s doing. Slices that are not doing well will even out and return to their target as long as you continue to fund your portfolio. You can edit, add, or remove your slices anytime!
M1 Finance: Pros and Cons
The M1 Finance app is a three-in-one platform to help you get the most out of your money. It’s a great option for those who do not have much time to spend managing their portfolio. The app will make regularly scheduled payments to your portfolio. You can manage your investments anytime. However, there is no chat technical support or financial advisors available. You might need to do some research on EFTs and fractional shares if you’re new to this area. The app will charge if you aren’t active after 90 days. Here are other notable pros and cons to consider.
M1 Finance PROS
M1 Finance CONS
How to get M1 Finance App
You can download the M1 Finance app for free by going to the App store or Google Play. You will need to sign up for an account by entering your email address and a password. Once you create an account, you’ll be allowed to build a pie and get started. The app does not have a risk assessment questionnaire.
Build your own pie or choose one of the expert pies made up of individual stocks and EFTs. Expert pies are located at the bottom of the app. Next, you can pick three items and customize your slices. Your first pie will be saved and you can use it to invest. Check out the video on the website to show you how it works. Lastly, you will need to enter your personal information, including your bank account information.
The above review on the M1 Finance app is based solely on the opinion of Creditnervana. The app is a great all-in-one platform where you can invest, spend, and borrow without much hassle. We like that there is no fee for many basic features. This includes a free checking account, portfolio, and more. You can also borrow money for free once your portfolio reaches $10,000 in value. M1 Plus is an advanced version of the app that costs $125 per year. It features a reduced interest rate for borrowing. We recommend going this route if you plan to borrow.
M1 Finance terms are flexible. You do not have to borrow. If you do, you are only responsible for paying back what you borrowed. Interest rates are 3.50% for free members and 3.25% for M1 Plus users. However, you will want to become familiar with portfolios and investing before checking out this app. There are no user fees (aside from the $125 for Plus members). The app uses pie charts to display your portfolio information. You can check out the resources on the website for more information about portfolios and investing.
Disclaimer
CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.
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