Is this really better than Robinhood? Come on you gotta be kidding me!
what no way I've been using the Robin Hood app for a few years now and is
heavily influenced my channel if you have seen the Robin Hood investment
challenge you know I deposit a lot of money into that account what you guys
might not know is that there are a lot of other different brokerages other than
Robin Hood and I've used a few of them I've used acorns I've used stash and
then one that I have not used but have been looking into for the past week or
so it's called m1 finance and that is what
this video is gonna be about there are a lot of attractive things about m1
finance and I just want to go over a few of them with you I kind of want to try
this out just to see if it's the real deal
I'm also depositing a lot of money into Vanguard and Robin Hood this might make
me go broke but this is something that I want to experiment with and let's just
jump right into the app to take a look at how the user interface is and to see
if this might be right for you if you decide you want to try it as well if you
have tried m1 finance already let me know in the comments below and tell me
what you think about it right off the bat I can tell that m1 finances offer a
lot more tools than Robin Hood does the first one is never pay for trace again
m1 charges no Commission's or management fees ever so going with the bigger
brokerages like fidelity where they trade like seven dollars per trade
that's a no-go that's why a lot of these new brokerages that come out they
they're really popular with the Millennials and the people that don't
have that much money to start off investing with customizable portfolios
pick your own stocks and funds browse dozens of expert portfolios or options
for a combination of both being able to see what other experts portfolios look
like is very attractive because when you are first starting to invest in the
stock market you really don't know you really don't know what to do what to
invest in so having examples of other experts and
how they invest will help you decide what type of investor you want to become
such as myself I'm a dividend and investor and I do invest just a little
bit in growth stocks so this is the tool that excited me the most is called
fractional shares I didn't know anyone fine
had this until I really looked into it but if you didn't know already investing
in stocks or funds regardless of share price as an example of myself on Robin
Hood I can't buy stocks like Amazon or Berkshire Hathaway or what else
Tesla those stocks are just too expensive for me to even buy one share
and this is where fractional shares are so attractive you can invest $1,000 for
example and you can buy you know $100 worth of amazon shares and they will
give you that fraction invested into that company which is great when you're
just a beginner starting out and you can't purchase a whole share of a
certain stock that you find that you want to be invested in this is the
number one reason why I'd signed up with m1 finance and I just want to test this
out before I start to start depositing a lot more money intelligent automation is
just scheduling of your deposits Robin already has this so this isn't something
that really interests me but no fees our rate is kind of interesting I already
have an IRA Roth IRA set up with Vanguard so I'm not so sure if I want to
go with an IRA with m1 finance but I did set one up I'm not sure if I would be
depositing any money in it anytime soon because Vanguard is a lot better when it
comes to customer service so still not sure if I will be investing in a Roth
IRA with m1 finance tax efficiency m1 strategically trades to minimize your
taxes not so sure what this is about I have to look more into that borrow for
Less I think this is something similar to Robin Hood's
Robin Hood gold but I already know one fact is that you have to have at least
$10,000 invested into m1 finance before you decide to borrow for Less instantly
a bar up to 35% of your portfolio at one of the lowest interest rates on the
market this isn't something that interested me that much but it is there
if you find that useful and another feature very similar to Robin Hood I
think their cash management system they will be coming out with a checking and
checking account or savings account and they'll be coming out with a card that
you can spend like a debit card so that is also coming soon I'm pretty sure that
and one finance wants to get this straightened out before they mess up
like how Robin Hood cash manna system was a messed up when they first came out
so this is the main screen that when you sign up this wall look like create a new
pie build your portfolio automatically invest in what you want just choose an
expert pie or build your own then find your account I think that I'll just go
with an expert pie for now and I'll adjust it as as I find out how this
actually starts working so I'm gonna try an expert pie from income earners if you
read the description says choose a portfolio focus on dividends and income
returns this is exactly what I'm looking for
let's take a look at domestic dividends and see what's half of returns their
offering here m1 domestic dividend PI provides exposure to US companies with
larger than average dividend distributions there are three holdings
in here expense ratio is about 0.1 3 percent dividend yield is just under two
percent which is um it's not that it's not that good 2 percent is our right
one-year return so far 16 percent 3 year annualized is 10 10 percent five-year
annualized is 12 percent so the percentage wise it looks pretty good so
here are the targets for this fund it's basically you're investing into these
three funds here Vanguard dividend yield appreciation
WisdomTree US capital u.s. mid-cap dividends and WisdomTree u.s. small cap
dividends it might be better off if you just invest in yourself with the
Vanguard dividend appreciation because this is already 83 percent in this one
fund so that's kind of weird but and let's also take a look at the global
dividends real quickly m-1 global dividend pi provides exposure
to global companies with larger than average dividend distributions so
there's five holdings in here expense ratio is a lot higher point three
percent dividend yield is about three point eighteen percent not too bad it's
a lot better than the previous one seventeen percent on the year three
years annualized eight percent five-year annualized about nine percent let's look
at the funds again with the dividend Vanguard dividend appreciation I think
it might just be better off if I just bought Vanguard dividend appreciation I
wouldn't have to pay any extra for the expense ratio iShares International
select the expense ratio for this fund is 0.49 that is a very very high guys
one thing about Vanguard ETFs is that their expense ratios are very very low
as it as for example this one is point zero eight so I'm going to not choose an
expert's opinion here and I'll probably just make my own chart because I'm not
sure if they are I'm not sure if they are gonna be charging me extra if I do
these PI's let's take a look at some of the funds they have I know that Robin
Hood has the exact same funds but this is more intuitive so the difference
between this event and the difference between this and Robin Hood right now is
that they give you the market cap right on the side I'm assuming this adds
everything onto the watchlist vti is very great I have I'm already
invested in vo o I'm looking for the Vanguard dividend appreciation Vig 3131
billion in their portfolio right now I mean the market capital of that is 31
billion and let's take a look at some of these individual stocks here Amazon is
something that I always wants to invest in Microsoft I just don't have enough to
invest in when I deposit only just $100 so fractional shares will come in handy
at this point Facebook
Walmart of Bank of America Berkshire Hathaway no berkshire hathaway no I
don't wanna the Berkshire Hathaway does not have any dividend yield so that's
just one thing to know if you're a dividend yield investor you you always
want to go for stocks with dividend yield
I'm already invested in AT&T and coca-cola so it's kind of crazy how
everything overlaps here so I don't really want to invest in those companies
since I'm already invested in Robin Hood here Netflix something I cannot purchase
on Robin Hood McDonald's Nike I'm already invested in that and I think
that will be good for now 3m so yeah so now that that would be
good for now and let's take a look at my PI so my PI has been created and if I I
can adjust it here by the percentage wise I'm just gonna leave this as is for
now let's leave it as test I'll be I'll be adjusting it I'll be adjusting it
later on hopefully hopefully teat Wow nice they spelled I spelled it wrong
that was supposed to be test so hopefully they this doesn't just invest
that hundred dollars that I deposit it in right away let's let's keep looking
around here and see if we can find anything interesting if you guys are
enjoying this overview of m1 finance drop me a like down below I deposited
$100 into this account today just to test it out and it looks like that
portfolio that I just made will be automatically traded and I'll be getting
fractional shares so I will I will have to readjust that because I don't like
how some of those fractional shares are at the moment so I have to readjust that
I'll probably do that right after this video right off the bat I can tell that
this app is already a lot better than Robin Hood
one thing that it does not it cannot do is I think they can't trade
cryptocurrencies but everything that Robin Hood does have other than
cryptocurrency m1 finance does have so this will be very crazy to see how m1
finance and compete going on from from here on out
I'm not planning to abandon Robin Hood or the Robin Hood investment challenge
anytime soon so don't be afraid of me just giving that up I just want to test
out something brand-new and one find this does have a lot more features and
that's why I decided to ultimately just test it out and experiment with it if
all goes well maybe there will also be an m1 investment challenge out there so
let me know in the comments below if you guys aren't interested in something like
that I do have some more money that I can invest with I'm not sure if I want
to throw everything in the stock market but it is there and if you guys are
interested in that let me know in the comments down below so like I said I'm
not an m1 finance expert or anything like that I am NOT even a stock expert
I'm it when it comes to stock market investing I consider myself still very
brand-new I hope this experiment pans out well
because it's gonna be costing me a lot of money if it doesn't and if you want
to check out more videos I will link some of my Robin Hood app videos here
for you so you guys can check that out and I also posted my first real estate
video for you guys to check out if you guys are enjoying the content let me
know by leaving me a like down below and if you want more content like this I'm
making three to four videos every week and you guys can subscribe to find more
content just like this from me about stock market investing and real estate
investing and trying to retire as early as possible hopefully in the next five
years so thanks for watching bye