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Motiv Investing Review 2020 | What Is The Motive And Is It Right For You?

Motiv Investing Review 2020 | What is the motive and is it right for you?

Update April 2020: Motif ceased operations in April 2020 and no longer accepts new accounts. Existing accounts will be transferred to Folio Investing.

When I started this motivational assessment, I already knew that the best way to invest could also be the most boring way to invest.

Buy and keep. Buy and keep. Buy and yes …stop!

Long term investing is my recommendation for the masses, and unfortunately, it’s not a very exciting way to invest.

Think about it. What’s exciting about throwing your money into a well-diversified portfolio and leaving it there for 20, 30 or 40 years? Not much. Well, until you retire and find that you may have enough cash to fill a swimming pool.

Personally, I look forward to investing, whether it is small amounts such as USD 1,000 or larger amounts to find the best way to invest $ 20,000! But I understand that it is a chore for most people because they understand the importance of investing in their future.

I’m always looking for ways to make investing exciting for people while warning them of the dangers of day trading. Fortunately, there are new companies out there that promise to spice up investing again.

One of these companies is Motif Investing.

What is a motive anyway?

Traditionally, when looking to invest an amount of money, you likely meet face-to-face with a financial advisor who will select a portfolio of stocks and bonds to match your level of risk tolerance.

This is still a great way to invest, but what if you’re a do-it-yourselfer and want to learn about the investing process for yourself?

Well, you still have a lot to learn.

How Much Should You Invest in Emerging Markets? How are large-cap stocks doing? What’s an Outrageous Amount of Paying Mutual Fund Fees? What are the best places to open a brokerage account? These are only a small fraction of the number of questions you may need to answer to build a solid portfolio.

If you don’t know a lot about this stuff, you are not alone. It is very, very difficult to create a comprehensive portfolio that is tailored to your needs and your level of risk tolerance.

Motif saves the day here. Motif Investing allows you to invest online in things that you already know and are interested in.

For example, let’s say you are studying electric vehicles and you think they are the way of the future. You can invest in a “Battery Charged” theme. If you want to invest $ 5,000 in Apple, you can – you don’t have to buy a certain number of shares.

You see, motives are groupings of stocks based on a single idea or value. You could invest in a Robotic Revolution theme or a Medical Devices theme. Just visit the Motif Investing website and look for the one you want to invest in. You will almost certainly find a subject that suits your interests.

That’s cool. Really cool.

Why? It gives the masses a chance to invest in what is important to them without having to understand the complexities of investing.

How motifs are constructed

As mentioned earlier, Motives are a basket of stocks based on a single idea. By selecting a design you can read the full details about the design. The shares are grouped into segments.

The motif “Robotic Revolution” is divided into the following segments, for example:

  • Military & defense
  • Medical applications
  • Industrial solutions
  • Maritime exploration
  • Consumer products

Next to each of the segments there are percentages that indicate how much of the total motif that segment represents. This is helpful as it helps you understand how each subject is weighted. If you do not agree with the weighting of the motif, you can always select a different but similar motif.

Under each segment are the stocks. You know exactly which companies you invest in and what percentage of the portfolio each share makes up.

Who builds these motifs?

There are more than 150 professionally made designs.

That might seem like an overwhelming number, but the Theme makes it easy to find what you’re looking for quickly by dividing these professionally created themes into categories:

  • Sectors
  • Income strategies
  • Trading strategies
  • Global opportunities
  • Value based
  • Asset allocation

If you want more, there are also 180,000+ themes created or customized by the theme community. That’s a lot folks.

GoodFinancialCents motive to invest

Yes, that means you can create your own design and share it with your friends, family or fans. That’s exactly what I did. I selected a few stocks and created the Good Financial Cents theme. I have quite a few goodies in this design including AT&T Inc. and Cincinnati Financial Corp. to name a few.

How much does the motif cost?

This is one of the best parts of Motif Investing: it’s cheap.

Most services charge a trading commission of $ 5 to $ 10 for a given stock. However, when you invest in a Motive, you can get up to 30 shares for just $ 9.95.

And yes, that $ 9.95 fee applies whether you buy a design as it comes, how you want it, or whether you are creating it from scratch. It’s pretty easy.

However, you should know that this pricing also applies when you sell Designs, buy additional entire Designs that you own, or rebalance positions in a Theme. Not surprisingly, the pricing structure here is still excellent business.

Also, note that the minimum investment required for these buy and sell orders is $ 250 unless you are performing a Sell All order to sell an entire design you own. Please note that the FAQ page states that you can start investing from as little as $ 300. This higher amount is listed so that you can pay the fee for buying or selling designs. It’s a good suggestion anyway. When investing in themes, you will likely want to put a bit of money into the theme so that it is worth your fee.

While $ 9.95 is the fee for real-time trades, there is an even cheaper option. With Next Market Open Trades, your trades in motive portfolios cost USD 0 and are executed on the trading day after your purchase decision.

By the way, you can also buy and sell individual stocks and ETFs for the same price outside of your own motives. Bonus!

There are a few other fees with Motif Investing, but most of them you will likely never experience. Here is a list of motivational investment fees and additional pricing details.

Let’s talk about the return

When investing in Motif Investing, keep in mind that your portfolio is unlikely to be as diversified as a portfolio designed by a professional financial advisor.

For example, let’s say you invest in a few different motives. Yes, you are diversified, but these motives likely don’t accurately represent the market. For this reason, I think your returns are more volatile than, for example, an investment in an index fund. That’s not necessarily a bad thing, but it’s something to know.

While Motif has an average annual return of 16.3% on its pre-built professional themes, it’s important to keep in mind that this number uses dates starting when they were created that was not that long ago (January 1, 2012 through July 31, 2015). . While they present this fairly on their website, the important thing to note is that you simply shouldn’t compare this number to the stock market’s long-term historical returns – they’re apples and oranges.

Is Motivation Investing Right For You?

This, my friends, is the all-important question. Is Motif Investing Right For You?

Like almost any investment service, motif investing is not for everyone. Anyway, it is Right for some people, so ask yourself which group you align with the most:

Invest in retirement

Investing in retirement is probably the number one reason to invest. How does Motif Investing fit into retirement planning?

The good news is that Motif Investing lets you open a Roth IRA, a traditional IRA, or a rollover IRA. Find out more about the Roth IRA rules here. There are no fees for opening or maintaining such an account. However, there is a $ 95 account closure fee. However, this is obviously not a big deal if you want to run your retirement account for a long time.

With these retirement account options and the low minimum investment, Motif Investing is well positioned to welcome many clients who may not yet have the larger minimum balances often requested by personal financial advisors.

On the other hand, I have some concerns about people who might use Motif to invest in just a few segments. say “Minimally Invasive Surgery” and “Modern Warfare”. It is not the smartest thing to invest all of your retirement money that specifically. I mean, sure, maybe World War II will break out and outpatient surgeries will become immensely popular, but placing your bets on only a few motives is not what I would call “adequate diversification.”

Even so, Motif Investing is great for those just starting out with retirement investing and who have the self-control to diversify well. If it is you, check out Motif Investing.

Invest for short term goals

Individual motives are likely to be more volatile than a well-diversified portfolio. So if you are looking for a short term investment, motif investing is probably not for you.

Instead, here are 11 of the best short-term investments for your money.

Invest for fun

I can see how great Motif Investing would be for people who already have a well-diversified retirement portfolio and just want to invest more on the side – for fun.

With a variety of fun themes, Motif Investing is ideal for those who want to “play” with some money to see what happens. This should still be done seriously, of course.

For example, let’s say you’re a fan of airplanes, trucks, trains, and pretty much anything with an engine that gets things moving. If you also believe in the financial future of transportation, you might enjoy investing in the Transporting America motif.

If you’re already financially secure and want to have a little fun with a little extra cash, give Motif Investing a try.

Final thoughts

Motif Investing is a unique and easy way to invest in what interests you – for a very low price.

This is unique in that you can invest in companies that matter to you and invest in whole amounts of dollars instead of having to invest in whole amounts of stocks. This is what sets it apart from the competition.

The theme is also great because of its online interface, which is simple and comprehensive. You don’t need to understand the complexities of investing to make an informed decision about each motive.

The platform is up to date with the latest investment software and recently announced the launch of its Cryptoassets portfolio in 2019. This makes it the first in its field to offer individual investors Cryptoasset-based portfolios.

That said, it’s not the right choice for every investor. That is why I advise you to consider all of your options:

I hope you enjoyed this motif rating. If it suits you and your investment goals well, give it a try and tell me what you think in the comments!


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