#M1 PORTFOLIO HOW TO#
#M1 PORTFOLIO FULL#
#M1 PORTFOLIO PLUS#

That said, once you’ve learned how to use it, it’s rewarding and fun and a very interesting new way to invest. I recommend limiting your stocks allocation to 25-30% maximum, and ensuring you have at least 25 holdings, with nothing over 6-7% allocated. I’ve been building portfolios for ages, and must say that I wouldn’t recommend stock-picking at all, and that one of the drawbacks to M1 is that it does seem to encourage stock-picking. If you increase/decrease the treasury allocation, split the remainder between US Core, Value Stocks, and US Growth (in that order). Remember, you can alter these portfolios however you like. If you’d like the same portfolio but with 7% in treasuries, just click this link instead.

#M1 PORTFOLIO FULL#

I’m not an affiliate or being paid or anything, although I’ll get a $10 bonus for a referral (which will probably just go to my boyfriend, full disclosure). If you’d like to invest in the same portfolio as me (or any part of it), all you have to do is click this link right here. If you have a regular M1 account, you can only use the morning window. If your account is under 25k, you can only use one window per day, to avoid the possibility of day-trade violations.

#M1 PORTFOLIO PLUS#

For M1 Plus accounts (you get 1 year free of Plus), there’s a second trading window at 3PM. I think the platform is a fun way to invest, and could encourage good behavior.Īn important piece of information to mention is that M1 conducts its trades from 9:30am-10am or so. While this isn’t a huge deal, it’s something I’d like to see changed. M1 treats your allocations as if it were an index. I believe this logic comes from index funds, which by nature, necessarily remain “perfectly” weighted to their constituent index. In short, rebalancing reduces risk, but many studies show that frequent rebalancing can (and does) mute returns. As such, it will invest more heavily in under-performing issues. While many people believe a portfolio should try to stick to its allocations, I believe this is wrong-headed.Įssentially, M1 uses a 0% rebalancing band with a $1 minimum deviation. To me, allocations are about how new money is invested. I’ve always preferred using rebalancing bands, which means only rebalancing my portfolio when a holding has deviated too far from it’s intended allocation. You can also choose to rebalance at any time. This is set at $25 by default, but if you set it higher, it may result in lower trading costs. You can set a maximum cash balance before M1 will invest.

Dynamic rebalancing means that new money is invested first in under-performing issues, attempting to bring the portfolio in-line with your chosen allocations. You can set your allocations however you like, and it will invest in your portfolio, attempting to maintain the allocations you selected. M1 tries to automate as much as possible. You get one free year of M1 plus which has a few other nice perks.) Investing is done in windows, with buy and sell orders being handled in blocks at the open (and again at 3pm for M1 Plus members. M1 has competitive margin rates, a 1% yielding checking account, a 1% cashback debit card, and a credit card. Note: Everything is at 3% weight besides the top holdings, the rest is alphabetical. Some of the holdings in my “Value Stocks” portfolio slice.

M1 portfolio