How I Use Fidelity & M1 Finance to Maximize My Investments – The Perfect Strategy!

what's up everyone welcome to rock de talks where we break down the tools and strategies that can help you take control of your financial future today I'm diving into how I personally manage my investments using two powerful platforms Fidelity and M1 Finance both of these platforms offer unique features that cater to different investment strategies and I'm going to walk you through how I use them how they complement each other and how you can leverage them to maximize your wealth let's get into it now whether you're a seasoned investor or just getting started choosing the right platform is crucial Fidelity and M1 Finance each have their own strength and understanding how to use them effectively can make a big difference to your investment Journey so stick with me as I break down these platforms and how they serve my investment needs and how they might fit into your strategy as well let's kick things off with M1 Finance one of the standout features of M1 Finance is its piie functionality imagine having a portfolio that you can customize down to the exact percentage of each stock or ETF that's what pies allow you to do you can create a pi with a mix of assets that align with your long-term goals and then set it and forget it M1 takes care of the rest automatically balancing your Investments according to the allocations you have chosen what's even cooler is that M1 allows you to have pies within pies a feature that lets you create complex portfolios that suit a variety of strategies for example you might even have a pie focus on tech stocks another on dividend payers and a third on growth stocks all within a larger pie that represents your overall portfolio this level of customization is a game Cher for long-term investing another reason I love M1 Finance is its saving account which at the time of this video is currently offering around 5% interest in today's market that's pretty impressive especially when you compare traditional banks in General I find that online Banks without physical locations like La Sophie M1 Finance tend to offer higher interest rates but M1 savings rate makes it a great option for parking your cash when you're not investing it however M1 is primarily designed for long-term investing you don't have much control over the over the timing of your trades there are two windows each day when you can buy or sell this isn't a deal breaker if you focus on the long term but it does mean the M1 isn't ideal for short-term trading or timing the market to give you more context the two daily trading windows are great for consistent automated investing especially if you're a dollar cost averaging into the market but if you're looking to take advantage of a sudden dip or you need to sell quickly The Limited trading windows can be a drawback that's where Fidelity comes in offering a different set of tools that complement M1 perfectly you know for additional personal context I've seen a a share like Tesla drop as low as 6% or rise as much as 6% in a single day these are one of those scenarios that if I saw it down by 6% and it's a stock I normally average into I would buy a little bit more on that dip but it's important that I'm able to time that purchase throughout the day and that's why I have Fidelity let's jump into it let's talk about Fidelity Fidelity is my go-to for greater control of my investments especially when it comes to individual stocks one of the big advantages of fidelity is the ability to buy the dip on specific assets when a stock in my portfolio is underperforming I can swoop in buy more shares and lower my average cost something that's crucial for long-term value investing Fidelity also shines when it comes to day trading or making quick moves in the market while I'm not a day trader by any means there are times when I hear about a stock that's Rising rapidly and I want to buy a large position and sell it by the end of the day Fidelity makes this easy with realtime trading capabilities this flexibility is something M1 doesn't really offer as strongly and it's one of the main reasons I use both Platforms in addition to its trading flexibility Fidelity offers a wealth of tools and research the platform is packed with detailed reports screeners and Analysis that help me make informed decisions whether I'm looking for a specific stock or comparing mutual funds I can find all the information I need quickly and easily the interface is intuitive and everything is laid out in a way that makes sense which is something I found lacking in the other platforms I've tested speaking of other platforms I've tested quite a few TDM air trade Vanguard wee Bill Sofi public Robin Hood and Schwab just to name a few while each of them have their strength I found that Fidelity offers the best overall package it has fractional shares just like M1 which allows me to invest in expensive stock without having a need to buy whole shares it also offers quick access to deposited funds at least for me so I can start trading almost immediately if a market opportunity arises so how do I use these platforms together it's all about playing to their strengths I use M1 Finance for long-term automated investing my pies are set up to align with my long-term goals and I love the hands off approach that M1 offers I know my money is being invested consistently even when I'm busy doing other things on the other hand I use Fidelity for more active management this is where I handle my individual stock purchases take advantage of Market dips and occasionally engage in shortterm trading occasionally Fidel's tools and flexibilities make it easy to manage these aspects of my portfolio for example I might have a tech heavy p in M1 that's set to automatically invest every month but if I notice a specific Tech stock has dipped significantly I'll use Fidelity to buy more of that stock directly lowering my average cost and setting myself up for greater gains when the stock recovers this strategy allows me to take a more nuanced approach to investing combining the automation of M1 with the Hands-On control of fidelity just as a caveat my fidelity does dollar cost average on a weekly basis to my favorite individual stocks or ETFs it's just that if there's a significant dip I will buy more of these stocks during those times and it's just easier do that on Fidelity than it is for M1 Finance kind of now here's something new Fidelity has recently introduced a feature that's similar to m1's pies it's called bucket investing it's a game Cher for those like myself who like the pi concept but want more control over their Investments with bucket investing you can group up to 50 stocks in a bucket and allocate a percentage of your money to each stock you could set up reoccurring deposits into these buckets just like m1's pies what's exciting about this is that it brings The Best of Both Worlds to Fidelity you can set and forget your investments in a way that's similar to M1 but you can also have the option to manage individual stocks within those buckets this means you can take advantage of Market dips and make adjustments to your portfolio whenever you want without being locked into specific trading Windows another very important feature I just figured out is when you remove a particular stock from your bucket it doesn't necessarily trigger a sale which can lead to tax implications which means paying capital gains like sooner at a larger percentage it all depends on the year the tax here and who wins the election but to my knowledge based on how I've used it with M1 Finance if you remove a asset from your piie it triggers the sale Fidelity it can stay in your bucket you just don't have to recurringly buy that particular stock or ETF very important and then obviously after you've removed it from your reoccurring purchases you can add that back to your bucket later on but the key is avoiding the automatic sale when you remove it from your automatic purchases within your bucket M1 Finance triggers that sale so with this new feature bucket some might wonder if they even need M1 Finance anymore fideli now allows you to automate your investing while still having the flexibility to dollar cost average into individual stocks as these opportunities arise for example if you notice that one of your stocks in the bucket is underperforming you can easily buy more of just that stock adjusting your allocations without disrupting your entire investment plan another reason I use both platforms is Safety and Security while both fideli and M1 are reputable and considered safe in terms of cyber security I prefer to keep my assets spread out to a certain extent this way if I ever lose access to my account temporarily I still have control over my other Investments is an overly cautious approach but in the age of cyber security threats I I'd rather be safe than sorry so far I have noticed no cons to having additional accounts spread out for instance I have my main long-term investments in M1 while my more actively managed portfolio is in Fidelity I also have small accounts with Robin Hood for Bitcoin purchases along with River I also use for Bitcoin purchases Weeble for the affiliate program and free stocks and Sophie because it's tied to my banking it also allows me to experiment with their stock purchase program anyways this divers diversification of platform not only spreads my risk but allows me to experiment and find the best tools for my needs and to deliver these videos so to wrap things up using both Fidelity and M1 Finance allows me to take a balance approach to investing m1's Pi functionality and automated investing are perfect for long-term growth while Fidelity offers the flexibility and control needed for more active management with the addition of Fidelity's new but feature I now have even more options to tailor my investments to specific goals I do want to add as the time of this video I saw that Fidelity's bucket program is $4.99 a month I happen to find it's worthwhile I'm using it and allows me to make this video so $499 a month might be too much to you guys just throwing that information out there so you have all the information to make informed decisions remember the best investment strategy is one that fits your unique needs and goals whether you prefer a hands-off approach active management or mix of both Fidelity and M1 Finance can give can help you achieve your financial objectives by understanding the strength of each platform you can create a strategy that works for you maximizing your potential for long-term success if you are interested in getting free stocks check out some of the links below I have Weeble that's one of the programs I do get affiliate uh benefits for using it but you do too and I have some links to M1 finance and additional trading platforms so until next time I'm out