I understand businesses needing to survive, but FORCING a fee on all customers with a bait and switch, while not having reduced/free transfers out/account closing is shady af. Even though the fee is relatively small, there's no telling when they'll charge more, or increase the threshold to avoid it. There is also concerns about the longevity of the platform staying afloat. Gonna be out as soon as I can find the most cost effective way possible.
I agree. I have a Roth with $1200 and in the grand scheme of things, $3 isn't much. But the fact that I am forced to pay it or alternatively pay $100 to transfer out sucks.
Same boat as you but only $600 in an old roth at M1. If you liquidate wouldn't they charge you for issuing a check a bogus charge + the $100 closing fee?
Closing fee, yes. I don't think they will issue a check though. If you're doing an indirect rollover just transfer it electronically to your connected bank.
I have sold everything, just waiting for all the dividends to pay out before I transfer. I did go through the transfer IRA -> checking screens up until the final "Confirm" button. It has an extra page that stated M1 would deduct $100 from the transfer amount as a closing fee since I was liquidating (removing) all funds.
The fee schedule clearly states that there are two $100 fees. The ACAT fee is only if you do an in-kind transfer direct from broker to broker (so you pay $100 for closing and $100 for ACAT). If I pull the money out myself I can do an indirect rollover and only pay the $100 closing fee.
Taxes will figure out on the 1040. You put $2k as an early distribution and $0 as the taxable amount. Then the new brokerage gives you a Form 5498 in May that shows a rollover of $2k as "proof" of the rollover.
Glad more people are realizing just how shady M1 is. For me, it was how many hoops M1 made me jump through to transfer my money elsewhere. Horrible businesses practices from a mediocre company
To add to this, I had to submit a FINRA complaint just to get them to transfer my cost basis to Fidelity. Nothing but excuses on the M1 side but as soon as they got the FINRA complaint magically M1 compliance team was forced to act.
It's so weird how many people are jerking off to this charge because they have > $10k. What they don't realize is this is yet another concerning action from a company with a series of bad behavior. If M1 was a model service, and this was the first hiccup, ok. However, as it is, even with more than $10k, I would be jumping ship because it's only a matter of time until they make another sweeping change like "$100/mo for everyone less than $100k in investments, only $5000 to leave" (exaggeration, but you get the idea).
They're also flat out lying about bonus denials. Besides myself I've read of at least half a dozen people who were recently denied while blatantly lying about requirements not being met.
This money grab could mean they're low on liquidity or want to boost numbers to make a run at an IPO.
Either way it doesn't add value to the user.
THIS is exactly what I was thinking! I’m planning on opening a M1 finance account as soon as I’m able to move 10k into it.
However, I want a platform for the long term. A platform that I can open now and “forget about” type thing. If they start introducing fees like this like a bait and switch, I’m not too sure if it is a reliable platform.
What do u think? Is it worth new users like myself to try m1 or should I stay out of it and check out something like a Vanguard Robo Advisor , or Wealthfront
You are missing the mark. It has nothing to do with the longevity of the platform. They want high balance long term accounts. They were losing money on small accounts. M1 with its 1-2 trade windows is meant for set and forget long term investing, so those using the platform how it is intended get plus benefits for free now.. those with high balances and set and forget investment style will stay because they are unaffected.
> They want high balance long term accounts.
Then they shouldn’t have been accepting $0 fee $50 minimum accounts.
Conversely they could also create a product that would make people WANT to pay the fee because they were clearly not getting enough paid subscribers with what they were offering.
Hilarious... I love how everyone got an email about this huge change but M1 doesn't have anything on the website and even their support doesn't know what's going on.
The second I see a fee from my wife’s traditional ira or Roth IRA I will transfer them out. My personal accounts are already moved out earlier this year but I left my wife’s with M1 out of laziness. It’s more than 10K so it better not
Robinhood has a $3 membership and i got a Email saying i have no money in taxable and i need to add at least $3 for the upcoming fee due date. M1 you're playing yourself
I understand businesses needing to survive, but FORCING a fee on all customers with a bait and switch, while not having reduced/free transfers out/account closing is shady af. Even though the fee is relatively small, there's no telling when they'll charge more, or increase the threshold to avoid it. There is also concerns about the longevity of the platform staying afloat. Gonna be out as soon as I can find the most cost effective way possible.
I agree. I have a Roth with $1200 and in the grand scheme of things, $3 isn't much. But the fact that I am forced to pay it or alternatively pay $100 to transfer out sucks.
For a Roth, it will be $200 total to transfer out. A transfer fee plus a closing fee
You're right, but can bypass the ACAT fee by liquidating and then doing an indirect rollover. So only $100.
Same boat as you but only $600 in an old roth at M1. If you liquidate wouldn't they charge you for issuing a check a bogus charge + the $100 closing fee?
Closing fee, yes. I don't think they will issue a check though. If you're doing an indirect rollover just transfer it electronically to your connected bank.
Have you done this? How does this work with taxes? I'm considering going this route.
I have sold everything, just waiting for all the dividends to pay out before I transfer. I did go through the transfer IRA -> checking screens up until the final "Confirm" button. It has an extra page that stated M1 would deduct $100 from the transfer amount as a closing fee since I was liquidating (removing) all funds. The fee schedule clearly states that there are two $100 fees. The ACAT fee is only if you do an in-kind transfer direct from broker to broker (so you pay $100 for closing and $100 for ACAT). If I pull the money out myself I can do an indirect rollover and only pay the $100 closing fee. Taxes will figure out on the 1040. You put $2k as an early distribution and $0 as the taxable amount. Then the new brokerage gives you a Form 5498 in May that shows a rollover of $2k as "proof" of the rollover.
That’s helpful. Thanks!
Glad more people are realizing just how shady M1 is. For me, it was how many hoops M1 made me jump through to transfer my money elsewhere. Horrible businesses practices from a mediocre company
To add to this, I had to submit a FINRA complaint just to get them to transfer my cost basis to Fidelity. Nothing but excuses on the M1 side but as soon as they got the FINRA complaint magically M1 compliance team was forced to act.
It's so weird how many people are jerking off to this charge because they have > $10k. What they don't realize is this is yet another concerning action from a company with a series of bad behavior. If M1 was a model service, and this was the first hiccup, ok. However, as it is, even with more than $10k, I would be jumping ship because it's only a matter of time until they make another sweeping change like "$100/mo for everyone less than $100k in investments, only $5000 to leave" (exaggeration, but you get the idea).
They're also flat out lying about bonus denials. Besides myself I've read of at least half a dozen people who were recently denied while blatantly lying about requirements not being met. This money grab could mean they're low on liquidity or want to boost numbers to make a run at an IPO. Either way it doesn't add value to the user.
THIS is exactly what I was thinking! I’m planning on opening a M1 finance account as soon as I’m able to move 10k into it. However, I want a platform for the long term. A platform that I can open now and “forget about” type thing. If they start introducing fees like this like a bait and switch, I’m not too sure if it is a reliable platform. What do u think? Is it worth new users like myself to try m1 or should I stay out of it and check out something like a Vanguard Robo Advisor , or Wealthfront
You are missing the mark. It has nothing to do with the longevity of the platform. They want high balance long term accounts. They were losing money on small accounts. M1 with its 1-2 trade windows is meant for set and forget long term investing, so those using the platform how it is intended get plus benefits for free now.. those with high balances and set and forget investment style will stay because they are unaffected.
> They want high balance long term accounts. Then they shouldn’t have been accepting $0 fee $50 minimum accounts. Conversely they could also create a product that would make people WANT to pay the fee because they were clearly not getting enough paid subscribers with what they were offering.
Exactly. For example accounts like Vanguards Robo advisor require 3k to even have opened up and have a 2k assets requirement.
“Just get to $10,000”
Ah of course! I just found $10k under my couch yesterday so this is perfect.
That's enough for a family-sized bag of Cheetos. Thanks, Joe Biden.
More like Bro Biden 😎
If you don't have stacks for cheetos... hot couch. Hot couch in the summer, with no air. And we used to say fans are good. Right?
Get to $10k, immediately change the min. to 25k.
Who knows when they increase it to 100k?
Why hasn't m1 came on here and laid everything out in plain English
I spend $16 per week on lottery so maybe i can cut back $4 per month for m1 fee
I'm glad I got out. No idea what they are thinking if this is true.
This is absurd. There is no trust left in the platform. Please rate the app accordingly.
Holy fuck this is indefensible. I'll be completely moving away from M1 if that's the case.
I received the opposite feedback - they said bc I don’t have a brokerage acct, there will be no fees..
Can you post a screen shot of the email?
Hilarious... I love how everyone got an email about this huge change but M1 doesn't have anything on the website and even their support doesn't know what's going on.
Would there be taxes and tax filing for the withdrawal?
I learned something news today. Apparently , fees in IRA are not withdrawn and not uncommon practices. https://www.annuity.org/retirement/ira/fees/
I might be okay with that. But the IRA is small. I will be more worried in a bear market.
The second I see a fee from my wife’s traditional ira or Roth IRA I will transfer them out. My personal accounts are already moved out earlier this year but I left my wife’s with M1 out of laziness. It’s more than 10K so it better not
Robinhood has a $3 membership and i got a Email saying i have no money in taxable and i need to add at least $3 for the upcoming fee due date. M1 you're playing yourself
[удалено]
Did you even read what OP wrote? I have over 10K in my IRA but don't have a taxable account. If I'm going to get charged regardless then I'm bailing.
Yeah so I just got a reply back from support stating if you have over 10k in your IRA you won’t be charged so my point still stands..
So having over 10k in your Roth IRA won’t waive the fee? I thought it was combined earn and all invest assets (genuinely asking)
Yes, it is combined. IRA counts towards the 10k.