Paul and Chris interview M1 Finance's CEO, Brian Barnes, and ask several listener questions.

This is the follow-up to their previous M1 Finance 2024 update podcast and YouTube video. 

They start by asking Brian how and why he created the company. That's followed by a wide-ranging conversation that includes some interesting surprises, like Chris's realization that using M1's target-date pies instead of traditional target-date funds can result in some real tax efficiency.

Here's the topic list with time codes.

00:00:00 Intro

00:08:12 M1 Genesis

00:12:51 Partial-Share ETF Trading

00:15:59 Who is M1 for?

00:19:42 What's next?

00:22:44 Is M1 a robo-advisor? 

00:25:36 M1 Pies

00:29:38 Pies vs. TDFs

00:34:32 Tax Efficiency

00:35:46 How safe is M1?

00:41:13 Fixed trade windows

00:48:07 Crossing orders

00:49:22 Competitive rates

00:51:29 Which ETFs?

00:53:19 Fees?

00:57:07 Multi-account rebalancing?

00:58:31 Entrepreneur's experience

Disclaimers:

Content is not intended to provide personal tax or financial advice.

This information is intended to be used and must be used for information purposes only.

M1 is a technology company offering a range of financial products and services. “M1” refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC.

Related to M1 Spend:
For informational purposes only and not a trade recommendation. All product and company names
are trademarks or registered trademarks of their respective holders. Use of them does not imply any
affiliation with or endorsement by them.

Regarding M1 Earn:
Stated APY (annual percentage yield) with the M1 High-Yield Cash Account is accrued on account
balance. Obtaining stated APY requires a minimum initial deposit of $100. APY is solely determined by M1
Finance LLC and its partner banks, and will include administrative and account fees that may reduce
earnings. Rates are subject to change without notice. M1 High-Yield Cash Account is a separate offering
from, and not linked to, the M1 High Yield Savings Accounts offered by M1 Spend LLC’s banking partner.
M1 is not a bank.

Also regarding M1 Earn:
The cash balance in your Cash Account is only eligible for FDIC Insurance once it is swept to our partner
banks and out of your brokerage account. Until the cash balance is swept to partner banks, the funds are
held in a brokerage account and protected by SIPC insurance. Once funds are swept to a partner bank,
they are no longer held in your brokerage account and are not protected by SIPC insurance. FDIC
insurance is not provided until the funds participating in the sweep program leave your brokerage account
and into the sweep program. FDIC insurance is applied at the customer profile level. Customers
are responsible for monitoring their total assets at each of the sweep program banks. A complete list of
participating program banks can be found here.

Regarading M1 Borrow:
M1 is not a bank. M1 Personal Loans are furnished by B2 Bank NA, Member FDIC and Equal Opportunity
Lender, and serviced by M1 Spend LLC, a whollyowned operating subsidiary of M1 Holdings, Inc.

Regarding M1 High-Yield Savings:
M1 is not a bank. M1 Spend is a wholly-owned operating subsidiary of M1 Holdings Inc. M1 High –Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC. The M1 High-Yield Savings Account is a separate offering from, and not linked to, the M1 High-Yield Cash Account offered by M1 Finance, LLC. 

Also regarding M1 High-Yield Savings,

²National average is 0.45% APY as of September 2023. Obtained from the FDIC.

Also regarding M1 High-Yield Savings,
M1 High-Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC (“B2”). M1 is not a bank. B2
Bank is a member FDIC institution and does not itself provide more than $250,000 of FDIC insurance per
legal category of account ownership as described in FDIC regulations. Additional FDIC insurance
coverage is provided through B2’s Insured Deposit Network Program involving other FDIC insured
depository institutions. Deposits may be insured up to $5,000,000 through B2’s Insured Deposit
Network Program. Full terms of the Program can be found at m1.com/legal/agreements/hysa_agreement
and a complete list of participating banks in the program can be found at m1.com/legal/agreements/
depositnetwork

Regarding M1 Invest,
All M1 clients have access to a single trading window each morning or afternoon. To participate in both trade windows, you must have $25,000 or more in equity to comply with pattern-day trading regulations.

Also regarding M1 Invest,
If you choose to transfer your account to another broker-dealer, only the full shares are guaranteed to
transfer. Fractional shares may need to be liquidated and transferred as cash.
All investing involves risk, including the risk of losing the money you invest. Brokerage products and
services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of
M1 Holdings, Inc.

Also regarding M1 Invest margin loans:
Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin. If the market value of the securities in your margin account declines, you may be required to deposit more money or securities in order to maintain your line of credit. If you are unable to do so, M1 may be required to sell all or a portion of your pledged assets. Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1Finance LLC. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000
invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc..

Also regarding M1 Invest:
M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. M1 is not recommending or endorsing this investment by making it available to its customers.

M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared
for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or
accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in
any transaction.

Testimonials may not be representative of the experience of other customers and is not indicative of future success..

Information is accurate as of October 23, 2024. Refer to m1.com for the most up-to-date information

If you create an account at M-1 Finance via our affiliate link — which offers direct access to our recommended portfolios — The Merriman Financial Education Foundation may receive a small fee (for accounts over $1,000.) This fee will cost you nothing extra and helps support our financial education work. Thank you!