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
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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.

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