Using M1 Finance – A Year In Review (M1#12)

M1 4-1-19

I have been terrible at keeping you guys updated on my progress using M1 Finance. Before I knew it, it has already been a over a year of use. So I think now would be a great time to share what I think of the platform overall.

Easy-To-Use

I’m not a stock market expert at all, and I did some very surface level research on companies and bonds that I wanted to invest in. If you go back to my previous posts on this, you will see that I wanted to invest mostly in Real Estate Investment Trusts (REIT) and other dividend yielding securities. This platform allowed me to easily pull up those companies and show me right away the performance history, related news articles, P/E Ratio, Market Cap, Dividend Yield, etc.

It’s Free

I didn’t have to spend a dime in buying any stocks. The company M1 Finance has a business model where they make money from traditional loans in order to cover the cost of trades. I think this is a great idea as it gets more people participating in the stock market!

Partial Shares

You can buy partial shares and each buy is distributed to help you reach your pie allocation.

It’s Social

Recently M1 has allowed users to share their pie with others to show their return rates.

My Thoughts on my Personal Performance

I’ve been holding on to all the shares in my portfolio for about a year now and I am happy to say that I have a 12.27% return overall. I wasn’t too sure on how my REIT heavy portfolio would fare compared to traditional stocks, but my REIT section actually outperformed my stocks by a lot (22.05% vs 6.42%). Even my bonds aren’t far behind my stock return.

Plans for the Future

I am going to continue to hold on to my stocks, even my low performing ones. I don’t see a whole lot of reason to sell considering that I am happy with my overall return of 12.27%. It’s nothing glamorous, but I am in it for the long haul.

On other note, I have stopped my automatic investing of $10 a day and I am now going to let my dividends complete buys once per month, which is about the current rate I am going. Keep in mind that M1 automatically executes buys once you have a minimum of $10 in your cash balance and I have it set to do this right at $10. If I am feeling up to it, I may deposit $10 here and there, but for now I am just going to let my dividends keep investing for me.

If you want to check out M1 Finance for yourself, here is the website: www.m1finance.com

If you want a head start and have a free $10 to start investing use my referral link!

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