M1 Finance - Starting a 3 Fund Portfolio

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SeekingBogle
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Joined: Wed Mar 21, 2018 3:38 pm

M1 Finance - Starting a 3 Fund Portfolio

Post by SeekingBogle » Tue Sep 11, 2018 10:15 am

After almost a year of studying personal finance, I feel ready to start a 3/4 fund portfolio. I currently have a taxable account with Schwab Intelligent Portfolios, and my goal is to build a portfolio outside of Schwab with a similar mix while maintaining the Schwab account. Any thoughts on doing this or on M1 Finance as a custodian?

Jags4186
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by Jags4186 » Tue Sep 11, 2018 10:25 am

M1 is fine, but you don't need to use M1 for a 3 or 4 fund portfolio. You can do everything at Vanguard without worry that it will get bought up and have fees added in the future.

SeekingBogle
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by SeekingBogle » Tue Sep 11, 2018 10:36 am

Jags4186 wrote:
Tue Sep 11, 2018 10:25 am
M1 is fine, but you don't need to use M1 for a 3 or 4 fund portfolio. You can do everything at Vanguard without worry that it will get bought up and have fees added in the future.
So that's the downside of M1. I'm only looking at M1 because I can just throw in money whenever I get a bonus and they automatically allocate the funds/re-balance according to my specifications.

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CyclingDuo
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by CyclingDuo » Tue Sep 11, 2018 12:50 pm

SeekingBogle wrote:
Tue Sep 11, 2018 10:36 am
Jags4186 wrote:
Tue Sep 11, 2018 10:25 am
M1 is fine, but you don't need to use M1 for a 3 or 4 fund portfolio. You can do everything at Vanguard without worry that it will get bought up and have fees added in the future.
So that's the downside of M1. I'm only looking at M1 because I can just throw in money whenever I get a bonus and they automatically allocate the funds/re-balance according to my specifications.
M1 is fine and easy to fund when you get your bonus check or extra gravy to throw at it from time to time. Compared to other robo-advisor platforms, it's hard to argue with no fees!

We keep a small taxable Paul Merriman Ultimate Portfolio designed for taxable "pie" there, as well as a small Three Fund "pie" there, and a custom mutual fund "pie" made up of 60 stocks there. I pretty much toss 1/2 of my side "gig" money I get outside of my regular jobs which are already covered by 401k/403b retirement pre-tax salary deductions. I put the exact same amount in each "pie" at M1 every time I send something for investment to see which slice of pie wins the race. :beer

Some nice attributes with M1 for the Three Fund Portfolio is it is comprised of the Vanguard ETF's (Admiral Pricing) and you can purchase partial shares. No fees. Certainly a nice way for newer investors to slowly build a portfolio with a minimum starting balance of only $100.
Last edited by CyclingDuo on Tue Sep 11, 2018 6:20 pm, edited 1 time in total.
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Taylor Larimore
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Location: Miami FL

Advantages of ONE fund company

Post by Taylor Larimore » Tue Sep 11, 2018 2:32 pm

SeekingBogle wrote:
Tue Sep 11, 2018 10:15 am
After almost a year of studying personal finance, I feel ready to start a 3/4 fund portfolio. I currently have a taxable account with Schwab Intelligent Portfolios, and my goal is to build a portfolio outside of Schwab with a similar mix while maintaining the Schwab account. Any thoughts on doing this or on M1 Finance as a custodian?
SeekingBogle:

In my opinion, there are many advantages holding all our investments in ONE strong mutual fund company:

1. One familiar statement.
2. Less paperwork.
3. Easier tax preparation.
4. Avoidance of low-balance and other small fees.
5. It's much easier to learn only one company's policies, fees, regulations, etc.
6. With larger holdings it may be possible to qualify for lower costs and premium services (Voyager, Admiral, Flagship).
7. Rebalancing and exchanges are easier.
8. Eliminates 3rd party brokerage.
9. A loyal customer is appreciated and usually treated better.
10. Less chance of errors.
11. More free time for ourselves.
12. In event of death or disability, it will be much easier for others.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

SeekingBogle
Posts: 58
Joined: Wed Mar 21, 2018 3:38 pm

Re: M1 Finance - Starting a 3 Fund Portfolio

Post by SeekingBogle » Tue Sep 11, 2018 8:18 pm

Thanks, all. I hear you.

William55
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by William55 » Tue Oct 09, 2018 5:01 pm

I use M1 to automate my IRA Investments (VOO 50%, VEA 20%,VB 15%,QQQ 15%). I like the ability to dollar cost average into those ETFs on a weekly basis while purchasing fractional shares at the same time. I like the ability choose my own investments of a brokerage while still utilizing the automation of M1. I also have a taxable account with them that I regularly make deposits into and I like the fact that if I need to I can borrow against my portfolio at a 4% rate.

MotoTrojan
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by MotoTrojan » Tue Oct 09, 2018 7:57 pm

A Target or Lifestrategy fund will also allow you to toss money in and automatically balance.

Keep in mind you should be maxing your Roth and 401k first, if applicable, and then its best to hold your funds in a tax-efficient account.

ThePrince
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Location: U.S.A.

Re: M1 Finance - Starting a 3 Fund Portfolio

Post by ThePrince » Tue Oct 09, 2018 8:26 pm

I just opened an M1 account and effected the quintessential Bogleheads portfolio—Vanguard Total World Stock Index ETF (VT) and Vanguard Total World Bond Index (BNDW). Liking it thus far.

viz
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Re: M1 Finance - Starting a 3 Fund Portfolio

Post by viz » Tue Oct 09, 2018 8:49 pm

SeekingBogle wrote:
Tue Sep 11, 2018 10:15 am
After almost a year of studying personal finance, I feel ready to start a 3/4 fund portfolio. I currently have a taxable account with Schwab Intelligent Portfolios, and my goal is to build a portfolio outside of Schwab with a similar mix while maintaining the Schwab account. Any thoughts on doing this or on M1 Finance as a custodian?
Your investment are safe/protected by SIPC. The platform is easy to use. You start with zero trading fees and can choose your ETF.

There is the risk that M1 gets bought or starts charging a fee. You can move to another platform then if such fees exceed the cost of transfer (usually $75). The other risk is that you might get a bad price as trades are executed once a day at 10 am but you are a long term investor so it shouldn't matter. MF are also traded once a day, after market.

I use M1 for a trading strategy which requires to rebalance or change stocks once a year. It is less than 1% of my portfolio and most of my funds are with fidelity and Merrill Edge

SeekingBogle
Posts: 58
Joined: Wed Mar 21, 2018 3:38 pm

Re: M1 Finance - Starting a 3 Fund Portfolio

Post by SeekingBogle » Wed Oct 10, 2018 11:00 am

viz wrote:
Tue Oct 09, 2018 8:49 pm
SeekingBogle wrote:
Tue Sep 11, 2018 10:15 am
After almost a year of studying personal finance, I feel ready to start a 3/4 fund portfolio. I currently have a taxable account with Schwab Intelligent Portfolios, and my goal is to build a portfolio outside of Schwab with a similar mix while maintaining the Schwab account. Any thoughts on doing this or on M1 Finance as a custodian?
Your investment are safe/protected by SIPC. The platform is easy to use. You start with zero trading fees and can choose your ETF.

There is the risk that M1 gets bought or starts charging a fee. You can move to another platform then if such fees exceed the cost of transfer (usually $75). The other risk is that you might get a bad price as trades are executed once a day at 10 am but you are a long term investor so it shouldn't matter. MF are also traded once a day, after market.

I use M1 for a trading strategy which requires to rebalance or change stocks once a year. It is less than 1% of my portfolio and most of my funds are with fidelity and Merrill Edge

Thanks. I went ahead and got started with M1 and I’m working on portfolio allocation right now.

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