The Lazy Investor’s Guide to Building Wealth Automatically
The Lazy Investor’s Guide to Building Wealth Automatically
1. Pay Yourself First
Set up automatic transfers to your investment accounts right after you get paid. Treat investing like a bill—non-negotiable.
Tools to use:
-
Direct deposit split (employer)
-
Auto-transfer via bank or brokerage
2. Choose “Set It and Forget It” Investments
Opt for low-maintenance, broadly diversified funds.
Best picks:
-
Target-date retirement funds (adjust risk as you age)
-
Total market index funds (like VTI, VTSAX)
-
Robo-advisors (Wealthfront, Betterment)
3. Automate Contributions
Set up recurring monthly contributions to:
-
Retirement accounts (401(k), IRA)
-
Brokerage accounts
-
High-yield savings (for short-term goals)
Bonus tip: Increase contributions yearly or when you get a raise.
4. Use Tax-Advantaged Accounts
Take advantage of accounts that let your money grow tax-free or tax-deferred.
Top options:
-
401(k) or 403(b) with employer match
-
Roth IRA / Traditional IRA
-
HSA (Health Savings Account, if eligible)
5. Ignore the Noise
Don’t try to time the market. Avoid daily news that provokes fear or greed. Stick to your automated plan.
Remember: Time in the market beats timing the market.
6. Reinvest Dividends Automatically
Turn on automatic dividend reinvestment to harness compound growth without lifting a finger.
7. Keep It Simple
Use 1–3 funds max. Complexity doesn’t equal better returns. The goal is automation and peace of mind.
8. Check-In Once a Year
Once a year, do a simple review:
-
Rebalance if needed
-
Increase contributions
-
Check for better account options or lower fees
Would you like this in a downloadable format like a PDF or a shareable checklist?