I have invested 1,000 dollars into my mo in finance portfolio and I've also been
using the platform for over two to three months and in this video I'm gonna show
you why m1 finance is great for dividend investing watch till the end of the
video to find out why welcome back to the channel guys my name is Bruce Wang
i'm a dividend investor and also a real estate investor and that is what this
channel is all about in today's episode I'm gonna go over my m1 finance
portfolio and tell you guys why I love the platform and why I'm gonna stick
with it and exactly why I'm gonna be investing more money into this platform
if you want to join m1 finance or go over any of the links from this video go
check it out in the description and let's jump right into my portfolio this
is so this is my portfolio and I have finally hit the $1000 value mark my
actual portfolio is worth one thousand fourteen dollars and 61 cents I know
it's not much but you got to celebrate those little milestones in life and that
is what I have going for me in this video
I've consistently deposited 100 dollars every single week for the past you know
a few months or so but as you can see I started this in March 13 2019 the best
thing about Emaline finance is you can start with a really small amount like a
thousand dollars and have a very complete portfolio so let's take a look
at some of the gains that I had here so ever since I started investing I've
already made three dollars in dividends not too bad and my total return is about
2% I would like to say I'm a more conservative investor when it comes to
this m1 finance portfolio and the way I set this up this entire pie I have all
these individual little slices and each of these slices represent a sector in
the stock market the highest weighted sector that I have is real estate real
estate is what I know and what I trust and that is why I'm heavily invested in
real estate if you guys want to see my portfolio again the links are gonna be
in the description one thing I want to say about my portfolio is that I don't
want you guys to go copying it because my risk tolerance is not going to be the
same as your risk tolerance I'm more conservative and
guys might be more risky or you might think that I'm not conservative at all
so when you're designing your own portfolio make sure you take that into
account so my portfolio has stayed relatively the same ever since I set it
up properly like maybe one or two weeks ago so you guys can go check out this
video here to see exactly how I set up this portfolio but what I want to show
you today is actually in the activities section here so two great things about
m1 finance is that you can buy fractional shares which is why that
portfolio is set up the way it is and the second thing is the dividend
reinvesting so I recently received a dividend over the past week and with
that dividend it got reinvested automatically for me I didn't have to go
in or and adjust it and buy a certain stock myself that's one great thing I
liked about it and I save a lot of time with that like in my Robert hode
portfolio I always have to check it I always have to make sure the dividends
are coming in and always have to rebuy whatever I need to rebuy at that time
and that's the one thing I don't like about Robin Hood when I first start out
with $100 $200 $300 there wasn't that much dividends to be reinvested but now
that I hit the one thousand dollar mark I think that this account will start to
move a lot faster and I'm actually planning to put in a lot more money into
here maybe a few hundred dollars extra every single week or so so this account
will start moving a lot faster so really quickly I will show you my holdings
my biggest whole thing right now is actually a bond etf vanguard total bond
market i invest in this because I don't like seeing too much volatility within
my portfolio and investing in bonds is a great way for me to counteract that
volatility the second biggest holding in my portfolio is Realty income
corporation this REITs it's in the real estate sector this REIT
also pays me monthly dividends and I reinvest everything that comes out of
there moving down the portfolio you can see that I own a lot of blue chip stocks
AT&T IBM 3m all these stocks are well-known companies and they've been
around for a long time and I don't see these companies not being here in the
near future so that's why I invested in and all of them pay a nice dividend so
the total Holdings here is only 49 Holdings I'm not trying to own every
single stock in the entire stock market I'm trying to keep this portfolio as
tight as I can and 49 is pretty good for the amount of money that I have in the
portfolio right now but if I wanted to m1 Finance will let me create 100 slices
for this entire portfolio and I don't know why anyone would want to do that
but that option is there for you to do that so the number of holdings there can
go a long way which I don't know why anyone would need that many holdings in
their portfolio but to each their own when it comes to the funding part of
this portfolio I keep it really simple I just deposited $100 every single week
I'm going to eventually up the amount but right now I have the money coming in
every single Tuesday and you can see the schedule here so you can see the recent
transfer histories here I'm depositing $100 if I did not set the bank transfers
on auto I don't think that I would be as consistent as I am and that really makes
me accountable for myself to make sure that I'm investing for my future
basically and if it wasn't for that automatic deposit feature I would have
probably spent all this money on them going out to eat or buying some more
clothes or something like that this is another look at the Wang gang portfolio
I'm holding 49 stocks here the dividend yield is a respectable 4% dividend yield
on this portfolio so what does that mean that means if I invested $10,000 into my
portfolio by the end of the year I'll have $400 worth in dividends but that
does not account for all of the dividends reinvested and the compounding
effect that I would have because I set everything up properly on my m1 finance
portfolio so if it did account for that I would make a lot more when it comes to
the dividend yield also one of the highlights of my portfolio is dogs of
the Dow I found out about this dividend investing strategy just recently
probably within the last two months three months and when I first heard
about this I immediately started to create this portfolio and start to
invest in it basically the dogs of the Dow divided strategy has beaten the Dow
Jones Industrial Average on most years when it comes to returns I'm
not saying that it will beat it every single year but historically speaking
this has outperformed the Dow Jones Industrial Average so this is holding
right now 10 Holdings so all of these stocks are from the Dow Jones and the
strategy is very simple so if you want to go figure out that strategy you can
go check out the card here or go check out one of the links in the description
so when I was doing my research for m1 Finance I want to find out as much
information about the platform I wanted to find out one of the good parts about
m1 finance one of the bad parts and basically the bad parts about Emma would
finance is that if you're a day trader swing trader and what finance it's not
gonna be for you because and what finance has like a one-time training
window where they only do like one trade every single day and if you're trying to
do like multiple trades today this that's just not gonna work obviously so
m1 finance is a lot better for anyone who is trying to buy and hold for a
longer timeframe than that so if you are enjoying the video right now don't
forget to leave me a like if you haven't hit the like button yet and we can get
into the m1 finance subreddit so this is where I find a lot of more detailed
information when it comes to m1 finance because on the platform there's only so
much information there and when it comes to the subreddit and we take a look at
the moderators here you can find the actual m1 founder and CEO he actually
posts every now and then and we have two of their employees here so these guys
come in to the subreddit answer a bunch of questions and they help fix some
issues especially if there's like a bug you can see here that this post is about
a bug so if you guys didn't know already m1 finance is actually still kind of a
start-up they've only been around for like two to three years if I'm not
mistaken I think they started in like 2015 or 16 I believe so that brings me
to the next part of the video here I was doing a little bit of lurking on the
subreddit and I found this post this is a very interesting infographic that I
found and I want to show you guys I want to highlight some of the crazy things
that this and what finance brokerage has done over
the past you know a few years that they've been open so this was submitted
about six months ago so this is kind of old so wow it's been quite the year at M
on Finance one year since we cut fees and went free m1 has grown exponentially
even faster than we'd hope thanks to investors like you if we've introduced
new features and have even more in the works with 2019 but before we get there
let's take a look at some of the fun stats from the last year two thousand
two hundred eighty-five thousand unique pies created I'm telling you on mo
finance you can create a lot of pies here I'm six thousand four hundred
unique stocks or funds owned by m1 customers eight hundred fifty thousand
free automated trades per day over the last month most popular stocks and funds
so this is something that was kind of eye-opening to me v/o oh it's actually
one of the top stocks here in m1 finance and that goes to show you that i think
emmalin financed they have a lot more mature investors in there and compared
to robin hood's top five top ten stocks i made a video about that a while ago
and these top five is a lot better than robin hood's top five in my opinion
let's take a look at this one here m1 more than quadruple in size over last
year the number of people who use m1 and our assets under management have
increased by more than four times geez as fast customers add more money to m1
quickly after kicking the tires so here's the average account balance for
all users over their first four months so on the first day a lot of people test
it out with like around a thousand dollars in the second week they start
investing more and more and more and this is the trajectory that I'm looking
at so for me it takes me a lot longer to test out a platform than you know just
two three weeks so I test it out for over three weeks now and now I'm gonna
start piling in a lot more money so this compounding of my dividends can start
working a lot faster for me so this is what I was talking about earlier the
autopilot of investing I'm telling you once you start doing like automated and
investing it really helps out like your psychology your mindset and
everything it just makes everything a lot easier less friction as you would
call it and let's see m1 customers know the value of automation when it comes to
building wealth when reoccurring deposits investors just
set a schedule to suit their needs and watch their accounts grow 30% of those
investing use automated deposits which also includes me with an average of 400
with an average of 308 each and every single month so for myself I'm averaging
four hundred dollars every single month so I'm doing a little bit better than
the average here so this is pretty crazy 100 million in account transfers so
these are a lot of the more bigger brokerages out there you know Capital
One Vanguard I'm still using Vanguard as well I have my I have my Roth IRA set up
in Vanguard and I always try to fill up that account as fast as possible to get
the max contribution I'm not planning to switch over my Vanguard as of yet but
I'm gonna have just my individual account individual investment account on
m1 finance for now TD Ameritrade is something that I've looked into as well
I've opened an account and the one thing about TD Ameritrade is that since I'm
like such a small time investor when it comes to stocks and their commissions on
trade would just eat up a lot of the money that I put in because I don't put
in that much and I don't do that much trading I'm not investing multiple
thousands of dollars every single month or so so I don't think TD Ameritrade was
the right fit for me each raid is very popular as well and fidelity and
obviously Robin Hood is there too I think Robin Hood is the biggest
competitor to m1 finance because both platforms have no Commission's and both
platforms are targeting Millennials specifically so for the next segment in
this video I kind of want to go over some of the things that the m1 finance
CEO has set himself so this gives me a lot of reassurance when it comes to
putting my money hard-earned money into their platform and their system here and
just some of the things I don't want to read it all to you I just want to
highlight some of those things that he said so when it comes to this post I'm
just gonna summarize it up real quick for you this one guy he is starting to
plan and considering putting a lot of money into m1 fine
and he kind of just threw out this question out out there into the reddit
universe and actually the em1 founder and CEO responded to this question so
it's a really surprising this is actually one of the this is one of the
top posts on m1 finance subreddit so I thought this was really interesting our
money that we invest into the platform is insured in case anything ever happens
to m1 finance like they go under or something like that according to the CEO
assets are covered by s IPC up to five hundred thousand two hundred fifty which
can be cash this is a really big assurance especially if your customer if
m1 finance and I don't have five hundred thousand dollars to invest in m1 finance
but when I do get there I'll be happy to just cap out at five hundred thousand
the likely scenario of an unlikely insolvency is you transfer your assets
to another brokerage and get paid for doing so your assets are safe and the
bad case for the m1 business is you'd be unable to use the m1 platform anymore
this really clears up a lot of confusion for me because I wasn't so sure like how
much I could actually put into m1 finance before like something crazy
happens if something crazy happens and now I know that my investments in m1
finance is insured and it is safe that is really big when it comes to the
long-term success of the portfolio and the company itself and if you'd enjoy
the video don't forget to leave me a like and I come out with three videos
every single week so don't forget to subscribe and I hit that notification I
love your 3,000 and I'll see you on the next one bye bye