hello everyone and thanks for tuning into the financial investor channel my
name is Brent and today we're going to be discussing m1 finance what happens
when you add remove rebalance or change the target percent in your m1 finance
portfolio to say 1 percent or zero percent or even a higher percentage you
know what what do you have to do inside the portfolio so if you are brand new to
my channel I do make stock market personal finance and real estate
investment videos weekly so consider subscribing for future
videos let's go ahead and get into it so right off the bat what do you got to do
to add a brand new stock to your portfolio
well once you have m1 finance up you have to go ahead and select edit from
this point you can go ahead and select add and you have a bunch of choices here
thousands of choices as far as stocks you can even add different funds you can
go ahead and add different other funds that you've already created here your
PI's you can add expert PI's you can have stocks you have on your watch list
which I have none so in this example we're gonna go ahead and say you know
what I want to add Microsoft to my portfolio I go ahead and select
Microsoft select add and now it's added in my portfolio I'm gonna go ahead and
hit save but it doesn't allow me to save because it says each of my slices must
have at least one percent allocation so I'm okay you know I go ahead and punch
in one percent I hit save again but I have actual I'm you know I'm sitting
currently over a hundred percent so in order to add a new stock to your
portfolio you have to say I give Microsoft five percent I have to take
away five percent from any you know from a specific position or a number of
positions for here for example I'm gonna go ahead and just take down Abby from 6%
down to 1% this would give me a total of a hundred percent and I could go ahead
and select save and it would it would add Microsoft into my portfolio by added
into my portfolio Microsoft would be sitting right here you know were ever in
my portfolio but it would be worth nothing it would just it would
be blink right now now the next time on the next trading day it would allocate
cash into Microsoft first because the actual percentage of equity in that in
that stock would be zero in comparison to its target percent of five percent so
in how it became close to any other sock as far as equity at the target
percentage all the new funds going into the account would more than likely
target Microsoft from that point forward so that is what happens or you know
that's how you go ahead and add a new stock to your portfolio now let's say
we've lost confidence in a specific stock here we can go ahead we want to go
ahead and remove AT&T in order to do this I would go ahead and select edit I
would go down to AT&T which is currently allocated at a target percentage of 1
and I would go ahead and select it down to 0 I would then go ahead and say hey
where do I want to stick the rest of that 1% go up to a B select it at 7% and
I go ahead and select save at this point m1 finance would see that my target
weight for AT&T is currently 0% this does cause a trigger to sell the funds
received from the specific cell would then be automatically reinvested back
into the portfolio as long as the automatic investing function is turned
on to the account then you can check this underneath your funding you have
three options here you have the auto invest if your cash exceeds 10 dollars
or more m1 finance will automatically invest your entire cash balance every
week I put $10 into the account this allows my previous week's dividends
because I get paid out dividends every single week plus my $10 to go into the
account basically averaging down all my socks every single Monday Plus unable to
add the previous week's dividends back into the account really fast rolling it
you know dripping it basically a little bit different but I'm able to lower cost
lower my unit cost and increase my yield on costs now if you don't want to have
your cash reinvested automatically you can go ahead and select don't auto
invest my cash so now we've covered what happens when you want you know how to
add a stock to your m1 finance portfolio we've covered how to room
the stock for your m1 finance portfolio basically setting it to zero so what
happens if you want to rebalance so right now you have a number of stocks
here that are all set to actual and target so the actual numbers on the top
which is the current equity percent of value of the specific stock in
comparison to your overall portfolio so here this portfolio has seven thousand
three hundred and five dollars and twenty three cents of equity in it
this specific stock is three hundred and fifty eight dollars and sixty cents if I
were to go ahead and bust out my handy-dandy calculator and go three
fifty three point six divided by the total of the account which is seven
three oh five point two three multiply that by hundred that would give me a
four point eight four percent actual percentage which is exactly what it says
here four point eight percent so that is how the actual is kind of getting that
number now my target for Altria is one percent so unless Altria equity falls
below that one percent m1 finance will never target it so going back to
rebalancing rebalancing would change it would basically if we go ahead and
select it it'll actually tell us what it does it sells off you're overweight
slices bringing your pie back down to you know bringing your pie back to its
targets so m1 finance will sell you're overweight equity positions in
comparison to its target and I'll reallocate that money buying you're
underweight slices so here it would automatically target Altria it would
sell off three point eight percent of the equity within this stock it would
sell off four point five percent of AT&T it would sell off one three point seven
percent of Avery and it would allocate those percentages back across all these
other stocks here to match them to their target percent so it would buy it would
actually sell off Blackstone point nine percent of Blackstone sell it off it
would put in point three percent in the a B point six percent in the Cisco point
seven percent of the JPMorgan two percent of the point two percent of
Lockheed and so on so that is rebalancing do I do you rebalancing no
not really I've had other investors asked me in my
Facebook group and other Facebook as well and in the comment section hey
how often do you rebalance I don't like rebalancing I like having strong stocks
I don't like to punish my losers so in this example I like having losers in my
portfolio I have a mixture right now if if you were to pause the video I have
nine positive and nine negative that allows me to no I don't want to punish
my my winners I want to go ahead and let them continue to rise but my new money
it just goes ahead had lets me buy these stocks at a discount lowering my unit
cost average increase in my unit and caught my yield on cost and just
allowing me to kind of build up my dividend portfolio I have a number of
stocks here all of these you may recognize Kimberly Clark avi Stanley
Black & Decker jwp Carrie caterpillar Walmart AT&T ultra and Avery so very
strong stocks there you know very well known companies so I don't like three
balance I like to just let my winners be let my losers be these are just sale
that allow me to kind of buy in a little bit cheaper and that is basically it
now why what happens when you change your percentages down to say 1% so I've
kind of lost confidence in a few stocks or and I don't really feel like
investing in them over the next I still want to keep them my portfolio so I
don't want to sell them off so they're not at 0% but at the same time I don't
really want to allocate any new money into these and these would be AT&T let's
go see if I can go ahead and bump these up to the top okay so all trio and AT&T
are basically I don't I can Alost confidence in these over the kind of
short term so I don't want to allocate any new
money into these and at the same time I don't want to sell them off so I don't
want to let them just kind of settle into the account let them simmer on a
very low setting so I went to get I went ahead and change these to 1% now the
actual of my portfolio is four point eight and five point five so unless
there's enough cash or equity in this portfolio where the Altria at AT&T
become one percent you know point nine percent of the total portfolio m1
finance will never I get to use with new cash and that
it'll just let them sit in the account as a target percentage of 1% and because
these are 1% they don't take up much my portfolio I could actually have a
hundred stocks within this pie allocated with 1% but I don't want to do that I
like to have a little bit smaller portfolio I like to kind of keep in
control of what stocks are in here so just if you have lost confidence in a
specific stock you want to let it simmer on like a low setting you go ahead and
knock it down below its actual equity that way your new funds no longer go
into these or if you're looking to add a brand new strong stock into your
portfolio so in my example I recently added a V into my portfolio it was
sitting with very strong financials I had a 4% yield right now you know this
week has been awesome stocks went down hard this week
that was a great buying opportunity for a V I was able to nab this thing at a
discount it has a very nice current yield of 4% and some change 4.0% 4.0 4%
dividend yield p/e ratio may be slightly you know some would say this is high at
23.5 but forward p/e is currently at about a 12 or 13 which is excellent for
this portfolio it's coming off as highs here of let's see where was its highs
for the year let's go ahead and look here so maybe about ninety eight dollars
and some change so it is down here right now at ninety three dollars so it has
came off its highs for the past couple months so actually it did hit a hundred
and six dollars and 23 cents so a V right now great dividend yield they
increase their dividend by 10 percent but anyways we're going off topic as far
as the whole main point of this video is covering buying selling rebalancing and
why you would change percentages in your portfolio down to 1% or if you want to
add more stock so here Apple for example I bumped it up to 7% because it was a 6%
under my portfolio but I want to go ahead and continue averaging up in this
position so I went ahead and allocated 7% to Apple so future funds will go into
there even though it's positive it actually an you know actual
percentage is down in comparison to his target so that is basically all I wanted
to cover in this video if you have any comments questions anything you would
like to write to me let me know in the comment section below I always
appreciate your guys's comment so let me know hopefully you guys have enjoyed it
if you are brand new to the channel I do make stock market personal finance real
estate investment videos weekly so consider subscribers for future
videos again if you did like the video hit the thumbs up button below I highly
appreciate it and that is it for this video you guys thank you guys for tuning
in I will see you next time have a great day bye
you
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