M1 Finance IRA Review 2024: Features, Fees, and More

M1 offers a compelling hybrid of powerful automated investing (like dynamic allocation rebalancing) with the level of control of a traditional self-directed IRA and key banking activities.. With M1, you can curate and adjust your investments using interactive pie charts called “Pies”. Get started quickly by choosing from a large collection of pre-made Expert Pies built around various investing strategies and themes, create a custom Pie from scratch, or use a combination of both. This is what makes M1 unique: you can customize your portfolio to the extent that you want—and then set your strategy in motion with automation.

Regardless of how you create your portfolio, M1 will help maintain your desired allocation over time with Dynamic Rebalancing. This works in two ways; first, when new funds are added to your account, M1 will invest them to maintain your desired allocation. In addition, you can manually rebalance your existing investments with the click of a single button and M1 does the rest. This allows you to “set-it-and-forget-it” if you’d like, or take a more active role. In the end, M1 is a flexible platform that is suitable for more hands-on investors as well as those who’d rather take a step back.

M1 also offers several other products, including brokerage accounts for non-retirement assets, margin loans, a high-yield checking account, a credit card with cash back rewards, and the ability to open a crypto account.

M1 is a commission free platform*—there are no platform or AUM fees. For users who want some additional features, M1 offers a paid subscription called M1 Plus that costs $125 annually. Members receive additional benefits when investing, such as an additional trade window in the afternoon. The Plus membership offers additional features and better rates for other products across the platform, including checking, borrowing, and the credit card.

* Commission-free trading of stocks and ETFs refers to $0 commissions charged by M1 Finance LLC for self-directed brokerage accounts. Other fees may apply such as regulatory, M1 Plus membership, account closures and ADR fees. For complete list of fees, visit the M1 Fee Schedule.

Like other investment accounts, M1 allows you to choose what kind of investments you want in your portfolio. M1 allows you to select from individual stocks, ETFs, and real estate investment trusts (REITs). If you aren’t sure where to start with investing, M1 offers helpful pre-made portfolios that you can use, or you can use them as a jumping off point and customize to your liking. These pre-set portfolios include Expert Pies for various investment strategies as well as targeted retirement Pies. M1 also offers some educational resources on their website if you’re looking to learn more about investing.

M1 offers products beyond IRAs. This includes a digital checking account, lending products, and a credit card that offers cash back rewards on everyday spending. In addition, M1 offers standard brokerage accounts and margin loans at competitive rates for investors looking to add leverage to their investment strategy. M1 is always adding new features to their product, most recently enabling clients to invest in cryptocurrency.

M1 offers an exceptional degree of portfolio customization to its clients, but it’s important to understand that M1 is not a day-trading platform. M1 clients are limited to one or two trade windows per day, depending on the account. This means that you can’t actively trade in an M1 account in the way you might in another self-directed brokerage account. Since most retirement savers aren’t actively trading (or “day trading”) in their accounts, this isn’t a problem; but if you are dead set on making multiple trades a day in your IRA, M1 may not be the best choice for you. For example, unlike some other accounts, M1 does not allow users to make options trades in their account.

For users who want the flexibility and customization of a self-directed IRA and the convenience of automated rebalancing, M1 is a compelling choice. M1 delivers a strong user experience that can suit the needs of both beginner and advanced investors. Whether you want to build a portfolio from scratch, or model your allocations based on M1’s pre-made portfolios; you’ll be able to get to the retirement portfolio that suits your goals.