January 17, 2022 Last updated January 7th, 2022 1,812 Reads share

M1 Finance Review: A 2022 Update

Image Credit: pixabay.com

While some investing apps make users draw a hard line between automation and customization, M1 Finance offers individuals both the flexibility to make personal decisions about their portfolio along with enough automation so that they do not need to be constantly micromanaging their finances.


What will I learn with this M1 Finance Review?

This review will help users to best navigate their use of M1’s financial services to make sure that it is the best financial decision for him or her and how best to utilize the organization’s resources.


What is the M1 Finance application?

The M1 Finance application is a way for inexperienced investors or those on a budget to enter the market with the guidance of proven experts. In the past, these services charged a high minimum as a barrier to entry, but the internet has allowed applications such as M1 the agility to accommodate even the most budget-conscious of investors, offering no annual fees and no minimum on the balance that must be kept in one’s account.


Who is the M1 Finance application best for?

M1 Finance is best for passive investors or those looking to begin investing without having to pay attention to every minute detail to his or her portfolio. Users are able to choose from over eighty different portfolio templates put out by M1 Finance, but more hands-on investors will also be able to customize these portfolios.

M1 Finance is especially useful for those looking to generate passive income, even allowing investors to enter the market without a large startup fund. This allows users on a budget to purchase fractional shares of blue-chip stock when an investor might otherwise not be able to budget for a full share at a given moment.

The benefits of passive income and compounding interest should not be lost on young investors, as guaranteed pensions from companies are not nearly as common as they were for previous generations. As a result, young people need to be more conscious of their financial planning for retirement.

Using M1 can help young people get the early jump that they need to plan for later in life. Considering the expert guidance and lack of fees and transaction minimums, M1 is an excellent marketing option for young people to take advantage of compound interest and save small amounts of money before having to invest larger amounts as they age.

It’s never too early to start investing for retirement. Some believe that not regularly putting funds into a retirement account of some sort is one of the most common mistakes made by investors that are still in the job market.

M1 offers basic investment advice to those first breaking into the market, such as how portfolios should be allocated between stocks, bonds, etc. based on an investor’s age and risk preference. This may seem intimidating at first, but both M1 and M1 Plus offer automatic portfolio re-balancing if M1 notices that your portfolio has deviated from your recommended asset allocation ratio.

Some M1 Finance Reviews mention that M1 is not the best option for day traders or those who are very active on their portfolio as there is only one trading window that investors can make transactions per day.


What are the advantages of M1 Plus?

While many investors will be well suited with the basic M1 application as there are no fees or minimum account balances to consider, M1 Plus offers additional capabilities to investors for only $125 per year.

  • Smart Transfers can be useful for M1 plus users who have trouble with budget management as it will cover any falls in your cash flow with funds from your investment account.
  • M1 Plus users also have access to a margin loan program that reduces their interest rates by 1.5% of whatever the current federal funds rate is set to.
  • Finally, M1 Plus users are granted a 1% annual interest rate on both cash balances as well as certain debit card purchases.

All of these advantages can make the price of M1 Plus a wise purchase for a variety of investor types, from those

All for just over $10 per month, investors who are already experienced with the basic M1 application should seriously consider if the M1 Plus benefits align with their goals, as there are a wide range of customers who could benefit from the extra capabilities.

The M1 Finance app is a great choice for anyone just looking to break into investing or doesn’t have a large sum of funds to begin with. While it might not be useful for investors who are into more speculative ventures such as day trading, it is a compelling option for anyone who wants to learn about the basics of finance for little to no expense or is looking for guidance in how to properly diversify his or her portfolio. Investors who are interested in growing their wealth over the long term and curating a custom portfolio can certainly benefit from the application.

Click here to learn more about how M1 can benefit all aspects of your financial life.


Dmitry Kozlov

Dmitry Kozlov

Read Full Bio