EXPOSING My M1 Finance Investment Portfolio - Roth IRA, Traditional IRA, Taxable Account

In this video, I break down my M1 Finance investment portfolio to give you an idea of how I have my money invested. We'll cover my taxable investment accounts, Roth IRA, and Traditional IRA.
As we go through each investment portfolio I'll touch on exactly what I'm investing in and why I'm doing that. The goal for me is to grow my money so you'll notice that I mainly invest in index funds since I'm a long term buy and hold investor. This strategy works best for a passive investor like me.
My main holdings consist of Vanguard index funds because they're very cheap to own and know for being an extremely high quality investment.
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.
#investing #m1finance

[@JarradMorrow]

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[@PrasanthLouis21]

This is honestly a very well made video. I love how you describe why you bought each thing rather than just displaying your portfolio. Keep up the good work!

[@JarradMorrow]

Thank you so much!!

[@MyFinancialFriend]

Interesting play using the investments to pay for cars. I have actually thought of that specifically and made a spreadsheet to plot it out! Nice because it's much more attainable than full FI but still a sizable expense to have covered! Keep up the good work Jarrad!

[@JarradMorrow]

Thanks. I figured it was worth testing out the strategy since my finances are in order.

[@lecksofthebyr]

This is a video that best represents what I am looking to do! Thanks for all of the great insight.

[@JarradMorrow]

No problem! Glad it was helpful.

[@InvestWithQueenie]

Great video don't stop 💯

[@JarradMorrow]

Thanks

[@ganthc]

Great video, Jarrad! Very helpful for me when I start my Roth account in September. I noticed you used all ETFs. You should do a video explaining the difference between mutual funds, index funds, and ETFs. Your videos are great in showing how we can invest ourselves without hiring a financial planner that charges big fees and tries to push us into annuities or high front loaded mutual funds.

[@JarradMorrow]

Glad it was helpful. It's funny you suggested that because as I was brainstorming video ideas last night that was one of them that came up. Coming soon.

[@rquezon6508]

thank you for your videos! im learning a lot!! 😊👍

[@JarradMorrow]

You are welcome!

[@sandk75]

I really like your explanation of the various investments. Thanks for the videos Jarrad.

[@JarradMorrow]

Glad you like them!

[@geovannyl.2801]

Great video Jarrad. If you click on edit, you can actually change the name for the entire portfolio. Just a quick tip haha. Again, Great video!

[@JarradMorrow]

Good call!

[@thowlett2681]

I’m so glad I watched. Mainly because I don’t know very many people that invest and the few I’m around only worry about the downs of the market nothing else. I’m assuming you have one more account making 5. Your work 4O1k. Nice video.

[@JarradMorrow]

Glad it was helpful. Yes, my 5th account is the largest of them all and that's my 401k since I'm able to put $19,500 per year into it.

[@jenj6934]

Thanks for sharing

[@JarradMorrow]

You bet!

[@HyDroSoniK]

amazing video man , very helpful !

[@JarradMorrow]

Glad it helped!

[@MoementumFinance]

Wow you have sonmany different accounts with M1, but it is cool to see how you are diversifying through various types of securities and ETFs 👍

[@JarradMorrow]

Thanks!

[@bigred8025]

GOOD AFTERNOON HAVE A BLESSED YOU FRIDAY 😇😇😇😇

[@JarradMorrow]

You too

[@jononfirebudgetinginvestin3897]

VOO is the best! I also really like VGT (tech) and VHT (healthcare) :) I’m mostly in VOO and VTI, but have a small position in tech, healthcare, energy, and financials :)

[@JarradMorrow]

Thanks for sharing!

[@cliffdariff74]

I like VYM... te.l us more about ur "car investment",

[@Joseph_Eissa]

So, I buy the percentage of the index funds/stocks, not the actual shares of the index fund right? For example, I put in 1K into my Roth IRA account and I want to purchase VOO, do I buy the shares of that ETF or the percentage?

[@JarradMorrow]

M1 will buy the actual shares for you. Whether they’re full shares or partial shares depends on the $ amount.

[@Joseph_Eissa]

So auto invest is every month? If so, how will it go into my account? Will the cash every month go into my buying power or straight into the fund?

[@JarradMorrow]

If you have it set up to auto-invest all the money then it’ll all get invested.

[@quincysutton9136]

I can’t figure it out I have 6k in cash in my Roth & I don’t get how you set the date for your auto invest. I see if I have over a certain amount it will buy but how do you set to spend $500 monthly or bi weekly?

[@chalkalette]

Hi J, first I would like to thank you immensely for giving us an overview of your accounts. I wanted to know if opening a traditional IRA is feasible for long-term gains? Or, should I ignore a traditional IRA and just open a Roth IRA? Fyi, I'm aware of taxes and all that stuff in regards to IRAs. I just wanted a second opinion in terms of what's best suited for an individual who wants to have a set it and forget type of investment. Again, kudos to you for all the valuable information!

[@JarradMorrow]

Invest in your Roth IRA for as long as you're under the income limits. Once you make too much money to contribute to a Roth, contribute to a Traditional IRA then do what's called a "Backdoor Roth" to convert the money into a Roth IRA. You can beat the tax free gains you receive from a Roth IRA.

[@chalkalette]

@@JarradMorrow Perfect, just what I needed to hear. Thank you J!! 🙏

[@pamelaodom8597]

Great video! I’m trying to learn and move my traditional IRA from Merrill Lynch to M1. It’s a guided IRA and charging me a lot of money. I’m clueless what to put into it. I plan on retiring in five years.

[@brentshuffler1234]

Thanks, Jarrad. I love the idea of a dedicated savings strategy to eliminate the usual fuss about if, how, and why to buy vehicles. One note: the S. & P. 500 Stock Index is not, strictly speaking, the 500 largest companies in the U.S.A.; it is actually the 500 largest PUBLICLY traded/listed corporations in the U.S.A.; that means registered on U.S. securities-exchanges; there are many larger companies that are either not listed on public exchanges, or are not listed in the U.S.A.. With these 3 or 4 caveats clearly before us, I do endorse your point about using an extremely low-cost, high-return, medium-risk tool such as an index-fund based on a broadly diversified index such as the S. & P. 500 Stock Index or the Russell 2000 Stock Index.

[@JarradMorrow]

I'm aware that they're only the largest publicly traded companies. Thanks for pointing that out.

[@TomJerry-ni1xj]

Obviously they're the largest PUBLIC 500 companies..you can't invest in shares if they're not.

[@iproject1850]

What’s the income limit that your reference in your Roth vs traditional discussion at the end? Is that your own arbitrary number?

[@JarradMorrow]

It's not my rule, it's a rule for investing in an IRA (Roth or Traditional). You can only invest up to a total of $6k per year within an IRA.

[@iproject1850]

Oh! I see. $6K for IRA. 401K/403B/457 is $19.5K

[@JarradMorrow]

Correct. I made a video breaking down which order to invest in them if you haven't checked it out yet: kzbin.info/www/bejne/nXbQpatufZJ2oNE

[@LamboLapdog]

👊👊

[@JarradMorrow]

👍🏻

[@izik6894]

Great video! Can you please share your thoughts on my ROTH IRA portfolio? I am 38. Thank you and KEEP UP THE GREAT JOB!

[@JarradMorrow]

Thanks. I can give you my thoughts. What holdings do you have at what allocation?

[@izik6894]

@@JarradMorrow Thank you! VTI 50% VXUS 15% VGT 10% VNQ 5% VIG 5% and 10% filled with favorite stocks (23 holdings) This is in my ROTH IRA

[@JarradMorrow]

I don't see anything concerning about that portfolio. No bonds which is perfectly fine (I don't hold any either) as long as you can stay invested and not panic sell when the market goes down. As you get closer to needing to live off that money I'd start thinking about shifting some of that allocation towards bonds. My math might be wrong, but it looks like you're missing 5% in the allocation % you mentioned. All of this is of course my opinion and not financial advice. I have no idea what I'm talking about.

[@izik6894]

@@JarradMorrow thank you

[@samuelg6386]

Can you do trades like sell and buy stocks whenever you want in Roth IRA acount or no ? And can you covert an individual account into a Roth IRA account on M1 financial or no ??

[@JarradMorrow]

Great question. Yes, you can buy and sell whenever you want within a Roth IRA. No, you cannot convert an individual account into a Roth IRA. You'll have to sell your investments then deposit the money into a Roth IRA. This is the case with any investment platform. The IRS only allows cash contributions into a Roth IRA.

[@samuelg6386]

@@JarradMorrow thank you 🙏 Can you put cash in for this year and and then after April 15 put cash in for the new year and then invest or do you have to buy stocks right away when you deposit the cash or at least before April 15 ?

[@52msdiane]

As always, incredible video Jarrad! I am learning so much!!! I regret in past purchasing have 2 annuities I own, one 25 yrs now and second 14 yrs. VIP, (variable investment plan) with prudential. I am 56 yrs old. I have a guy I've been with for 20 yrs but I'm concerned about being robbed with fees ect.. Can I get out of the annuity since Ive been in so long? If not, can I just change the investment strategy in the annuity? Thanks so much young man, I be t your parents are very proud of you! I would be!!! Blessings!!

[@JarradMorrow]

I'm glad it was helpful! You'll most likely pay fees that won't make it worth it if you try to get out of the annuity at this point. Might make sense to suck it up and just stiock with it. You'll have to check on the specifics of that annuity since a lot of them are different. Don't be afraid to fire your current advisor to move to a different one. If you don't feel they're looking out for your best interest then look for a fee only advisor. They specifically need to be a fiduciary advisor since they have to legally do whats in your best interest.

[@louis84100]

Great video jarrad. Im new to this. Can i ask if all the individual accounts you have on m1 finance have a maximum contribution of $6k combined?

[@JarradMorrow]

Thanks you! The taxable accounts do NOT have a maximum contribution limit. Only the IRA accounts.

[@nors3732]

Would you know if VOO available for non American citizens? I am in Asia

[@JarradMorrow]

Non citizens should have access to it

[@SoccerPlaya12252]

What do you think about MGK for taxable?

[@JarradMorrow]

I don't see any issues holding it within a taxable account

[@monte21228]

Please make a video on how much tax you are paying on stocks.

[@JarradMorrow]

I'm not paying taxes on the money from my investment accounts because I don't sell anything. I buy and hold

[@diverwa]

Good stuff, I like the M1 platform. Opened an account to get started, have two 457 plans that im going to roll to traditional ira then convert to roth at least thats the plan. Been told that is a viable option. Take a hit on fed tax now but tax free forever after. Any thoughts?

[@JarradMorrow]

Sounds like a plan to me!

[@phen0mejon99]

What happens if you contribute to roth ira if you're over the income limit?

[@JarradMorrow]

Definitely talk to your accountant. From what I understand this happens fairly regularly for people with variable incomes and who unexpectedly make more money. From what I understand it’s fairly easy to properly move the money to a traditional. But that’s not something you want to mess up though so I’d highly suggest talking to your accountant.

[@brentshuffler1234]

Wow! Plenty of unrelated advertisements in today's video!

[@JarradMorrow]

I hate it when KZbin does that.

[@melodybrowser2798]

Can you buy Voo from m1 finance as Etf

[@JarradMorrow]

Yes you can

[@feliciafelicia6965]

First comment ❤

[@brentshuffler1234]

You might have been the first viewer.....but you have not actually contributed a real comment....yet.

[@JarradMorrow]

Yes you are!

[@feliciafelicia6965]

@@brentshuffler1234 idk about you but I actually watch these videos multiple times, take notes and strategize how this may fit into my particular situation. Theres not much to comment unless i have a question, and the video pretty much answered everything

[@justinvela2673]

What is the purpose of a brokerage account, and should I invest in it for short term, and if I should what should I invest it in…I have 500 dollars and I want to try and have about 5000 dollars between 3-5 years

[@JarradMorrow]

The purpose of a taxable brokerage account is to invest any additional money you have above what you already put in your retirement accounts. I wouldn't suggest investing any money into the stock market that you need in the short term.

[@justinvela2673]

@@JarradMorrow how do you feel about high interest stable coin?

[@JarradMorrow]

I hold some, but only a small amount

[@jaysant6958]

Speaking about the traditional IRA in16:00 “I don’t plan on adding more money until I am over my income limit…” Can someone explain this because I thought once your Roth IRA is maximized at $6k you can’t just add more to your traditional IRA. I thought it was the sum of contributions to both IRAs. I must be misunderstanding him.

[@JarradMorrow]

The comment I made there was in regards to the Roth IRA income limit. If you're above a certain income limit (modified adjusted gross income of $140k for 2021) then you're not able to contribute to a Roth IRA. Once my MAGI goes above that amount I won't be able to contribute to my Roth IRA directly any long so I'll start contributing (adding) money to my Traditional IRA again. Sorry for the confusion. Hope that helps clear things up.

[@jaysant6958]

@@JarradMorrow Oh I see. Thank you for the explanation. That is something I didn’t know before. I didn’t know traditional IRAs had no income limit. That is good to know!

[@ruthroylance414]

Once you take your 401k and roll it over into a traditional IRA you can take that traditional IRA and roll it over into a Roth IRA.

[@t1natran]

Can you roll your traditional IRA into your Roth IRA as long as you pay the taxes on it?

[@JarradMorrow]

Yes, this would be called a "Roth Conversion". It's going to be considered as taxable income so just make sure you're sure it makes sense before doing it.

[@thewongmindset451]

Pretty safe bet to me already with mostly index funds. Bonds just don’t make sense for you with 20+ years to grow 👍

[@JarradMorrow]

I'm not big into stock picking so index funds work great for me.

[@BrokeManFinance]

VOO is my jam! Who is all holding it? Anyone get in on that $200 dip? If you did, I know you're seeing some gains!

[@52msdiane]

I love VOO!

[@JarradMorrow]

Love it!

[@MoementumFinance]

No VOO in my portfolio but I have VTI

[@JarradMorrow]

In my opinion it's just as good!

[@pound4poundbeast]

VOO!

[@jjsantana1817]

Can i contribute the max of 6000 to my roth even if i have a 401k at work?? I make less than 100k a year

[@JarradMorrow]

Good question. Yes you can as long as you fall under the income limit to contribute to a Roth IRA. Making less than $100k (if you're filing as single) makes you eligible. I've maxed out my IRA and 401k within the same year before.

[@jjsantana1817]

@@JarradMorrow thx man 🤙

[@JarradMorrow]

Absolutely!

[@highrevz1]

Why not VTI instead?

[@JarradMorrow]

I hold VTI.

[@DavidGeorgiaPersonalFinance]

Great video! May I respectfully correct you on a minor thing? You CAN roll a traditional account into a ROTH account. The draw back is you have to pay taxes since ROTH is after tax. So rolling a $100,000 401K into a ROTH IRA at a 30% tax would only have $70,000 in the ROTH. Best thing is to do what you did, just keep traditional with traditional and ROTH with ROTH.

[@JarradMorrow]

Thanks. Yea I didn't want to cause more confusion so I decided leave those details out for this video.

[@BrokeManFinance]

Right, it would be crazy to take a 30% tax hit. But, if you don't know and you just hear "ROTH" and think it's the right move, you could lose a lot of coin! Great point, David.

[@alrocky]

"So rolling a $100,000 401K into a ROTH IRA at a 30% tax would only have $70,000 in the ROTH." That is not necessarily correct. You would *owe* $30k but that amount does not have to extracted from the 401(k)/IRA account.

[@bojiam4818]

I’m gonna checkout M1 finance right now. I didn’t know you can auto invest in etf in M1, fidelity doesn’t allow that.

[@JarradMorrow]

It's definitely a really good platform.

[@Psychicann]

Can I sell A $1 stock I brought on cash app

[@JarradMorrow]

I'm not sure. Give it a try and let me know.

[@accidentsafe]

How fudge is packed

[@JarradMorrow]

how the sausage is made

[@egaherlim9900]

you probably have the simplest yet most powerful M1 Pie ever!! Love S&P500. What do you think about international fund such as VWO or VEA and adding a little bit of international diversification? Thanks Also I'm starting a channel where I'm planning on discussing personal finance and college students, would love if you can come check it out. Have a good day (:

[@JarradMorrow]

I'm all about simplicity. There's no reason to over-complicate things when the data has shown that it won't increase my returns.

[@Jpsantos94]

@@JarradMorrow still believe this? Lol

[@trah2205]

such a pity that m1 finance doesn't serve people on visa

[@JarradMorrow]

They don’t? I didn’t know that. Hopefully one day.

[@medge32]

Why would you transfer your 401k to a traditional IRA?

[@JarradMorrow]

Good question. There could be a few different reasons, but the two that stick out to me the most are 1. If the 401k charges fees for continuing to keep your money in the account. When you're still employed with them the fees are sometimes waived, but once you leave the company the 401k provider might charge you a fee. 2. If your 401k investment options are trash. I've seen so many 401k's littered with high fee actively managed funds which absolutely crush the investor. If this is the case then transferring the money into a traditional/roth ira could save a lot of money over the long term. If either of these doesn't apply to you then I'd say just leave the money in the account invested.

[@medge32]

@@JarradMorrow this makes sense. The 401K and s from a company i recently left and investing solely in FXIAX with it. May rebalance and add a low cost bond as i get closer to retirement. Thank you and keep up the good work.

[@MahoneyBadger]

VTI is high risk tolerance!?!? 😂

[@jennaemullins7612]

Yeah but be careful about those accounts and even that Roth Ira because my husband had won and we cashed it out to help pay for a new house in the end we in that owing a bunch of back taxes on that money and had to get a tax eterei and an offer in compromise to pay as it was like 30K

[@jennaemullins7612]

Some of it being because the financial advisor didn't see to that and have taxes were taken out of it

[@JarradMorrow]

I'm aware of the tax implications of pulling money from a taxable or retirement investment account.

[@BrokeManFinance]

@@jennaemullins7612 I think if you have it for at least 5 years and turn 59 1/2, you can withdrawal without paying federal tax. Could be why the advisor was hoping you would keep it until then. Obviously that's just speculation. Tough break though.

[@jennaemullins7612]

@@BrokeManFinance he was 63.when we did it.

[@BrokeManFinance]

@@jennaemullins7612 Ouch, that hurts.