{"id":59465,"date":"2025-09-19T09:21:39","date_gmt":"2025-09-19T13:21:39","guid":{"rendered":"https:\/\/www.iwillteachyoutoberich.com\/?p=59465"},"modified":"2025-09-19T19:59:03","modified_gmt":"2025-09-19T23:59:03","slug":"all-about-automatic-investing","status":"publish","type":"post","link":"https:\/\/www.iwillteachyoutoberich.com\/all-about-automatic-investing\/","title":{"rendered":"Automated Investing (A Lazy Person’s Guide to Building Wealth)"},"content":{"rendered":"\t\t
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Let\u2019s be honest. Nobody really loves\u00a0managing their money<\/a>. I\u2019d rather be using<\/em> my money, like by taking a food tour in Tokyo or a weekend ski trip with friends. Basically, I\u2019m always on the lookout for ways to spend less time and get better results.<\/p>\n

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I\u2019ve taken pains to research investments that don\u2019t take lots of time to maintain and also pay off. That\u2019s why I urge you to combine a classic low-cost investing strategy with automation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is Automatic Investing?<\/h2>\n

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Automatic investing is not some revolutionary technique that I just invented. It\u2019s a simple way of investing in low-cost funds that is recommended by Nobel Laureates, billionaire investors such as\u00a0Warren Buffett<\/a>, and most academics.<\/p>\n

It involves spending most of your time choosing how your money will be distributed in your portfolio, then picking the investments (this actually takes the least amount of time), and finally automating your regular investments so you can sit and watch TV while growing your money. Hey, we\u2019re lazy. We might as well embrace it and use it to our advantage.<\/p>\n

Why Automatic Investing Works<\/h2>\n

Automatic investing works for two reasons:<\/p>\n

Lower expenses.<\/em><\/span>\u00a0Nothing kills your investment performance more than expensive funds that invisibly drain your returns. Investing in them is especially crazy when you can earn better returns with lower fees. Why would you pay for the privilege of losing your money?<\/p>\n

\u00a0With automatic investing, you invest in low-cost funds\u2014which replace worthless, expensive portfolio managers\u2014and you save tens of thousands of dollars in trading fees, taxes incurred by frenetic trading, and overall investment expenses, thereby outperforming most investors.<\/p>\n

It\u2019s automatic.<\/em><\/span>\u00a0Automatic investing frees you from having to pay attention to the latest \u201chot stock\u201d or micro-change in the market. You pick a simple investment plan that doesn\u2019t involve any sexy stocks or guessing whether the market is going up or down, and then you set up automatic contributions to your investment accounts.<\/p>\n

In this way, you effectively trick yourself into investing because it requires no work from you. This means you can focus on living your life\u2014doing your job well, spending time with friends, traveling to different countries, eating at great restaurants\u2014instead of worrying about your money.<\/p>\n

I might well call this Zen Investing for People Who Have Real Lives. (And that is why I\u2019ll never be a naming consultant.)<\/p>\n

Is it Too Good to Be True?<\/h2>\n

The way I described automatic investing was basically the same as saying \u201cPuppies are cute.\u201d Nobody would ever disagree with it. Automatic investing sounds perfect, but what happens when the market goes down?<\/p>\n

It\u2019s not as easy to go along for the ride then. For example, I know several people who had automatic investment plans, and when the stock market incurred huge losses in late 2008, they immediately canceled their investments and took their money out of the market. Big mistake.<\/p>\n

The test of a real automatic investor is not when things are going up, but when they are going down.<\/p>\n

For example, in October 2018, the stock market dropped and one of my investment accounts decreased by more than $100,000. I did what I always do \u2014kept investing, automatically, every single month.<\/p>\n

It takes strength to know that you\u2019re basically getting shares on sale\u2014and, if you\u2019re investing for the long term, the best time to make money is when everyone else is getting out of the market.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\tI started investing\n \nabout three years ago,\n\nafter reading a bunch\n \nof finance books,\nincluding yours. I\nstarted pretty late, was\nalmost thirty-one, but I\nfeel pretty good about\nMy progress. I\u2019m\nmaxing out my Roth,\nwhere I\u2019m investing\nmore aggressively, and\nalso putting 15 percent\nin my 401(k) with\nVanguard, all index\nfunds. I\u2019m the first in\nmy family to do this, so\nit took a while to figure\nout, but now it\u2019s on\nautopilot, so it feels\ngreat.\n\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t\u2014JOE FRUH, 34<\/span><\/span><\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The Bottom Line<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Automatic investing may not seem as sexy as trading in hedge funds<\/a>\u00a0and biotech stocks, but it works a lot better. Again, would you rather be sexy or rich?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Build a Financial Future Today<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Investing and obtaining financial knowledge shouldn\u2019t be hard. Learning the techniques to make you rich are simple, and we help everyone get started. I Will Teach You To Be Rich<\/a> educates people from all walks of life to find financial freedom.<\/p>\n

Some of our techniques may challenge outdated personal finance advice, and we\u2019re confident our strategies can prepare you to invest and manage money wisely. You don\u2019t have to give up everything in life; learn the basics and beyond to apply to your own successful financial journey.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The world wants you to be vanilla...<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\u2026but you don\u2019t have to take the same path as everyone else. How would it look if you designed a Rich Life on your own terms? Take our quiz and find out: <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tTake the Quiz<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Automated investing builds long-term wealth by consistently investing in low-cost index funds without the stress of picking stocks or timing the market.\u00a0 To start, set up a simple system: open an investment account, pick one broad index or target-date fund, automate monthly contributions, and let compound growth do the work. This approach avoids hidden fees, […]<\/p>\n","protected":false},"author":8,"featured_media":123719,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_lmt_disableupdate":"yes","_lmt_disable":"","_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[160],"class_list":["post-59465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"aioseo_notices":[],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/59465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/comments?post=59465"}],"version-history":[{"count":0,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/59465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media\/123719"}],"wp:attachment":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media?parent=59465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/categories?post=59465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}