there are so many brokerages out there wanting you to throw your money into
their accounts I've tried Robinhood acorns stash
Vanguard few moments late L and I think m1 finance might be one of the better
ones watch this video for my update on m1 finance and why I like it
how's it going people welcome back to the channel my name is Bruce Wang and in
today's video I have a brand new update for my m1 finance journey if you guys
have seen any of my other videos you guys know that I'm a big proponent of
our Robin Hood and I still enjoy Robin Hood but I think that m1 finance is one
of the better brokerages out there and in today's video I'm going to show you
exactly why that is so this is my m1 finance portfolio I have about two
hundred ten dollars in this account at the moment it is up about five percent
since last month that is some decent gains five percent on the portfolio I
actually wish I put in a lot more maybe I could get a lot better better gains
here are my holdings I have a four percent in Facebook four percent in
Amazon Bank of America is about 4 percent 3m is about 4 percent as well
McDonald's 4 percent Walmart 4 percent and Microsoft 4 percent here is the best
part of my portfolio if you guys didn't know already I've only been investing in
the stock market for about eight months I tried investing in the stock market a
few years ago but I got caught up in penny trading day trading trying to you
know outsmart every other investor out there but the average investor is going
to lose out money if they are trying to pick individual stocks so my new
strategy is to invest in index funds so what I've done is look up this new
strategy called the lazy man's portfolio and in that portfolio all you need to
have is these index funds when you invest in these index funds you are
basically investing in the whole entire stock market and statistically speaking
your portfolio if invested in the entire stock market will grow around 6 to 7
percent so I'm not trying to beat any I'm not trying to beat any investors out
there with this portfolio I just want to ride the wave of the entire stock market
and just be invested so what I've done is I've invested most of my money in
these three funds vti Vanguard told stock market index fund BND Vanguard
total bond market fund and VX us Vanguard total international stock
market fund when you invest in these three funds you're not trying to do
anything crazy here you are very spread out in your diversity and it is one of
the more safest ways to go when you're investing in with the stock market I
believe that m1 finance is perfect for this type of account it is also great
for dividend investing as well don't get me wrong but I'm not trying to do
anything fancy here I'm just going with these three funds and on the side I'm
also investing a little bit here and there and a lot of the other big name
brands as you've seen me scroll through in the beginning and all the way on the
bottom is Netflix so this is the t portfolio if you guys are wondering why
it's called teat I actually tried to name it the test portfolio but m1
Finance doesn't have autocorrect and it just named it teats after I press ENTER
and going down here you can see the performance of my portfolio so far so I
started this account March 18th I deposited $100 just to test it out
whenever I'm investing in new brokerage I don't want to throw in thousands and
thousands of dollars in something that's untested I would always test it out
before ever decide to put in any more money and that's what I did with m1
finance I'm trying to go the slow and steady route because I still don't know
how this brokerage will perform over the long run but I am getting more
and more confident every day so whenever I have any extra cash I'll be depositing
into this account I started on march 18th with $100 I think one or two weeks
later I put in another hundred dollars and this is the total return so far I
have 5% gains on on my on my initial investments so if you guys did not know
and one Finance has multiple types of accounts you can invest in it is a lot
better than Robin Hood when it comes to that Robin Hood only has an individual
investing but m1 Finance has individual and investing joints investing
retirement and a trust account and if we go to the retirement account you can see
that there are a lot of tax advantage accounts in here a traditional IRA Roth
IRA sep 2
allocate to this because I'm also invested in a Roth IRA with Vanguard
I'll leave a link here if you guys want to check that out
Vanguard is also a great brokerage out there but mainly I want to talk about
today on why m1 finance is so much better than a lot of its competitors out
there there are two main advantages of m1 finance and the first one is that you
can purchase fractional shares so any of these companies here I could not
purchase them on my Robin Hood account because I just didn't have enough cash
on hand I usually have you know around a hundred dollars or less to purchase any
of these stocks and these stocks like Apple Microsoft Amazon they cost
hundreds and hundreds of dollars if not more so fractional shares means that you
can purchase any of these stocks at any price that you that you have available
so let's say for example Apple if you had $10 $20 you can just purchase a
fraction of Apple and eventually if you invest enough you can even have a whole
share of Apple if you wanted the other advantage that m1 Finance has over all
the other competitors is called drip basically that is dividend reinvestment
currently I only have 49 cents in here but but whenever my cash balance exceeds
$10 or more that would just be automatically reinvested into my PI so
you guys already saw that my PI has all these percentage allocated to it
everything is done automatically and very passively but basically my strategy
to do that is to have most of my funds into these three accounts vti b ND v x
us and there are all Vanguard index funds you don't have to stick with
Vanguard index funds specifically but there are a lot of other ways to do it
I'll link a I'll link a website down below in the description and you guys
can check it out there and in that and in the description I'll also share my PI
with you you can either go to this link on screen or you can just click the link
in the description I'll leave a copy down there for you guys if you want to
check that out so with this portfolio like I said it's gonna be very passive
for me I'm just going to deposit $100 every week into this account
and then I'll probably review it every few weeks or once a month and I'll just
see how my portfolio is doing from there and that's how I plan on investing with
this portfolio from now on see my Robin Hood account that's where I like to play
around more and pick stocks and try to swing trade here and there but this
account is gonna be more passive because because it has so many better features
when it comes to investing so in the longer in the long run this account will
have a lot more money than in any of my other accounts excluding my Roth IRA and
to set up the automatic deposit it's very easy all you have to do is go into
your funding hit deposit and I'll be depositing 100 dollars every week so in
the top here I'm gonna add in 100 dollars and I'm gonna do a weekly
frequency and I'm gonna choose Thursday for the days of the week that it will be
deposited and the next six transfer dates is right here on the screen and
this is looking good so I'm just gonna press next and from here on out I'll
just have $100 going into my account every week so press confirm we've
initiated your scheduled deposits and that's how easy it is with that being
said this is gonna be even more passive I don't have to do any more depositing
when it comes to this and you know $100 into my account every $100 going into my
account every week that is about you know five thousand five hundred dollars
uh that's about five thousand two hundred dollars a year on average
and what finance is for a more passive type of investor like for myself I don't
have a lot of time in the day to do research on multiple types of different
stocks that's why I went with the lazy Bogle head portfolio and like I said
before links are in description if you want to learn more about that I'll most
likely do a dedicated video just on that just to give you guys more information
on why it's so good but like I was saying like I'm not gonna beat a
professional whose day job is to you know pick stocks sell multiple times a
day buy multiple times a day and I'm not gonna beat these guys who get paid the
big bucks to do these types of invest yeah there's like no there's almost no
way than I'll be able to beat them on a daily basis so my plan with this
portfolio is just to ride the wave of the stock market and to dollar cost
average my way in and when the markets go down I'll be buying when the markets
go up I'll be buying and I hope to average 5 6 7 % that the that the stock
market gives every year so m1 finance is better for the long term investors the
dividend and investor and personally I like to buy the more blue chip stocks
that I can't afford and fractional shares just helps out a lot and with all
my dividends being reinvested I don't have to worry about my cash not being
utilized and not having to check my account all the time if you guys have
that type of problem hopefully this solves it and hopefully you guys have
enjoyed the video leave me a like down below if you did I make 3 videos every
week on personal finance dividend investing and real estate so you guys
can check out these videos here and I'll catch you guys in the next video thanks
for watching bye