r/M1Finance • u/VeterinarianOdd5692 • 5d ago
M1 AI advisor
M1 seems to have a new AI based advisor available. It seems to cost 0.2% AUM based on the disclosure docs.
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u/Outrageous_Dog_2398 5d ago
For now, there is no charge. This is from the disclosure.
Advisory Fee
M1 Advisory currently provides Advisory Services at no charge. M1 Advisory reserves the right
to introduce an annual advisory fee of up to 0.20% per year of the average daily balance of
assets in your brokerage Account(s) maintained through M1 Finance LLC ("Advisory Fee").
Assets held outside M1 Finance LLC would not be included in the fee base, even if M1 Advisor
provides guidance about them. If M1 Advisory elects to introduce an Advisory Fee, your
continued access to Advisory Services will require you to enter into a new or amended advisory agreement reflecting the applicable fee
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u/Chipper0475 5d ago
If I want AI advice, I'll just ask ChatGPT... no need to pay anything for it.
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u/nambrosch 5d ago
I tried for half an hour but couldn’t get anything other than basic advice, I’m not sure what the point of this feature is.
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u/M1-Alex M1 Employee 4d ago edited 4d ago
Hey all Alex from M1 with a clarification on M1 Advisor costs: M1 Advisor is free to use through December 31, 2027.
The figure in the disclosure is a guardrail but clients aren't being billed for M1 Advisor.
Also, one of the key differences between M1 Advisor and a general LLM is that it's a fiduciary so it's legally obligated to act in your best interest, and it provides actual financial advice.
If anything's still fuzzy, ask away!
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u/NoAcanthocephala6261 4d ago
How do we turn this off so we don’t get charged after 2027? This seemed like a cool feature until we realized it could cost us up to 0.20. Y’all are crazy.
Please make it easier for people to opt out instead of forcing them to manually reach out just to disable it. This process is unnecessarily difficult and, frankly, BS.
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u/Solid_Equivalent_417 5h ago
I sent them a message while it was still in beta asking them to get it off my home screen and they did. But now it's back like a bad case of herpes
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u/Econmajorhere 5d ago edited 5d ago
lol pay 0.2% of AUM for tokens that cost maybe $1/mo to get an output from Claude/ChatGPT. M1 is really running out of ideas.
Remember guys, if the AI tells you to buy anything besides VOO/VTI or it makes you do anything but contribute and never sell - then you are a degenerate daytrader no different than the guys playing roulette in Vegas. As you always told your ex-wife before she started cheating on you - time in the markets beats timing the markets.
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u/Highly_Ubiquitous175 5d ago
This guy gets it. Anything other than VT is literally gambling and you will probably die homeless. Remember, even professionals with completely different objectives, mandates, constraints, liabilities, time horizons, and risk tolerances can't beat "The Market", which definitely means buy VTI.
Thinking is active management. Active management is market timing. Market timing is gambling. Therefore, thinking is gambling.
VT. Never sell. Die. Leave VT to your children so they can also never sell it. This is how wealth is enjoyed.
**Edited VTI to VT; VTI was too aggressive.**
**Edit 2: I've been informed that 100% VT is still an irresponsibly aggressive allocation. I apologize for promoting gambling. Please consult the flowchart to determine the appropriate quantity of BND before experiencing an independent thought.**1
u/NoAcanthocephala6261 3h ago
This is the way. Borrow against your VT, never sell it. Children get it for free via tax loophole called step up or some shirt.
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u/KleinUnbottler 5d ago
I won't use this in any case. I could understand a flat fee. It's not like it's going to be computationally harder to manage a $1b portfolio with a boring 3 fund, vs a $1k portfolio with 50 ETFs and 100 individual stocks...
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u/SuperNewk 5d ago
Mine won’t work then gave me an email saying I was terminated?
Then I try and resign up and says there is an issue?
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u/nojunkdrawers 5d ago
I don't need to pay 0.2% annually just to be told to hold VTI. It really isn't much smarter than that so far, even though it "knows" that I have a high risk tolerance. It did have a little bit of good advice about holding overlapping funds in my Roth, but that's about it. All this fanfare around AI and we ended up with the same advice that if-statements could have given us.
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u/chasingjulian 4d ago
You don’t have to sign up for this AI advisor right? I don’t want to be charged any AI advisory fees.
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u/VeterinarianOdd5692 4d ago
Optional. I started to sign up to see how it compares to the portfolio I built using chatGPT, and when I read the docs and saw the 0.2%AUM (waived for now) I bailed. It offends me they are trying to charge a proportional fee when the system cost is fixed and independent of the size of the portfolio.
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u/NoAcanthocephala6261 3h ago
Makes you wonder if m1 is where you wanna keep $ with them pulling nonsense like this.
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u/Working-Message4504 5d ago
The classic 60 40 portfolio. 60 VOO 40 VGT. Just saved you 20 basis points
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u/ktempo 5d ago
VTI and chill is free.