If you aren’t already familiar with Motif Investing, I would first recommend that you check out my review:
You won’t see me recommend any products or services on my blog that I don’t use myself. I guess I’m the guinea pig for Motif but so far I really like it.
Once I did a little research on Motif, I had to give it a try. I’ve always been interesting in index funds and etf’s but couldn’t justify buying them over individual stocks due to management fees. Motif Investing allows the diversity of these funds without the management fees.
What I did was construct a Motif of all 30 stocks in the Dow Jones Industrial Average and weighted them accordingly with their current weights. My second purchase actually just involved purchasing more T in that same Dow 30 Motif.
After my last 200 shares of INTC were called away recently, I was left with about $5k in cash. I transferred this cash to my Motif account for my 3rd purchase. I wanted the majority of this purchase to actually go into AT&T (T). Since I recently made a purchase in this account of just T, I’m very much overweight in this position. All I had to do was purchase my Motif and it would keep the same weights that were already in place.
So earlier this month, I added another $5k and change to this Motif. This cost me just $5 in commissions. Approximately 60% or about $4k went directly into AT&T as I wanted. After the purchase, my current Motif looks like this:
I know I have 29 small positions currently but that’s ok because I’m still purchasing a little at a time. Another great thing is that I can re-balance the entire portfolio for just $5 any time I want. Let’s say my AT&T position gets a little too large for my liking or that this portfolio grows to $100k in value. I could equally balance all positions to 2.5% if I wanted to. Currently this portfolio yields 4%.
Another cool thing is that I can see dividend income coming in on a monthly basis. To someone starting out, it’s a great confidence booster to see this. Even if you don’t have a lot of money to spend, you are able to purchase 30 stocks. Here’s a look at recent dividend payments I’ve received in this account:
As you can see, I’ve collected dividends from 11 different companies in the DOW in just a month and a half. Even though all the dividends are small besides AT&T, I like seeing the consistent payments.
If you do decide to give Motif a try, I ask that you click on the banner on the right sidebar. You will you get up to $150 by doing this. I also get a small payment.