M1 Finance Review 2021: Is It The Perfect Investment Platform?

Investing is hard due to a myriad of factors ranging from behavioral to psychological. Getting started with investing and continuing with investing should ideally be automated so we do not second guess ourselves; trying to time the market or chase the next hot sector.

Despite all the technological advances and myriad of brokerages competing for our investment dollars, there are not many perfect investment platforms.

Characteristics Of My Perfect Investment Platform Zero fees: In this day and age when almost anything can be done online; it is criminal to charge fees for the act of investing. Fees could have been justified back in the day when you needed a human to answer the phone or manually place a trade.

Vanguard, Schwab and Fidelity have an extensive selection of funds; albeit restricted to mostly their own fund families.

Selection of Funds:

Minimum Investment: Although I love Vanguard for popularizing index funds and being a pioneer wrt forcing lower expense ratios across the industry; the minimum investment is an area where it fails miserably.

Auto Invest: The best results from investing come from putting money to work in the market with regular frequency. It is hard to know what causes the markets to rise and fall on a daily basis.

Pre-defined asset allocation: In order to get started with investing; it would be great if there was a way for investors to select a pre-defined asset allocation.

As we begin the Holiday season in the US; let us take a moment to pause and acknowledge all the great things we have going for us, including the people in our lives. Fidelity, Schwab and Vanguard have Target date funds. M1 Finance has a much more extensive menu, if you are not a DIY investor in the form of pies.

Auto Rebalance: After you have decided on your asset allocation; it is always a good practice to periodically rebalance your portfolio.  Rebalancing restores asset classes to their target allocations by selling assets that have appreciated and buying those that have declined.

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