M1 Finance Tutorial | How To Use M1 Finance For Beginners! #Finance

so in this CashNews.co today we are going to be doing a tutorial of the m1 Finance investing app I’m gonna be showing you guys around the app and talking about

some of the basic functions that you need to be familiar with as somebody who is investing with this platform now that being said if you decide at the end of this CashNews.co that you want to open up an account with m1 #1a73e8; text-decoration: none;">Finance I have a link for that down in the description below it is an affiliate link so if you do use it I will earn a small commission in the process but that’s a no additional cost to you so if you decide you want to give back to me for putting

this CashNews.co together that is an option for you and one other thing I want to mention real quick I have been getting a lot of questions from people about how to use m1 none;">Finance how to open a Brokerage account all these different questions so I actually put together a completely free 30-minute CashNews.co training showing you everything you need to know to get started with m1

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and that is also going to be linked up down in the description below if you want to check out that free 30-minute training on how to use m1 color: #1a73e8; text-decoration: none;">Finance but we’re gonna cover most of the basics right here in this CashNews.co today okay so here we are inside of my m1 none;">Finance Portfolio this was originally a $100 investment I made mostly just for demonstration purposes to show people what this app actually looks like so my original investment here was 50% on my Portfolio into the band guard S&P 500 ETF

under the symbol vo o 30% into Amazon stock and then I had 10% in Apple stock and then I also put 10% of my money into Microsoft stock now obviously this Portfolio was actually done pretty well here over the last I believe eight or nine months it’s up about 17% closer to 18

actually and this is the first thing you have to understand about m1 Finance is that everything comes back to this pie here or Portfolio so with m1

Finance you are doing Portfolio based investing and that’s where it’s different than apps like Robin Hood for example where you’re just

buying whole Shares of stocks and then you know having those stocks within your Portfolio well with m1 Finance you designed a

Portfolio yourself or you use one of the expert Portfolios and then as you add more money to that Portfolio it’s going to be spread evenly across those allocations so in my case here when I initially invested that $100 fifty percent of that

money went into the Vanguard 500 ETF 30 percent went into Amazon ten percent went into Apple and then ten percent went into Microsoft now I’ve already have my Portfolio or my pie in here built but when you actually get started with them on

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance it walks you through the process of building your own Portfolio but I’ll show you guys what that looks like now by building a new Portfolio from

scratch so you see what this looks like step-by-step so now we’re gonna go through the process of building a completely new m1 Finance pie from scratch and like I said

when you start off using the app it’s gonna walk you through this process of how to build your first m1 Finance pie so we’ll go ahead and hit the plus icon here

and then we’re going to begin adding slices to our m1 Finance pie so your total pie is going to be one hundred percent and each of these stocks and

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs that you can select can make up as little as one percent of your Portfolio so if you wanted to put a hundred different stocks in your Portfolio I don’t

know why you would but m1 Finance allows you to do that so we’re just gonna make a random Portfolio here just so I can show you guys what it looks like

we’re gonna start off with three M stock that’s just one that’s coming to my mind here so 3 M is a pretty popular company I think that symbol is mmm 3m company so we’re gonna add that to this pie we’re gonna also go with Procter and Gamble will add Procter & Gamble

to this Portfolio and then let’s say you also want to add an ETF to this Portfolio for some passive investing you can move over to the ETF or funds column and select one or I know the one that I want actually it’s right here Bo oh the Vanguard 500 fund

so we’ll add that to the Portfolio as well and then let’s say we also want to have a tech stock in here so let’s say you’re like Tesla for example so we’ll go ahead and type in Tesla and let’s say these are the four components of this

Portfolio that you’re building or PI whatever word you want to use there in terms of m1 Finance it always comes back the pie and each stock represents

a slice so let’s say that is the pie that you want to build basically investing in Tesla 3m Procter & Gamble as well as the Vanguard 500 fund then you would go ahead and hit done and this is the point where you’re going to decide how much of your money is going to go into each one

of these stocks or ETFs now the reason you’re able to do this is because M one none;">Finance allows you to invest using fractional Shares so all of these different funds and stocks are trading at a different share price but M one none;">Finance allows you to buy as little as one ten-thousandth of a share of each one of these stocks so you don’t have to worry about that share price and you can create you know a well diversified Portfolio with the minimum to get started with investing which

is just $100 so let’s say for example you want to put thirty percent of your money in the Vanguard 500 fund and then you want to put fifteen or your 15 percent in Tesla you drop that down to fifteen and then you want to put you know twenty percent in 3m and you want to put the remaining

thirty five percent in Procter and Gamble well now you have created this pie here and when you add money to this Portfolio twenty percent is going to go to 3m thirty five percent is going to go to Procter & Gamble fifteen percent goes to Tesla and thirty percent is going to go

to Vanguard so we’ll go ahead and save this Portfolio here I’m not going to personally use it and we’ll just go ahead and name this the demo Portfolio I just so you guys can see the functionality and how this works setting it up and the other

thing that’s really great about M one Finance is you can create multiple different Portfolios and even track that progress so if you wanted to make

like a dividend oriented Portfolio or a growth oriented Portfolio you could invest in both of them or you could just use it to benchmark these stocks or this Portfolio and see what the performance is like now that being said let’s say

you’re somebody who doesn’t want to build a Portfolio from scratch while another great option that you have is the expert PI’s offered by m1 none;">Finance they have over 30 different Portfolios that are pre-built that are completely free to invest for example you have general investing here which is just a spread of ultra aggressive to ultra conservative Portfolios and each one of these

you can click on and read about them and what is actually held within that Portfolio and it’ll show you what is actually in here it’s usually Vanguard and I share is type none;">ETFs because those are very low fee index funds so you have a general investing category you have plans specifically for retirement which is great for people who invest using a Roth IRA which is available through m1 color: #1a73e8; text-decoration: none;">Finance you also have responsible investing for people who are looking for environmentally-friendly companies to invest in Income earners hedge fund followers basic stock and bond allocations which is just going to be a two ETF

fund for example this one that’s a 90/10 split it’s just going to be 90% into the total world Stock Market and 10% into the total bond market which is as simple as it gets in terms of your basic stock and bond allocations so m1

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance really does have something for everyone here they have the ability to build your own Portfolio from scratch with whatever stocks or

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs you want to invest in or if you don’t want to do all that yourself you simply pick an expert pie that’s pre-built to automatically invest your money in now the last thing I want to

cover in this tutorial here is the rebalancing of the Portfolio which is something that a lot of people get a little bit confused on so we’re gonna cover what that actually means here so as you can see here on the Left we have two percentages under each one of these pieces of

my pie under the Vanguard 500 ETF we have 48 percent and 50 percent and that means that my target allocation for the Vanguard 500 ETF is 50 percent but I’m currently at 48 for Amazon it says twenty seven point six percent even though my target allocation is thirty apple it’s twelve

point three percent even though my target allocation is ten and then finally Microsoft eleven point nine percent even though my target allocation is ten and this is because of something called Portfolio drift and the reason behind that is as soon as you invest money in the

Stock Market well things are gonna be doing different things at different times that’s the best way to explain it so some stocks are gonna go up some are gonna go down I happen to pick for that all went up if you look on the right-hand side I’m up 40% in Microsoft 45%

in Apple which is crazy I wish I bought a lot more I’m up 7% in Amazon and 13% closer to 14 in the Vanguard 500 fund the issue being this Portfolio is no longer in line with what my target allocations were so what would happen as I add more money to this

Portfolio is more money would flow into the ETFs and stocks that I’m underweight in so right now I’m underweight in Amazon and the Vanguard 500 ETF because my target

allocation for Amazon is 30 and I’m at twenty seven point six and my target allocation for the Vanguard 500 fund is 50 and I’m at forty eight so I have more money than I want in Microsoft and Apple and less money in Vanguard and Amazon so if I were to add more money to this

Portfolio slightly more would flow into Vanguard and Amazon to bring me back to my target allocations and this is a really important feature for maintaining the Portfolio that you’re looking for because a lot of people they may say hey I want to have 25

percent in these four stocks you know an equal amount in each and then a year later your your Portfolio could be totally out of whack because of Portfolio drift but m1 text-decoration: none;">Finance takes all of that out of the equation here because as long as you’re contributing regularly to this account they’re going to keep your Portfolio in line with what your allocations are that you set at the beginning but that

being said guys that is the basics here of investing with m1 Finance like I said you can either build your own Portfolio from scratch or you can use the

expert Portfolios available to you for free or you can do a mixture of both and invest in both with this platform and compare the performance of both as I’m sure you guys know m1 text-decoration: none;">Finance is 100% free they are making money but they are doing so on the back end with a couple of different methods for example they make money by direct order flow and they also make money from their m1 borrow which is going to be margin not really stuff that

most people are using so I didn’t cover in this tutorial so they’re not a charity they are making money but they’re just doing it in a couple of different ways than the traditional method of charging fees and commissions to customers but anyways guys that’s gonna wrap up

this CashNews.co I hope you enjoyed it if you’re looking to learn more about how to use m1 Finance I literally walk you guys step-by-step through the entire process in

that free 30 minute training that’s gonna be linked up down in the description below but thank you guys so much for watching this CashNews.co I hope you enjoyed it and I will see you in the next one