M1 Finance Vs. Vanguard For My Weekly Dividend Portfolio.

Some feedback when I talk about my latest fun portfolio, my weekly dividend stock portfolio on M1 Finance.

M1 Finance could be good, but when compared to Vanguard, is it good enough? M1 Finance Vs. Vanguard thoughts?

M1 Finance Vs. Vanguard For My Weekly Dividend Portfolio, who wins?

The truth is that M1 wasn’t my first brokerage choice for any stock purchases or portfolio building.  

This is evident by the fact I already have a Vanguard Account(for post-tax retirement funds), Fidelity Account(for pre-tax retirement funds), and a Charles Schwab account(for non-retirement funds).

Also, add in I still have active accounts with RobinHood and Webull. Sure there are other accounts I have elsewhere, but most of those must have been closed due to inactivity.

Let’s tackle this assumption that M1 Finance isn’t featured enough for my dividend portfolio by making easy and quick comparisons with my Vanguard account.

Ground Rules For Vanguard Vs. M1 Finance.

Remember, my goal is to create, buy, and mostly hold the stock portfolio that generates weekly dividends. Since I’m still in the buying phase for my retirement planning, I want those dividends to be reinvested into the stock portfolio.  

These are my goals, so let’s move forward.

Which Is Better, Vanguard Vs. M1 Finance For A Dividend Portfolio?

I have had a Vanguard account for years of my post-tax Roth retirement account. It once housed all my accounts like pre-tax(regular IRAs, Simple IRA, and rollover 401k/403b’s), but several years ago, I transformed to Vanguard to only house my Roth Account.  

Sending my Pre-Tax(IRAs, 401k/403b, and Simple IRAs)’s to my Fidelity account. With leftover non-retirement investment accounts going to Charles Schwab.

Initially, this account with Vanguard was primarily a growth-oriented account revolving around index investments targeting the large S&P500 market setup.  

I have changed the Vanguard retirement account into a dividend investment focus over the last few years, post-C19 era.  

I am preparing for earlier retirement and fortifying my existing funds for this sideways and declining stock market. 59 and a half, here I come.

So I do have experience with Vanguard in buying, selling, and building portfolios, and even experience with options selling and buying along the way. Vanguard is an excellent platform for doing so many things with building wealth.

M1 Finance Vs. Vanguard Finance Summary

With this heavy experience in Vanguard and minimal experience with M1 Finance, Vanguard rocks for all, focusing on including all investment tools and services.  

However, I am only interested in buying, holding, and very limited(for stock refocusing or manual stock re-balancing).  

Both Have These Features:

  • Vanguard can auto-reinvest dividends.
  • M1 Finance also can auto-reinvest dividends.
  • Vanguard has no fees for this simple portfolio plan.
  • M1 Finance has no fees for this simple stock portfolio plan.
  • Vanguard has a diverse interface, which is simple enough for this stock portfolio.
  • M1 Finance has a straightforward interface.

A Vanguard Limitation(per my current portfolio goal):

Vanguard only allows self-investment of dividends into the fund or stock that created the dividend.    

Suppose I received dividends from Schwab U.S. Dividend Equity ETF (SCHD), regardless of how many stocks I own on the Vanguard platform. Those dividends will only auto reinvest back into Schwab U.S. Dividend Equity ETF (SCHD).

M1 Finance allows for the reinvestment of dividends into the portfolio. While focusing on stocks that follow below your assigned portfolio percentage.  

This means M1 will target lost-value stocks and allow you to buy low and grow the portfolio.

Winner for this weekly dividend stock portfolio M1 Finance!

If you think otherwise, please leave a comment below.  

Why M1 Finance Won.

M1 Finance is stupid-easy for building a straightforward stock portfolio of dividend stocks.   

Vanguard is my favorite for everything investment-related: options trading, stock investments, savings, etc. However, for the simple goal of building this latest portfolio, M1 Finance wins.

FYI, Vanguard is one of my largest accounts and will remain so. I wanted to create an independent brokerage account for this newest portfolio, and M1 Finance won.  

Due to M1 Fiance’s simplicity, I plan only to use M1 for this single portfolio. So if you want a simple, well-focused stock platform, M1 is a great choice.

If you want to manage money on a larger platform that offers many options, then Vanguard is my choice. Which is for my post-tax retirement investments. 😀

Thank you for your time.

Author’s Notice: This page contains affiliate links, for which I may earn a commission by their use.

I believe Investing Simple has a good video review of M1 Finance vs. Vanguard as far as an investing platform goes. He focuses more on trading services, while I focus on investing for a weekly dividend income. Nonetheless, it’s a decent video.

Weekly Dividend Stock Portfolio Note:

I’ve been working on creating this weekly dividend portfolio(started in December 2021) all through 2022, and into 2023. I’ve added and trimmed away stocks, and ETFs, which allowed me to create one of my favorite investment portfolios.

Follow along with how I put this together, and let’s evaluate how I’m doing with my choices.

For real time stock portfolio setup on my M1 account: Passive Income Generator Weekly Income Dividends Portfolio.

Interested In M1 Finance Services?

So if you are interested in M1 Finance, please check out M1 through my affiliate link. If you decide to open an account and meet M1’s requirements, we both can be rewarded with a little extra investment rewards.

Tom, Growing His Passive Income Generators.
Myself with an interesting Bull Sculpture.
Notice: No Lambo’s. :/
Hi I’m Tom, A Blogger And A PIG Farmer.

PIG Farmer as in I grow Passive Income Generators(PIG’s).

I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks.

Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me.

My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. 

Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs.  

I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments.

Fun Fact: In my spare time, I am a Band-Dad!

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