Why i switched to M1 Finance.
I recently started an M1 Finance account as my main brokerage account compared with Betterment and Vangaurd. I am keeping my betterment account but moving my Vanguard account across to M1.
The reason I did this was fees, and also I like the concept of pies and fractional shares.
How is M1 different.
So M1 works on the concept of pies. Where stocks / ETF’s add up to 100%. You can create pies within pies.
How is mine setup
Before I get into how I have set mine up first I will tell you some of this I cannot change as I need to keep stocks i had in Vanguard to stop possible short term capital gains tax.
Below is the link to my setup.
Its made up of 3 pies.
- Individual Company stocks
- Gambling / Crypto etc
The ETF Pie is made up of the below
The Individual stock pie is made up of the below companies
The Last pie is made up of the below
One of the limitations I have learnt is you really need to think about your pies and setups before you get too much funding. You cannot move a company from 1 slice to another without selling and re buying. Another limitation of M1 is that its not like Robinhood where you can choose when to trade there is one trade window.
A big positive for me is I can deposit say $200 and M1 will balance out the buys across all my pies to keep the percentages within the targets you set, this is great meaning you end up buying fractional shares of much more expensive stocks.
If you are using M1 feel free to share your pie in the comments.