The Ultimate Guide to Lazy Investing

Investing can make a huge difference to your future. Putting some money aside in a savings account will help you save for a rainy day, but it will take a long time for your money to amount to anything. If you invest, you can grow your money instead of just saving it. But usually investing sounds like a lot of effort. You need to do a lot of research, so you know what you’re doing, and it takes time to learn the ropes. However, if you want to invest with minimal effort, there are ways you can do it. Investing doesn’t have to become your whole life, with these simple tips for the lazy investor.

lazy investing

Lazy Portfolios
The first way to invest with little effort is something you know is perfect for lazy people, lazy portfolios. These portfolios are designed to perform well in most market conditions, so they don’t need to be watched as closely as other portfolios. Most lazy portfolios contain a few low-cost funds that are simple to re-balance. They usually contain 30-40% bonds, making it possible for an investor to maintain the same asset allocation for an extended period. Many lazy portfolios have between two and four funds, but some have more funds and the same amount of bonds. Some examples include the Coffeehouse portfolio, the Coward’s portfolio, and the Ideal Index portfolio.

Use a Broker
Learning to be a smart investor can take a long time. However, you can make the process easier by using a broker. An investment broker can advise you about how and when to invest, as well as acting as an intermediary between you and investments. Finding a good broker can take a long time, but you can make it easier by using a service. You can find ways to save yourself money and choose a reliable broker via the internet or by contacting brokers over the phone.

Single-fund Solutions
If you aren’t interested in building any kind of portfolio, you can use single-fund solutions. Some mutual funds offer target-date funds that create diversified portfolios for certain age groups. For example, Fidelity Freedom 2035 automatically adjusts its investment structure as time goes on. There are several other single-fund solutions that you don’t have to do too much work on.

Build a High-yield Portfolio
Building a high-yield portfolio could also be a good way of avoiding paying too much attention to your investments. Instead of spending a lot of time trading, you can choose your investments carefully and leave them alone. By building a diverse portfolio, you can avoid trouble in any one market affecting your portfolio too badly. You can make your income by drawing the dividends from your shares, and your income could grow over time.

You can’t make investments without putting in some thought and effort, but you can minimize the amount of time you need to spend on maintaining your portfolio. Try researching some of the above options further to see if one of them might be right for you.

Photo source: Simon Cunningham