M1 Finance is an investment company that’s simple and easy to use. It is fantastic whether you’re a first-time investor or a seasoned pro.

M1 Finance – GRADE: B

M1 Finance is an investment company that’s simple and easy to use. It is fantastic and intuitive whether you’re a first-time investor or a seasoned pro, and allows you to manage your account through an app on your mobile device or online. M1 allows its members to invest, spend, or borrow all on one straightforward platform. 

Features

Their claim to fame is their investment “Pies.” Through their “Pie” model, you are allowed to create your own investment Pie or follow a curated Pie that has already been established. If you know the stocks or funds in which you wish to invest, you may choose them yourself. However, if you have no idea what stocks to purchase, you can choose from one of their many expert portfolios. Your Pie allows you to see where your money is going at a glance across all your investments, as the app shows a wedge for each slice of shares you hold. 

Another amazing feature of M1 Finance is their investment automation, where members can schedule their contributions and take advantage of dynamic rebalancing whenever they buy into their portfolio. Investing automatically is also a feature you can set within your account.

There is no minimum to buy into any stock, so whatever the price, you are free to invest one single dollar if you so choose. 

Fees

While there are no fees for commissions, trades, or markups, there is a list of fees M1 Finance charges for certain transactions, such as $100 for every direct account transfer out of your account. This is designed to cut back on excessive withdrawals and ensure your money is invested over the long run, thus giving you the best chance to build generational wealth for yourself and your family.

Types of Accounts

M1 Finance allows diversity within their accounts which frees you to open accounts such as personal brokerage accounts or joint accounts with your spouse, a relative, or a partner, as well as trust accounts and traditional, Roth, or SEP IRAs. By offering retirement accounts, M1 Finance elevates itself among other investment companies who do not. While benefits may come no matter what investment company you choose, the freedom of opening an IRA account allows for the possibility of planning for retirement. 

Investing not only builds generational wealth but it secures one’s future as they age. If you do not have a 401(k) account through your employment, consider opening an IRA through M1 Finance.

You are also able to open a custodial account for a minor child, the funds of which cannot be touched once contributed until the child has reached adulthood. 

Perfect for Anyone

M1 Finance is an excellent choice if you’re thinking about investing your money. It doesn’t matter if you know the ropes or have no clue what you’re doing, M1 Finance helps you walk the road to investment with confidence. That is why Financial Joy School gives it the grade of A-.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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No worries, we are here to make this process joyful and straightforward.

A Mutual Fund is people/investors putting their money together to purchase; stocks, bonds, or other assets. Let’s let that sit in for a few seconds. First, the concept is a pool of money is created to purchase stocks, bonds, or other assets. Where does the money come from?

Investors, (YOU). You got the answer correct. GREAT JOB!!!!

Now that we have this money pulled together, what happens?

Mutual Funds are managed by companies who employ managers to lead the Mutual Fund. The managers are called mutual fund managers or professional money managers. So, every Mutual Fund has a team that the mutual fund manager leads. The manager and the team decide how they will invest the money from the collective.

Before they take investors’ money, they create a plan and goal for their fund. They research and gather all of their information and create a prospectus.

A prospectus is a fancy name for a pamphlet or brochure that gives you information about a specific mutual fund.

What type of information? The name of the mutual fund, what kind of investing the fund will focus on, fees, the minimum amount to get into the fund, the fund’s history, how the fund performed in the market, and the mutual fund manager’s name, and more.

Everything you need to know about a Mutual Fund you will find in the prospectus. The prospectus is a legally binding document; basically, it holds more weight than a pamphlet.

Now that you understand a mutual fund let’s take a quick Quiz

1- What is a mutual fund?

2- Who funds mutual funds?

3- Who manages the mutual fund?

4- What is a prospectus?

5- Should you read a mutual fund prospectus before you invest?

How many did you get right?

A mutual fund is a simple concept once all of the jargon is taken away from it. Do you understand what a mutual fund is?

Some last clarity points, mutual fund can be open or closed.

Open means they are taking new investors.

Closed means they are not taking new investors.

The mutual fund managers make those decisions.

Mutual Fund usually have a minimum amount like $500, $1000, $3000, $10,000 to get into a fund. Here goes a significant TIP: Fidelity Mutual Fund have no minimum; so, you can open up an account with $1; this is the exception, not the norm.

If you are still unsure about what a Mutual Fund is, email me, and I will do my best to help you learn and grow info@FinancialJoySchool.com

YEP, IT’S THAT SIMPLE.

NOW, LET THE OFFICIAL INVESTING PARTY BEGIN…

PARTY OVER HERE. PARTY OVER THERE.

PLEASE SHARE THIS POST IF YOU RECEIVED ANY VALUE FROM IT – IF NOT, COME BACK NEXT WEEK, WE WILL TRY TO DO BETTER…

We are not certified financial advisors. But, we are INVESTORS. Now, let the FINANCIAL PARTY continue…

The post Mutual Funds – An Easy Answer to Understanding Mutual Funds appeared first on Financial Joy School.