M1 Finance – Turning Off Auto-Invest Feature, With A Retirement Example

hello everyone and thanks for tuning
into the financial investor channel my name is Brandt and today we’re gonna be
covering m1 finance a question I was asked by one of my viewers and
subscribers they had asked a question is there a way to turn off the auto invest
feature on m1 finance in the example say I’ve built up a million dollar portfolio
I want to begin live off those dividends and capital gain distributions is there
a way I can go ahead and let the cash pile up before withdrawing money for my
retirement so that’s we’re going to be discussing in today’s video 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 and let’s go ahead and get into this topic first question is there a way
to turn off the auto invest feature on m1 finance yes there is if you head over
the funding you have three options here for cash control you can select the
default which the default automatically invests your cash balance if you exceed
$10 or meet $10 so this is the current default that I have set up so my
currently I have a cash balance of $1 and three cents if I meet that 10 dollar
threshold m1 finance smartly reinvest my dividends and to the lowest equity to
target stock or ETF so in this example say I have two ETFs here I have vu which
tracks the S&P 500 and I have BTI they’re both side to add a target of 50%
and vu is down at 46% out of the target of 50% and VTI is up at 56% out of 50%
if that brand new money is going into the account you know 50 bucks goes in
there m1 finance will smartly reinvest that
cash into vu because it seems that it’s down right now I have 46 percent out of
the ratio of 50 it’ll lower my cost my unit cost average by doing this and it
will increase my unit on cost my yield on cost so it doesn’t very smart it
allows me to buy more shares at a cheaper price that I’ve already
purchased it or that you know I may be done in that port
so right now m1 finance the auto invest features great for brand-new investors
who are retiring or investing for a specific goal in mind now there is a way
to turn you know set the cash value up higher to you you know I want to be able
to invest my cash over say $20 or $25 or so on that’s another feature I don’t
know very many people that do that and then there’s a way here to turn off the
auto and best feature completely so you would just select here m1 finance will
not automatically invest my cash and you just hit save
so I’ve hit sixty years old I have a Roth 401k I have a Roth IRA I want to go
ahead and begin withdrawing those capital gains and dividends one over
cent 100 percent tax-free and I’ve went ahead and just turned off my auto invest
feature I want to let that cash buildup in my account so how much cash what I
have at the age of 60 when I can begin to take advantage of these tax-free
accounts well I just built a brand new calculator here and we can actually run
through the math here I was just doing some tests in here earlier I just
finished this app up it was a little idea here that I had and I kind of built
it out so here in this example I am 33 years
old most stock market investors they want to be able to retire at 60 at least
with their Roth 401 K Roth IRA that’s when they can take advantage of the full
benefits of those accounts you know actually plan to retire a
little bit earlier at the age of 45 somewhere in there maybe sooner but will
say that our retirement age is 60 years old how long do we want to live for in
our retirement how many years that we want to live once we’ve had a retirement
age well I want to live up to the age of 95 maybe a little bit longer maybe I can
become an Android or some sort you know Bionic that would be kind of cool but
you know that’s a little bit off but that would live you know that would be
95 the age of 95 that’d be a pretty prime age right there so annual
withdrawal how much money do I want to be able to withdraw out of my Roth IRA
my Roth 401k you know these accounts here I want to go ahead and say that I
want to withdraw $70,000 per year out of these accounts you know I also know on
the side I may or have social security in the future who
really knows about that one I have my VA benefits I have I’m gonna go ahead and
begin building my rental portfolio so my rentals may be able to pull in some
amount of thousands per month as well so $70,000 is pretty good goal to aim for
for the Roth IRA in the Roth 401k where they’re 100% tax-free so I go ahead and
calculate my retirement so if I were to invest for the next twenty seven years
at an average churn of 7% and I’m withdrawing 4% of my portfolio and I’m
taken into account that 3% inflation by the age of 60 I would have 1 million two
hundred and eighty eight thousand and seven hundred and eighty dollars that
would take me 27 years of investing it would take me an annual investment of
seventeen thousand three hundred and two dollars and seventy nine cents that is a
huge number right there right just right off the bat you’re like dang seventeen
thousand dollars but break it down into a month how much do I need a month
that’s one thousand four hundred and forty-one dollars and ninety cents that
still seems pretty high how much is it per week it’s three hundred and thirty
two dollars and seventy five cents so if you’re thirty three you may have some
savings in here I will probably adjust this a little bit so I can kind of add
in where you’re currently at as far as savings per year say we have fifty
thousand dollars in savings that may not you know that would knock down you’re
already making a seven percent rate of return on that fifty thousand dollars so
I’ll have that feature in here eventually not on the initial go but we
would need to invest roughly three hundred and thirty-two dollars and
seventy five cents to meet our goal of 1.2 you know almost 1.3 million dollars
at the age of 60 we could then withdrawal seventy thousand dollars per
year until 95 and we would not run out of money so seventy thousand dollars per
year is five hundred five thousand eight hundred and thirty three dollars per
month so let’s go ahead and head back to m1 finance so you’ve you’ve hit sixty
you want to go ahead and begin withdrawing your capital gains dividends
out of this account probably with dividends your yield on cost your
every single year those stocks are going to be increasing their dividends so over
time you’re probably actually going to exceed your retirement goal by quite a
bit especially with the effect of compounding over the years but let’s
just go ahead and say that we have 1.3 million dollars we’ll go ahead ahead
over the funding well turn off our auto invest feature we’ll go ahead and save
that we’ll have 1.3 million dollars sitting
in our account and we can go ahead and begin withdrawing the money we can go
ahead and say January 1st is when we retired pull out five thousand eight
hundred and thirty three dollars we let January set you know we use our money as
we need and January we have capital gains again that kind of get built up we
also have dividends that are paid out to us during the month of January that’s
built up and February first hits around I can go ahead and withdraw another five
thousand eight hundred and thirty three dollars and I can do that from the age
of sixty four the next what was the 35 years pulling out five thousand eight
hundred and thirty three dollars per month you know this is County and
inflation already built into the number that’s our retirement goal that’s what
we need in order to pull off seventy thousand dollars of the futures amount
of money per per year so I hope this video did help you guys out there and
I’m gonna go ahead and be releasing this app on the Google Play Store that’s the
only license I currently have eventually I will want you know I want to release
it on the iPhone the iOS store and I think it’ll be kind of fun I do see a
couple other apps out there but this is just a very simple retirement calculator
I’ve also built a simple dividend calculator that calculates if you put in
you know how many dividends you’re gonna have and what your total equity would be
I thought these calculators were really fun to kind of build and I I do want to
go ahead and continue to build up about five more apps
I’m not five more apps but have a total of five financial apps so I’ve been
working on a real estate app as well but that one’s a little bit tougher and to
kind of work out all the numbers that I need and that is some of the future
stuff there so hopefully you guys did enjoy the video if you guys did enjoy
the video give it a thumbs up button below if you guys are brand new to the
channel I do make stock market personal finance real estate investment 30
weekly so consider subscribing if you guys have any ideas for apps that are
not out there you know there’s some app out there that you kind of want to have
built but you know you don’t see it on the Play Store you don’t see it on the
iPhone store I don’t know the iOS store go ahead and let me know in the comment
section below or you can email me at the financial investor 101 at gmail.com so
that is it for this video thank you guys for tuning in I will see you next time
have a great day bye

4 thoughts on “M1 Finance – Turning Off Auto-Invest Feature, With A Retirement Example

  1. M1 Finance Referral Link: http://bit.ly/M1Referral -> (Start a Individual Account With $100 & Get $10 Free!, 10% Gain Right There!)
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  2. If I want to leave my money in the stock market and watch it grow should I put auto-invest on or off?

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