M1 Finance Credit Card Review – Up To 10% Cash Back – Is It Worth It?
m1 finance launched the owner’s rewards
credit card that they teased a while
back let’s talk about it
[Music]
hey guys john williamson here
optimizeportfolio.com investing and
personal finance
if you have stock ownership and one of
the featured companies of this credit
card you can earn up to 10 percent cash
back on purchases
so far m1 finance has been a modern
broker with a sleek mobile app that
allows you to invest borrow at a low
rate and earn interest on savings with
their checking account product
i wrote a comprehensive review of the
platform that i’ll provide a link to
they’ve recently expanded their
financial suite to include early direct
deposit and as users expected a credit
card
this fits with mlen’s mission of
providing an all-in-one financial
toolset to improve your financial
well-being the new credit card product
is called the owner’s rewards credit
card basically if you have any ownership
in the stocks of the companies featured
you can earn up to 10 percent cashback
from purchases the cashback range is
between 1.5
and 10
and varies by company here’s a quote
card by m1 is the first ever credit card
where clients can earn up to 10 cashback
when they shop at select companies whose
stock they own some of the best known
companies in the world are eligible
including amazon netflix starbucks
spotify nike target amc tesla delta and
doordash
additionally cardholders receive 1.5
cashback on all other purchases to be
clear i don’t suggest stock picking and
i don’t pick stocks myself as an ardent
index investor this credit card
initially didn’t really appeal to me
however if the cash back on one of these
brands is indeed worth it i.e you buy
from them often you only need to invest
one dollar in that company to get that
cash back ability so you could create a
subpai of stock picks to get that
ownership set it at one percent of the
portfolio and go wild probably resulting
in fractional shares for all the stocks
inside it depending on the total account
value moreover the sheer number of
companies available is high enough to
where you’d be pretty well diversified
holding all of them for example let’s
say the total value of my taxable
brokerage account is a thousand dollars
i can create a subpai and set it at a
one percent allocation so that pi gets
ten dollars allocated to it if there are
ten stock picks inside it that ten
dollars gets spread across those ten
stocks with one dollar going to each one
probably not a bad idea
if it’s a company or companies that i
purchase from often or in sizable
transactions the cashback may outweigh
any potential losses from holding the
individual stock on the other end of the
spectrum if the account value is a
million dollars you’d have ten thousand
dollars total going to those picks for a
thousand dollars each at that point
unless you have high conviction in those
picks it may not be worth it just to get
some cash back on them again it will
come down to how much one is spending
with these brands there are some pretty
good cashback deals for some of them
there are three tiers of cashback the
lists of companies are subject to change
some earn 10 cashback others earn 5
percent and others earn 2.5 percent some
of these are automatic subscriptions
that you can start getting cash back on
such as a t verizon hbo netflix etc
others may be where you eat or shop for
groceries regularly such as kfc costco
walmart whole foods and more
others may be for occasional
entertainment shopping or travel such as
amc southwest jetblue starbucks
wayfarers zappos and more i could see
myself getting a lot of use out of some
of these aside from all that 1.5
cashback on all other purchases may be
good too if that beats your current
cards but remember you’d need the
premium m1 plus account which is 125 a
year to avoid the 95 annual card fee
your cash back can be withdrawn for you
to spend as cash or it can simply be
reinvested in your portfolio in your
taxable brokerage account automatically
to continue growing your wealth this is
one of the few unique credit cards i’ve
seen that allows you to invest cashback
directly in the stock market sort of
growing your portfolio invisibly behind
the scenes this one conveniently and
seamlessly integrates with your other m1
accounts all under one roof
m1 has indicated they’ll be adding
brands to the cashback lists i’ll
provide links to that list and a pie for
all those stocks the card itself is a
sleek metal card you can also use tap to
pay apple pay and google pay for a
contactless shopping experience there’s
no need to worry about security you can
manage and freeze your card easily
straight from your m1 account plus with
visa signature benefits you get access
to things like visa zero liability lost
or stolen card reporting visa signature
luxury hotel collection visa signature
concierge and more what do you think of
the m1 owner’s rewards credit card let
me know in the comments i’ve provided a
link in the description below if you
want to apply for this card
the owner’s rewards credit card by m1 is
powered by deserve and issued by celtic
bank a utah chartered industrial bank
member fdic
review card disclosures for more details
1.5 to 10 credit card cash back rewards
earned on eligible purchases subject to
a maximum of 200 cashback per calendar
month
must own securities in a qualified m1
investment account as explained in m1s
owner’s rewards terms and conditions to
be eligible for 2.5 percent 5 percent
and 10 categories trust and custodial
accounts are not eligible investment
accounts the terms and companies listed
are subject to change security shown
should not be considered trade
recommendations you should assess your
own investment risks prior to purchasing
any security shown
some of the links below are referral
links at no additional cost to you if
you choose to make a purchase or sign up
for a service after clicking through
those links i may receive a small
commission this allows me to continue
producing high quality content on this
channel and pays for the occasional cup
of coffee
i have first-hand experience with every
product or service i recommend and i
recommend them because i genuinely
believe they are useful also please note
that while i love diving into investing
related data and playing around with
back tests i am not a certified expert i
am not a financial advisor portfolio
manager or accountant this is not
financial advice investing advice or tax
advice
the information presented here is for
informational purposes only
investment products discussed are for
illustrative purposes only it is not a
recommendation to buy sell or transact
in any of the products mentioned do your
own due diligence if you found the
information in this video helpful
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