Having multiple portfolios is never a bad idea. This way, you can have your money in investments for different purposes, and even separate dividend returns. As a new or existing customer on M1 finance, you might be wondering whether M1 finance allows you to have multiple portfolios on their platform. So can you have multiple portfolios in M1 finance? No.
You cannot have multiple portfolios in M1 finance. The broker does not offer this service to any of its customers. However, you can open up to 5 accounts under one login. These 5 accounts can be a combination of trust accounts, retirement accounts, and individual taxable accounts.
In this article I am going to talk about:
- How to create multiple accounts on M1 finance,
- Portfolio management on M1 finance, and
- How to create a portfolio on M1 finance.
How to Create Multiple Accounts on M1 Finance.
M1 finance permits users to create multiple accounts under the same login. However, before you can create multiple accounts under the same login, M1 finance will first require that you create an individual taxable account. This is just company policy and it is mandatory. To create an individual taxable account, all you need to do is to:
- Submit an application to M1 finance via their official website
- After submission, you will receive an email from M1 finance which will either approve your application or request more detail before approval.
- If more details are requested by M1 finance, the procedure for uploading the documents containing the extra details will be included in the email.
- After 5 to 7 days, M1 finance must have gone through the necessary documents and your account will be opened.
Once your taxable account has been opened you can then open up to 5 accounts under the same login. To open multiple accounts under the same log-in follow these few simple steps:
- Click on portfolio under the invest tab.
- Next, click on the icon that is showing your portfolio name.
- Finally, click on “add account”. you can add up to 5 accounts if you wish.
After completing the process I have just listed out, you should have no problems moving forward.
The types of accounts you can create under M1 finance include; individual accounts, joint accounts, trust accounts, custodial accounts, and individual retirement accounts (IRAs). You should note that while you can create individual, trust, custodial, or IR accounts with a single profile, you will need a new and separate profile to open a joint account with M1 finance.
Portfolio Management on M1 Finance
Portfolio management generally has to do with selecting and supervising a set of investments to be risk-tolerant and doing so to ultimately meet your financial goal. It involves buying and selling of stocks tactically to diversify risk. M1 Finance is a Robo-advisor and one of the best in the markets. The system helps you manage your portfolio for free if you wish.
Dynamic Rebalancing on M1 Finance
M1 helps you manage your portfolio through what it terms dynamic rebalancing. Your portfolio is constantly monitored so you don’t stray off your financial target. With this feature, whenever you deposit money into your account, the system channels the funds into the stocks that are under-funded. Also when you withdraw funds from your portfolio, the system intelligently removes the funds from the robust part of your stocks.
You should know that M1 will not rebalance your portfolio without your permission. You can also decide to manage and rebalance your portfolio manually without the help of the systems algorithm.
How to Create a Portfolio on M1 Finance
Before you can start investing in M1 finance, you must first create a portfolio. As a new investor on M1 finance, you might find it slightly difficult to create a portfolio. However, once you properly understand what is needed, it is quite easy. You can either create your portfolio via M1 finance’s mobile app or via their website.
Creating Your Portfolio via M1 Finance’s Mobile App or Website
Your portfolio on M1 finance has the same resemblance as a pizza with each slice representing the stock or bond you own in percentages. After you are logged on to your account on M1’s mobile app or website, you will be required to set up your account and then create your portfolio. To create your custom portfolio;
- Click on “choose securities” to view the list of securities available to investors on M1 finance. (the option of “choose securities” is located at the bottom of your screen on the app or website).
- Click on the stock you want to buy to check out extra information about it, such as price history and the company’s profile.
- To add a stock to your portfolio on the mobile app, click on the plus sign on the stock or you can click on the “add to pie” button in the details screen. However, to add a stock to your portfolio via the website, simply check the box to the left of the stock or click on the “add to basket” button in the details screen.
- After you’re done selecting your preferred securities, click on done (which is located at the top right corner of the app).
- After you click on “done” you will be taken to a new page where you will be required to name your portfolio and further organize it.
In this article, I explained to you that you cannot have multiple portfolios on M1 finance. However, the broker permits you to open up to 5 different accounts under the same login. I also explained to you the process of opening multiple accounts, M1 finance’s dynamic rebalancing, and how to go about organizing your portfolio.
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Till next time…
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