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M1 Finance App Tutorial How To Build A Diversified Stock Portfolio

M1 Finance App Tutorial How To Build A Diversified Stock Portfolio

pM1 Finance App Tutorial How To Build A Diversified Stock Portfoliop pin todays tutorial were taking an indepth look inside the m1 finance app were going to talk about how to buy and sell stocks on m1 finance how to take advantage of their smart rebalancing feature and lastly how to maximize your security settings inside the app this is Eric of investing apps TV and if youre new to m1 finance feel free to first check out part 1 of this article series my m1 finance review article where I first talk about what m1 finance actually is and also be sure to stay tuned until the end of this article where Ill show you how new users to m1 finance can get a free 10 to invest when creating a new m1 finance account with that being said guys its not happens todays tutorial okay guys so here we are now inside the m1 finance app this is on the main home page here where it says portfolio so when you first start off with m1 finance youre gonna want to find stocks and ETFs to add to your m1 finance portfolio so inside the app what youre gonna want to do is click on the upper right hand corner those three dots right there and this is where you can add to your portfolio so if you want to add slices to your portfolio that basically means adding new stocks or ETFs to your portfolio you would simply click on add slices right there and this basically opens up the discover page where you can find all of the available individual stocks and ETFs Oh the first tab where it says stocks those are all the available stocks there are over 4, 200 individual stocks you can invest in on the m1 finance app and if you click over on funds those are ETFs those are the diversified portfolios basically those are exchangetraded funds which are diversified groups of stocks related by a certain sector or niche and there are currently almost 2, 000 ETFs that you can invest in so altogether guys there are around over 6, 000 investment options you can invest in on m1 finance now if you wanted to add an individual stock to your portfolio you would go click on stocks and choose any one of these you can also search on the upper search bar there lets say you want to invest in Walmart you could type in Walmart and then click on the Walmart right there that will open up the Walmart stock page or you can find the latest news on that particular stock as well as its price history how its performed over the last certain number of years as well as a breakdown on the company under its profile now under the company name on the top you will see it does show its overall total market cap the price expense ratio as well as its dividend yield at the current time now lets say you want to add this particular stock to your portfolio all you have to do is simply click on add to PI on the bottom right there and that has now been added to your PI you can exit out of that thats been added to your PIs you can see weve added one slice to our portfolio on m1 finance and next over its funds and like I said guys here on the funds page you can find many diversify ETFs such as the spider sp500 ETF this is based on the SP 500 index which is basically focused on 500 of the largest companies in the United States so if youre a beginning investor to investing in the stock market I would definitely consider looking into investing in ETFs when youre first starting off because they are very diversified and give you much less risk than investing in individual stocks so as you can see there are several diversified ETFs you can invest in such as the spider SP 500 etf vanguard total stock market ETF you can invest in developing and emerging international ETFs you can invest in midsized companies mid cap emerging small cap companies so there are several different diversify ETFs you can invest in on m1 finance that will give your portfolio a lot less risk and much more diversification now if you really need to investing and you dont know where to start you can also click over to where it says expert PIs and this is where m1 finance will actually give you some recommendations of what they recommend investing into your portfolio so you can open up any one of these such as general investing and theyll give you their recommendations so based on your investment objectives you can choose an ultraconservative portfolio a conservative portfolio all the way up to ultra aggressive now lets say you want to invest in any one of those you would simply click on that and again guys it gives you details of breakdown of that particular portfolio how many stocks or investment holdings are in that portfolio as well as its performance it also does have a breakdown of the methodology of that particular ETF if you click on targets right there it does show you the breakdown of what is invested in that particular ETF so as you can see a breakdown by percentage of whats in this particular ETF as you can see it has currently international develop markets make up 29 of this portfolio the Vanguard SP 500 make up 26 14 of this portfolio is the Vanguard small cap ETF which is basically small cap upandcoming companies in the US you have intermediate corporate bonds making up 11 of this portfolio with emerging international markets making up 6 and you have 6 in Vanguard mid cap ETF which is basically midsized companies in the US another 5 is invested in real estate and 3 invested in total international bond etf so thats just one example there guys but really you can choose any one of these ETFs again the more conservative you go you will notice that there is a larger percent in bond as you can see the ultraconservative portfolio has 82 percent in Treasury bonds so that is very conservative but those are just a few options under general investing you can also choose other options such as planning for retirement responsible investing income earners hedge fund followers if you want to follow large hedge fund out there such as Berkshire Hathaway thats Warren Buffetts company and all these other top funds out there you have industries and sectors you can click on that so you could easily invest in the aerospace auto biotech restaurants industrials media real estate tech all of these different sectors right here there really are many options lastly you will have over on the right hand corner your watchlist where you can hold stocks that you dont want to invest in at the current time but stocks you want to keep an eye on for possibly investing in in the future so basically guys when it comes to adding individual stocks or ETFs into your m1 finance portfolio all you have to do is simply click on any one of them so lets say you want to add Johnson Johnson to your portfolio you would click that click on add to PI and if you exit out of there and click on done you will now see that that individual stock has been added to your portfolio where you can click on that and easily adjust the percentage that you want to invest in so you could up this amount if you want to invest 5 6 7 whatever you want you will notice as you add new investments to your portfolio that the total percentage will surpass 100 as you can see as I increase the Johnson and Johnson holding in my portfolio its now up to 110 of 100 so it wont let me save this portfolio because its too high so when youre adding a new and vestment such as Johnson Johnson if I were to designate 10 of my portfolio to Johnson Johnson I would have to reduce 10 from somewhere else so I could take away two of these five percents or take away any one of these other investments with 10 to allow that once I did that I would simply click on the Save button in the upper right hand corner and that would officially add the new investment to my portfolio whether it be a individual stock or an ETF and if you want to change your mind and you dont want to invest in one of those you would simply click on the X on the upper left hand corner and click on discard and that will not add the new investment to your portfolio now I want to talk about a pretty cool feature in the m1 finance app known as their smart rebalancing feature so to access to this you just again click on the upper right hand corner those three dots and click on the third option where it says rebalance if you click on that that opens up the rebalance tab where it says during the next trading window m1 will buy underweight slices and sell overweighed slices to bring your pie back to its targets and if you want to learn more about rebalancing and what it means you can click on that link right there to learn more about it but basically all you have to know guys when it comes to rebalancing is that rebalancing is very helpful for maintaining your target percentages what I mean by that is when you first set up your m1 Finance account and you add individual stocks or ETFs to your portfolio you give certain percentages to each investment so lets say I wanted to initially invest 10 of my portfolio in Amazon and another 10 of my portfolio in Wells Fargo now lets say over the course of many months while fargo underperformed and amazon over performed well over time guys those percentages that you initially set up can be thrown off so for example whereas i initially set up 10 of my portfolio to be invested in wells fargo if wells fargo performed poorly over a couple of months that initial 10 target could drop to 5 so 5 of my portfolio would now be invested in wells fargo and lets say amazon performed really well over those few months well that 10 initial target in amazon could now make up 15 of my portfolio would now be invested in Amazon so thats really what rebalancing is for all you would have to do is click on the confirm button and m1 finance will automatically do it for you at no charge so do I recommend rebalancing well it really is up to you and does depend on your individual investment objectives I definitely think rebalancing can be extremely helpful for maintaining a diversified portfolio if you dont rebalance over time your portfolio can become less diversified as overperforming stocks begin to make up a larger percentage of your portfolio and underperforming stocks will begin to make up a lower percentage the argument on the other hand against rebalancing is that if a particular stock is performing very well you may not want to rebalance you may want to let that particular stock keep growing and keep maintaining a larger percentage of your portfolio but at the end of the day guys like I said it really does depend on your individual investment objectives and either option it really is fine so lastly guys I now want to cover the security features on the m1 finance app and how you can set those up to maximize your security on this app so to access the security features you want to open up the left hand side menu and scroll down to where it says settings under settings here youll see several options I want you to click on the second option where it says security and this is where you can set up the security features and when Finance I will say has quite a few more security features than most of the other investment apps Ive tried so far the first one is a pin code theres a four digit code you could set up so that in order to open up the app you would have to answer that four digit PIN now if you want some deeper security you can use fingerprint authentication as a replacement for your PIN but probably the biggest security feature I recommend taking advantage of on the m1 finance app is twofactor authentication so on the bottom it says enable twofactor authentication if you click on that it says m1 finance offers twofactor authentication which utilizes a second device to provide an extra layer of security for your account I definitely recommend setting up twofactor authentication on your m1 Finance account now one thing I really like about twofactor authentication on m1 finance app is that they integrate twofactor authentication with the Google Authenticator app as you can see here many investing apps dont even have two factor authentication at all but the few that do a lot of them have simply SMS text messaging as a twofactor authentication option and that is a much less secure option than the Google Authenticator app and lastly guys if you want to share the m1 finance app with your friends all you have to do is open up the menu there and scroll down youll see where it says refer and earn send friends 10 and get 10 for yourself if you click on that itll open up the referral program which basically anytime you invite any of your friends to join em on Finance and they open a new account both you and your friend will get a free ten dollars to invest in the m1 finance investing app so again guys if youre new to m1 finance and would like to give it a try feel free to join through my referral link Ill put it in the description box below like I said guys you dont have to join through me but if you would like to give it a try feel free to join through me it does help support the channel and is appreciated and also guys feel free to share your owner for a link with your friends so both of you can get a free ten dollars to invest on m1 finance as well but overall thats how you invest in stocks and ETFs on the m1 finance platform whether you want to invest in individual stocks or ETFs and again thats how you take advantage of the smart rebalancing feature made available by m1 finance and dont forget to set up a twofactor authentication feature on your app as well and that pretty much concludes todays tutorial on the m1 finance app if you have any questions on how to use any of the features and either the app or the website feel free leave your questions down below in the comments I always have it to connect with you guys down there and of course if youd like to see some of my other investment app review articles or tutorials feel free to check out my playlist of those right over here to the right thanks again for watching guys and Ill catch you guys in the next episode of investing apps TVp

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