Transfer Complete: Getting Into M1 Finance

Finally it happened!

Yesterday I finally finished the transfer process from Fidelity to M1 Finance. I saw the balances come over into my accounts in M1 and then that same day I got an email that asked me if I had any questions before they turned my investing on.

I asked one question which I know a lot of people will ask when they are starting in M1 or thinking of it. I had made some target %s for my portfolio. Simple just a few 20%s, a 10% and a 5%. Obviously having bought full shares in my other brokerage, I didn’t have that already set up in my portfolio as my targets. So when I first put money into it, it looks like one of those squishy balls that you squeeze and it expands on one side. Definitely some of my companies were not what I thought were evened out by sector. So I asked my question. “When you turn on the investing, and when I put money it, will it sell anything, like these hugely over target items, to get to my target allocation?

The answer: “On the M1 platform, nothing is sold without a manual process on your end, which includes the following activity:

1) Removing a slice from your portfolio – this triggers a liquidation and the proceeds are automatically reinvested into your portfolio.
2) Using the rebalance button – this will sell your securities that are overweight (the securities with percents above the target you set) and buy back into the underweight securities.
3) Entering sell orders – you can place a sell order for an individual stock at anytime.”

And then they proceeded to say that I could adjust after the funds came in to fit the target amounts to what came in if I wanted.

That’s cool!!

So what happens:

I had created some sectors of securities of what I wanted to start my M1 Finance experience with. Some of them were the stocks that I already had and the others were some that I wanted to add. So I had a portfolio void of actual cash that was broken into percentages for different sectors of what I thought was stable and had good growth, and then in some of those sectors, I had several securities.

For example, I don’t own an AT&T or Verizon but I thought to add a Telecom sector and add 90% AT&T and 10% Verizon. Now when I put in $100, it tried to help my Telecom sector to get to the 10% allocation that I set for it. So, with a few other items I was trying to get into, it put ~$38 into Telecom, then took 90% of that $38 and put it into AT&T and then put 10% of the $38 and put it into Verizon! HOW COOL IS THAT???? So, though I don’t have any % in Telecom, it evenly put the investments to those to work my Telecom closer to that 10% but also inside of Telecom, it is perfectly to my allocation!

So you will see my at the top, and after some massaging through the investing, my pie is getting closer to balanced. And what’s even better is that because the investing will only buy securities, it will just keep buying to evenly allocate all of my items. When I get paid dividends, those will pay back in and buy my lower percentage items and things that have dropped so that I am getting them at better prices than I previously bought them.

I guess I will let it go and you will find out more in the next two weeks!

Thanks for reading!

P.S. Also I will mentioned. I talked about mentioning my portfolio buys.

I added $100 and I had $6.58 in my cash balance. At Fidelity, I would buy a stock or two and then I would have some amount left over.

With this amount, it invested $106.55 of my money. I will share what percentage my portfolio has and then what percentage each of the slices in these sectors are of that sector.

Bonds – 20% of full portfolio
LQD – 50% – $35.52
BNDX – 40% – $28.42
SHY – 10% – $7.10
Telecom
T – 90% – $31.96
VZ – 10% – $3.55

Excited for next week!

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