Investing is often portrayed as a fast-paced game of buying and selling stocks, monitoring the market and making split-second decisions only an expert investor could make in time. But the truth is most successful investors don’t spend their days glued to a stock ticker. Instead, they follow simple, time-tested strategies that grow their wealth with minimal effort.
If you want to build wealth without making investing your next full time job then read on. This is exactly how to create a hands-off, manageable investing strategy.
Utilize Index Funds
One of the easiest ways to invest without stress is by putting your money into low-cost index funds. These funds track the performance of a broad market index, such as the S&P 500, meaning you’re investing in hundreds of companies at once.
Why is this great for lazy investors?
- No stock picking required: You don’t need to research individual stocks.
- Consistent long-term growth: Historically, the stock market has trended upward over time.
- Low fees: Index funds have significantly lower fees than actively managed funds, which means more of your money stays invested.
A popular choice for beginners is Vanguard’s VOO (S&P 500 Index Fund) or Fidelity’s FZROX (Total Market Index Fund). Simply buy and hold, and let the market do its thing.
Automate Your Investments
One of the most effective investing strategies is automation. Instead of manually transferring money to your investment account, set up automatic contributions so that a fixed amount is invested at regular intervals.
Most brokerage accounts, like Vanguard, Fidelity and Charles Schwab, allow you to automate investments, so your money is working for you even when you’re not paying attention.
Follow the 90/10 Rule
The great investor Warren Buffett has famously recommended a 90/10 portfolio for most people:
- 90% in a broad index fund (like the S&P 500)
- 10% in bonds or other low-risk assets
The S&P 500 has historically returned about 8-10% annually, and the small bond allocation provides some cushion during downturns. This strategy requires virtually no effort but still delivers solid returns over time.If you want an even simpler version, consider a target-date fund that automatically adjusts your asset allocation based on your retirement timeline.
Avoid Day Trading
If you think you need to watch the stock market daily to make money, think again. Studies have shown that buy-and-hold investors outperform active traders over the long run.
Instead of trying to time the market, focus on time in the market — the longer you stay invested, the better your returns.
Use a Robo-Advisor for Hands-Off Investing
If you want a completely hands-free investing approach, consider using a robo-advisor like Betterment, Wealthfront or M1 Finance. These platforms automatically manage your investments based on your risk tolerance and financial goals.
This is a great option if you want a professionally managed portfolio without paying high fees for a human financial advisor.
Keep Your Hands Off Your Portfolio
The key to lazy investing is not messing with your investments. Many people make the mistake of panic-selling during downturns or chasing hot stocks. But history shows that staying invested and ignoring short-term market swings leads to better returns.
