The owners rewards card by M1 is the ultimate credit card for investors allowing you to earn
up to 10% cash back with select brands that you own. Trust me you don't want to miss this one.
What is going on everyone I hope you are all having a fantastic day. So I'll be honest with
you, sometimes reviewing product after product does get a little bit repetitive but every now
and then a company releases something truly unique and truly new and the owners rewards card from M1
finance is definitely one of those products. Now we've got a lot to unpack in this video so I'll
just mention from the start that I will leave links down below for a previous review I did on
the M1 spend account where I briefly talked about this product as well as a link where you can sign
up for your owners rewards card but with that out of the way let's get into this really unique
product. So at its core this card rewards you for being an owner of specific brands and it's
the only product that I'm aware of that directly integrates with your investment portfolio to help
you grow that long term wealth. Essentially the way that this works is there is an extensive list
of more than 70 popular brands that will pay you cash back rewards when you spend with them
and hold that company in an eligible M1 invest account. Now these brands are frequently changing
and they are in a tiered system so some of them at the top offer 10% cash back like Tesla, Netflix,
Spotify, and drop box just to name a few. There's even more companies in the 5% category including
delta, McDonald's, GameStop, and Starbucks, even more companies that will give you 2.5% cash back
like apple, Amazon, and Home Depot and beyond that you earn 1.5% cash back on all other purchases so
removing the ability to easily reinvest your cash back, just earning such high cash back rewards on
so many well known brands where many of us are likely spending a lot of money anyways is an
insane and unique benefit in itself. And from my perspective this is one of those products that
once you understand how it works you wonder why someone didn't think of this a long time ago. YOU
get to benefit of not only being a shareholder but earning cash back rewards and directly
supporting the companies that you own plus the company gets a loyal customer, an investor who
believes in their mission, and in return gets to say thank you by paying you cash back for
shopping at their company. OK but in case you're still confused let's do a quick example. Let's say
within you're eligible M1 investing account you own shares of Spotify and let's say you
pay for your Spotify subscription using your owners rewards card by M1. Well just for the
sake of simplicity let's say your annual Spotify subscription is $100. Well since Spotify is in
the 10% cash back category you would immediately earn $10 in cash back for that purchase and then
using M1 automation you can reinvest those rewards back into your portfolio to help build long term
wealth. That's absolutely genius and unique set up that I love but outside of that core feature,
you also get all of the benefits that come with visa signature including zero liability,
access to the visa signature luxury hotel collection and other exclusive experiences,
not to mention the abundance of travel and emergency assistance services, roadside dispatch,
extended warranty protections and so many other benefits that usually only come with incredibly
expensive credit cards. Now Speaking of credit card costs I'm sure many of you are wondering
how much does the owners rewards card cost and the simple answer is $95 per year which honestly
isn't that bad but it's not quite that simple. I say that because M1 finance also offers a premium
subscription service called M1 plus and if you are an M1 plus member, then your $95 annual fee
is waved plus you get a ton of additional benefits with M1 plus. Now I want to be clear that M1 plus
is currently at $125 per year but like I said this comes with a ton of exclusive benefits and
as I'll explain in a second, this annual fee more than pays for itself. Not only do you get that
$95 annual fee waived on your owners rewards card but you also get access to smart transfer tools,
custodial accounts, AM and PM trading windows and zero trading commissions within your M1 finance
invest account. You're also able to get margin loans at a reduced interest rate of just 4.25%
without any application if you are looking to trade with margin but perhaps the biggest benefit
of M1 plus is on the M1 spend checking account where you will earn 1.7% APY plus 1% cash back
on purchases made with your M1 spend debit card. You also get four monthly ATM fee reimbursements
on that account and you eliminate the foreign transaction fees so as you can probably tell
for just 125 bucks per year this subscription is well worth it especially if you're going to use
multiple products from M1 finance and right now your first three months of M1 plus are completely
free so if you do want to learn more & sign up again I'll leave a link for all of that down below
the like button. Okay so this all sounds great and in a second I wanna talk about who exactly this
product is best for but there are a few things that I do want to make you aware of. First of
all as we already talked about in order to earn the cash back rewards for those various companies
that we looked at earlier, you do need to be actively investing in them within your elegible
M1 investment account. So you can't just start shopping at Amazon and expect to earn awesome cash
back you have to actively be investing in Amazon stock in order to reap that benefit. But I will
mention to that M1 finance does offer fractional shares and you only have to own a fractional
share of one of these companies in order to be eligible for those bonus rewards so it's
not like you need to own an entire share which with some of these companies would mean several
$1000. Also remember that all of your rewards are going to be automatically invested back into your
M1 portfolio but again that kind of comes with the territory and is the entire point of this
product to begin with so if you're just looking to get cash back you can take into your bank account
that I'm not sure why you would be looking at this product in the first place. Down in
the footnotes of the landing page you'll also see that your 1.5% to 10% cash back is capped at $200
in cash back each calendar month which is a bit of a bummer but that still leaves plenty of room
to earn a lot of cash back throughout the year. In fact Forbes posted some really interesting
numbers finding that the 70th percentile of wage earning households bring in just shy of
$108,000 per year and has $64,000 in standard expenses. That means that if you put even half of
those expenses on this card that would be a total spending of $32,000 per year and considering many
of the partner brands are places where a lot of us are spending money anyways, if we estimate that
1/3 of those expenses could earn bonus rewards of a 5% average then that would be over $500 per
year in investable rewards not including the 1.5% that you would earn on all of the other
spending on your card which would be an additional $320 bringing the total average rewards based on
these numbers to nearly $900 for the year. And if you then account for the fact that those rewards
are being invested in some pretty established companies that will likely increase in value and
potentially pay you a dividend, the numbers start to get pretty insane all from spending money on a
credit card. Okay so I think we can all agree that this is a really unique product but we’ve
still got to answer the question of who is this for. Well first of all if you're already a user
of the M1 platform and especially if you are an M1 plus subscriber then I would be shocked
if you don't already have this card. If you are going to get it then in my eyes it really makes
sense to subscribe to M1 plus anyways since it's only $30 more than the existing annual fee and
outside of all of the other benefits that M1 plus gives you it’ll erase that $95 annual fee right
out of the gate. But even if you don't currently have any account with M1 finance, this product is
so unique that it's absolutely something a lot of investors should consider. Earning cash back and
travel points towards free travel is cool but that pales in comparison to earning what is essentially
fractional shares in companies that you’re already investing in. So if you’re actively investing in
individual companies then I would take a look at the list of existing partner brands and see if
you would be able to benefit from this product with your existing investing portfolio. If so
it might be worth transferring your portfolio to M1 finance and reaping the benefits of this
truly unique product. But as always this is just my opinion so I’d love to know what you think of
the owners rewards card by M1 and whether or not this is a product that you will be checking out.
Again I will leave links to my full review on the M1 spend accounts as well as a link where
you can sign up to get your owners rewards card down below like button. Be sure to check out
some of my favorite financial tools template down below and as always thank you so much
for your time I really do appreciate it so much take it easy and I’ll see you in the next one!