Once your account is funded, M1 will start making trades based on your pre-set target allocation. It'll do its best to hit those targets, but it's not perfect. As you can see Facebook makes up 4% of my portfolio, despite its 7% target. Not complaining, my portfolio is up 1.52% since last Monday. That's triple the performance of the S&P 500.
You can schedule deposits, too. I have it take out $100 right after my first paycheck of the month.
Linking your bank account is as easy as entering your mobile banking password and username. No need to bust out that pesky routing number.
Once you link with your bank, you can start making deposits. That deposit will be allocated into your pie based on your target allocations. Thus, if you put in $100, and your target allocation for Amazon stock is 15%, then $15 will go into Amazon.
Once you're done building a pie, you can fund it.
If you're planning for retirement, M1 has an option for you. Under the "Expert Pie" section you can pick from a number of retirement portfolios based on your risk and retirement year preference. You could make a separate pie entirely made up purely of this portfolio.
Perhaps you're not interested in building your own investment pie, but you still want to invest. Under the general investing tab in the Discover section, you can pick from 6 of M1 pre-made and managed portfolios. Options range from Ultra Aggressive to Ultra Conservative.
The financials pie, for instance, is made up of 30 of the largest financial firms such as UBS Group and JPMorgan.
You can also add industry specific pies to your portfolio. Such pies are made up of numerous companies from the same industry.
Basically, 4% of my portfolio is made up of another 25 holdings.
The Berkshire Hathaway pie, which mimics the holdings of famed investor Warren Buffett, makes up 4% of my portfolio.
In the "Expert Pie" section of the app, you can find pre-made pies that you can add to your portfolio. For instance, you can incorporate the investment strategies of some well-known Wall Street firms such as Berkshire Hathaway and Pershing Square Capital.
My target allocation for Amazon is 15%, meaning regardless of how much money is on my account, or what the stock is trading at, M1 will work towards ensuring the position makes up 15% of my account.
When you add a slice to your pie you select a target allocation. If you wanted, you could have a whole pie of just Amazon stock.
Since M1 allows you to purchase partial stocks, you can invest in a blue chip company like Amazon, which trades at over $1,000 per share, with just $100. To add a stock to your pie you just click the check button to the right of the company's name.
Using the Discover feature you can find the slices you want for your pie.
Before you fund your account on M1 you can start building a "pie." Clicking the turquoise plus sign allows you to add up to 100 "slices" to your pie. Slices can range from stocks, ETFs, or M1's pre-built pies.
This is what the M1 Finance icon looks like on an iPhone.
